ICTU: 15% wage cut call ‘nonsense’

THE Irish Congress of Trade Unions (ICTU) has described as “utter nonsense” calls by IDA chief Barry O’Leary that wage cuts of up to 15% were required to restore competitiveness.

At the ICTU biennial conference in Tralee, assistant general secretary Sally Anne Kinahan said the best way to address competitiveness was through serious investment in upskilling and learning, starting at pre-school and continuing through all levels and all ages. “Even far right economists concede that competitiveness is far more complex, complicated and about much more than wage levels. He [Mr O’Leary] has clearly adopted a simplistic ideological position and not one that is informed by the facts.” Cutting wages will simply depress demand and kill consumption, a dangerous step in an economy where domestic demand comprises almost 50% of all activity, she said.

At yesterday’s conference, the Teachers’ Union of Ireland (TUI) demanded the Government reverse 13 cuts in the education system, claiming it was now reeling from a near mortal blow.