Budget Must Prioritise Raising Wages and Targeted Measures on Spiralling Energy Costs
Launching ICTU’s Budget 2023 priorities, Patricia King ICTU General Secretary, said that the forthcoming budget must prioritise raising wages and introduce targeted measures to lift households out of energy poverty and safeguard workers’ incomes and jobs.
Ms King said: ‘Decent wages for all workers are central to resolving the cost of living crisis’. Average weekly wages (up 2.4 per cent in the year to June) are rising by just one-quarter of the rate of inflation (up 9.1 per cent over the same period).
Ireland remains a ‘low-pay, high-cost country for too many. One-fifth of workers are low-paid according to the OECD, the highest rate among the EU-15. According to the European Commission, the national minimum wage rate in Ireland is third lowest of EU countries with statutory minimum wages, representing under 45% (per cent) of gross median wages of full-time workers. The accepted international norms are at least 60 and up to 66 % (per cent) of gross median wages.
Given the current cost of living crisis and consequent income pressures on low-paid workers, Congress calls on the Government to immediately introduce a very significant rise in the current minimum wage rate.
We are clearly in the midst of a worsening energy costs crisis, one that risks plunging hundreds of thousands of more households into energy poverty and threatens the livelihoods and jobs of tens of thousands of workers. We should not underestimate the seriousness of this developing situation and policy choices should reflect that.
Already 43 per cent of Irish households may be energy poor in 2022, spending at least 10 per cent of their disposable income on heat and electricity, according to the ESRI. Energy costs have shot up by 40 per cent in the year to August. All indications are that energy costs will continue to increase and many more households will fall into energy poverty.
Budget 2023 must introduce immediate targeted measures to lift households out of energy poverty, by introducing temporary, tapered price caps for those in or at risk.
It must also safeguard the livelihoods and jobs of workers affected by energy price hikes by supporting firms that engage with workers and unions to protect incomes and jobs and to reduce energy usage.
All of this comes against the backdrop of Irish households paying higher fees and charges than those in peer European countries, such as for early years services and public health, education and transport services, alongside a dysfunctional housing system with exorbitant purchase and rental costs.
No such income pressures however are felt by top CEOs of the largest Irish publicly quoted companies whose average pay package rose by 27% to €3.5 million last year, with median pay soaring by 42% to €2 million according to The Irish Times.
