The State's largest trade union, Siptu, said its members in the private sector will seek pay increases to offset the current surge in inflation, which is expected to reach 8 per cent in the coming months.
Following a meeting of head officials, the union, which represents more than 180,000 workers, said it would seek pay hikes to match the rising costs of living and would attempt to renegotiate existing pay deals that fall short of inflation.
The move will send shock-waves through the business sector here and comes on the back of a warning by the Central Bank that salary increases designed to keep up with consumer prices could trigger a wage-price spiral.
Inflation in the Irish economy rose to a 22-year high of 6.7 per cent in March on the back of soaring energy prices.
"In negotiations with employers across the economy, our members will seek increases that will offset the sharp rise in the costs of living in Ireland, " Siptu's deputy general secretary Gerry McCormack said.
“We will also re-renegotiate earlier deals that are no longer sufficient to recompense workers for the increase in inflation,” he said.
‘Gouging’
Mr McCormack said Siptu was aware some businesses may not be able to afford the increases required to meet inflation and did not intend to place them in further financial difficulty with unsustainable pay claims.
“However, we have also witnessed gouging over recent months, which is unjustified and which suggests that there are business people who are raising prices above the inflation rate solely to increase profits at the expense of their customers,” he said.
“The sharp rise in living costs, including energy prices, is largely driven by external factors and is not caused by working people and their families, many of whom are now struggling to pay for their rent, mortgage, fuel and other basic needs,” he said.
In particular, he highlighted the 14 per cent increase in house prices, which he said was creating real hardship and deepening the housing and homeless crisis.
Mr McCormack said Siptu had pressed the Government to increase the €500 limit that employers can give in tax-free vouchers to €1,000 and can be paid in lieu of wage increases.
“The Government should also raise the minimum wage to the living wage and protect vulnerable citizens on fixed incomes by increasing social welfare and State pension rates,” he said.
