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The Department of Public Expenditure and Reform must stand firm on public service pay demands

  • We must not repeat the mistakes of the past
  • Ireland’s public servants are among the best paid in Europe
  • Resisting unjustified public service pay demands is absolutely essential

ISME, the Irish SME Association today (April 27th) published its submission to the Public Service Pay Commission. The Association highlights the fact that Ireland’s public servants are among the best paid in Europe, and already enjoy a large pay-premium over private sector workers. If they feel the grass is greener outside the public service, there are thousands of vacancies available for them to fill right now in the private sector.

Commenting on these recent demands ISME CEO Neil McDonnell said ‘Ireland must not repeat the disaster that was Benchmarking in 2002. Resisting unjustified public service pay demands is absolutely essential, even if it results in substantial, prolonged, and potentially damaging industrial unrest. This would be a price worth paying to avoid the mistakes of the recent past.

The Irish workforce endured 15% unemployment during the Great Recession. We must avoid a boom-bust cycle in employment; this is achievable through wage moderation.

He added,

As the official figures from the CSO show, the average public servant is earning 40pc more than the average private sector worker; demands for greater public service pay, even if represented as ending inequality, are unjustified and totally at odds with economic and budgetary prudence.’

Click here to read ISME’s submission to the Public Sector Pay Commission.