Irish wages 25 per cent lower than other leading EU economies

13 April 2008

A damning analysis of European wage levels has found that Ireland lies rock bottom of the list of the average wages paid in the private sector across the ten wealthiest countries in the European Union.

In a report published today by trade union Unite in the run up to national pay talks, it emerges that Irish wage levels are 25 per cent below the average for this peer group and 11 per cent below average even when the list is extended to the top 15 EU countries.

“Ministers and business leaders are fond of telling us we have never had it so good,” said Unite regional Secretary Jimmy Kelly, speaking in Dublin today, “but they are misleading the public.  Working people know that, and this report paints the truth in stark colours that cannot be ignored.“

“Relative to our European peers we are working in a low wage economy and contrary to the story being spun by business leaders this has to be addressed if we are to retain any semblance of being a relevant economic force.”

The report also highlights that every one of the ten European countries which appear above Ireland in the World Economic Forum’s Competitiveness Rankings for 2007 has a higher average private sector wage.

“Irish wages have started from a much lower base than in Europe and need higher average increases to cling on their coat tails,” added Kelly.

“Government ministers are certainly aware of this, but if the finger of blame for Ireland’s poor competitiveness needs to be pointed at the real issues, it will land on government policy and management skills and neither politicians nor business leaders would want to admit to this.”

“The harsh reality is that they have no choice as we will be pressing for basic wage increases substantially above inflation, for a flat rate element in the basic wage increase to get more for those in greatest need and for local bargaining clauses to enable those in the most profitable sectors to reap the real reward of their endeavours.”