Public sector pay up 1% on 2011 level

As fresh discussions on public service savings begin tomorrow, it has emerged that workers in the sector have seen average pay rise by 1% in the last year and weekly paid hours fall by 0.6%.

The latest figures from the Central Statistics Office also show that private sector workers earned an average of €617.94 per week in the third quarter of 2012, compared to €925.51 in the public sector. That was an increase of 1.6% and 0.9% respectively on the same period last year. It is the third quarter in a row there has been a year-on-year rise.

Conall MacCoille, chief economist with Davy, pointed out the €307.57 public-private earnings gap was the highest since the third quarter of last year.

The CSO did point out that, in the three years to the third quarter of 2012, average weekly public sector earnings fell by €38.25 (4%) compared to an increase of €8.56 (1.4%) over the same period in the private sector.

Within the private sector, there has been mixed news for various types of workers as regards earnings. While there were increases for workers in eight of the 13 different sectors, in “accommodation and food services” wages fell by 5.1% in the year to Q3 2012.

The biggest increase was in the “professional, scientific and technical” category, where average wages rose 8.4%.

The CSO also compared wages in the various private sector categories in 2008 and 2012.

It found that, in spite of their sector’s perceived role in the collapse of the economy, financial workers have seen their pay rise the most (5.1%) over the last four years. The average weekly wage in that sector, boosted by the continued high salaries of top management, is now €969.14. In that four-year period, salaries in the “arts and entertainment” sector fell by 12.2%.

“After three quarters, it is now almost certain that 2012 will be the first positive year for average earnings growth [close to 1%] since the recession began,” said Mr MacCoille.

“Total wages per employee rose by 0.8% in 2011 compared with the 1.1% fall in average earnings.

“Nonetheless, today’s data provide further evidence that positive earnings growth is now likely in 2013 despite high unemployment.”

In the talks, which begin tomorrow on a successor to the Croke Park deal, the utterances of various Government ministers have made it clear the core pay of public servants will be ring-fenced. Compulsory redundancies have also been ruled out.

There has been speculation as to what will be cut to make up the extra €1bn that is required — longer working hours, increments, and allowances have all been touted.

However, outright cuts to increments appear unlikely. Public Expenditure and Reform Minister Brendan Howlin pointed out as late as July that the Labour Court had ruled those payments were part of core pay.