Oxfam, a global charity, has released new research on International Workers’ Day revealing that workers in Ireland faced a 3.9% pay cut last year due to the wage growth lagging behind inflation.
This pay cut, according to Oxfam, resulted in a loss of €2,107 in real wages, which translates to working 8.3 days for free.
The total loss for Irish workers was over €5 billion, a considerable amount that has implications for many Irish households.
The study shows that the wage cuts faced by Irish workers are not unique, with workers worldwide experiencing a 3% pay cut on average and working six days for free in 2022 due to inflation.
Oxfam pointed out that while workers are experiencing wage cuts, the top-paid CEOs across the UK, US, India, and South Africa enjoyed a 9% pay increase.
This is a clear and alarming trend towards widening pay scales and resulting inequality across the globe, according to Oxfam Ireland CEO Jim Clarken.
On International Workers Day, Mr. Clarken remarked that most people across the world find themselves working longer for less and struggling to keep up with the cost of living.
He added that “perhaps most alarmingly, we’ve seen progress in reducing extreme poverty grind to a halt with extreme wealth and extreme poverty having increased simultaneously for the first time in 25 years. Poverty is once again on the increase.”
Oxfam is calling for an urgent national conversation in Ireland about taxing extreme wealth more effectively to redress the balance between executive pay and ordinary workers struggling to make ends meet.
The charity’s research highlights the importance of prioritizing wage growth in a rapidly changing economic landscape, where a widening income gap can negatively impact society.
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