Pay hikes needed to stimulate growth, insists union leader

The leader of one of the country’s largest public sector unions has claimed the next phase of growth in the Irish economy will not happen unless there are pay rises in all sectors of the workforce.

Impact general secretary Shay Cody said wage recovery was essential to improve reduced living standards and encourage domestic spending, which would create more jobs. He said continued wage depression would “stifle growth before it can take hold”.

Impact said Mr Cody was making his comments after Finance Minister Michael Noonan announced economic growth of just over 3% this year and said he expected a similar figure in 2015.