Inequality between public and private sector widens.
Government must invest in public services.
ISME, the Irish Small and Medium Enterprises Association, at the release of the CSO Earnings and Labour costs figures today (25th November), called on the Government to invest more in public services before pay restoration. The Association warns against any sort of give away on public sector pay.
Average weekly earnings were €701.87 in Q3 2016, a rise of 1.2% from €693.57 one year earlier according to preliminary estimates of the Earnings and Labour Costs Quarterly release. However, the differential in weekly pay between the public (€916) and private sector (€643) now stands at €273.
ISME, CEO, Neil McDonnell said, “This differential puts into perspective the public sectors demands for pay restoration. Public sector unions seek to increase the income inequality between the public and private sector, with arguments for the former not living up to economic reality. Adding, Private sector wage expectations are necessarily more modest”
The Association called for:
No change to public sector pay before the Public Sector Pay Commission issues its report.
Improved efficiencies within the public sector to increase value for money.
Removal restrictive rules on out-sourcing in the public sector.
“We need an honest debate about whether further state spending should be directed to providing more services for our growing population, to increasing pay for the lucky one-sixth of the workforce in the public service.” concluded McDonnell.