ICTU: Industrial Earnings Fall For First Time Since 1980s

national | worker & community struggles and protests | news report

Monday April 10, 2006 20:54

by D_D

Congress highlights ‘falling wages in a booming economy’ (ICTU press release)

New figures show that real industrial earnings fell last year, for the first time since the high unemployment era of the 1980s. Figures released by the Central Statistics’ Office (CSO) reveal that hourly earnings only rose by 2.1 percent in 2005, while inflation rose to 2.5 percent (it is now 3.3 percent). Under the terms of Sustaining Progress, earnings should have risen by 4 percent in 2005.

Thus the rise was just half of what was negotiated for workers by Congress, according to Paul Sweeney, Economic Advisor.Mr Sweeney described the fall as a matter of “grave concern to Congress and one which provides further evidence of the downward pressure on pay rates caused by high immigration, exploitation and poor regulation of the labour market.”The 2005 fall is the first since the days of high unemployment during the 1980s. In the current buoyant economy with net job creation of some 90,000 new jobs there should be upward pressure on wages.

Instead, the opposite is occurring. Male industrial workers saw an increase of only 1.6 percent in 2005, compared to the 4 percent negotiated under Sustaining Progress, while female industrial workers matched the agreement.Congress, said Mr Sweeney, is seriously concerned at the impact of immigration in Ireland’s poorly protected labour market and by the rise in exploitation. Migrant workers now comprise some 8 percent of the Irish workforce, a figure that is comparable with Germany. However, it took 30 years to reach this level in Germany, while in it has taken just three to four years in Ireland. The figure for 2001 was just 3 percent.

It has been repeatedly asserted that there is no evidence of displacement of Irish workers by non-nationals. That is untrue, said Mr Sweeney. “There was a decline in manufacturing of 19,400 Irish nationals against an increase of 8,500 non-nationals (with an overall decline of 10,900) in the year to Q3 of 2005. There was a similar trend of displacement in the hotel and restaurant sector. Daily, trade unions are highlighting cases of exploitation of migrant workers and these are probably only the tip of the iceberg.“In general terms, immigration is good for a country, as it increases Gross National Product over time and brings many other benefits,” Mr Sweeney said. “But when labour markets are poorly regulated and enforcement of proper conditions is almost absent, it will lead to a drop in incomes for indigenous workers and a general worsening of conditions for all. “This fall in earnings has been highlighted in other countries.

The ESRI recently estimated that skilled immigration will push down wages by ‘6 per cent in the long run.’ At the other end of the scale, unskilled workers in the US are estimated to have seen their wages drop by 8 percent due to immigration.“Congress welcomes inward migration, but insists that migrant workers should not be exploited by unscrupulous employers determined to drive wage rates down. “Falling wages in a booming economy are not a sign of success,” Mr Sweeney concluded.

10th April 2006 Further Information: Macdara Doyle, Communications Officer ICTU Phone: 01 889 7799 or 087 9174171 Email: macdara.doyle@ictu.ie

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Comments (3 of 3)

blame the scapegoat

by k keating

Tue Apr 11, 2006 16:53

This is the purest nonsense which falsely locates the losses that have occurred to workers as being related to displacement. It is dangerous nonsense with a racist dynamic. Jack O' Connor wrote in an article Irish Times (2nd April 2002) ''Capital's share of national income has risen from 38 per cent in 1992 to 50.7 per cent in 2001, reversing only slightly, to 50.2 per cent this year.'' ..........The words of Jack O' Connor quoted above is from an article called ''Advantages of partnership speak for themselves'' which he wrote in response to IBEC's hard-line stance on a new deal last time they were negotiating partnership. Similar statistics can be found at other sources. What they reveal is that there was a profound shift of wealth away from workers and the poorer sections of society during Celtic tiger, the greatest boom in the history of this state.

A defeat of the working class of historic proportions occurred under the regime of class collaboration that is social partnership. According to Jack O’ Connor’s statistics capital increased its share of wealth creation by one third. Quoting wage statistics completely obscures the outcome of the treacherous role played by the trade union bosses in partnership. The losses to workers were mostly in non wage social benefits (the social wage) the area in which social partnership was supposed to give union bureaucrats greater influence.
The greatly increased rate of exploitation, the poorer quality of life and the terrible stress endured by workers cannot be foisted on to foreign workers who have only recently arrived in significant numbers. Undoubtly these workers are now being used to force an even greater defeat on to the workers movement, an outcome which is still dependant on the ability of the trade union bureaucracy to continue its policy of class collaboration.

Jack O' Connor and SIPTU’s position on partnership (which we can assume was the negotiation position of the unions collectively, as their was no dissent) shows an identification with the boss’s interests which is total. Calling the subsequent agreement Maintaining Progress reveals a deep contempt for workers rooted in the fact that their collaborationist role is almost entirely unchallenged. It is clear that that it would be quite in their character to offload the blame for the extremely defensive position workers find themselves in now, on displacement and the presence of super exploited foreign workers rather than see it placed where it belongs, on their overpaid shoulders.
Almost two decades of partnership has seen the unions transformed from basic defence organisations of the working class into conduits of the boss’s offensive. The savage nature of which is camouflaged and mystified under the guise of partnership.

correction

by Gaz B -(A)-

Tue Apr 11, 2006 21:03

"ICTU: Industrial Earnings Fall For First Time Since 1980s
that should read, "ICTU partially responsible for Industrial Earnings Fall For First Time Since 1980s"

Immigration's the problem?

by Joe C

Tue Apr 11, 2006 21:38

ICTU's Mr Sweeney appears to be in favour of immigration in 'general' but not in Ireland right now because of poor labour regulation. Even if this were a valid view it raises the question why this is so after nearly two decades of social partnership.

Of course the answer is that we have poor labour regulation because of social partnership.

This has led firstly to a fall in workers wages in relative terms and now in real terms. The latter has followed from the same forces that created the former and the main reason is the trade unions signing up to a policy of partnership with the bosses that puts their needs before those of workers.

Now, because ICTU can't point to their role in the decline in wages. And they can't even point to the decline in manufacturing employment as jobs head to lower wage countries(because they support multinationals freedom to go wherever they can to make the most money) we have them raising up the scapegoat of migrant workers. We have Rabitte's racist comments and their backing by Jack O'Connor.

These figures are not a condemnation of migrant workers but of social partnership. They show that marraige to the bosses means divorce from other workers. They show that fighting social partnership and fighting growing racism is part of one struggle for workers unity. We can't pretend that those in favour of partnership can join us in any fight against racism.

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ICTU: Industrial Earnings Fall For First Time Since 1980s

Comments (3 of 3)