IBEC welcomes benchmarking report

IBEC today said the report of the Public Service Benchmarking Body brings reality into pay settlement in the public service at a time when the economy is facing more uncertainty and employment growth is slowing.

IBEC Director General Turlough O’Sullivan said: “Unlike the report of five years ago, it acknowledges the state-backed pensions enjoyed by public sector employees.

"As public sector workers do not face competition, it is only fair that their pay be properly matched against those who do. As we seek to restore our competitive edge in the world and protect jobs and living standards for all, pay moderation is essential."

According to the CSO National Employment Survey for 2006, public sector workers enjoy average earnings which are 49% higher than the private sector. Research from the European Central Bank (ECB) found that between 1999 and 2006, average public sector pay in Ireland increased by 67%, while that in the euro area grew by just 22%.

In the private sector, average pay in Ireland increased by 42% compared to just 15% in the euro area. Benchmarking has resulted in Irish public sector pay growing faster than any other country in the EU and actual pay levels overtaking those in almost every other OECD country.