Irish workers paid considerably less than European counterparts
The Amalgamated Transport and General Workers Union (ATGWU) published an analysis of Irish wages to correct distortions surrounding wage levels.
Drawing on data from the Central Statistics Office, the EU Commission, the OECD, US Department of Labour and private surveys, the union’s analysis shows that Irish wages in the private sector are low by European standards and that Irish workers are paid considerably less than most of their European counterparts.
ATGWU regional secretary Michael O’Reilly said: ‘There certainly are problems in the economy and in our competitiveness. But they are not due to wages or labour costs. We are told we need to keep wages low or we won’t be competitive.’
So in the World Economic Forum’s Business Competitive Index we might expect to see Ireland streets ahead of other high-waged, high-taxed European economies. But that is not the case.
In terms of business competitiveness, Ireland ranks 11th in the EU15 - behind every other country with higher wage levels than ourselves.
‘A dynamic, innovative and prosperous economy will not be built on the basis of repressing wage levels and living standards. Rather, a prosperous workforce is the key to resolving many of our social and economic issues,’ said Mr O’Reilly. A critical part of creating that prosperity is higher wages.
The ATGWU analysis shows:
* Irish wage levels throughout most of the economy, particularly in the industrial sector, lags well behind the EU15 average.
* Non-wage labour costs (employers’ PRSI) are one of the lowest in Europe.
* Irish workers receive less secondary benefits (eg, holiday time, annual bonuses) and work longer hours than their European counterparts.
* Wages are falling as a proportion of national income, while profits are rising at a faster rate.
* Wages make up only a small percentage of business turnover and the proportion of value-added going to wages is falling.
* Ireland has one of the highest levels of low pay in the EU15 and there are indications this is on the rise.
* Irish workers not only receive fewer wage increases as a proportion of economic growth than most other EU15 workers, but those increases are being eaten away by inflation.
* There are indications that wage increases are declining dramatically and that the gap between Ireland and the rest of the EU is starting to widen again.
* Net take-home pay is seriously eroded by the high-priced, high-cost nature of the Irish economy.
* Compared to the self-employed and proprietary directors, PAYE workers are falling well behind in terms of income.
* Given that the IDA sells Ireland to the rest of the world on the basis of our low wages, can there be any doubt we are a relatively low-waged economy?
Paul Kinsella
53 Lorcan Grove
Santry
Dublin 9
