ISME calls for public sector pay freeze

The Irish Small and Medium Enterprises Association (ISME) has called for a public sector pay freeze after new data indicated earnings are 50 per cent higher than in the private sector.

Figures from the Central Statistics Office demonstrated that weekly average earnings in the private sector totalled €605.98 in the 12 months to the end of September 2014, compared with a public sector weekly average of €905.89.

This differential is even more stark when you consider the average wage in a small business is €524 compared with €905.89; a massive 73 per cent difference.

Mark Fielding, chief executive, ISME, believes the public sector wage restraints - contained within the Haddington Road Agreement – should be extended until 2017.

“One of the unwanted legacies of the Celtic Tiger era is the excessively high rates of public sector wages, compared, not just with Irish private sector workers but also compared with all other European countries’ public sector pay,” said Fielding.

“The private sector is no longer willing to pay for excessive public sector wages through high taxes and the loss of private sector jobs and businesses.

“The public sector has been largely sheltered from the wreckage of the recession and continued to be paid Tiger wages as a result of increments, despite all the opposition to Croke Park and Haddington Road.”

The ISME believes a freeze on public sector pay until 2017 should be accompanied by a comprehensive international-led review of public sector wages, conditions, perks and increment and improved efficiencies within the public sector to bring it to world class status.

“Fixing the public sector must not be allowed to degenerate into demonising it,” added Fielding.

“Its health is vital to the health of society as a whole, not least because of its impact on economic growth.

“A strong public sector is an important and essential component of any modern economy, but it has to be efficient, cost-effective and focused on delivering value for money.”

Date published 3 Dec 2014 | Last updated 3 Dec 2014