I came across this interesting article on The European Industrial Relations Observatory.
It states; “a detailed survey of members of the Irish Business and Employers Confederation shows that, while marginally more employers have increased pay for production workers compared with those who have cut wages, a majority of companies have decided to freeze wage rates. Meanwhile, some employers plan to introduce changes to other employment conditions over the next three to six months, while others wish to change the pay structure for new recruits”.
The article concentrates on the reality of pay freezes, but what is more interesting is the fact that despite what we are being told; more employers have increased than decreased wages for production workers. Furthermore, only 10 per cent of companies surveyed have introduced pay cuts for production workers. The article concludes that the overall picture in Ireland is that private sector employers are introducing pay freezes not pay cuts.
Commenting on the survey’s findings, IBEC’s newly appointed Director General, Danny McCoy, stated that:
across all of the companies surveyed, taking into account the large number of pay freezes, pay reductions and a small number of pay increases awarded, the average change to pay rates during the first half of the year was a fall of 4% for management staff; 1.6% for other salaried staff; and 1% for production workers.