Private sector workers have been short changed by a Government which has broken commitments on pensions, increased sick days and measures to offset the cost of living crisis while announcing tax breaks for business in its summer economic statement, according to SIPTU Deputy General Secretary, Greg Ennis.
“SIPTU representatives have written to the Minister for Enterprise, Tourism and Employment, Peter Burke, seeking an urgent meeting. At this we want to discuss the Government’s reneging on commitments impacting hundreds of thousands of private sector workers in relation to pensions and sick pay, as well as its failure to introduce meaningful measures to offset the cost of living crisis. This has been done while the Government is to provide a VAT reduction to the hospitality sector which will cost the State an estimated €1 billion.
“This morning on national radio, the Taoiseach, Micheál Martin, stated that there was a prior commitment to the hospitality sector on a VAT reduction. However, what about the Government’s prior commitments to workers with regard to increasing statutory occupational sick pay from five to seven days in 2025, progression towards a living wage in 2026, which has now been shelved until at least 2029, and the abolition of sub-minimum wages for young workers.
“It is important that as we move towards the roll-out of auto-enrolment pensions on 1st January 2026 that the Government engage with SIPTU on these matters and our call for the introduction of measures to offset the worsening cost of living crisis which is severely impacting many workers. If the Government fails to do this workers may quite rightly question whether it will break further commitments to them and decide to opt out of the new retirement savings scheme in the years ahead.
“Private sector workers have learned by experience that the State sees their pensions and futures as something which can be bartered with to the benefit of its friends in the business lobby. Following the financial crash, in 2011 a pensions levy of 0.6% of assets held in private sector pension schemes was introduced, this levy was continued in 2012 and 2013. The levy increased to 0.75% in 2014 and fell to 0.15% in 2015.
“This five-year levy generated over €2.5 billion for the exchequer. This was used to stimulate job creation and ironically a VAT reduction for the hospitality sector, which has notoriously low rates of pay, with precarious work being the order of the day.”
He added: “Without the Government reaffirming and meeting its commitments for improvements for workers in the private sector and a cost-of-living package, the cut in the VAT rate in Budget 2026 will amount to another kick in the teeth to them and their families. This Government has gone too far in placing the interests of business above those of workers, there must be greater balance if our economy is to prosper in the future.”