Cowen shows he's just another Landlord dupe
Cowen lays down law on wage hikes By Fionnan Sheahan and Aine Kerr Thursday April 24 2008 TAOISEACH-designate Brian Cowen yesterday sent out a stark warning on wage rise demands ahead of crucial new pay talks beginning today. He warned unions it would be "futile" and "self-defeating" to push up wages in response to rising prices. And the Finance Minister also lashed exorbitant bonuses being paid to fat-cat executives (but nothing about his own lavish pay rise.) Mr Cowen's tough-talking stance marked an immediate change in leadership style as the Dail heralded the end of the Bertie Ahern era. But his appeal for moderation was immediately thrown back in his face as he was challenged to reject his own lavish pay rise, which is due to kick in this September. Fine Gael said Mr Cowen, who will formally take over as Taoiseach on May 7, will now "inherit" Mr Ahern's controversial €38,000 pay rise, taking his salary up to €310,000. Mr Cowen set out his no-nonsense approach to the pay talks at an Irish Congress of Trade Unions conference in Croke Park. He said the pursuit of "unsustainable" wage increases that could not be justified by productivity would have long-term consequences. Unabashed by the recent controversial Cabinet pay increases, he criticised senior business executives who awarded themselves significant wage hikes and pay bonuses, saying it sent out the "wrong message" to workers countrywide. "I am concerned at the very significant payments being made to senior business people and the signal these payments send out to the majority of workers in relation to two key principles of social partnership; fairness and equity," he said. "Government has a dual role as both an employer and guardian for the overall best interests of all in society, which must include fiscal stability. In these circumstances we will have to ensure that we don't jeopardise the future for all so as to benefit certain sectoral interests." Fine Gael's Kieran O'Donnell said Mr Cowen should practice what he preached on senior business sector pay and hand back his own pay rise. "Brian Cowen is indulging in hypocrisy by expressing concerns about pay rises for senior business people. "The €38,000 pay rise that Brian Cowen will inherit as Taoiseach later this year is larger than the average industrial wage," he said. "If Brian Cowen genuinely believes in the partnership talks he should lead by example and not take his exorbitant pay rise. He should also instruct his fellow ministers to do the same, all of whom will receive pay rises of up to 12pc." Competitive Mr Cowen said the key to maintaining Ireland's competitive, and rising, living standards was to raise the level of productivity and keep costs down, adding that measures to increase productivity would take time to reach fruition. "In the meantime it would not be appropriate to respond to externally generated price increases by simply increasing pay costs to match such increases. "This would be futile and self-defeating. It would add domestic price increases to imported ones," he said. "It would not only fail to improve living standards but instead would lead to widespread job losses, thus leaving those without jobs much worse off than before." With regard to the current economic position, the budgetary outlook and the need to sustain Ireland's competitive position, the Government must not undermine this position relative to our main trading partners, Mr Cowen said. He said that any future pay increases must be linked to a number of factors, including productivity growth and inflation levels. Mr Cowen said the public service pay bill remained the biggest single element in public expenditure, accounting for over a third of all current expenditure. "Each 1pc increase in the public service pay bill costs just under €200m a year. "The development of public service pay costs must be such as to ensure that resources allocated to public service pay do not cause a shortfall of resources for other key priorities," he said.
Cowen lays down law on wage hikes By Fionnan Sheahan and Aine Kerr Thursday April 24 2008 TAOISEACH-designate Brian Cowen yesterday sent out a stark warning on wage rise demands ahead of crucial new pay talks beginning today. He warned unions it would be "futile" and "self-defeating" to push up wages in response to rising prices. And the Finance Minister also lashed exorbitant bonuses being paid to fat-cat executives (but nothing about his own lavish pay rise.) Mr Cowen's tough-talking stance marked an immediate change in leadership style as the Dail heralded the end of the Bertie Ahern era. But his appeal for moderation was immediately thrown back in his face as he was challenged to reject his own lavish pay rise, which is due to kick in this September. Fine Gael said Mr Cowen, who will formally take over as Taoiseach on May 7, will now "inherit" Mr Ahern's controversial €38,000 pay rise, taking his salary up to €310,000. Mr Cowen set out his no-nonsense approach to the pay talks at an Irish Congress of Trade Unions conference in Croke Park. He said the pursuit of "unsustainable" wage increases that could not be justified by productivity would have long-term consequences. Unabashed by the recent controversial Cabinet pay increases, he criticised senior business executives who awarded themselves significant wage hikes and pay bonuses, saying it sent out the "wrong message" to workers countrywide. "I am concerned at the very significant payments being made to senior business people and the signal these payments send out to the majority of workers in relation to two key principles of social partnership; fairness and equity," he said. "Government has a dual role as both an employer and guardian for the overall best interests of all in society, which must include fiscal stability. In these circumstances we will have to ensure that we don't jeopardise the future for all so as to benefit certain sectoral interests." Fine Gael's Kieran O'Donnell said Mr Cowen should practice what he preached on senior business sector pay and hand back his own pay rise. "Brian Cowen is indulging in hypocrisy by expressing concerns about pay rises for senior business people. "The €38,000 pay rise that Brian Cowen will inherit as Taoiseach later this year is larger than the average industrial wage," he said. "If Brian Cowen genuinely believes in the partnership talks he should lead by example and not take his exorbitant pay rise. He should also instruct his fellow ministers to do the same, all of whom will receive pay rises of up to 12pc." Competitive Mr Cowen said the key to maintaining Ireland's competitive, and rising, living standards was to raise the level of productivity and keep costs down, adding that measures to increase productivity would take time to reach fruition. "In the meantime it would not be appropriate to respond to externally generated price increases by simply increasing pay costs to match such increases. "This would be futile and self-defeating. It would add domestic price increases to imported ones," he said. "It would not only fail to improve living standards but instead would lead to widespread job losses, thus leaving those without jobs much worse off than before." With regard to the current economic position, the budgetary outlook and the need to sustain Ireland's competitive position, the Government must not undermine this position relative to our main trading partners, Mr Cowen said. He said that any future pay increases must be linked to a number of factors, including productivity growth and inflation levels. Mr Cowen said the public service pay bill remained the biggest single element in public expenditure, accounting for over a third of all current expenditure. "Each 1pc increase in the public service pay bill costs just under €200m a year. "The development of public service pay costs must be such as to ensure that resources allocated to public service pay do not cause a shortfall of resources for other key priorities," he said.