Dublin's stormclouds
Ireland's middle class has never had it so good. The town centres are populated with dozens of new boutiques, restaurants and wine bars especially tailored to their tastes. Paul Flannigan reports Since 1987 the percentage of national income going to profits has risen by 10%. More than 50 new luxury hotels have opened in Dublin since 1993.
Consumer spending has risen from less than £14 billion in 1988 to over £27 billion in 1997. The number of new car registrations has gone up from 68,000 in 1992 to 150,000 in 1998.
The Irish Central Bank is forecasting 9% growth in 1998 and 7% in 1999. But, in a generally very optimistic annual report, it identifies one threat to healthy profits - "possible wage inflation." Unemployment is down to 7%, there are skill shortages in key sectors, increasing unfilled vacancies, and a legal minimum wage may soon be introduced. Rising rents and a certain "feel good factor" could combine to raise workers' expectations and spark a wage-push inflation.
The report noted that the 2-3% pay restraint rule agreed between government and the unions under the "Partnership 2000" arrangement is already being breached. The average pay rise in manufacturing is now 6%, and 14% in the booming building sector. Increasing militancy
We are beginning to see the first signs of a new wave of working class militancy. • In November train drivers brought the network to a standstill, a threat of strike action by busmen forced the company to concede a £1,350 bonus plus a 7% pay rise. • 98% of Dublin's fire fighters voted for strike action if the Corporation went ahead with a productivity plan. • Disputes are daily breaking out in the hospitals, mainly against the vicious programme of cuts. • The leadership of the civil service union (CPSU) has been forced by rank and file pressure to convene a national conference to reconsider the union's commitment to Partnership 2000
The most intense bout of militancy The most intense bout of militancy has occurred within the building industry. 6 International Viewpoint #308 February 1999