CEO Update: Competitiveness, Care and Cooperation

Dear member,

This week, following much pressure and advocacy from Ibec, the Government published a long-awaited report on the cumulative impact of government-imposed labour costs on businesses. The report aligns with Ibec’s analysis that the cumulative effects of labour market policy decisions have significantly increased costs for vulnerable companies and sectors.

Some sectors, as noted in the report, are projected to experience nearly a 20% rise in labour costs over the next two years, even before factoring in subsequent pay pressures or standard wage growth.

Ibec views the PRSI system as the most straightforward and targeted way to address these issues. The Government must introduce a PRSI rebate for the most exposed companies in line with their exposure to rising costs, along with increasing the top-rate employer PRSI threshold above the minimum wage and commit to a new ‘Competitiveness Charter’ which sets an annual ceiling on the total amount of additional labour market costs which will be imposed on businesses in any single year. Ibec will continue to lobby on this issue on behalf of our members.

While cost competitiveness is a real challenge now, anticipating Ireland’s future economic and social challenges informed Ibec’s Better Care, Better Business Report which was published this week. The report included new research on care in Ireland today which noted that “63% of those who are primary carers of adults are employed”. The report provides important context on this issue and outlines key policy recommendations. Its available to read here.

Acknowledging International Women’s Day today, we look back to the truly inspiring event we hosted at our Dublin office last week, where we brought the only four women who have held the role of Tánaiste since the foundation of the State.

Watch below as Frances Fitzgerald MEP, Mary Harney, former leader of the Progressive Democrats, Mary Coughlan, Deputy Leader of Fianna Fáil and Joan Burton, former Labour Party leader, reflect on the event and call for more participation by women in political life and leadership on our LinkedIn and X/Twitter social channels.

Lastly, next week, an Ibec Delegation will be travelling to the U.S. for a series of high level Political and Government engagements. I look forward to sharing insights and updates with you from that trip.

As always if you have any feedback, please let me know.

Regards,

Danny McCoy

CEO

Ibec