Oireachtas Joint and Select Committees

Tuesday, 2 October 2012

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Employment and Youth Unemployment Issues and Pre-Budget Submissions: Discussion with IBEC and SFA

2:55 pm

Ms Patricia Callan:

A representative of one company rang me yesterday in advance of my visit here. The company is a bakery in the west and it has 50 employees. It starts everyone at the minimum wage but by the end of the month people are up to at least €10 or €11 per hour. It is not minimum wage work. However, the company has taken on several people who have only lasted one week or one month because when they see the wage packet they walk away. One particular person has a husband earning €32,000 and four children. They have family income supplement as well. By the time they paid for the fuel to get to work it was not worth it. In real terms the cost of going to work and being productive for that person was a deterrent. It is not the basic rates, although they are quite high. It is the package and how it works together. This is why it is important to have a streamlined system.

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