Fórsa has queried a National Competitiveness Council (NCC) warning that wage costs are rising too quickly to maintain Ireland’s competitiveness. The NCC’s annual ‘Cost of doing business in Ireland’ report, which was published last week, cited wage costs among potential threats to future competitiveness.

A union spokesperson pointed out that the report itself conceded that labour costs had risen by less than 3% last year. This came after years of moderate growth and pay cuts for many. The report also found that Ireland’s productivity has improved relative to other EU countries.

“Irish workers have just exited a decade characterised by pay cuts, wage stagnation, increased taxes and charges and cuts to public services. The reality is that Ireland and its economy need a pay rise, not more stagnation,” said a Fórsa spokesperson.

The report said that the Irish economy continues to perform well, and that Ireland is becoming more cost competitive relative to the rest of the euro area.