Congress Condemns IDA Wage Cut Call

9 Jul 2009

Congress Assistant General Secretary Sally Anne Kinahan has described as "utter nonsense" claims by a senior IDA official that wage cuts were required in order to restore Ireland's competitiveness.

Speaking ahead of a debate on Education and Training, Ms Kinahan attacked a call for a 15 percent wage cut that was issued earlier today by the IDA's Barry O'Leary. He claimed the cut would be necessary for Ireland's competitiveness.

Ms Kinahan dismissed O'Leary's claim as "utter nonsense", adding that "even far right economists concede that competitiveness is far more complex, complicated and about much more than wage levels. He has clearly adopted a simplistic ideological position and not one that is informed by the facts. Cutting wages will not get us out of this recession, instead you will simply depress demand and kill consumption, a dangerous step in an economy where domestic demand comprises almost 50 percent of all activity.

"The best way to address competitiveness and end the recession is through serious investment in upskilling and learning, starting at pre-school and continuing through all levels and all ages," Ms Kinahan concluded.