CEOs urge more cuts
Published 04/04/2010 | 05:00
More than 71 per cent of Ireland's top companies' chiefs have called for further pay cuts in the public sector despite the recent pay deal.
Last week's deal saw assurances that there would be no more pay cuts or redundancies in the public sector until 2014, in return for an overhaul of work practices. However it has yet to be ratified by union membership.
Just over 13.4 per cent of the company bosses believed that the public sector should not suffer further pay cuts. Another 15 per cent were undecided.
The €20bn public sector wage bill is the single largest item of expenditure for the Government, which introduced pay cuts and a recruitment embargo to address the massive deficit.
The Government has to chop €3bn in spending in the next Budget in order to try to improve national finances.
Without further pay cuts for the public sector, the room for manoeuvre is limited, with tax hikes now increasingly likely.