Sunday 18 August 2019

Public servants are ‘wildly rich’ – business chief

€1m pension pots, job security 'should limit public pay demands'

Ibec CEO Danny McCoy. Photo: Colin O’Riordan
Ibec CEO Danny McCoy. Photo: Colin O’Riordan

Anne Marie Walsh

The chief executive of the main employer group has said that public sector workers are "wildly rich" compared with their counterparts in the private sector, in terms of their pensions.

Danny McCoy of Ibec has said that the value of pensions and job security will have to be central when the Government makes a decision to give further increases on top of those due under the Lansdowne Road Agreement. But he said it would be "unrealistic and naïve" to think public servants would not get a pay rise in talks with the Government.

He said that although in general public-sector workers were on modest salaries, they were "wildly rich" when taking into consideration their pensions.

He said there was a perception that someone on a €25,000 pension was not rich, given that those on the dole got around €13,000 a year.

He said the salary didn't seem spectacular but each had a pension equivalent to €1m in the private sector. He said pensions were explosively expensive and the cost of a pension like that for the workforce would be trillions of euro.

Mr McCoy said it was reasonable to hold talks on a deal to follow the Lansdowne Road Agreement early, but said the Government had to show leadership.

"The public sector is not designed for the public-sector workforce. It's designed for everybody in society."

Irish Independent

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