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Public Pay Talks - see mod warning post 4293

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Comments

  • Registered Users, Registered Users 2 Posts: 8,145 ✭✭✭bren2001


    Its not the unions decision if we go on strike, it's the members. We have to reject the pay deal and then be balloted for strike. The union decide to ballot or not.

    Tax bands not indexed but pretty widely accepted that we will get massive tax band adjustments above inflation* right before the election showing the government putting money in your pocket.

    *(The tax band adjustments will likely be in line with inflation across the the term of the government)



  • Registered Users, Registered Users 2 Posts: 2,898 ✭✭✭combat14


    where is it widely accepted that workers will get massive tax band adjustments across multiple years above inflation (just before the election in 3 or 4 years time)



  • Registered Users, Registered Users 2 Posts: 8,145 ✭✭✭bren2001


    every political podcast i listened to post budget. Was discussed quite a bit on the Irish Times Political Podcast. It's Politics 101 stuff, it's one of the most basic plays the government has. Often forms part of the giveaway budgets pre election. Of course, it's speculation

    It would start in 2 years time not 3 or 4 years away. 2023, 2024 and 2025 were all above inflation where 2022 and 2021 were losses (that's from a very quick Google)



  • Moderators, Sports Moderators Posts: 27,054 Mod ✭✭✭✭CramCycle


    But this year it didn't, first time in a long time the rate bands were not adjusted, and people finally realise why that was important, because without a pay increase, it is a huge kick to your pocket. In fact the government in the last pay talks routinely played the "effective" pay increase card and included the normal changes, but funnily didn't mention it his year.



  • Registered Users, Registered Users 2 Posts: 15,270 ✭✭✭✭Geuze


    Sorry for not reading the whole thread, but what is the story with the 1% local bargaining, in the education sector?

    Thanks.



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  • Registered Users, Registered Users 2, Paid Member Posts: 41,951 ✭✭✭✭Hotblack Desiato


    In a period of very low interest rates I don't think deferring these payouts saves the goverment much if anything. The resistance to paying public servants is starting to feel ideological ever since PER was set up.

    I'm partial to your abracadabra
    I'm raptured by the joy of it all



  • Registered Users, Registered Users 2, Paid Member Posts: 41,951 ✭✭✭✭Hotblack Desiato


    Aye but right now the hauliers and farmers are getting rebates which no other taxpayers get, but all taxpayers pay for.

    I'm partial to your abracadabra
    I'm raptured by the joy of it all



  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    Are you suggesting that the rebates hauliers and farmers receive is going into their pockets to improve their lifestyle, rather than helping them cover the huge rise in their operating costs? Are you not aware of the increases in fuel prices?

    Do the other taxpayers you’re concerned about have to cover the cost of running machinery as part of their daily work and to earn a living, the way farmers and hauliers do, handing over significant taxes to the government for the privilege of doing so?

    Post edited by nightbeacon on


  • Registered Users, Registered Users 2, Paid Member Posts: 41,951 ✭✭✭✭Hotblack Desiato


    Wow what a whinge. You are engaging under false pretenses and nobody got time for that

    I'm partial to your abracadabra
    I'm raptured by the joy of it all



  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    Your inability to address two straightforward questions only goes to show weak and flimsy your argument is.

    Not to mention your glaring hypocrisy where you are complaining about CS and PS getting poorer - without providing a shred of evidence of course - while being entirely unbothered by hauliers and farmers watching their incomes shrink as their costs skyrocket.



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  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    You are engaging under false pretenses

    You haven’t identified a single thing I’ve said that’s false or misleading. If you can’t point to something concrete, this is nothing but deflective rhetoric.



  • Registered Users, Registered Users 2 Posts: 2,001 ✭✭✭granturismo


    For the third level sector - rumours are that the majority of unions and the IUA asked for 1% to be applied to everyone. DFHERIS didnt object but DEPR refused aroung January, insisting on local bargaining. I havent heard of any movement since.



  • Registered Users, Registered Users 2 Posts: 8,145 ✭✭✭bren2001


    The argument that the PS and CS is getting poorer is pretty obvious, compare the last few Public Sector Pay Deals v Inflation. You'll see Inflation is faster than pay rises.

    • 2021-2023: 8.5%
    • 2024-2026: 9.25% (or 10.25% with the Local Bargaining but most have not received that yet)
    • Total: 17.75% or 18.75% depending on how you could local bargaining.

    From October 2021 - March 2026, inflation has run at 21.2%. The difference between the pay deals and inflation is likely to grow over the next few months as the current deal runs until July of this year.



  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    So what? There’s no rule that wages have to rise with inflation. Inflation literally means the value of money drops, that’s the definition. If wages matched inflation automatically, it wouldn’t be called inflation in the first place.


    Seems like you also forgot about yearly increments in that 2021 - 2026 period, so your figures are completely wrong. Every pay rise is added to yearly increments, so applying your summation only on headline percentages is either disingenuous at best or shows a poor grasp of basic arithmetic as worst. Neither a good look for someone working in academia.



  • Registered Users, Registered Users 2 Posts: 76,149 ✭✭✭✭L1011


    Plenty of people don't get increments anymore, and in a number of career paths, the end of scale is still below market rates (every single technical role, for starters).



  • Registered Users, Registered Users 2 Posts: 15,270 ✭✭✭✭Geuze


    Generally, over time, wages rise faster than inflation, that being the whole point of economic growth.

    There are some less successful countries where that hasn't been happening, e.g. the UK.

    Given the growth in GDP and tax receipts in Ireland, PS pay should be growing faster than inflation.



  • Registered Users, Registered Users 2 Posts: 15,270 ✭✭✭✭Geuze


    If wages grew slower than inflation, or general income growth, then that would contribute to a fall in the labour share.

    I feel this has been happening in Ireland: profit incomes have been rising faster than wage incomes.



  • Registered Users, Registered Users 2 Posts: 11,287 ✭✭✭✭Dodge


    I love the guy who asked for a “shred of evidence” and when he got it said “so what?”

    Ha ha



  • Registered Users, Registered Users 2 Posts: 8,145 ✭✭✭bren2001


    Nobody claimed there was a "rule", the claim was the sectors are getting poorer.

    It seems you don't understand what inflation is. If the basket of goods costs €1 today and €2 next year, inflation is 100%. It doesn't matter what has happened to your wages, the purchasing power of money has reduced. €1 buys you less. If your wage increase matches inflation, it's still called inflation.

    As for the "arithmetic" dig, you are fundamentally misunderstanding the purpose of an increment. An increment isn't a cost-of-living adjustment. It is a reflection of increased proficiency and value as you gain experience in a role. If the entire pay scale is being devalued by inflation, then every single rung on that ladder is worth less than it was two years ago.

    The reality is that a person at "Point 4" on the scale today has significantly less purchasing power than someone at "Point 4" 15 years ago. That is the definition of a sector getting poorer. That was the point being made. This is also completely ignoring the thousands of staff at the top of their scales who receive no increments at all.

    Claiming that individual career progression somehow cancels out systemic wage devaluation is what's actually disingenuous here. Hotblack Desiato is spot on, you're spouting rubbish.



  • Registered Users, Registered Users 2 Posts: 4,779 ✭✭✭An Ri rua


    No, unfortunately wages may rise faster than cpi. But not faster than inflation.

    That is the great game that is played. And most, just like you, fall for it.

    CPI is a managed construct. Inflation is not.



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  • Registered Users, Registered Users 2 Posts: 15,270 ✭✭✭✭Geuze


    Inflation in consumer prices is measured by the CPI.

    The CPI is by no means perfect, it has three faults, two of which can be fixed over time.



  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    Luckily for those people, they have already benefited from many years of increments and pay raises and are in a comfortable stage of their careers and can enjoy further pay raises. Also, is there something stopping those people applying for promotion or getting another job if they feel they can progress their own careers further elsewhere?

    the end of scale is still below market rates (every single technical role, for starters).

    No it's not, when you consider the security of the job allowing for easier mortgage application (based on a future salary and allowing for exceptions on the borrowing limit), greater annual leave, shorter working week and generous employer pension contributions.



  • Registered Users, Registered Users 2 Posts: 76,149 ✭✭✭✭L1011


    I see you've come up with a nice list of blather to hand-wave away the fact that you were trying to rely on increments to also hand-wave away below inflation pay rises. You'd fail secondary school debating doing that. You cannot base an argument on something then decide it's not important.

    You also don't really have any idea of the real world for those types of roles these days, if you think the PS has "generous employer pension contributions" compared to the private sector.

    The absolutely insane reduction in salary I would have doing an equivalent role in the PS - even at top of scale - would eat away the small increase in mortgage lending available. I get more annual leave and effective full flexibility of working hours. Also, nearly all similar roles have bonuses (even in some semi states), something the PS does not have.

    So yes, yes it is still below market rates; in the real world. Not whatever planet you inhabit.



  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    Were you as quick to call for wage cuts then in your own job after the deflation years post crash? When it comes to paying your own bills, do you pay the cheapest market rate or do you pay enough to ensure the supplier and their employees is shielded from inflation? I think based on your posts about £1 beer elsewhere, I know the answer to the self-serving position you hold.

     profit incomes have been rising faster than wage incomes.

    What do you think happens those profits? It helps keep jobs secure, allows for reinvestment and expansion to create new jobs and pays dividends that make up the pensions of people. How very noble of you to criticise the mechanism that creates jobs and pays for pensions of other people from your own secure job and pension.



  • Registered Users, Registered Users 2 Posts: 8 nightbeacon


    Yes, I dismissed that ‘evidence’ the moment I saw the double‑digit pay rises, on top of increments, given to CS and PS staff. That completely undermines the notion that they somehow got poorer. Getting more money does not make you poorer. What each individual does with that extra money is up to them. They can either invest wisely or spend it in the pub. But it doesn't make them poorer.



  • Moderators, Sports Moderators Posts: 27,054 Mod ✭✭✭✭CramCycle


    Tell me you don't understand economics without telling me. There was a woman interviewed in a vox pop on radio the other day who was saying the increase in energy costs didn't affect her as she just buys less in LIDL every week to counteract. That's the mentality.

    Inflation is X% per year. Typically the government would adjust tax bands a bit each year which alleviates pressure, not completely, from those with no change to their salary.

    Increments are not paying increases, increments are an acceptance that when someone starts a job, because of the way the PS and CS is structured to give a fair bite of the cherry, they might start off with not all of the requirements, but definitely the capabilities, to do the job. The top of the scale is the actual pay for the job. Before the recession, you would be appointed onto the scale at a point that reflected your experience and skills. Typically straight out of leaving cert would get you the entry point, 4 years of college in a relevant discipline would get you a a few points on the scale, experience in the private sector in a relevant role would also get you some years, possibly even top of the scale.

    The government themselves said this at the last talks that along with the adjustment of tax brackets, it would make up for the low increases

    Last year they screwed private and public by not adjusting the tax brackets, some rubbish about pay increases and bonuses would mean people would be fine. Hopefully you start to understand a bit clearer now. If your take home pay does not change but your groceries, travel and other essentials go up by X%, then you are effectively poorer. Yes the number in your pay packet isn't changing, so it's harder to see, but the number available after life essentials have been bought is less. If you are between reasonably comfortable or wealthy, you might notice but not really, for everyone else , you will notice that you can't buy the meals you want, you second guess turning on the heating, you opt out of going to the doctor's when you feel unwell. You might not be poor but you are poorer.



  • Registered Users, Registered Users 2 Posts: 15,270 ✭✭✭✭Geuze


    I'm no PBP supporter, but a rising profit share and a falling labour share isn't healthy.

    Profits can rise without a rising profit share.

    An increasing profits share means that profits are rising faster than other types of income.

    Profits are already maybe double wages in Ireland, although data on that isn't easy to get.

    How low do you want the labour share to fall? For the domestic sector of the economy, it is at 53.5%, well below rates about 66-67% in the USA.

    There was an error displaying this embed.



  • Registered Users, Registered Users 2 Posts: 15,270 ✭✭✭✭Geuze


    https://www.reddit.com/r/irishpersonalfinance/comments/1srijs2/pension_pot_hit_100k_today/

    Here is a person getting 4-15% annual pay increase in pharma manufacturing, and some people on here sound like the PS asking for 2% is too much!!!



  • Registered Users, Registered Users 2 Posts: 1,266 ✭✭✭ledwithhedwith


    Nightbeacon is a certain rereg hahahah



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  • Registered Users, Registered Users 2 Posts: 7,418 ✭✭✭Charles Babbage


    And your "increase" is composed of two elements, 4% for general wages inflation and an element that reflects your greater experience. The PS formula may be more explicit in disaggregating the elements, but it is exactly the same.



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