Oireachtas Joint and Select Committees

Tuesday, 24 March 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

General Scheme of the National Minimum Wage (Low Pay Commission) Bill 2015: Discussion

1:30 pm

Ms Esther Lynch:

I thank members for remaining. I wish to make five points in the five minutes I have to speak. The first point I wish to make relates very much to the comments that have been made previously, which is that head 2 is stacked too much against the worker. We would like to see some amendments to head 2.

We could certainly support the idea of gender equality. We would also like to see, for example, the median wage. It is somewhat surprising that the median wage was not included because when the national minimum wage was first introduced it was recommended and was set at more or less two thirds of the median wage. That is quite a normal criterion against which national minimum wages are considered and set.

I note what the Minister of State said in reply to Deputy Conaghan, but would it not be logical to have some consideration of how much the national minimum wage is compared to the living wage? That does not sound to me to be a ridiculous thing with which to task the low pay commission. Likewise, all human rights standards refer to a just and fair wage, exactly the type of thing Sr. Bernadette spoke about. Why would the low pay commission not take into account human rights standards such as a just and fair wage? The ILO convention to which Deputy Tóibín referred, requires states when looking at comparisons and how much the national minimum wage is worth, to also take into account the level of social protection afforded.

It is worrying that we have set up a comparison directly with Northern Ireland when what we need to do is to recognise that is not really comparing like with like. For example, one could take into account the cost of going to a doctor in Dublin compared to the cost of going to a doctor in Belfast. They are very different things. We need to make sure that the low pay commission is not constructed in such a way that it makes it difficult for people to make the arguments they want to make and that it becomes difficult for the commission to make the complete consideration we want it to make.

The second point relates to head 2 and the scope of the commission. In particular, two issues need to be included in this legislation because the legislation sets out not only what the commission can consider but the order the Minister can make. We suggest that two issues undermine the object and purpose of the national minimum wage. One of those is the number of hours a person gets to work and the second is the amount of deductions an employer can make from that person's wage, both of which can significantly undermine the purpose of an hourly rate of the national minimum wage. We have prepared and submitted amendments. They might not be perfect but, hopefully, they will give some inspiration to this committee to say that even if the commission does not consider it, the Minister would be empowered out of the research he has undertaken to list in the order fair employment rules and a restriction on the amount of deductions that can be made not just relating to board and lodging but to other things such as stoppages, till shortages and uniforms. I asked some people today how much employers are generally deducting for uniforms. I was surprised to hear that it was €200 per uniform. That is a lot when one considers the national minimum wage. It would be helpful if the Minister was empowered to put a ceiling not just on the amount that can be deducted for board and lodging but also for all these other things.

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