Now it's the private sector: Unions demand 4% pay increase for all members

Pressure is mounting on the government to put an end to the existing public pay row.

By Fora Staff

PRIVATE-INDUSTRY TRADE UNIONS expect to seek significant pay rises next year on the back of widespread claims from their public-sector counterparts.

The Irish Congress of Trade Unions will recommend that unions seek the 4% rise for the members, a figure which should translate into an average pay increase rise of €1,000 per year for workers.

The chair of the union’s private sector committee, John Douglas, said a briefing will be circulated to all affiliated organisations setting out the rationale and key data in support of the pay claim.

Wages remain flat

Douglas said the relevant data showed that labour costs had fallen in recent years, productivity had risen and profits had increased, while wages remained flat.

“People have seen their living standards either stagnate or fall over recent years as a result of austerity and rising costs. The best way to address this deficit and to help grow the economy is through wage increases,” he said.

Employers group Ibec has accused the unions of “crude opportunism” stating that the collusion between private and public sector unions should be resisted.

However with private-sector unions following the lead of the public sector, pressure is now mounting on the government to deal with existing pay rows.

Minister for Public Expenditure and Reform Paschal Donohoe brought a memo to Cabinet today reiterating the government’s position on the outstanding pay demands.

The memo reaffirmed the government’s position on the Lansdowne Road Agreement, stating that there would only be a “collective approach” to any claims.

Lansdowne Road commitment 

It’s understood ministers urged Donohoe to stand firm against an ultimatum issued by Siptu giving the government until Thursday to provide a response.

“We stand by Lansdowne Road,” Taoiseach Enda Kenny told the Dáil today. “The public service pay demands have to be balanced against the constraints” of the government, he said.

Though it appears publicly that the government won’t be moved on the issue, privately there are soundings that a renegotiation of pay restoration for public-sector workers could take place early next year.

Donohoe has reiterated recently that there is no money to spare from the Budget, adding that the government is determined that public services will not be impacted by pay demands.

Written by Christina Finn and posted on TheJournal.ie