Oireachtas Joint and Select Committees

Wednesday, 1 July 2015

Select Committee on Jobs, Enterprise and Innovation

National Minimum Wage (Low Pay Commission) Bill 2015: Committee Stage

2:00 pm

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein) | Oireachtas source

I have tabled a number of amendments. Amendment No. 7 seeks to insert economic inequality, the percentage of workers in the economy earning two-thirds or less of median income and the living wage as set for the relevant period. Nowhere in the legislation is the commission instructed to consider inequality or poverty when making a recommendation to the Minister. The legislation is too heavily weighed towards a limited number of economic measurements. This is not helpful in tackling the economic inequality or rebuilding an economy fit for the 21st century. This may tick the box with employers' organisations but will not address structural faults in Ireland's economy. We want to see Ireland's recovery rooted in a dynamic, prosperous and fair economy. This cannot be delivered unless tackling economic equality and monitoring the number of low-paid workers in the economy are put centre stage. Wage share as a percentage of national income has fallen by nearly 20% in Ireland in the past 20 years. Ireland's fall in wage share is consistent with many of our EU neighbours but it is significantly sharper. If the Low Pay Commission is not charged with monitoring these significant factors associated with the increasing prevalence of low pay, then who is?

Amendment No. 10 seeks to insert in page 5, between lines 12 and 13, the following:

(iv) addressing levels of income inequality to include income inequality between men and women in the current period,

(v) aggregate demand in the economy,

(vi) tax receipts.

It seems barmy that we would exclude the consideration of income inequality between men and women and aggregate demand in the economy and tax receipts from the effects that the commission's recommendations will have on the economy. This section of the legislation limits the commission's consideration to employment levels, cost of living and national competitiveness. We need to be more ambitious and set the commission a wider more useful and relevant point of reference. Perhaps the Minister of State would address those issues.

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