The Irish Congress of Trade Unions (ICTU) has advised private sector unions to seek basic pay increases of 4% or €1,000 this year, whichever is higher. The recommendation, by ICTU’s private sector committee, is based on its assessment of 2016 pay bargaining and key measures that affect the living standards of workers.

In early 2016, the Committee said pay increases in the range of 2.5%-5% should be sought, taking account of the circumstances in individual employments. The committee now says private sector pay settlements fell largely within this range last year. Settlements in the commercial semi-state sector were also broadly in line with this trend.

In its Private Sector Bulletin, published at the end of 2016, ICTU said it had taken account of developments in private sector companies and the wider economy before recommending the 4% target. These included earnings in the economy, projected increases in inflation, expected productivity improvements, and company profitability.

The committee’s report said: “Based on the available evidence the Congress private sector committee believes that there is considerable scope for increasing pay in the private sector. Achieving the rate of increase suggested will protect the living standards of workers, increase their spending power and give them a fairer return for increased productivity.”