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AN IRISH BUSINESS group has hit back at predicted wage increases this year – saying such a move could damage small enterprises.
Earlier in the week figures from Ibec showed that more than half of Irish companies are planning on giving their workers a pay rise in the coming year.
However, the Irish Small and Medium Enterprises Association (ISME) has warned that increases in these predictions could create “unfounded pay expectations” and called on employers to “hold the line” when it comes to employee wages.
Responding survey
In response to what it describes as a “big business/ semi-state survey”, the group issues their own figures on wages over the coming 12 months, and finds that employers are markedly less enthusiastic about providing a pay boost.
In its figures 71% of SMEs are not expecting a change to wage rates in the coming year. In addition to this – of the 26% who do anticipate a rise, it is thought it will come at only around only 1%.
Speaking about the new findings this week, ISME CEO Mark Fielding, said, “the situation for SMEs remains precarious. They have been struggling to stay afloat and owner-managers in particular have borne the brunt of the pain by taking huge pay cuts, and in some cases no salary at all, in an effort to keep their businesses afloat.”
The survey findings indicate that the majority of SMEs will not be in a position to increase wages during 2015 and in a small percentage of cases further reductions will be necessary.
Economy
As part of their findings, Ibec – an umbrella group for Irish businesses – found that 57% of business were planning wage increases in 2015 which would go up by an average of 2%. This was in keeping with increases that occurred in 2015.
The group found that overall the Irish economy grew by 5.7% over the course of the year – a figure it described as “spectacular”. Factors thought to have contributed to this are a rise in Irish exports and a weak euro throughout the year.
Despite this, the ISME has pointed to inflation currently sitting at 0.1% as something that creates “no justification for cost-of-living increases” – going on to say that Ireland is still a “high-cost location” where it can be difficult for SMEs to get into profit.
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The IBEC survey revealed that 57% of big businesses were expecting to pay a payrise of 2% to staff.
This was reported by all the major news outlets as a “good news story”.
However, here is an alternative headline ;
“Almost half of employees can expect no payrise in 2015. The remainder will received a paltry 2%”
Under a SF government all employees would receive a 50% increase in wages. All employers can afford to pay this increase because all employers are rich. Those who refuse to pay would be dealt with. The government would be a government of the people for the people. There would be no secrecy as all information would be transmitted by government to its people at regular intervals via telescreens. These telescreens would be viewed by you at work and in the comfort of your own home. They would be installed free of charge in your living rooms, bedrooms, kitchens, bathrooms and gardens.
Link please? Oh that’s right, there is no link. Just more Pat Lyons propaganda and anti-Sinn Féin rhetoric. You’re such a sad individual.
“Earlier in the week expecting a 2% wage hike across”
Across what exactly? That’s actually one of the first few sentences and you still didn’t even notice that blatant error.
Employees in certain sectors need to manage expectations in respect of pay increments. The public sector for example may go wanting! SMEs may need to manage affairs such as loans, revenue and other expenses before its all “wolf of walls street” with the payroll…
I have worked for the public sector for 13 years & this is the year I am out. I will look to start somewhere that when I contribute 2 extra working days a month for less pay and not get slagged off by the general public for having a cushy number. I will work my arse off but not for the public anymore, just for me. New year bring it on!
Good for you deb. Dont know why people disapprove of that
Whatever. All I know is if i dont get a payrise this year; I’m out. From the peak of the boom to the bottom of the recession there was a 76% difference in my salary!! I’m now down about 40% of what I was on in the boom – but things are so busy now, my company has plenty of work, and if the money’s not there this year then I wont be either.
have your say