Public sector pay cut advised

PUBLIC sector workers have been told by a top economic think-tank to take a pay cut to help the Government balance its budget.

The Economic and Social Research Institute (ESRI) said civil servants had done disproportionately well in recent years and this should be rectified. It recommended the 3.5% wage increase due in September under the national partnership agreement be shelved and existing wages cut.

ESRI economist Dr Alan Barrett said analysis showed public sector workers earned 20% more than those employed in private industries.