The Irish Small & Medium Enterprises Association (ISME) have today called on the Government to establish a Public Sector Pay Commission to determine all future pay arrangements across the public sector.
In particular, they have called for political interference in the setting of pay to be stopped and for a fully independent body to be charged with the task.
ISME CEO Mark Fielding said, "It is vital that Ireland does not repeat the 'benchmarking mistakes' of the past, as the economy recovers.
"The public sector pay commission would make detailed and specific proposals for how efficiency and productivity improvements can fund any future increases in public sector remuneration. The independence of this body will ensure that the process would be free of pre-election promises and could verify savings, costs and international comparisons".
"While the average weekly wage has increased marginally by 1.8% to €698, today's CSO figures on earnings and labour costs show the continuing difference between public and private sectors of 45.3%, (€918 - €632). When compared to the average wages in a small business (€918 - €540) the differential rises to 70%.
"Politicians are weak managers for two main reasons; they are beholden to their staff for votes and the money paid out is not their own."
Source: www.businessworld.ie
