More than 80 per cent of trade union Unite members working in the public sector say the increased cost of living has forced them to cut spending on essentials like food and energy over the past year, new research from the union suggests.
The survey was carried out as part of the union’s preparations for talks on a new public sector pay agreement. It found almost all of the more than 800 respondents had experienced a growth in household costs, with more than half saying their spending was up by between 15 and 20 per cent.
Just over a quarter, 26 per cent, said they had not been able to keep up with all of their payments for accommodation or personal loans.
More than four in five (83 per cent) had to dip into savings to meet household expenses during the last 12 months, and 33 per cent had to borrow to pay bills.
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The survey was conducted between February 16th and March 9th, and so, the union says, it does not capture the full impact of fuel price increases caused by the war in the Middle East.
Unite has members across the public sector, including in education, local authorities and health, and while there are exceptions, they would be predominantly among low to middle earners.
The Public Service Agreement 2024-2026 is worth at least 9.25 per cent over 2½ years to about 400,000 employees of the State. An additional 1 per cent was allocated for local bargaining with the intention that it, and an additional 2 per cent in the next agreement, be used to address outstanding issues in different sectors.
One instalment of the 9.25 per cent, an across-the-board 1 per cent increase, is due to be paid on June 1st of this year. There has been criticism, however, from several unions over delays to the approvals required to implement the first phase of the local bargaining.
The country’s largest union, Siptu, has said the increased prices seen at petrol pumps and in supermarkets as a result of the Iran war are bound to be felt in the position adopted by the unions when talks on a new deal get under way, likely in the coming months.
“What we’re hearing back from our members in the public service is that they are struggling, their pay increases are being eaten by inflation and nobody knows what is going to happen in terms of increased costs over the short to medium term, said recently appointed general secretary John King.
He said the union’s priority in any new deal would be the provision of above-inflation increases.
In terms of the wider workforce, he welcomed the measures announced last week on fuel prices but said further targeted measures are required. “Otherwise, the only course of action for workers to protect their livelihoods is through their unions’ engagement with employers.”
Fórsa, which represents more public sector workers than any other union, has also said the uncertainty caused by the war will have an impact on the talks. It has also called on the Government to seek to reduce the need for employees to use fuel by encouraging remote working.
