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Inflation rise exposes weaknesses of Partnership deal - Morgan

10 August, 2006


Sinn Féin Employment and Workers Rights spokesperson Arthur Morgan T.D. today claimed that the announcement that inflation had hit a new high of 4.2% reinforced Sinn Féin’s analysis that the 10% pay increase over 27 months proposed under the new Social Partnership deal Towards 2016 would be wiped put by inflation. Deputy Morgan warned that imminent rises in electricity and gas prices will mean further inflation increases in the coming months making the proposed pay deal meaningless for most workers.

 

The Louth TD said: “Today’s announcement that inflation has hit 4.2% should be no surprise to anyone. Spiralling energy costs, along with a 33% increase in mortgage interest payments and 12% in health insurance over the last twelve months, mean that the trend of inflation must be seen as an upwards one. It can also be argued that the heavy discounting in the summer sales has protected us from an even higher inflation increase.

 

“This exposes again the nature of the pay increase negotiated under the Towards 2016 agreement. While an increase of 10%, with a pathetic half percent extra for the lowest paid, sounds like a substantial increase, this works out at 4.4% annualised. It is increasingly clear that this will be wiped out by inflation over the 27 months of the deal. Imminent rises in electricity and gas prices and ongoing increases in fuel costs will without doubt mean further inflation increases in the coming months making the proposed pay increases meaningless for most workers.

 

“Those supporting the deal who claim there is no alternative are so wedded to the Partnership process they are unable to see that a bad deal can be a lot worse than no deal at all. While balloting on the Agreement among the unions is nearly complete, there is still time for workers to use their vote to reject a deal that provides little for Irish workers, especially the low-paid.”

 

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