Sir, – Anthony Gray, president of the Restaurants Association of Ireland, stated that according to the recent Global Wages Report, Ireland had the fourth highest hourly labour costs (or employee compensation) in the world ("Why the minimum wage should not be increased", Opinion & Analysis, July 25th). This is mistaken, particularly when it comes to the hospitality sector, which includes both restaurants and hotels.
Comparing ourselves to our peer group – the EU-15 – we find that Irish labour costs are well behind most other countries. Only seven countries are reported in the Global Wages Report, and of these average Irish labour costs in the hospitality sector are at the lower end, at €13 per hour – the same as Spain, just above the UK (€12), but well below the other reporting countries: Finland (€26), France (€23), Netherlands (€19) and Austria (€18). Ireland has extremely low wages compared to most other countries. This conclusion is backed up by the EU's labour force survey and national accounts.
In essence, Irish employers in the hospitality sector get their labour on the cheap; even more so considering the ultra-low levels of employers’ social insurance and corporate tax rates compared to other countries.
This helps explain why one in five of those in the workforce, according to the Central Statistics Office, suffer multiple deprivation experiences. – Yours, etc,
JIMMY KELLY,
Ireland Secretary,
Unite,
Middle Abbey Street,
Dublin 1.