Private sector unions to seek pay rises of up to 4.5% next year

Productivity in the economy, the highest number of job vacancies for 13 years, as well as inflation, are pointing to private sector claims in 2022, union says

Tom McDonnell, co-director of Neri, said employers can afford the pay claims despite the ongoing pandemic. 

Private sector unions have said they will submit pay claims of up to 4.5% next year as inflation, vacancies, and a performing economy combine for employees to secure "wage growth in excess of the long-run average".

The advice for unions comes from the Irish Congress of Trade Unions (Ictu) and the Nevin Economic and Research Institute (Neri). They said productivity in the economy, the highest number of job vacancies for 13 years, as well as inflation, are pointing to private sector claims in 2022. 

"The guidance advises unions that they should seek pay increases in the range of 2.5% to 4.5 % in the coming year," Ictu said.  

Tom McDonnell, co-director of Neri, said employers can afford the pay claims despite the ongoing pandemic. 

"Workers in the private sector of the economy are making a significant contribution to the profitability of the firms in which they work," Mr McDonnell said. 

"They deserve to have a share in the wealth that is generated as a result of this contribution," he said. 

The Ictu pay guidance does not cover the public sector, whose claims are done in a different timeframe.  

After peaking this year, Neri projects inflation will settle back to 2% in the second half of 2022. 

CSO figures last week showed consumer prices rose by annual rate of 5.3% in November, driven by energy and rental costs. 

The European Central Bank has long insisted that inflation will be a temporary phenomenon and the pressures pushing global prices higher will in time play out.