The Central Bank has forecast that wages will rise by an average 3.2% in 2018, and by a further 3.4% next year. Its latest quarterly bulletin, published earlier this month, also predicts that almost 100,000 more people will be in jobs by the end of 2019.

The bullish figures come on the heels of an Industrial Relations News (IRN) study, which found that a far higher percentage of unionised private companies will increase pay in 2018, compared to non-union firms.

The study found that 72% of unionised firms expect to increase earnings in 2018, compared to just 49% of non-union firms.

Almost two-thirds of the companies surveyed said labour market pressures and skills shortages were driving pay policy.

The average 2017 pay increase in the 356 companies surveyed was 3.15%, compared to an average projection of 2.5% at the start of the year.

Virtually all firms said pay increases were contingent on performance and ‘normal ongoing change,’ while 12% said specific workplace changes would be required.

These trends are reflected in recent pay awards achieved by Fórsa in the private and commercial semi-state sectors. These include:

• DAA, where a 3% increase in basic salary was negotiated for 2017, 2018 and 2019
• Non-pilot grades in Aer Lingus, where an 8.5% pay award over 39 months was negotiated
• A pay award of 8.5%, with an additional 2.5% in lieu of additional productivity, negotiated for Aer Lingus pilots
• A 48-month agreement in Coillte, which includes an element of performance-related pay
• A two-stage 3.5% increase in An Post, also linked to productivity
• A four-year deal with annual increases in the IAA.