A Low-Wage Economy with Strong Productivity and Rising Profits – Why Not a Pay Rise?

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Unite has produced ‘Ireland Needs a Wage Increase’ – a comparative study of Irish and European employee compensation.  The bottom-line is that

  • Ireland is a low-waged economy when compared with other EU-15 countries
  • Productivity in Ireland is above the EU-15 average
  • Irish profits are higher and rising faster than in the EU-15

In addition, the document highlights the plight of workers in low-paid sectors (their compensation levels are even further behind EU-15 averages), labour costs as a proportion of total operating costs (lower in Ireland) and future wage growth projections which show us even further behind.

The document also provides comparisons on a sector basis (e.g. manufacturing, transportation, financial services, hospitality, etc.).

This should put paid to the argument that Irish wages are somehow out of kilter with the rest of our European peer group – but it probably won’t as the wage-deflationists will just ignore these facts.  That’s why it is even more important to get this information around.

The full document can be accessed here:  Ireland Needs a Wage Increase

The summary can be accessed here:  Ireland Needs a Wage Increase (Summary)

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