Gerald Nash (Louth, Labour) | Oireachtas source

I thank Deputy Keaveney for the amendment in the name of Deputy Calleary and I respect the manner in which the amendment has been tabled and its intent.

The amendment would require the commission to research and recommend to the Minister each year national minimum wage rates of pay for youth and apprentice categories and research and recommend to the Minister national minimum wage rates of pay for female workers. As Deputy Keaveney is well aware, the sub-minimum rates provided for in the National Minimum Wage Acts since 2000 were originally recommended by the National Minimum Wage Commission, which was appointed to advise on the introduction of a national minimum wage. The commission recommended that employees under 18 be entitled to 70% of the national minimum wage with a view to striking a balance between ensuring that young employees are not exploited and ensuring that the rate of pay does not encourage students to leave full-time education or training. The commission also recommended at that stage that sub-minimum rates apply to employees in the first two years of employment who are over 18 and for those undergoing structured training. The commission was of the view that the employers should be encouraged to focus on training and that the structure of the minimum wage should provide encouragement and inducement for employers to take on unskilled staff and to involve them in training. The rationale underpinning these provisions is that, all things being equal, an experienced employee is of more value and is more productive than a new entrant or trainee. It is also important that those seeking employment are not prevented from getting the opportunity to enter work because of the lack of experience or training.

Apprentices have been excluded from the scope of the national minimum wage since it was introduced in 2000 for the reason that there has been separate, long-standing registered employment agreement approaches covering apprentices. The REA system was struck down by the McGowan judgment in 2013 but the Industrial Relations (Amendment) Bill 2015 will provide for, inter alia, the possibility for sectoral employment orders covering statutory pay and pension provisions for workers of particular sectors, including provisions for apprenticeship rates.

While these are important issues, they may be more appropriate for the commission to examine in the context of a future work programme. I am not minded to insert that provision into the primary legislation but it is an issue that could come on the commission's radar in time.