ICOS warn against wage increases

THE umbrella body for the country's co-ops, ICOS, has warned that an increase in labour costs would further reduce their competitiveness and ultimately lead to job losses.

Dessie Boylan, president, said he was deeply disappointed the Government has not put forward specific commitments on agriculture.

Dairy co-operatives and livestock marts faced significant labour cost increases over the period of the PPF.

Any new agreement must take account of ability to pay and must provide for a wage freeze or equivalent productivity increase, rather than sacrifice farmer incomes.

The ICMSA warned the proposed 7% wage rise over the next 18 months cannot be paid by the dairy processing sector. President Pat O'Rourke said unions and management must face this reality. Weaker markets and reduced returns because of the strength of the euro must set the basis for all.

The sector as a whole should plead inability to pay. It was unacceptable to fund increased wage demands by further decreases in the incomes of dairy farmers.

Minister Joe Walsh discussed dairy sector issues when he visited ICOS headquarters in Dublin. He said on-going contact with the industry on CAP reform proposals would be intensified in the weeks ahead through work of consultative groups.