Oireachtas Joint and Select Committees

Tuesday, 3 March 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Low Pay and the Living Wage: Discussion (Resumed)

1:35 pm

Mr. Gerry Light:

Okay. Based on the evidence to which I have pointed, it is very disappointing that in general this is all low-paid workers can look forward to in respect of employers, in particular, taking a different view to the world of work that we need to create as we emerge from recession into some kind of economic recovery.

We would argue that some of the suggestions centrally have as their focus an attempt to move away the responsibility from employers to pay a fair and decent wage and to move that burden back on to the State through increased social transfers. Far too many employers subscribe to the call for wage restraint because wage increases might cause damage to economic recovery. Surely a more courageous and creative attitude must be demanded from employers. They cannot be allowed to wash their hands of their collective responsibility towards building a sustainable economy along with a fairer society.

In the face of this determined resistance by large groups of employers, the State, for its part, must set out a clear vision and create a culture whereby a fairer sustainable deal is achievable for not only low paid workers, but all workers. That is a moral imperative and essential if we are to create a society in which the general discourse around issues such as statutory minimum and living wage thresholds can take place in a balanced manner ensuring that the voices of all parties can be afforded the respect, dignity and influence that they deserve. The traditional power shift between labour and capital has dramatically increased in favour of the latter, particularly during periods of heightened economic recession. This reality is most apparent in the fall in disposable incomes and the subsequent dramatic decline in domestic consumption which has occurred in recent times. The shift in this power balance is also linked to the numbers of workers who are trade union members. The right to collectively bargain in a meaningful way must be a cornerstone of any new order that emerges over the coming years. In this regard, the proposed introduction of legislation in this area is to be welcomed but employers must not be allowed an easy route away from the obligations which are placed upon them. For far too long many employers, through our voluntarist model of industrial relations, have been allowed adopt a dismissive and hypocritical approach to the real value of a worker's constitutional right to become a member of a trade union. I do not know whether it is order, and I am sure the Chairman will guide me on this, for me to mention a particular employer.

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