Dáil debates

Wednesday, 22 June 2011

Workers' Remuneration: Motion (Resumed)

 

5:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)

Last night, I listened to the Opposition debate this motion. I will respond to some of their comments. The main theme was that low-paid workers were being targeted while bankers and developers appeared to be sailing off into the sunset. To be honest, it is difficult to disagree with that. It is a perfectly human reaction to resent that and I do so. However, the reality is that even if the bankers paid for the sins they visited upon us in the morning and even if we could somehow get back the assets that some developers were able to salvage and pass on to their wives, wage rates would still be uncompetitive and the existing situation would not create one single job. That is the sad reality. Unless we make Ireland more competitive again there will be no more jobs and if there are no jobs there will be no growth. That is the simple equation and no amount of railing against the unfairness of it all will change it, however annoying it may be.

Lower-paid workers are not to blame for what happened to the country but it does not change the reality that unless people wish to buy the goods and services they produce and sell then more jobs will be lost. We must be at least as competitive as other countries. We have already lost 340,000 jobs. These have simply disappeared and it is not recognising reality to take the view that although costs throughout the economy have gone down, somehow the wages and conditions of a mere 25% of private sector workers can somehow be immune. If they are immune, the reality is that fewer and fewer of them will be employed at that rate.

Last night Deputy Healy stated that the problem of job losses and closure of shops and restaurants was due to a lack of demand, which is altogether true. However, it is putting the chicken before the egg. It was a supply side problem long before demand collapsed. Demand collapsed for a reason: because all our goods and services were too dear. This was for many reasons, including that we were paying ourselves too much. We must accept that the JLC system is no longer relevant or appropriate. Someone stated it was set up 60 years ago. It is preventing recovery. It served its purpose but it preceded all employment legislation which protects workers. We continue to pass legislation that improves the working conditions of workers and this process is ongoing. However, we have not repealed the 60 year old JLCs. It is nonsense to have collective bargaining, a national minimum wage and sectoral and regional agreements which differ from place to place.

If we are to discuss fairness there is no reason 25% of private sector workers should have a special position when 75% of the private sector do not.

Almost all speakers stated that we were attacking the most vulnerable members of society.

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