According to Dan O'Brien in today's Irish Times:
"...public sector workers, despite having suffered net income reductions, have, on average, retained a large part of the gains from bubble-era pay increases.
The average gross pay packet in the public sector* was €63,305 last year, down by €1,300 from the peak registered in 2009. But it remains well up on the €58,170 paid in 2007 just as the bubble burst"
So even though cuts have been made, wages are still higher, on average, than they were at the height of the boom..
Dan O'Brien has a follow up piece in today's IT:
http://www.irishtimes.com/business/...ble-era-public-sector-pay-anomalies-1.1319592
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Although many in the public sector acknowledge that they enjoyed annual increases, benchmarking increases and other increments, for many others, including the letter writer above, it is a case of eaten bread is soon forgotten.
The degree to which public sector workers benefited from the unsustainable inflow of tax revenues during the property bubble years should not be in question. Not only did the public sector pay bill rise faster than any other public sector in the EU after the turn of the century, but inflation-adjusted average earnings increases were hugely greater than those in the private sector.
Not only were average weekly nominal earnings in the private sector already well below those in the public sector when the bubble began to inflate, the gap widened over the course of the bubble years, as the chart below shows.
The gains public sector workers made when compared with their private sector counterparts are much more stark when inflation is taken into account. While average weekly wages in the private sector rose by less than 15 per cent in the period between 2003 and 2009, those in the public sector enjoyed an average increase of 38 per cent.
Given that the consumer price index over that six-year period rose by 13.4 per cent, in real terms, average private earnings were effectively stagnant in the six years to 2009, while those in the public sector grew by more than one quarter.
Since 2009, public sector workers have suffered a larger decline in earnings than those in the private sector, but their real incomes are still well ahead of a decade ago.
On the other hand, in real terms, average private sector earnings are now lower than 10 years ago.
Should people who earn less on average and who have experienced falling real incomes really pay more tax to fund the incomes of those who are richer and retain most of their bubble-era gains?
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