Oireachtas Joint and Select Committees

Tuesday, 24 February 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Low Pay and the Living Wage: Discussion

1:30 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein) | Oireachtas source

Yes. I thank Mr. Coffey for his comments. I wish to return to the point made by Mr. Fielding about the responsibility of employers. People want employers to pay decent wages. We have, for example, some very large retail chains in this State that have been very profitable but do not pay their workers proper entitlements.

Dunnes Stores is one example where Mandate has embarked on a campaign on behalf of those workers on very low contract hours and low pay. Mr. Fielding has, unfortunately, not dealt with the fact that 20% of the workforce are on low pay, which is the responsibility of the employers. He has not dealt either with the fact that the minimum wage has not increased since 2007, yet the cost of living has gone up. Employers have a responsibility to pay decent wages, especially when companies are profitable. I would like Mr. Fielding to deal with that issue. I have an interesting figure for him, too: the adjusted wage share of GDP in Ireland declined from 53.9% in 1996 to 50.2% in 2013. Workers have seen an overall drop in their wages in terms of the adjusted wage share of GDP. Employers do have a responsibility.

As an employer organisation, if ISME wants to put some of the responsibility for the redistribution of wealth back onto the State, it cannot have its cake and eat it, but it must be able to state from where that money will come. It seems that Mr. Fielding is against wage and taxation increases, whether employer's PRSI, or tax on corporations or companies. From where will the money come to redistribute wealth to deal with the issue of inequality, to which he refers but which he says the State must resolve? He has to have some answers to these questions and accept that there are many employers who could pay better wages but who do not. They are profitable companies and the State and decent employers subsidise them through welfare transfers. It is bizarre for any employer organisation to stand over this. I would be interested in Mr. Fielding’s responses to these questions.

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