Oireachtas Joint and Select Committees
Wednesday, 12 October 2022
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Minimum Wage, Cost of Living and Low Pay Commission Report: Engagement with ICTU
Dr. Laura Bambrick:
Retail and hospitality have a jobs problem at the moment. They have problems finding individuals who are willing to take up those jobs and, specifically, in recruiting and retaining people in those roles. That is because workers are acting with their feet and moving to employers that can guarantee them more predictable hours, more secure employment and better pay that allows them to have an adequate standard of living. That is the biggest problem facing retail and hospitality.
The other issue is the question of whether it is right to inflict an adequate minimum wage on certain sectors. As was mentioned at the outset, this is coming from European law. It is not about a small group within the Government using their leverage to push through a very noble pet project. We know that the European law will be signed by the end of this year, and two months after it goes into the journal, the clock will be ticking down for two years in the context of having a process in place to ensure that no worker will be earning less than 60% of the median wage. This is happening; it is not some idea that was dreamed up by trade unions. It will soon be law. As my colleague mentioned, Ireland has the fourth highest rate of low pay in the eurozone and the eighth highest in the EU 27. All of the countries that do not have the level of low pay still have vibrant retail and hospitality sectors. The idea that paying staff an adequate wage is the difference between a viable business or not is just a fallacy. It just does not add up. There is no evidence to support it.