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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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Can I have my money back now
It’s like’…..burning your furniture – to keep warm!
Why are PwC saying this instead of IBRC and NAMA?
As property prices start to rise nama , ibrc start to dump property
Can someone explain why?
Dumping loans philip, not property. They’re Dumping the loans as they’re non-performing and want to get them off the balance sheet.
If they had the patience, they’d put arrangements in place to allow the properties to return to positive equity and then seek a sale, this recouping more of the tax payers money.
Unfortunately, they’ll sell the loans for a discount and allow the new purchasers to do this and net a tidy profit.
The article outlines that IBRC (IBROKE would probably be a better name) will offload € 15 billion in loans.
Yet the linked article tells us that IBROKE have already offloaded 90% of its loanbook, € 19.8 billion out of € 21.7 billion leaving just € 1.9 billion on hand.
This can only mean, if the previous article is correct, that it is NAMA that is offloading the majority of the loans.
Why the subterfuge?
Why make people think that this is some kind of joint enterprise when it is NAMA that is leading the charge?
Have the shiny suit brigade from the canal something to hide?
Given their obsession with secrecy it would not surprise me if they have, perhaps selling the loans to some preferred customer with an inside track at a serious discount.
The way things go it will all be wrapped up before we know anything, plus ça change.
Who in their right mind would buy this junk?
It might only be worth 30% of face value but if you buy it for 20% it’s a good deal. For the buyer anyway.
@ Irish Revolution
The Banks?
Hedge funds bought it. They will now sell off all the ghost estates etc at a lower price so people that have houses for sale at the min will eventually have to sell for half or take them off the market.
Fab house here in drogheda asking price €325. Hilarious. You could now nearly get a house for that on raglan road or ailsbury road!! So that house is realistically worth less than €150 really.
People and notions ha
What about Bank of Scotland selling on my mortgage & others in their Irish portfolio to a company called Tanager Ltd.
I’m in a tizzy all day because I don’t know what it means for us.
have your say