Trade unionist warns of raft of strong pay demands
Irish Congress of Trade Unions general secretary David Begg said similar wage “explosions” occurred in the 1960s following economic depression after the Second World War.
Mr Begg also said Congress would soon release a medium-term vision for Ireland which would call for new policies to address imbalances in areas such as health and education.
In an interview with the Irish Examiner, Mr Begg was cautious about Ireland’s recent exit from the EU-IMF bailout programme. Reducing unemployment further would largely depend on the removal of private as well as banking debt in Ireland.
However, Mr Begg said that workers would likely seek pay rises in line with any recovery.
“Let’s suppose in the next two years that recovery does come,” said Mr Begg. “At that point, you’re looking at 10 years of wage suppression. That’s a quarter of a person’s working life.”
Mr Begg was reflecting on workers’ pay in both the private and public sector. Public sector workers currently face a raft of pay cuts under the Haddington Road agreement. The deal between the Government and workers imposes a pay freeze until 2016.
However, increments or pay bonuses will kick back in for those earning over €65,000 the same year.
Mr Begg predicted that the pay demands would occur across all sectors and would also be as a result of skills shortages in some industries.
