45126-Invest. Qual-No111

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<strong>Invest</strong>ment in <strong>Qual</strong>ityThe Council is also reassured of the reasonable accuracy of theseforecast numbers given that for Ireland, at least, they appear toresemble numbers from current average weekly earnings as collatedby the CSO, bearing in mind that the CSO weekly earnings figuresdo not include pension contributions or irregular bonuses.TABLE 6.5INTERNATIONAL COMPARISON OF AVERAGE EMPLOYEEEARNINGS AND GROSS LABOUR COSTS, 2002Country Average Employee Gross Labour CostsEarningsLuxembourg €57,580 €62,572Denmark €36,299 €38,763Ireland €33,273 €35,644United Kingdom €32,349 €37,687Belgium €31,202 €41,547Austria €27,294 €34,340Germany €26,651 €33,010Sweden €26,311 €35,323Finland €26,207 €33,109Netherlands €26,160 €32,640France €26,111 €35,599Italy €21,781 €30,030Spain €19,929 €25,108Greece €15,925 €20,496Portugal n.a. n.a.Source: Calculated by dividing the national wage bill by the number ofemployees. The 2000 data (and 2001 where available) are from theEurostat Cronos database. These have been updated using the annualchange for 2001 (where relevant) and the 2002 forecast from EuropeanCommission (2002), European Economy, No. 2.While employer costs are important from a cost competitivenessperspective, it is take-home pay and the goods and services that can270
Wage Bargainingbe acquired for it that is the primary concern of workers.Preliminary and tentative analysis by the Council suggests that onceadjusting for direct taxation, variations in the number of hoursworked and the cost of living, Irish married couples on the averagewage enjoy the fourth highest monetary standard of living whereasfor a single person on 167 per cent of the average wage is seventh ina league of his European counterparts. The Council should stressthat the analysis it has undertaken is indicative rather than definitivebut that it appears to lend broad support to the recent work carriedout by PWC for Forfás (PricewaterhouseCoopers, 2002) thatsuggested that Irish workers were the third best remunerated in theeuro-zone post-tax and despite higher costs of living retain apurchasing power income above average. It also suggests that theIrish direct taxation system is somewhat more progressive in naturethan our European counterparts.6.4.6 Variation and Trends in Wage and Profit SharesThe recovery of the Irish economy in the late 1980s and through the1990s was associated with an increase in profitability, as well asincreased living standards and employment. Rates of profitabilityand trends in profit shares differ significantly across sectors. Thetrends in wage share in the main sectors and in the overall nonagriculturaleconomy are shown in Table 6.6. This shows that whilethe wage share of total gross value-added fell by around sevenpercentage points in the overall non-agricultural economy, this wasdriven by trends in the manufacturing sector. The bottom row ofTable 6.6 shows that wage share in the overall economy, outside ofmanufacturing, was broadly stable between 1991 and 1999.Indeed, trends in wage and profit share also vary significantlywithin manufacturing. The falling wage share within manufacturingas a whole is mainly due to a number of high-tech sectors. Thisis illustrated in Table 6.7, which shows labour costs as a shareof value-added in selected high-tech sectors and in overallmanufacturing.271
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Table of ContentsPageABBREVIATIONS
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Chapter 9. Infrastructure, Public U
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Investment in QualityTable 2.9: Ave
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Investment in QualityTable 7.12: Pe
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Investment in QualityLIST OF FIGURE
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Investment in QualityLIST OF BOXESB
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CWCDARTDSLDTODWSECECHPECJEEAEGFSNEM
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NESCNESDONESFNGONICsNMWNPMNSSNTRNWC
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xviii
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Investment in Qualitynew economic a
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CHAPTER 1IRELAND’S LONG RUN ECONO
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Ireland’s Long Run Economic Devel
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growth. Second, there was a dramati
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own interpretation it becomes clear
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CHAPTER 2IRELAND’S LONG RUN SOCIA
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Ireland’s Long Run Social Develop
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3. Those that are currently landfil
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not starting from scratch. Ireland
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eal disposable incomes rose by some
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Part IIVision137
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CHAPTER 3EXPERIENCE, UNDERSTANDING
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●Experience, Understanding and Ne
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Experience, Understanding and New P
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more diverse, fragmented and decent
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●Experience, Understanding and Ne
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3.7.3 From a Differentiated to a De
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State might look like (see Figure 3
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without rigid models and revising b
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Part IIIStrategy169
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CHAPTER 4RECASTING IRELAND’S CONS
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Recasting Ireland’s Consistent Po
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●●●Recasting Ireland’s Cons
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CHAPTER 5MACROECONOMIC POLICY5.1 IN
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Macroeconomic Policymoved into a su
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Macroeconomic PolicyFIGURE 5.4Total
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Macroeconomic PolicyTABLE 5.1Curren
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Macroeconomic Policy1987. It fell t
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Macroeconomic PolicyTABLE 5.4Public
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Macroeconomic Policydecline in the
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40.5 per cent of GNP, just over thr
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Macroeconomic Policygreater decline
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Macroeconomic Policyture levels are
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Macroeconomic Policywith organisati
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Macroeconomic Policythat meet the n
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Macroeconomic PolicyBOX 5.1Special
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Macroeconomic Policyinflation over
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Macroeconomic Policythe prices incr
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Macroeconomic Policydepends on thei
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Macroeconomic PolicyWage Determinat
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Macroeconomic PolicyInfrastructural
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Macroeconomic Policydegree to which
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Page 249 and 250: Wage BargainingSection 6.4 identifi
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Page 253 and 254: Wage Bargaining6.2.3 The Relation b
Page 255 and 256: Wage Bargaining6.3 DEVELOPMENTS IN
Page 257 and 258: Wage Bargainingthe private and publ
Page 259 and 260: Wage Bargainingbargaining; 2=indust
Page 261 and 262: Wage Bargainingnational agreements
Page 263 and 264: Wage Bargainingsteps in decentralis
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Page 267 and 268: Wage Bargainingprices and a large-s
Page 269 and 270: Wage Bargaining(but some innovative
Page 271 and 272: Wage Bargainingof the employer fede
Page 273 and 274: Wage Bargainingrecurrent state inte
Page 275 and 276: Wage Bargainingpart-time employees
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Page 281 and 282: Wage Bargainingamount of the local
Page 283 and 284: Wage Bargainingmoderation in earnin
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Page 289 and 290: Wage Bargainingof 0.3 per cent per
Page 291 and 292: Wage Bargaining6.4.4 Relative Wages
Page 293 and 294: Wage Bargainingweighted by employme
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Page 299 and 300: Wage BargainingTABLE 6.7Labour Cost
Page 301 and 302: Wage BargainingAbove all these sche
Page 303 and 304: Wage Bargainingcomposition of publi
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Page 309 and 310: Wage Bargaininglearn from. Neverthe
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Page 317 and 318: Tax and Social Welfare●●●●
Page 319 and 320: Tax and Social WelfareThe main sour
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Page 325 and 326: effect by 1999/2000. Nonetheless, t
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Page 329 and 330: Tax and Social Welfaretraded servic
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Page 333 and 334: TABLE 7.7Percentage and Breakdown o
Page 335 and 336: Tax and Social Welfare7.5.2 Specifi
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Tax and Social Welfarefor lower soc
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Lone parents and large families wer
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‘Not Working’ categories. Table
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Tax and Social Welfaremeasured, dro
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Tax and Social Welfare2. The Benchm
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Tax and Social Welfareincrease in c
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Tax and Social Welfareof designing
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Tax and Social Welfaretargets for r
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Tax and Social Welfaredifferent fac
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Tax and Social WelfareThe Adequacy
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Tax and Social WelfareAPPENDIXTABLE
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Tax and Social WelfareNOTE: Figures
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CHAPTER 8POLICIES ON POVERTY, EXCLU
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Policies on Poverty, Exclusion and
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●●●●Policies on Poverty, Ex
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Key determinants of progress toward
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andPolicies on Poverty, Exclusion a
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types of employment which women lea
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●Policies on Poverty, Exclusion a
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CHAPTER 9INFRASTRUCTURE, PUBLIC UTI
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Infrastructure, Public Utilities an
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As indicated in Chapter 3 the Counc
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●Infrastructure, Public Utilities
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is possible that the provisions in
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9.5 ENERGYInfrastructure, Public Ut
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On reviewing individual regional pl
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●●Infrastructure, Public Utilit
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●●●Infrastructure, Public Uti
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CHAPTER 10COMPETITIVENESS, CONTINUO
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Competitiveness, Continuous Improve
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development and a wider national sy
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The Report of the Taskforce on Life
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●●Competitiveness, Continuous I
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REFERENCESAcemoglu, D. (2002), ‘T
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ReferencesBlanchard, O. (2002), ‘
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ReferencesCentral Statistics Office
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ReferencesDepartment of Health and
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ReferencesElvander, N. (1999), The
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ReferencesExpert Working Group Repo
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ReferencesGlover, S., C. Gott, A. L
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ReferencesHoffman, L.W. and L.M. Yo
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ReferencesLaffan, B., R. O’Donnel
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ReferencesMorgan M., R. Flanagan an
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ReferencesNESF (1997a), Early Schoo
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ReferencesO’Neill, D. and O. Swee
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ReferencesPoutsma, E. (2001), Recen
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ReferencesStreeck, W. (1998), ‘Th
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ReferencesWestern, B. (1997), Betwe
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NATIONAL ECONOMIC AND SOCIAL COUNCI
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