ISME wants public service funding ahead of pay restoration

SME, the Irish Small and Medium Enterprises Association, at the release of the CSO Earnings and Labour costs figures at the end of February, called on the Government to invest more in public service provision before pay restoration.

Average weekly earnings were €716.07 in Q4 2016, a rise of 0.6 per cent from €712.02 one year earlier according to preliminary estimates of the Earnings and Labour Costs Quarterly release. However, the differential in weekly pay between the public (€921) and private sector (€658) stands at €263.

ISME CEO, Neil McDonnell said: “The uncertainty of Brexit and other potential external shocks has created unease for 2017. The differential in pay between the public sector and private sector continues to decline with the fall in unemployment, but still remains unjustifiably high. Union demands for so-called 'pay restoration' must take this differential into account.”

The association called for no change to public sector pay before the Public Sector Pay Commission issues its report,, improved efficiencies within the public sector to increase value for money; removal of restrictive rules on out-sourcing of public sector services.

"Further state spending should be directed at providing more services for our growing population, not 'pay restoration.' Any non-productivity based increases in public sector pay will exacerbate the strain on our public services,” said Mr McDonnell.