Amicus seeks pay rise due to tax inequities

THE AMICUS trade union is to seek an effective 10% pay increase from employers over an 18-month period under the review of the Sustaining Progress agreement if the government fails to address current inequities in the tax system.

According to John Tierney, National Secretary of AMICUS, these inequities, such as the failure to index-link the standard tax rate band, which it is estimated will push a further 50,000 workers into the higher 42% tax bracket has led to significant declines in real take home pay for members of the union.

Addressing delegates at the AMICUS Finance Sector conference in Ennis, Co Clare, John Tierney set out the union’s agenda for the review of Sustaining Progress which is set to commence at the end of March.

John Tierney warned: “If the government does not rectify the inequities in the current tax system, especially ‘bracket creep’, whereby an additional 50,000 workers will find themselves paying tax at the higher rate of 42%, employers could be facing pay demands of 7.5% on average over the 12 months following the expiry of the present agreement, or in the order of 10% over 18 months following the review of Sustaining Progress.”

He also said that the economy is expected to stage a reasonable, but not spectacular recovery this year indicating it will expand by 3%.