Oireachtas Joint and Select Committees
Wednesday, 18 September 2024
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Sub-Minimum Rates of the National Minimum Wage: Discussion (Resumed)
9:30 am
Ms Claire Pyke:
I thank the Deputy. I have said that we will share the terms of reference. The Department and Minister for Enterprise, Trade and Employment think that the Low Pay Commission and ESRI reports are excellent. There is no issue with them. The Minister has acknowledged the unanimous decision of the Low Pay Commission.
The report, however, stopped short of modelling how this would look in real life. We know the numbers affected, but we do not know the costs or the knock-on effects. We are trying to find a delicate balance between an adequate and respectful wage for workers and making sure we do not have an incentive for early school leaving or provide a disincentive for employers to employ these younger people. I point out that the rates are provided for legally in statute. I will not argue with the Deputy over the word "exploit", but I want to make the point that these are the legally permissible rates.
The terms of reference will require the consultants to take the Low Pay Commission's recommendations and model them. How will this affect individual sectors and individual regions? It will also look further into the issues of school leaving and employment. Will there be an increase in youth unemployment or even a loss in hours worked? The expert reports refer to data from 2022, and the Low Pay Commission has expressed caution in its report that its use of the incidence could increase in different economic climates. As we progress to higher national minimum wages, we will look at whether there is an increase in the use.
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