Sharp fall in real value of public sector pay

BASING itself on comparative developments between 2003 and 2006, the ESRI jumps to the conclusion (December 19) that “public sector rates of pay are no longer sustainable”.

The ESRI winter economic commentary also maintains that “a significant pay advantage for those working in the public sector may have increased in recent years”.

The ESRI seems incapable of acknowledging the cumulative facts established by the latest available CSO data for all of 2006 and 2007 and the first half of 2008.

Over that 30-month period, when set against inflation, the real value of average weekly earnings in industry declined by 2.1%, while in distribution and business services the decline came to 2.8%.

Over the course of those same 30 months to June 2008, however, the decline in the real value of average weekly earnings in the public sector was an even sharper one of 4.1%.

The ESRI should have checked out these facts before appearing to give academic respectability to the strident calls for public sector bloodletting.

Manus O’Riordan

Head of Research

SIPTU

Liberty Hall

Dublin 1