Republican News · Thursday 25 April 2002

Low paid workers are the new poor

BY ROBBIE MacGABHANN

Don't look behind you. A "wage price spiral" is chasing the economy. The latest Economic and Social Research Institute (ESRI) economic commentary published this week showed that the 26-County economy is growing but is also threatened by inflationary pressures.

This is nothing to do with the euro changeover, increased VAT or oil prices. It is those nasty workers with their wage increases that could wreck everything.

The ESRI report comes against a backdrop of increasing tension between the Irish Congress of Trade Unions (ICTU) and the Irish Business and Employers Confederation (IBEC).

IBEC have in recent weeks and again this week been pushing the line that the Partnership for Prosperity and Fairness has "not worked for employers".

The ICTU response was to leak an internal document telling unions to prepare for a "free for all" if no new agreement is reached during the summer. The document also recognises the weaknesses in the modern trade union movement by admitting that union membership outside of the public sector is only 25% of the workforce.

The ICTU document also says that low paid workers in the non-unionised services sector are the "new poor" of Irish society. Compare this with the thought process of the Public Service Executive Union (PSEU) who believe that the PPF has "delivered the goods" for its members.

The PSEU position highlights both the flaws of the partnership process and the weakness of the modern trade union movement. The partnership has benefited marginally some public sector workers while ignoring the reality for many poorly paid private sector workers.

A report late last week from the European Industrial Relations Observatory found that the increase in the minimum hourly wage from €4.40 to €4.70 last July has "had little impact on overall trends in income and wealth distribution. This is because relative income inequality, and the gap between rich and poor, has increased in Ireland".

It is now clear that we need a wage deal that benefits all workers from any new partnership agreement. The question is, can ICTU overcome its own narrowing interests and become a trade union movement for all workers?