John FitzGerald: Since 2010, wage rates have risen more slowly than in the private sector
Learning how industrial relations were conducted on the continent, and the example of the bitter wars between the Thatcher government and the unions, encouraged both sides to look for a better way of doing business. It helped that Irish trade union and employer leaders often shared a drink in a Brussels bar or chatted together in the airport as they waited for a delayed Dublin flight.
The process of setting pay rates has evolved, reflecting changes in the economy itself and in the structure of the labour force. At the same time there has been a substantial fall in trade union membership rates, making it important that low paid workers are protected by minimum wage legislation. As a result while the economy continued to show good growth the purchasing power of wages actually fell for the first time since we began to emerge from the economic crash of 2008. Because of this most workers are worse off than they were last year. Many employers, especially those in energy-intensive sectors, have faced problems and may also be worse off.
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