Trade unions operating in the private sector should seek wage increases of between 4 per cent and 7 per cent next year while aiming to protect hours, improve new entrants’ rates and utilise tax-free vouchers where possible, the Irish Congress of Trade Unions has told its affiliates.
The Ictu’s Private Sector Committee has issued the guidance on the basis, it says, real wages have not recovered from the impact of inflation experienced during 2022 and 2023.
In its advisory, the organisation says institutional predications suggest inflation will hover around the 2 per cent mark for the next two years and this represents an opportunity for unions and their members to make back some of the ground that has been lost. It cautions that increases at the higher end of the recommended range should be sought “where affordable”.
[ Average weekly earnings rise by 5.3% as workers seek real wage catch-upOpens in new window ]
It says the “domestic outlook remains positive and output should increase by close to 2.5 per cent in 2024 and then 3 per cent in 2025″.
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“Real wage growth will continue through the rest of 2024 and 2025 as a tight labour market combines with a declining rate of inflation.”
It does note that the US political situation is a concern, particularly in relation to exports, but suggests the outlook continues to be generally positive.
“Monetary policy will continue to ease and the lower interest rates will add to both consumption and investment. The modestly expansionary budget will further contribute to growth and the strong public finances would enable a countercyclical response were a downturn to occur,” it says.
In the circumstances, Ictu general secretary Owen Reidy contends it is only right unions should push for above-inflation increases.
“The average worker in the private sector is worse off today than three years ago, despite slower price inflation,” he said.
“We are told in times of high inflation don’t chase inflation. We are told in times of low inflation our aspirations must be moderate. We believe all private sector workers in Ireland deserve to aspire to a decent pay rise in 2025. If not now, when?
“We are not merely interested in workers catching up with inflation over recent years. We need to ensure that the living standards of workers improve.”
A recent survey of its members by Ibec suggested 80 per cent of them expected to increase pay by 4 per cent or less during 2025 but the Economic and Social Research Institute has said it expects real wages to grow by 3.5 per cent over the course of the year, something that would put overall increases at about the mid point in Ictu’s recommended range.
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