Irish
IBEC says in the period 1999-2006, compensation per private sector employee in Ireland rose by 42% compared to 15% in the Eurozone
By Finfacts Team
Oct 9, 2007, 07:44

Pay in Europe 2007 - - The richest country Denmark, pays 65x the median pay of the poorest Moldova.

IBEC, the business lobby group holds its annual HR Summit or more prosaically termed a conference, in Dublin today, under the title: Creating the HR Leadership Agenda: ‘Hail to the chiefs’- What do CEOs want from HR?

The Taoiseach Bertie Ahern will open the event at 8.40am. For full programme click here: www.ibec.ie/hrsummit.

Speaking in advance of the conference, IBEC Director Brendan McGinty said: “As we face into a period of more moderate economic growth, it is vital that we all work together to control costs, secure jobs, and to give ourselves a competitive edge.

“The public expects the social partners to get on with the job of keeping Ireland competitive and safeguarding living standards. They are tired of posturing and the uncertainty this creates. In recent years, SIPTU in particular, has spent much time threatening to withdraw from Partnership or laying down pre-conditions before the negotiations get underway. This is regrettable. The union is either committed to the process and to having issues resolved within it, or it is not. Most reasonable people would appreciate if SIPTU made up its mind, one way or the other.

“The current social partnership agreement ‘Towards 2016’ puts in place a comprehensive 10 year plan. The reason for this timeframe is to provide stability and to avoid the kind of uncertainty created by SIPTU’s recent statements. Negotiations on the first phase of the agreement were unnecessarily complicated and drawn out because of exaggerated commentary and claims, unsupported by independent research, about the treatment of migrants and the displacement of Irish workers.

“Ireland’s success in recent years resulted from people co-operating, both at national and enterprise level, to compete effectively on global markets. The reality is that non-union companies can implement change much faster and more effectively. This is the key to success. All too often employers in unionised environments find that the implementation of change costs too much and takes too long because of intransigence.

"Unions must recognise that, unless they become champions for change, businesses will fail, jobs will be lost, and unions will continue to lose credibility and influence.

 "Irish businesses are facing serious challenges. Our labour costs have continued to rise faster than anywhere else in the euro area. In the period 1999 to 2006, compensation per private sector employee in Ireland rose by 42%, compared to 15% in the euro area, and just 7.5% in Germany. In addition, total non-pay costs incurred by businesses have increased by over three times the rate of inflation, or 24% cumulative, in the two years to 2006.

“We have it in our hands to take the practical measures to win back our competitive edge.

 The following measures are necessary:  

• Everyone at work, whether in the public or private sector, must accept that changes in work practices is a normal part of keeping up with the competition;
• Costs should not increase faster than those in our trading partners;
• Business and domestic consumers should have the benefit of competition. Change is especially needed in those sectors not exposed to international competition;
• The 230,000 non-Irish nationals that are making an important contribution to our economy need to be better integrated into Irish society;
• We urgently need to upskill the workforce;
• We must improve the quality, efficiency and value for money of our public services;
• With the slowdown in housing construction, now is the time to fast-track the road building programme and other elements of the National Development Plan.”