SFA slams UNITE calls on Employers' PRSI

Thursday, 23 July 2015

  • SFA slams UNITE calls on Employers' PRSI
  • Minimum Wage increase anomalies must be addressed in October Budget

The Small Firms Association (SFA) has slammed calls by UNITE trade union for the Government to ignore the very real anomalies raised in the Low Pay Commission report in regard to employers' PRSI costs.

AJ Noonan, Chairman of the Small Firms Association, said “It is outrageous that UNITE should seek to levy these absurd additional costs on employers on top of the recommended 6% increase in the National Minimum Wage (NMW) rate, which already poses significant challenges for small businesses to meet. The Low Pay Commission report clearly shows that at the proposed new rate of €9.15 per hour, the additional cost for an employer is €1517.70 per year, whilst the employee will be worse off by 85cents, when you take PRSI, Tax & USC into account. The Taoiseach, Tanaiste and broader Government must deliver on their commitments in recent days to amend these anomalies".

SFA Chairman, AJ Noonan continued "many small businesses are just starting on the recovery path, and need to have certainty over their labour costs. UNITE's proposal to increase Employers' PRSI generally simply adds to the cost of production and in sectors and regions, where small businesses have low profitability and no ability to pass on such labour cost increases in their own prices to the market, will mean that they have no choice but to reduce hours, lay people off or delay recruitment. Our unemployment rate is still very high at 9.5%. Does UNITE really want to lock these workers out of the labour market, because the cost of employing them is too high?"

Ends

For further information, please contact:
AJ Noonan, Chairman, Small Firms Association, at tel: 086 259 2610

Press release issued by Patricia Callan, Director, Small Firms Association, tel: 01-6051602 or 087-6999345, e-mail: patricia.callan@gmail.com or Tweet: @SFA_Irl
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