Sick Pay Proposals Will Cost Jobs

Chambers Ireland has today (20/11/12) reiterated its call for the Government not to increase the cost of employment by transferring the cost of sick pay onto employers or raising PRSI in Budget 2013.

Speaking this morning, Ian Talbot, Chambers Ireland Chief Executive said, “Transferring the cost of sick pay onto employers will do nothing more than damage employment. The Minister for Social Protection states that this move could save her Department €89 million, but can she not see that this is simply transferring an extra €89 million burden onto already struggling businesses?”

“Our membership is utterly opposed to any proposal to transfer the cost of sick pay to employers, with 87% of respondents in a recent membership survey indicating it would have a negative impact on their business. The uncertainty created by her constant kite-flying has already had negative effects on both business and consumer confidence.”

“Any move to transfer sick pay costs to employers and raise PRSI would cost jobs and is a direct contradiction of the Government’s stance that job creation is their number one priority. With the current unemployment rate at 14.8% it is ludicrous that proposals such as these are even on the table,” he concluded.

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For further information contact Amy Woods, Chambers Ireland on 01 400 4319, 086 6081605 or email amy.woods@www.chambers.ie.

About Chambers Ireland Cost of Employment Survey
This Cost of Employment Survey was conducted amongst Chamber members between Tuesday 2nd October and Thursday 11th October. The report is based on the 513 responses received.

Key Statistics
89.5% of respondents said an increase in employer’s share of PRSI would have a negative impact on their business. When asked to identify specific issues:

• 46.1% said it would prevent job creation;
• 26.7% said it would lead to job losses; and
• 40.1% said it would make their business less competitive.

87.2% of respondents said the transfer of responsibility for sick pay to employers would have a negative impact on their business. When asked to identify specific issues:
• 42.2% said it would prevent job creation;
• 37.9% said it would lead to job losses; and
• 39.1% said it would make their business less competitive.

60.7% of respondents said the cut in redundancy rebate has had a negative impact on their business. When asked to identify specific issues:
• 40.7% said it had made them less likely to employ new staff;
• 18.1% said it had limited their business’s ability to survive; and
• 14.6% said it had made their business less competitive.