Reduce state controlled cost to put money back into workers pockets.
ISME, the Irish Small and Medium Enterprises Association is delighted to see the improved jobs figures at the release of the Quarterly National Household Survey. However, the Association highlights its disappointment in Unions not backing our campaign to reduce the cost of living for workers.
The QNHS for Q3, 2016 shows that there was an annual increase of 57,500 jobs in the last 12 months. There are still 177,700 people unemployed, of which 52% are long-term claimants which is still a cause of concern. The seasonally adjusted unemployed rate decreased from 8.3% to 7.9% over this quarter.
ISME, CEO, Neil McDonnell said, “Unjustified pay demands and ultimatums to government are not the right approach to take. The uncertainty around Brexit is creating a climate of caution and unease. The pay rise demands by private sector unions are totally out of sync with economic reality and will further undermine job creation among SMEs”.
Adding “There is another way of putting more money back into workers pockets; by reducing state controlled costs in transport, childcare, health, education and insurance, workers would have a greater disposable income which would off-set the need for pay hikes”.
The Association highlights the Governments need to address the SME sector concerns by:
Focusing on cost competitiveness, and tackle SME business costs.
Investing in high quality broadband across the country.
Using the tax and social welfare system to encourage employment.
Tackle Social Welfare Trap and end poverty traps.
Ensuring flexibility in the labour market through reasonable regulations.
Monitoring the availability of bank credit in the economy.
“We are disappointed that Unions will not back our campaign to reduce state controlled living costs.” concluded McDonnell.