Projected increases under revised pay terms
FitzGerald questions whether the revised proposals could produce pay-rate increases of 20% or more, including through indexation, and asks about earnings growth allowing for drift. The Minister estimates annualised increases of 13–13.5% and suggests higher figures assume a particular inflation rate; FitzGerald challenges that assumption, but the exchange does not settle the likely earnings increase.
Arising from the Minister's reference to revised pay proposals, can he confirm that the statement on radio the other day by a prominent trade union leader that this would be likely to give rise to 20 per cent increases in pay rates is correct? What would the Minister estimate what the increase in earnings will be, allowing for drift?
Comment on this
I have not heard the remarks to which the Deputy refers so I cannot offer any detailed comments, but I do not see how anyone could arrive at increases of 20 per cent in pay rates because, on an annualised basis, the terms of the proposed pay arrangements suggest increases in the region of 13-13½ per cent.
Comment on this
I appreciate the Minister may not have heard the remarks made by Mr. Carroll of the ITGWU but he gave figures for different levels of pay, and for most of those levels, up to about £100 a week, the increases would be 20 per cent or slightly higher because of provision for indexation. If that is the case what increase in earnings would be likely to arise, allowing for drifting?
Comment on this
It seems that there must have been some built-in assumption about the likely rate of inflation.