IBEC: New national agreement will sustain jobs

IBEC have said a new national agreement will help to maintain the maximum number of jobs in the country.

Speaking at the IBEC summit 'Surviving the Recession - Staying Afloat' in Dublin today, IBEC director Brendan McGinty said: "A new National Agreement which sets out an agreed response to the serious economic crisis will help to secure economic viability and protect the maximum number of jobs. "

IBEC is proposing the need for a pay pause for a significant period in a new national agreement which "recognises the dramatically changed economic circumstances including the urgent need to assist enterprises (especially in manufacturing and the traded sectors) to better cope with competitiveness and cost challenges".

Mr McGinty said: "The need for a new agreement on pay is borne out by the measures being taken by employers to respond to the recession."

According to Mr McGinty, the IBEC business sentiment survey (Q1) of 760 companies, covering 77,000 employees, confirms that:

Pay freezes (64%) and recruitment freezes (62%) are the most likely actions in the next three months.

Pay reductions will be implemented by 20% and is under consideration by another 15%.

A reduction in permanent staff is expected in 29% of companies and is under consideration in a further 24%.

A reduction in temporary numbers is expected in 39% of companies with 13% considering doing so.

Retraining employees on alternative duties / re-skill for job opportunities is expected by 38% of companies, and 20% are considering doing so.

Short-time working or lay-offs are expected in 29% of companies, with a further 22% considering implementation.

About a quarter (23%) is expected to change terms and conditions with 26% considering doing so.

Mr McGinty said: "In this context, the successful conclusion of discussions between the social partners on a new national agreement will create the environment to stem the loss of jobs. This will send out a positive signal to the international community that we can work together to address our problems in a constructive manner."