Unions criticise Ibec over 'shameful' demands

Ibec requests Government pause all further labour market policy measures which could add costs to employers

Owen Reidy, general secretary of Irish Congress of Trade Unions.

Worker unions have criticised the business group Ibec for its “shameful” and “unacceptable” demand that the Government pause all further labour market policy measures which could add costs to employers.

The war of words broke out after Ibec blamed a raft of Government policy changes for increasing the cost of doing business, particularly for smaller and medium-sized companies, while unions have said these changes have been needed for a long time.

It comes following reports of businesses in the hospitality sector struggling amid rising costs with some having to close their doors for good. Already this month, Cork restaurants Nash 19 and White Rabbit have announced they are to close.

The Irish Congress of Trade Unions (ICTU) has called Ibec’s criticism of the new measures for employees, as well as their demands for a delay, “unacceptable” and “shameful”.

Owen Reidy, general secretary of the ICTU, said Ibec’s comments “shouldn’t be tolerated” as many workers in Ireland remain “seriously affected by the cost-of-living crisis”.

The ICTU said the “modest” increase to sick leave has been well-flagged over the last number of years and it is “disappointing” that Ibec is taking a “short-term and knee-jerk approach to this”.

Another union representative, Greg Ennis, incoming deputy general secretary of SIPTU, said Ibec are seeking to deny “basic improvements” to workers wages and conditions in favour of the “relentless drive to rinse more out of them in the pursuit of profit and shareholder dividends”.

Mr Ennis added that lower paid workers feel the impact the most of the cost of living crisis and high inflation.

As of January 1, the national minimum wage increased by €1.40 to €12.70 an hour. In addition, the number of statutory sick days increased from three to five. There have also been increases to employer PRSI.

The Government is also expected sometime this year to rollout the pension auto-enrolment which businesses expect to add to their labour costs.

In a letter to the Government, Danny McCoy, chief executive of Ibec, called for a pause on the “uncoordinated and excessive labour costs increases”. The group is also calling for a full impact assessment of increased labour costs as a result of these policy changes.

He said escalating costs are affecting businesses with the viability of small enterprises of particular concern.

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Mr McCoy said many businesses are struggling to maintain margins as the cost of doing business “increased dramatically due to government-imposed labour costs”.

Between inflation and the rising price of energy over the last few years, many businesses have seen their costs of doing business increase. 

While closures in the hospitality sector have been highlighted in recent weeks, the trend has been ongoing for several months and was documented before the introduction of these new employee policies this year. 

In the latter half of 2023, 280 Irish restaurants and cafés were forced to close for good, 50 of which closed in November just before the busy Christmas period.