A lot happens at Ibec. From the events and VIP briefings we host with political and business leaders to our political engagements and campaigns we run on your behalf. Here we show some recent updates from our CEO, Danny McCoy.
CEO Update: Public sector industrial action & positive signals for UK/EU relations
Friday,2 October
The latest CEO Update to Ibec membership from Danny McCoy
Employers are rightly concerned about further escalation in industrial action by 180,000 public sector workers. Preparations appear to be underway to escalate within days into strike action which would cause significant disruption for businesses and workers. Through our Employer Relations Division, we will be supporting workplaces with contingency planning should the dispute worsen.
As I recently discussed on RTÉ’s Drivetime, whatever the outcome, linking only public sector wages to inflation creates an unfair asymmetry with the private sector. These costs are ultimately passed on to other workers through higher taxes or reduced services, creating spillover expectations that are unachievable in the private sector without driving up prices.
Ultimately, pay must reflect society's ability to fund it. Sustainable growth in living standards can only be achieved through rising productivity, which is far better for the long-term strength of our economy- a balance we recognise the Government is trying to manage. For example, in the private sector, most employers are forecasting pay increases of around 3%, as highlighted in our recent HR Pay Trends report.
We note that the Taoiseach and the Government have stated a substantial sum has been set aside in next week's Budget to cover the cost of a new deal, which we hope will lead to a swift resolution and de-escalation of industrial tensions.
Ahead of Budget Day, we have just completed a comprehensive regional engagement- meeting with over 70 TDs- alongside publishing our correspondence to all members of the Oireachtas this week [insert link]. Our Economics and Policy team will be ready to provide members with full Budget analysis during a special live broadcast at 17:00 on Budget Day, Tuesday, 6 October, which you can register for here.
As we know, business competitiveness is not determined solely at home, it depends on how we shape and influence policy at the European level.
I have written previously on several EU developments- most notably the Industrial Accelerator Act (IAA), which has the potential to transform Europe’s industrial decarbonisation if designed and implemented correctly. Ibec takes the view that shortcomings in the European Commission’s initial proposal undermine the IAA core goal of strengthening EU competitiveness. In our letter to Minister Peter Burke TD last week, we highlighted that the IAA must empower public authorities to deploy critical underlying infrastructure rapidly, enable Europe to attract and retain top talent, and bolster competitiveness by protecting international trade and investment. It must also acknowledge the deeply integrated nature of global supply chains by encompassing the broader European continent and key international partners such as the UK.
Recent signals from the UK- including Labour Party conference discussions on the UK’s future relationship with Europe- are important. A stronger alliance between the EU and the UK is strategically vital for Irish interests, particularly regarding Irish security and defence. As highlighted by UK Prime Minister Andy Burnham, in an increasingly volatile global landscape, closer integration with European allies is essential not only for trade, but for military defence, AI regulation, and energy security. It was encouraging to see calls to move beyond the "Reset" framework towards a fundamental overhaul of UK-EU ties as vital for long-term UK stability and geopolitical weight.
The importance of Ireland’s economic relationship with continental Europe and the UK should never be underestimated. With this in mind, we launched a new report highlighting the extensive footprint of European enterprises in Ireland. Prepared to celebrate the role of European business as part of the EU Presidency, the report- titled Shared Prosperity: The European Engine Driving Ireland's Economic Edge- reveals that continental European firms operating in Ireland now directly employ 280,000 people (representing approximately 10% of the nation’s total workforce) and contribute €16 billion annually in wages to the Irish economy.
On the topic of defence and security, Ibec will host a special cybersecurity event on 8 October: "Business Resilience as National Resilience: Strengthening Cybersecurity, Competitiveness and Economic Security in Europe", featuring Jim O'Callaghan TD, Minister for Justice, Home Affairs and Migration. We will explore how Ireland can strengthen its cyber resilience, support business preparedness, and help shape the future direction of European cyber policy. You can register here.
Regards,
Danny
Walk the Walk / with Reputation Inc
“Walk the Talk”, a new series from Reputation Inc featuring conversations with leaders in business and broader society, delving into the intersection between business and reputation.
The episode, featuring Ibec CEO Danny McCoy, is presented in in four bite-sized video clips, exploring a range of topics including strategy, reputation, leadership, sustainability, and culture.
