Wage freeze likely for private sector

PRIVATE sector workers are to face wage freezes, according to Friends First chief economist Jim Power.

“The reality for many workers in the exposed sectors of the economy this year will be that a wage freeze is a small price to have to pay for retaining one’s job. This puts the enviable position of public sector workers in context ” he said.

“The 10.4 % decline in the income tax take in January is indicative of the deterioration in the labour market. Jobs are being lost, but more significantly overtime hours and bonuses are falling sharply, and despite the charade that is Social Partnership, many workers in the private sector will face wage freezes this year,” he warned.