The Irish Congress of Trade Unions (ICTU) has revised its pay advice to private sector unions on foot of sustained high inflation. Last week, it advised unions to seek increases of between 2.5% and 5.5%.

The advice is based on an updated cost of living report from the union-backed Nevin Economic Research Institute (NERI), and it could change again as new inflation data emerges.

ICTU advises unions to take account of the ability to pay in specific companies when framing claims, saying that some are able to afford a 5.5% increase – or even more – while others are not in a position to do so.

Unions have also urged the Government to increase the amount of tax-free voucher payments allowable under the ‘small benefits’ scheme. Employers can currently give staff vouchers worth €500 a year under this scheme, but ICTU wants this increased to €1000.

In addition, to pay increases, ICTU advises unions to continue to seek improvements in other conditions of employment including, working time, starting pay, annual leave, sick pay and pension benefits.

Fórsa national secretary Katie Morgan said further pay increases could be sought to protect living standards if inflation continues to rise. She said high energy, transport and food costs were having a detrimental effect on workers, particularly the lower paid.

Last December ICTU said private sector unions should be seeking pay increases of between 2.5% and 4.5% this year. But with inflation at a 20-year high of 5.5%, it asked NERI to revised the figures to take account of the rising cost of living. NERI provides economic assistance to ICTU’s Private Sector Committee.