The Private Sector Committee of the Irish Congress of Trade Unions has unanimously agreed to recommend unions organising workers in the private sector should seek pay increases of between 4% and 7%, where affordable for 2025. They should also seek to improve the position of lower paid workers, protect hours, utilise the Small Benefit Exemption scheme and improve other benefits, where possible.
Owen Reidy General Secretary of the Irish Congress of Trade Unions said:
We have just come out of a general election where the second most important issue for voters was the cost of living. Workers’ wages haven’t recovered their loss purchasing power from the years of heightened inflation. The average worker in the private sector is worse off today than three years ago, despite slower price inflation.
“We believe it is essential at a time when the economy is booming and when the numbers at work has never been as high that workers seek to achieve decent pay increases through collective bargaining. During the election campaign most politicians when addressing the cost-of-living crisis exclusively relied on income tax cuts, social transfers and services to improve working families’ living standards. This misses a big piece of the picture. Collective bargaining, unions and employers negotiating on conditions of employment in the workplace in return for productivity, modernisation and change is an essential part of any sustainable and successful functioning economy.
“We are told in times of high inflation, don’t chase inflation. We are told in times of low inflation our aspirations must be moderate. We believe all private sector workers in Ireland deserve to aspire to a decent pay rise in 2025. If not now, when? We believe workers in Ireland deserve some hope and leadership. We are not merely interested in workers catching up with inflation over recent years. We need to ensure that the living standards of workers improve. The debate over the last year on the so-called ‘cost of doing business crisis’ has been misleading at best and disingenuous at worst and a complete distortion of the facts. We see from CSO figures last week that as we come to the end of 2024 despite some high-profile closures, the number working in the hospitality sector rose by nearly 10%.
Neil Mc Gowan, Chair of the Private Sector Committee said:
Our private sector bargaining model in Ireland remains largely exclusively at firm/enterprise level. The State is now in breach of its EU obligations because the outgoing government failed to transpose the Adequate Minimum Wages Directive by the mid-November 2024 deadline, which would facilitate more collective bargaining, and particularly more sector wide collective bargaining.”
Fionnuala Ní Bhrógáin, Vice Chair of the Committee said:
In the absence of legislation and acknowledging the diversity of the private sector and based on all the economic analysis available, we believe pay increases of between 4% and 7% for 2025 are appropriate and achievable. We remain ready to support our private sector unions and their members achieve this outcome through negotiations and by other means, through agreed procedures, should that be necessary.”
Read the full report here https://www.ictu.ie/publications/ictu-private-sector-pay-guidance-2025
