ESRI backs call for wage control

LEADING economists yesterday backed calls from employers group IBEC for wage restraint in the forthcoming national pay talks.

The government-sponsored Economic and Social Research Institute (ESRI) said yesterday that Ireland's competitiveness needed to be firmed up by restricting wage increases to levels in other European countries. The ESRI also said Irish workers should improve productivity in return for pay increases.

Speaking at the launch of the institute's quarterly economic commentary, ESRI economist Danny McCoy said Irish labour costs were already higher than other European countries. He said the addition of 10 new member states to the EU in May should focus minds on the threat posed to jobs by a high cost base.