‘Pay hikes vital to achieving jobs target’

Pay recovery across all sectors of the Irish economy is vital if the Government is to achieve its target of full employment by 2018, according to public sector trade union Impact

The union’s general secretary, Shay Cody, said the Government’s objective to achieve full employment two years earlier than originally planned is ambitious.

“Every trade union wishes to see this objective realised, but it can only be achieved by enabling workers to spend more in the domestic economy,” said Mr Codt.

“Pay improvements across all sectors would have the immediate effect of boosting domestic demand. Most of that money would go straight into Ireland’s small and medium businesses as the extra cash is far more likely to be spent locally.”

He welcomed comments by the Public Expenditure Minister Brendan Howlin that talks on the restoration of public sector pay are expected to begin in the spring.