The Hibernian situation proves the ineffectiveness of the 'basic supply and demand' theory. Hibernian workers didn't lower their wages. They lost their jobs to India. I wonder how long it will take before Irish banks start advertising 'call centres in Ireland' as a product benefit, as has happened in the UK.
I don't disagree that public sector salaries have an indirect knock-on effect on the overall economy, but to suggest that the solution to the Hibernian situation lies in public sector salaries is at best misguided, and at worst a flawed attempt to spin the IBEC/PD agenda yet again. If you believe that wage levels are the cause of the problem, then the place to start is with the wages of the staff involved.
For the record, I don't believe that the solution to this situation lies in wage cuts by public or private sectors. This is of course the 'race to the bottom' that the
IBEC men (note the lack of gender balance) have wet dreams over. It would be helpful for those who believe the solution to our economic woes lie in wage cuts to lead by example. When do you think that will start happening?