The Irish Small & Medium Enterprises Association (ISME) have today called for pay restraint across the economy to help regain Irish competitiveness in both home and export markets.
The Association warned that the effect of sterling devaluation was threatening the tight margins of many SMEs, who were also battling on the cost increases being foisted on them.
The latest CSO figures on earnings and labour costs shows an average increase of 0.5% in the year to June 2016, with the average wage standing at €704 per week. The pay gap between Public and Private wages now stands at 40%.
ISME CEO, Mark Fielding commented, "There must be a national effort to protect our jobs under threat from the sterling devaluation. All business costs must be examined and curtailed. SME businesses are price takers and depend on government intervention when there is market failure. Insurance and bank interest and charges are definitely in that category and government must act to stop their gouging of small business."
Source: www.businessworld.ie