Paschal Donohoe cautions wage restraint, in favour of new jobs

Minister for Transport said wage growth should also take into account ‘ability to pay’

Paschal Donohoe: rejected suggestions that he was a Minister without power. Photograph: Dara Mac Dónaill
Paschal Donohoe: rejected suggestions that he was a Minister without power. Photograph: Dara Mac Dónaill

Demands for increased wages in the transport sector have to be based on employers’ ability to pay – and must not become a barrier to providing additional jobs, Minister for Transport Paschal Donohoe has said.

Mr Donohoe also warned that while wage growth was desirable in restoring a “bruised” economy, it should not happen at a cost to those on low wages.

He rejected suggestions that he was a Minister without power because of the failure of the Dáil to elect a new taoiseach.

Speaking in advance of votes by the Luas workers on a possible resolution to their pay demands – and possible strike action by workers at Iarnród Éireann – Mr Donohoe said he had been “involved with” and supportive of recent Workplace Relations Commission efforts to broker a deal with Luas drivers and management.

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He told RTÉ radio's This Week programme there should be a successor to the Lansdowne Road agreement, which technically runs until 2018.

Tim O'Brien

Tim O'Brien

Tim O'Brien is an Irish Times journalist