Chamber president: Pay hikes may hurt recovery

The president of Cork Chamber of Commerce has warned that pay increases have the potential to undermine the country’s competitiveness as the economy emerges from a period of harsh austerity.

One positive of the period of harsh fiscal austerity was the recovery in competitiveness businesses enjoyed which has helped make Ireland an attractive place in which to do business.

However, agreement was reached at the public sector pay talks last week that, if approved, will see 290,000 workers receive a €2,000 rise as part of a pay restoration package.