Labour costs eroding competitiveness: ISME
Pay rates across all categories of small to medium sized enterprises increased by 6.2% in the last 12 months, down from 7.5% in 2002.
Increases were mainly due to the increase in stealth taxes, labour shortages in certain categories, house prices and the high average inflation rate during 2003.
Despite the drop from 2002’s figure, the 6.2% remains in excess of inflation and more than twice the 2.8% European average, according to a Wages and Conditions of Employment survey conducted by business organisation, ISME.
Average wage rates for manual workers increased by 6.3% from a recorded 8% in 2002.
The typical rate of pay for manual employees across all sectors is €19,664 ranging from €16,416 for unskilled staff to €23,533 for skilled staff.
The typical rate of pay for office workers across all sectors and categories of employees is €20,312.
Typically, factory and office hours average 39 per week.
Twenty days holidays per annum are the norm.
Almost one in three companies provide an average of 23 days holidays, but this is mainly to staff that have been with the company for a number of years.
Only 12% of companies indicated that their companies are trade unionised.
While welcoming the fact that increases have moderated, ISME has warned that Irish firms’ competitiveness will continue to suffer against their European rivals.
Its Chief Executive, Mark Fielding, said today: “If labour costs continue to rise at the same level evidenced in this report indigenous companies who cannot increase productivity will become less competitive.
“It is imperative that, at the very least, labour cost increases are brought into line with the EU average, to ensure that our competitiveness is not completely eroded.
“This is particularly significant in the context of an appreciation of the euro against our main trading partners in the UK and US,” Fielding concluded.
Over 400 companies employing 12,000 staff contributed to the survey, which was undertaken throughout October and November 2003.
