Congress Advises Private Sector Unions to Seek Pay Increases for ‘Excessive Housing & Childcare Costs’, plus ‘Minimum 3.1% Cost of Living Rise’

Thursday 14 December 2017

The Irish Congress of Trade Unions has advised affiliated unions in the private sector to seek compensation, where appropriate, for the “excessive costs” of housing, childcare and pensions, in addition to “a minimum pay increase of 3.1” to take account of normal productivity and cost of living factors, for pay claims in 2018.

The Congress Private Sector Committee has issued the advisory on pay bargaining for 2018 to member unions in the private sector, pointing out that “through the normal collective bargaining processes and where appropriate, affiliate private sector unions should seek compensation for the excessive costs associated with Housing, Childcare provision and pensions.

“This is in addition to a minimum pay increase of 3.1% to take account of normal productivity and cost of living factors,” according to the Congress Private Sector Bulletin.

The bulletin is issued to Congress affiliate unions in the private sector and focuses on the high cost of housing and childcare, noting that many workers are struggling to meet these costs.

The bulletin notes that workers in Ireland endure the second highest childcare costs in the OECD, while many workers on average wages struggle to rent or buy homes, across the country. In large urban areas such as Dublin housing can account for up to 47% of total essential expenditure.

The bulletin references detailed research from the Nevin Economic Research Institute on the high cost of housing, childcare, pensions and on wage trends.

It notes that the Minimum Wage would have to increase by over 24% to reach the level of the Living Wage.

It notes that labour productivity is forecast to increase by up to 1.4% in 2018 and 2019.

The Congress Private Sector Bulletin is available to download here.