“It’s not a coincidence when they go after working people, it’s policy”
by Niall Shanahan
 

The Irish Congress of Trade Unions (ICTU) has criticised the Government’s decision to delay key measures already agreed that would make life better for working people. These include the delay of pension auto enrolment and a delay to the implementation of a national living wage for three years. 

 

New measures to address business costs, announced by Enterprise Minister Peter Burke this week and welcomed by the employer body, Ibec, include “adjusting” the implementation timeline for the living wage to 2029. 

 

A national living wage, set at 60% of the median wage, was due to be introduced in 2026. Other measures include delays to improve the minimum wage, delays to improve statutory sick leave and another delay to pension auto-enrolment. Congress described the plan as a “shopping list of anti-worker measures.” 

 

ICTU’s social policy officer, Dr Laura Bambrick, said that Ireland is the most competitive economy in the eurozone and that, while Government is right to focus “on maintaining our position,” she said “the decisions they have taken are not about competitiveness. This is government cowing to business lobbyists,” she said. 

 

Fórsa general secretary Kevin Callinan said the new measures showed the Government’s willingness to give in to employer demands without consideration to the impact on working people: “The business lobby had actively pursued these measures throughout the last year, citing high costs.  

 

“However, these measures have now been framed as a response to uncertainty caused by the threat of US tariffs, providing cover for the Government’s capitulation on progressive wage measures.  

 

“Delaying the living wage means the cost saving to business is being underwritten by people who currently earn the National Minimum Wage, which was the first item to be cut by the Government in 2008, following the onset of the financial crisis. It’s not a coincidence when they go after working people, it’s policy,” he said. 

 

Earlier in the week, ICTU’s general secretary Owen Reidy said the new measures were “shameful and unacceptable” revealed that government policy seems to favour employers over low-paid workers, and called for supports for workers who may face short-time working breaks or layoffs due to anticipated economic challenges. 

 

Mr Reidy said competitiveness issues are not caused by low-paid workers, but rather by the Government’s infrastructural failures, such as housing, energy, water and transport. 

 

Speaking on RTE’s Morning Ireland, Mr Reidy added: “You're going to see hospitality workers hit whilst their employers are getting gilt-edged VAT reduction of €650 million. This is the type of stuff you'd expect from the current inhabitant in the White House. It's incoherent. It's chaotic,” he said.

 

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