Oireachtas Joint and Select Committees

Thursday, 10 October 2019

Joint Oireachtas Committee on Social Protection

General Scheme of the Payment of Wages (Amendment) Bill 2019: Discussion

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

I thank the witnesses for their testimonies. I also thank Dr. de Buitléir for his presentation. The Low Pay Commission has done some very good work. I had wished for adequacy of income to be included in its mandate. That was an unfortunate omission at the time of founding. I regret also that its recommendation in terms of the minimum wage has not been implemented. That is an unfortunate decision.

When the commission produced the original advice following its examination of this issue, its concern regarding legislation was about unintended consequences and it explicitly mentioned the reclassification of service charges. From his testimony, I understand that one of Dr. de Buitléir's concerns in respect of service charges at that time was that they would be reduced. The understanding of the Low Pay Commission, as I am hearing it from him, is that service charges were effectively gratuities and were destined for the worker. One of the commission's concerns was that the level of that gratuity through a service charge might be reduced and a figure of 10% was mentioned. Given that concern at the time, how much more concerned is the Low Pay Commission by the proposal to reclassify services charges as not being gratuities and in no way linked to the worker? That proposal is in the Government Bill and it has been made by the Irish Hotels Federation and the Restaurants Association of Ireland. With its proposal on removing service charges from workers, is this Bill an example of the concern the Low Pay Commission expressed? Is Dr. de Buitléir surprised to see it in the Bill, given that the commission had already flagged that concern in its advice to the Government?

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