Dáil debates

Wednesday, 22 June 2011

Workers' Remuneration: Motion (Resumed)

 

5:00 pm

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)

I fully support the reforms of the JLC system as laid out in the Duffy-Walsh review and as committed to in the programme for Government. To go beyond the remit of that review to lower the wages of some rather low-paid workers in society is not a course of action which should be followed.

I have sympathy for retailers and others struggling to keep afloat day after day in a tough trading environment. However, there is clear economic evidence that one of the main reasons retailers are struggling is that there has been a total collapse in domestic demand and consumer spending. This collapse has been ten times greater in Ireland than in other eurozone countries. Many thousands have lost their jobs while many others have managed to hold on to gainful employment but have stopped spending money due to the uncertainly that pervades society and the fall in consumer confidence. People on low incomes tend to spend a higher proportion of their income than those on higher incomes. Those on lowest incomes spend most of what they earn because they cannot afford the luxury of saving for a rainy day. Therefore, they spend what they have. Many of them are covered under joint labour committees and the other systems in place to protect them. To lower their wages would further depress domestic demand and given the pro-cyclical nature of such a move this would inevitably lead to more closure and job losses. If we are to help struggling retailers let us focus on the swift implementation of the measures announced in the jobs initiative. Let us give those in gainful employment every reason to have faith in the future so that they can once again spend their wages in the knowledge that their livelihood is not under threat. To encourage a race to the bottom is no way to engender such confidence. I trust the Cabinet will make the right decision in this regard.

On the question of Sunday working, those who work on Sundays should receive some recompense for it. There are different ways of doing this. The traditional way is to give extra time for Sunday. Another option could be to spread the extra money they receive across the week. I argue the point strongly because Sunday is a special day in society. Traditionally, it is the day when people attend to their religious duties. However, whether one attends to one's religious duties, it is an important family day. One might be involved in training a football team or in doing something with one's children. I accept entirely some people must work on a Sunday but those who do should get some allowance for it in one way or another.

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