Trade unions assert that Irish employers contribute approximately half of what their equivalents in affluent European countries contribute in labour taxes. In a document released on Thursday, the Irish Congress of Trade Unions (Ictu) contended with grievances from businesses regarding the expenditure of governmental amendments intended to advantage employees. Ictu stated that the distorted viewpoint often voiced by numerous trade groups concerning the escalating expenses of conducting business has been widely accepted. According to Ictu, conversations surrounding this matter must be grounded in reality, not conjecture.
Ictu’s general secretary, Owen Reidy, noted that due to factors such as Brexit, the Covid-19 pandemic, the conflict in Ukraine, and the living cost crisis, businesses have been in receipt of supplementary state aid for almost ten years. He mentioned that though the trade union supported some of these provisions, it seems some commerce circles expect exclusive and supplementary resources to become a standard provision.
Ictu declared that current or anticipated governmental implementations include an increased minimum wage, a statutory sick pay scheme, automatic pension enrolment, leaves for parenthood and domestic violence, and the ability to request remote work. The initiatives were largely received positively by the trade union, acknowledging that they will bring Ireland in closer alignment with the adopted norms of other Western European countries.
Ictu also underlined that these changes are being gradually enacted at a time of notable economic stability. For instance, the shift to the higher minimum wage is anticipated to unfold over four years, while the automatic pension enrolment will be introduced over a decade, reflecting a longstanding government commitment.
Some from the business sector have criticised the proposed reforms, highlighting the collective cost to organisations and the swift pace of their application. According to Ictu, calls from commercial lobbyists for rebates and reductions in PRSI should be viewed in context, considering Irish companies already pay significantly less than their European counterparts in employer PRSI, representing an effective societal subsidy.
Mr. Reidy expressed his scepticism about the efficacy of appeals for preferential tax rates in supporting economic growth, with particular emphasis on sectors with low added value. He highlighted that such tax reductions hardly ever stimulate the economy and can in fact be detrimental in the long term. Despite concerns voiced by various employers regarding potential job threats, Mr. Reidy emphasised that there is presently a record high in employment, with 2.7 million individuals currently employed. Moreover, he pinpointed that the sectors most vocal about this issue, such as the retail and hospitality industries, have experienced a notable increase in employment over the past year.