Calculating the pay increase
O’Leary questions whether the stated 7% wage increase includes carry-over and local negotiating flexibility. The Minister says the agreement adds 7% to basic rates, with carry-over bringing basic earnings increases to roughly 11–12%; the Chair then ends supplementaries.
Could I ask the Minister, regarding the figure he gives for a 7 per cent increase in 1978 based on the proposals at present, whether he is taking into account the carry-over from the previous year as well as the 2 per cent allowable negotiating manoeuvrability at local level? If he is taking this into account I am surprised that he is giving the figure of 7 per cent. I would have thought it was well in excess of 7 per cent.
Comment on this
The phrase was "proposed national pay agreement will result in an increase in basic wage rates of 7 per cent in 1978". The Deputy's question is directed to asking about the extent to which actual earnings or pay receipts will rise this year. The carry-over effect from last year will be in excess of 4 per cent. That, combined with the new proposed agreement, would mean that the basic earnings would rise by something between 11 per cent and 12 per cent. The total increase in earnings, depending on estimates one makes for such factors as additional overtime, bonuses, incentive payments and so on, could average between 14 and 15 per cent this year.
