ICMSA: Farm incomes could suffer if co-ops have to pay higher wages

FARM incomes could be further eroded if co-ops and other food processors have to pay higher wages to employees, without savings being made elsewhere, the Irish Creamery Milk Suppliers Association has warned.

Jackie Cahill, president, said the ICMSA recognised the stability that national wage agreements bring about.

However, there would be intense concern in the farming community that, without corresponding economies being made in other areas, the proposed wage deal would increase costs on food processors.

“The critical thing here is that overall payroll costs absolutely cannot rise and that any wage increases paid to employees must be balanced by cuts elsewhere in the payroll.

“The alternative, where employees are receiving wage increases while farmers supplying these concerns are seeing their milk price cut and their own incomes plummeting, is grossly unfair and will be intolerable to the ICMSA,” he said.

Mr Cahill said, in the overall context, any attempt to reform the national finances will be viewed on the basis of the Government honouring its commitment to essential on-farm investment.

Irish Rural Link (IRL), the national organisation campaigning for sustainable rural communities, said it welcomed the inclusion of strong commitments to achieving balanced regional development in the social partnership process.

Seamus Boland, chief executive, said the Government and social partners have agreed that a High Level Working Group on Regional Development is to be established to co-ordinate progress in developing social and economic infrastructure throughout all the regions.

The review of the current agreement also contains a commitment to establish a forum which will examine the difficulties and possible supports for the manufacturing sector.

“More rural regions tend to be more dependent on manufacturing employment than urban areas and a well-developed manufacturing strategy is, therefore, very important for more rural employment markets,” he said.