A new opinion poll has shown that most of the public think Ireland's wage increases over the last number of years are leading to job losses.
The poll, conducted by Lansdowne Market Research for employers group IBEC, shows that private sector employees facing competition from overseas have a particularly strong understanding of the link between pay rises and job losses.
By a majority of more than two to one, they agreed that high wage rises in Ireland had contributed to redundancies (59% to 27%). In the public sector, where there is no such competition, the majority was not as strong (44% to 39%).
During the years 2000 to 2003, the average Irish person's wage went up by 30% while in the rest of the euro countries pay went up by 12%. In 2003 there were twice as many people made redundant in Ireland as in 2000.
The poll also shows that 91% of employees believe it is fair and reasonable that the yearly increase in their wages and salaries should be similar to the increase in the general cost of living.
Commenting on the poll, IBEC's Director of Human Resources, Brendan McGinty, said it is encouraging to see that most people in Ireland have a strong sense of economic reality. 'By having the foresight to restrain the growth in pay, we will directly boost our own standard of living.'
'Pay pushes up costs, which pushes up prices to customers. This loses customers, which loses jobs and income for Ireland,' he stated.
He said that IBEC would have considerable reservations about linking pay rises to a set of circumstances over which businesses have little control, and from which they are the first to suffer.
'At the same time, with inflation now running close to 1%, this should inform the pending discussions on pay, particularly already made with push pay up by about 3% in 2004,' Mr McGinty said.
