Unions have been advised to seek a minimum pay increase of 3.1% as well as additional compensation next year.
The Irish Congress of Trade Unions (ICTU) has advised affiliated unions in the private sector to seek compensation for what they describe as the “excessive costs” of housing, childcare and pensions in 2018, in addition to a minimum pay increase of 3.1%.
The Congress Private Sector Committee issued the advisory on pay bargaining for 2018 to member unions in the private sector this week, pointing out that, through the normal collective bargaining processes and where appropriate, affiliate private sector unions should seek compensation for the excessive costs mentioned above.
That compensation, according to the Congress Sector Private Bulletin, should be in addition to “a minimum pay increase of 3.1% to take account of normal productivity and cost of living factors”.
The bulletin notes that workers in Ireland endure the second highest childcare costs in the OECD, while many workers on average wages struggle to rent or buy homes across the country. In large urban areas such as Dublin, for example, housing can account for up to 47% of total essential expenditure.
Referencing detailed research from the Nevin Economic Research Institute on the high cost of housing, childcare, pensions and on wage trends, meanwhile, the bulletin also notes that the minimum wage in Ireland would have to increase by over 24% to reach the level of the living wage.
Earlier this year, the living wage in Ireland was set at €11.70 per hour, an increase of 20 cents on the figure for 2016.
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