Madam, - Danny McCoy (Opinion & Analysis, February 23rd) compares the rise in earnings in Ireland with that in Germany. He says the rises here outstripped those in Germany in recent years, which is correct. He also says that in recent times, German workers have worked longer hours, without extra pay.
Mr McCoy neglects to point out that pay levels in Germany are far higher than in Ireland. The latest data shows that the gross average earnings in Germany in 2005 were €41,074, compared with €31,663 in Ireland. When the low-tax regime and very low social security contributions paid by Irish employers are taken into account, the total average labour costs in Germany were $53,278, compared with only $34,395 in Ireland in 2005 (OECD).
Employers' social security contributions in Germany are much higher than here and Irish employers also enjoy the low rate of corporation tax. German workers work far fewer hours per year than Irish workers thanks to their longer holidays and extra bank holidays.
Irish workers work 14 per cent more hours a year on average than German workers - equivalent to over five weeks a year.
We will not compare the superior public transport system in Germany, the excellent child-care supports nor the better health system, all part of the social wage, and paid from a much higher level of public spending. Consumer price levels, house prices and rents are far higher here than in Germany. Furthermore, inflation has been higher here for some years.
While Mr McCoy has a point when he says that in recent years Irish productivity has not grown as quickly as in the past, its level is far higher than in most EU countries on an hourly basis, and this year it will improve on last year. I agree that productivity is the key to the future. It is an area in which trade unions are interested and we will work with employers and the Government to continue to improve it. But working long hours for lower wages, as Mr McCoy seems to be advocating, is not taking "the high road" to the knowledge society. - Yours, etc,
PAUL SWEENEY,
Economic Adviser,
Irish Congress of Trade Unions,
Dublin 1.