Ictu likely to seek annual pay rises of up to 6% and increases in minimum wage at partnership talks.
Wage rises to compensate for both inflation and increased productivity by workers have been sought by the Irish Congress of Trade Unions (Ictu) in the national pay talks.
This suggests union negotiators will be demanding annual pay increases of up to 6 per cent in the talks with the Government and employer bodies. An increase in the minimum wage of €7.65 an hour and a special rise for others on low pay is also being sought by Ictu in the talks, which began on Tuesday.
The main employers' body, Ibec, has already said that any pay increase agreed at the talks would have to be in "low single figures". It has not refused to rule out the prospect of an annual increase of below the current inflation rate of 3.5 per cent.
Ictu general secretary David Begg said yesterday, however, that unions would require an increase that catered for both cost-of-living and productivity increases.
On productivity, he pointed out that the ESRI had forecast that the growth in output per worker would increase by 2.5 per cent a year up to 2010. While that would point to a 6 per cent pay increase if added to inflation, Mr Begg emphasised that Ictu had not submitted any particular figure in the pay talks. One of the factors to be considered was the likely inflation trend during whatever term was covered by a pay deal, he pointed out.
Employers want any new pay agreement to run for three years, within the overall framework of a ten-year social partnership deal.
Mr Begg said yesterday that uncertainty about inflation was among the reasons unions would prefer a shorter, two-year pay deal. Ictu yesterday published two documents it presented at the talks this week, including one titled: The Case for a Generous Wage Settlement. It said wages in Ireland were much lower than those in the State's EU trading partners, while Irish workers faced much higher prices than was the case in "virtually all" of the original 15 EU states before enlargement in 2004.
In addition, Irish employers faced "lower taxes on profits and make far lower social welfare contributions", the document said.
It also argued that Irish labour costs were substantially below those of many EU countries, while Ireland's productivity per hour ranked fifth of all OECD countries in 2003.
Not alone were Irish workers very productive, but they worked much longer hours than most Europeans, the document added. "Irish workers have a good case for reduced hours, through a shorter working week, more national holidays or longer holidays."
A second Ictu document presented at the talks outlined Coming Challenges on Productivity. Ictu economic adviser Paul Sweeney said productivity had been soaring in Ireland, and a slowdown was inevitable. Unions wanted to work with employers in maintaining it to as high a level as possible.
Mr Begg said while a ½ per cent additional increase had been secured for those earning up to €9 an hour during the last pay talks in 2004, Ictu hoped to achieve a better outcome for the low-paid this time round. It had not specified, however, whether a flat rate increase or an additional percentage would be sought.
The minimum wage, he said, had moved in line with general increases, but this was not sufficient to address income inequalities.
