Up to a third of SMEs 'can’t afford wage increases': ISME

Up to a third of SMEs 'can’t afford wage increases': ISME

Small and medium businesses have warned they will not be able to afford wage increases any time soon.

ISME, which represents the sector, said continuing economic challenges mean revenue is not available to fund pay increases.

Chief executive Neil McDonnell said: "There's a sort of 'two-economy' thing at the moment," he said. "We are seeing wages, more or less across the board, rising at a steady 2.5% to 3% in most areas of the economy.

"Unfortunately for some of our member companies, up to a third of them are not going to be able to meet wage pressure. They're not doing it because they don’t want to give wage increases - the money (just) isn't there."

More in this Section

Stop right now: Tesco removes Mel B advert in UK following Spice Girl’s complaintStop right now: Tesco removes Mel B advert in UK following Spice Girl’s complaint

Uber CEO expresses regret over comments about journalist’s murderUber CEO expresses regret over comments about journalist’s murder

UK economy ‘spluttering’ despite return to growth, say analystsUK economy ‘spluttering’ despite return to growth, say analysts

Brexit blamed as optimism among Irish businesses falls to nine-year lowBrexit blamed as optimism among Irish businesses falls to nine-year low


Lifestyle

Helen O’Callaghan on the dangers of products high in caffeine.The dangers of energy drinks full of sugar

When bride-to-be Alma Clohessy enlisted her mother Rita’s help in planning her wedding, they made the most of every precious moment together.Wedding of the Week: 'It was the best, yet most emotional day of my life'

As you may be aware, new rules around motor insurance documentation have been introduced. The rules are aimed at improving transparency for consumers but a broker is warning they may have unintended consequences and could cause some confusion among policy holders.Drive a hard bargain for better car insurance

When Peter Ryan lost 90% of his vision in his early 20s, his readjustment was emotionally painful, but maturing, says Helen O’CallaghanA new way of seeing the world: Peter Ryan talks about losing 90% of his sight in his early 20s

More From The Irish Examiner