General Employment Issues
Dublin has become a major European city and commuting time to the centre of the city is lengthening caused by monthly registration of 10,000 new cars approx. There is a need for decentralisation as a result of difficulties in recruiting employees in Dublin.
One Banking group has introduced a "Dublin" weighting of £2,000 to offset the cost of housing and time spent commuting to and from work. Unemployment rates in the Regions remain higher than the national level of 25% approx. The Government is leading the way by planning to move departments into the regions.
The infrastructure continues to improve albeit at a slow pace due to the late introduction of the National Roads Authority and lack of forward planning.
National wage agreements had a stabilising effect on salaries in recent times.
The recently agreed Programme for Prosperity and Fairness agrees increases to be implemented on the expiry of Partnership 2000 of 5.5% (minimum £12.00 for the first twelve-month phase), 5.5% (minimum £11 for the second phase and 4% (minimum £9 for the final phase)
The predecessor " Partnership 2000 " agreement allowed for an increase of 9.25% over 3 years from 1997 and the final phase (1.5% subject to minimum £2.40 per week for 9 months followed by 1% subject to minimum £1.60 per week for the final 6 months) was applied during late 1999.
The National Minimum Wage Act 2000 provides a legislative framework for the introduction of a national hourly rate of pay. The general minimum wage rate of Ir£4.40 per hour, with reductions for under 18's and trainees, was effective from 1st.April 2000. The second order setting out the minimum hourly rate (SI 201 of 2000) sets an hourly rate of pay at Ir£4.70 from July 1st 2001 and Ir£5 from October 1st 2002. An additional team of inspectors are now visiting businesses to ensure compliance. The act specifically precludes the restoration of any pay differential erosion as a result of other workers receiving an increase due to this act. A detailed guide is available.
Statutory Minimum rates were previously set by statutory instruments agreed by the joint labour committees: for Contract Cleaners £4.05 per hour; Retail Grocery seven point scale £2.64 - £4.69 per hour; Legal staff £133.91 to £265.20 per week depending on duties.
There is no statutory sick pay scheme. However sick pay schemes are legislated for certain groups by joint labour committee employment legislation orders. Contract Cleaning, Retail Grocery & allied trades, Agriculture, Footwear/Drapery Dublin Dunlaoghaire , Hairdressing Dublin, Law Clerks, Brush and Broom, Providence Millers, Electrical Contracting, Construction.
Employers PRSI continues to be levied at the general rate of 12% on the gross wage cost in 2000/2001. PRSI contribution rates also affect salary rates since companies pay less PRSI on different salary levels.
Employers may offer salaries below £14,560 and save 3.5% on the annual salary
As a result of the volatile market in the recent past it is difficult to produce accurate salary surveys in Ireland.
The replacement cost of junior/support staff shows a 25%+ increase since 1994 partly due to tight supply caused by the increasing number of young people continuing into free third level education.
Executive salaries increased by 4% in 1998 and 6% in 1999 and are set to increase in 2000/2001 by greater amounts to address the imbalance caused by the narrowing of the gap between juniors and managers.
Salary surveys are available from:-
- Irish Business and Employers Confederation (IBEC)
- Irish Management Institute (IMI)
- INBUCON
The Minister for Enterprise Trade and Employment issues work permits if satisfied that all reasonable steps have been taken to recruit a suitably qualified EEU or EEA national.
Certain categories of workers are unavailable and the Government has introduced a new Visa system to replace the Work Permit system for these designated categories. The Government continues to financially support Refugees who may be well qualified to work but who are precluded from seeking work as a result of legislation whereby they would loose their claim for Refugee Status.
