Dáil Éireann Debate, Wednesday - 23 June 2004
46 Mr. Howlin asked the Minister for Finance if his attention has been drawn to the recent report from the Federation of European Employers showing that pay levels here remain among the lower range in western Europe; the Government’s views on the appropriate level of wage increase for private sector workers in the second half of the Sustaining Progress deal; and if he will make a statement on the matter. [13815/04]
View answerThe report to which the Deputy refers is Pay in Europe 2004, which was compiled by the Federation of European Employers. This is a very limited survey comparing a small number of job types across a range of countries. I do not believe this is the most reliable indicator of the relative position of Ireland when it comes to wage levels.
Official European Commission statistical data show a very different picture. Compensation per employee in Ireland is almost 10% above the EU15 average in 2004, and over 20% greater than the average for the expanded Union of 25.
This presents a significant challenge for Ireland as we go forward. The competitiveness of the Irish economy is a key factor in our economy's potential to grow. I am satisfied that the level of pay increases agreed for the second phase of Sustaining Progress will help to safeguard Irish competitiveness over the next 18 months. They should act to bring Ireland closer to the average increase pertaining in the EU as a whole.
