Dr. Laura Bambrick:

To be clear, we are not saying that the Low Pay Commission itself has resulted in lower recommendations than when it was a decision by Government. However, we are saying the consensual approach for reaching agreement on what the rate of pay is has failed. To be fair, it has not just failed in Ireland, because 19 of the 21 EU countries with a statutory minimum wage have minimum wage rates below 60%. This is why the EU has to step in. Right across the block, we have minimum wages that are not keeping workers out of poverty. The consensual approach was introduced in 2015. We have an equal number of worker representatives, businesses and independents, as well as a chair, to make a decision, taking into account various evidence and factors. It is majority rule, however. It goes to Government and, as I mentioned, the legislation allows Government to accept or reject and make its own recommendations. That has never been done but that safeguard is built into the legislation. As I said, however, the consensual methodology of the commission has added to the inadequacy of the minimum wage over time. That will be dealt with in this move to a fixed-base approach.

On the wage spiral, we are talking about pay increases to 167,000 workers out of a working population of 2.5 million. These are the people who will be spending those extra few cent they are getting in their hourly wage and who will be driving up the demand in the sectors in which they are working. Therefore, no, there is no evidence of wage spiral.