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Irish Trade Unions in a
Globalised World
Jack O’ Connor
General President
SIPTU
ICTU Economic Conference April 2008
Leading by Example?
CRH
2.79m (W I O’Mahony)
Smurfit Kappa
2.6m (Gary McGann)
IL&P
1.36m (Denis Casey)
B of I
4.0m (Brian Goggin)
Diageo
3.75m (Paul Walsh)
AIB
2.40m (Eugene Sheehy)
Tullow Oil
1.6m (Aidan Heavey)
Kerry Foods
1.2m (Hugh Friel)
1.0m (Denis Creegan, CFO)
Ryan Air
1.0m (992 (Michael O’Leary)
Glanbia
927,000 (John Malony)
Irish Trade Unions in a
Globalised World
Jack O’ Connor
General President
SIPTU
ICTU Economic Conference April 2008
Labour Cost Growth-
growth rates (2000- 2007 Q2) and
levels compared (2007 Q2, € per hour)
€40.00
45%
€36.21
40%
€31.54
35%
€35.00
€30.84€30.00
€29.15
30%
€25.00
€24.68
25%
€20.00
20%
€15.00
15%
€10.00
10%
5%
€5.00
0%
€0.00
Ireland
UK
Netherlands
Sweden
Germany
Source: Eurostat Labour Market Statistics
The Competition:
labour cost rates
and labour cost levels compared (20002007 Q2)
€30.00
180%
160%
€25.00
€24.68
140%
€20.00
120%
100%
€15.00
80%
€10.00
60%
€7.13
40%
€6.27
€4.87
€5.00
20%
€0.00
0%
Ireland
Poland
Lithuania
Latvia
Source: Eurostat Labour Market Statistics
Productivity Growth
United Kingdom
9.0%
8.0%
United States
7.0%
6.0%
Ireland
5.0%
4.0%
EU15
3.0%
2.0%
1.0%
0.0%
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
-1.0%
Source: Derived from Total Economy Database, Groningen & Development Centre, 2007
Productivity Levels
Source: Derived from Total Economy Database, Groningen & Development Centre, 2007
Irish Trade Unions in a
Globalised World
Jack O’ Connor
General President
SIPTU
Government spending as % GDP
60
50
Ireland
US
UK
Germany
Denmark
Swedan
%
40
30
20
10
0
Health
Education
% of GDP
Total Government
Expenditure
Source: OECD
Still well within the SGP guidelines
for General Government Balance as
% of GDP
1
0.5
0
2007
2008(f)
2009(f)
2010(f)
-0.5
%
-1
-1.5
General Government Balance
-2
-2.5
Limit to General Government
Deficit under SGP
-3
-3.5
Source: Dept. of Finance
And much scope within the SGP guidelines
for Government Debt to GDP ratio to
increase in order to fund capital spending…
70
60
50
Government Debt to GDP Ratio
40
%
Limit to Government Debt to GDP
Ratio under SGP
30
20
10
0
2007
2008(f)
2009(f)
2010(f)
Source: Dept. of Finance
Irish Trade Unions in a
Globalised World
Jack O’ Connor
General President
SIPTU