05/10/2009

Union Rejects Proposed 'Pay Freeze'

One of Ireland's biggest trade unions, Siptu, has rejected plans for a "pay freeze" from an Irish business interest group.

Speaking today, the General President of Siptu reacted angrily to the Irish Business and Employers Confederation's call for a pay freeze saying instead it was time employers made a contribution to economic recovery.

Siptu General President Jack O’Connor said: “IBEC does not seem to have copped on that the game has changed. We are fed up hearing for the last 12 months what is being demanded of workers as a contribution to national recovery.

“What we want to know is what employers’ organisation and their constituency are going to contribute, because the wealthy and the people at the top of society have contributed nothing yet.”

The IBEC said today that any expectations of pay rises in 2010 were "unrealistic". The Confederation reiterated its call for a formal suspension of the pay terms of last year’s national agreement which, it believes, are no longer sustainable.

IBEC Director General Danny McCoy said: "Lack of jobs is the single biggest issue facing our economy, but only competitive businesses can sustain and create employment.

"It is in everyone’s interests that we work on our competitiveness. IBEC is willing to make a final push to conclude an agreement on national recovery with ICTU and the government, but such a deal must recognise the fact that businesses cannot give any pay increases in 2010 and that many enterprises will in fact be reducing their pay bill.”

Mr McCoy added that if consensus could not be reached in coming weeks, IBEC would take its own decision in relation to its continued participation in the pay agreement.

(DW/KMcA)


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