Is it time for wage increases?

Given that we are a peripheral economy which is already high ware and high cost with low rates of productivity in the indigenous economy we should sit back and let wage increases in Germany solve the ECB's problems while maintaining our current pay rates thus clawing back some of the losses in relative wage productivity we have suffered over the last two decades.
 
We are a peripheral economy in the Eurozone. The ECB has its mandate to manage monetary policy in the Eurozone. Its expressed policy is to create an inflationary effect in the Eurozone, with a target circa 2%. It has chosen the QE method to do this.
I am merely pointing out that wage increases are inflationary. The article attached above supports this. This will be a more effective way of inducing an inflationary effect.

Im not sure why you would highlight the apparent low rates of the indigenous economy, instead of the economy as a whole? Which is, apparently, purring along nicely with projected forecasts being met, if not being beaten.

Since this thread was started, the national minimum wage has increased from €9.15ph to €9.55ph, an increase of 4.37% in less than 18 months.

Average wages are relatively flat over the period.

http://www.cso.ie/en/releasesandpublications/er/elcq/earningsandlabourcostsq22017finalq32017preliminaryestimates/

However productivity increases, employment participation, retail sales are all going nicely.

[broken link removed]

I think the case for wages increases to the sectors of the economy that are productive are beyond dispute at this stage – this will hopefully have a knock on effect of boosting the ‘indigenous’ economy resulting in wage increases there too.

Ireland can, and is doing its bit for the ECB target of 2% Eurozone inflation, through wage increases.
 

Since 2011, unit labor costs in Germany have begun to rise in line with the objectives of the central bank. However, even these increases have been insufficient to fill in the competitiveness gap which has opened up with other member states.

Looks like the increases are only going to allow the German workers get what most workers have gotten.
 
TheBigShort said:
Im not sure why you would highlight the apparent low rates of the indigenous economy, instead of the economy as a whole? Which is, apparently, purring along nicely with projected forecasts being met, if not being beaten.
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Because the capital intensive multinational sector is highly labour productive and so it gives an artificially good impression of productivity as a whole in this country. I don't think we should fool ourselves into thinking that we are efficient based on what a few global giants do in this country (the same ones that give us so much or our Corporation tax take), just as we shouldn't have fooled ourselves into thinking we were rich during a construction and debt bubble.
The average pay rate for Google direct employees is €94,000. The figures for many of the jobs in the MNC sector are similar. They are doing fine on what they get.
 
Purple said:
The average pay rate for Google direct employees is €94,000. The figures for many of the jobs in the MNC sector are similar. They are doing fine on what they get.
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There are over a 1,000 MNC's in Ireland, nice of you to use the cream of the crop for your example. Here are some wage stats with reflective of the economy as a whole, including MNC's.

http://www.cso.ie/en/releasesandpublications/ep/p-fdi/fdi2015/awe/

In any case, how is what you are posting about Google Ireland or our indigenous sector going to assist the ECB in achieving a 2% Eurozone inflation target?
Perhaps at this juncture you could offer a proposition as to how they might achieve this?
 

Just to come back to this briefly, according to

https://tradingeconomics.com/ireland/manufacturing-value-added-percent-of-gdp-wb-data.html

https://tradingeconomics.com/germany/industry-value-added-percent-of-gdp-wb-data.html


Manufacturing, value added (% of GDP) in Ireland was reported at 34.69 % in 2016, according to the World Bank collection of development indicators, compiled from officially recognized sources.


Industry, value added (% of GDP) in Germany was reported at 30.49 % in 2016, according to the World Bank collection of development indicators, compiled from officially recognized sources.
 
Ireland is changing fast the Government do not have the money to increase wages like in the old days the were spending money paid in by workers for there future pensions the hens are Comimg home to roost any extra wage increase will mean more tax needs to be collected so Ireland cannot help the ECB
Ireland needs to take money out of the system to service pay for its past sins,
 

I'm not talking specifically about Irish government wages.
I'm talking about the ECB policy to attain a 2% inflationary rate for the Eurozone.
Have you any ideas as to how they could achieve this? They are trying QE, to my mind all it has done has prop up asset prices.
 
RETIRED2017 said:
Ireland is in no position to help ,Ireland has let its cost of living get out of control driven by past wage increases,
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I disagree. Past wage increases are nearly irrelevant at this point. Pub sector benchmarking was when? 2002? Nearly half a career life-time away. Even since then, the cuts since 2008 have clawed most of those increases back.
We simply cant forever point to the distant past and cry "we cant afford it" even though the economy continues to grow

https://tradingeconomics.com/ireland/gdp-growth-annual
 
Purple said:
The average pay rate for Google direct employees is €94,000. The figures for many of the jobs in the MNC sector are similar. They are doing fine on what they get.
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How many Google Direct employees in Ireland?
What % of the total Google workforce here do they represent?
 
Any extra money the Government takes in the first call is to build a fund to pay future pensions while we have the working population to do so,
 
RETIRED2017 said:
Any extra money the Government takes in the first call is to build a fund to pay future pensions while we have the working population to do so,
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You are kidding right? The government raided the national pension reserve as soon as things got out of control.
In any case, why the persistent referral to Irish government and Irish wages?

The topic is about the ECB and its attempt to create a 2% inflation rate in the Eurozone.

Germany is the biggest trading bloc of the Eurozone.
I've attached an article that claims that deals to increase wages in Germany will help the ECB to achieve its inflation target of 2%.
I've argued that wages increases are inflationary, and if some inflation is what is desirable, then wage increases are the best to go about it, not QE.
Do you agree, or not?
 
Wage increases across the Eurozone are a good idea.
Wage increases in Ireland at the same time are a bad idea.

We all kow that is due to the activities of MNC's.
 
Delboy said:
How many Google Direct employees in Ireland?
What % of the total Google workforce here do they represent?
Click to expand...
Google employ around 3000 people in Ireland with another 3000 people on full and part time contracts employed through other companies such as Accenture. I presume these are generally low paid jobs.
The average wage in US Multinationals in Ireland is around €60,000.
 
So the 3,000 people directly employed are on an average wage of €94k???
 
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