Belfast Telegraph

Proposed wage rise risks repeat of crash mistakes, says Ibec boss

Business leaders have denounced a proposed 50 cent rise in the national minimum wage.

Ibec, which represents private sector employers, said raising the rate to 9.15 euro would threaten a repeat of mistakes that led to the crash.

Danny McCoy, chief executive of Ibec, said the suggested increase would heap pressure on companies still struggling to stay in business and called for the coalition government to instead focus on job creation.

"Given the economic evidence available, it is inexplicable how such a rise could be proposed," he said.

"Prices across the economy are below where they were in 2008 and the real value of the minimum wage has actually increased during the crisis.

"Many businesses still cannot afford pay increases and turnover in sectors such as retail remains up to 20% below the pre-crisis peak."

Mr McCoy said businesses have a real concern that a minimum wage increase could cause a knock-on impact of expectations of pay rises for all workers.

"In the boom years Irish labour costs drifted way out of line with competitor economies," he said.

"We ultimately paid a very high price in terms of job losses and business closures. We risk making the same short-sighted mistakes all over again."

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting?


From Belfast Telegraph