Mr. Greg Caffrey:

I thank the Chair and the members of the committee for the invitation to attend today's meeting on the sub-minimum rates of pay and the National Minimum Wage (Equal Pay for Young Workers) Bill. The equal pay for young workers Bill is a necessary amendment to the national minimum wage legislation. The National Minimum Wage Act provides for and facilitates age discrimination for young workers by paying workers who are 19 years of age €11.43 per hour, workers who are 18 years of age €10.16 per hour and workers under 18 years of age €8.89 per hour.

As we all know, discrimination is illegal in Ireland as proscribed under the Employment Equality Act. Discrimination based upon a person's age is one of the categories within the Act which deems it illegal. Although the Employment Equality Act provides protections for the citizens of Ireland, it alarmingly contains a provision which permits age discrimination to be facilitated through the National Minimum Wage Act by allowing it to prescribe sub-minimum rates of pay for young workers solely based on their age. This is a contradiction of the Employment Equality Act, which states discrimination based upon a person’s age is illegal. The application and implementation of sub-minimum wage rates provide for our young workers to be discriminated against and exploited by employers who apply sub-minima wage.

The equal pay for young workers Bill before the committee today was composed by a young worker who, like many others, had been subjected to sub-minimum wage rates by her employer, when her comparable employees were in receipt of the national minimum wage of €12.70 per hour. The equal pay for young workers Bill calls for the National Minimum Wage Act to be amended. Section 14 of the principal Act is to be amended by the substitution of the following for section 14: "Subject to sections 17 and 18, an employee shall be remunerated by his or her employer in respect of [an] employee’s working hours in any pay reference period, at an hourly rate ... that on average is not less than the national minimum hourly rate of pay." The principal Act is also amended by the deletion of section 15.

The ERSI has reported through the Low Pay Commission’s sub-minimum age report 2024 that there are approximately 15,000 young workers recorded on sub-minimum wages in Ireland. The Low Pay Commission report details that Ireland is an outlier in the European Union in the application of sub-minimum wage, and the abolishment of sub-minima rates across the European Union has not had an adverse effect on business, nor has it had an adverse effect on early school leavers. The Low Pay Commission conducted an extensive and detailed report on the sub-minimum wage published in 2024, and the Low Pay Commission’s report recommendations are concise and transparent, which are to have the sub-minimum rates abolished by 1 January 2025 for all workers below 20 years of age.

The Low Pay Commission has also recommended, following the abolition of sub-minimum wage rates, a review on the abolition of sub-minimum rates after two years and at four years of its implementation. The purpose of the review is to examine and quantify any adverse effects the abolition of sub-minimum rates may or may not have.

The National Minimum Wage (Equal Pay for Young Workers) Bill 2022 was deferred for one year in 2023 by the then Minister for Enterprise, Trade, and Employment. The Minister had referred the Bill to the Low Pay Commission in 2023 to examine and compile a report on the sub-minimum wage.

Irish society, in general terms, promotes the concept of young people entering the workforce, contributing to society, gaining their own independence and learning to support themselves. However, a significant contributing factor of discouragement is that when a young person enters the workforce, they are not treated as equal to their co-workers who are in receipt of the national minimum wage. If sub-minimum rates are abolished, young workers would have the capacity to become independent and self-sufficient and their wages would be spent in their local economy and the wider economy, which would increase business revenues.

It is Mandate Trade Union’s position that the Low Pay Commission’s recommendations be prioritised by the Government by taking immediate steps to support the equal pay for young workers Bill, which would eradicate the discrimination and exploitation of young workers that currently exists in Ireland. The sub-minimum wage should be abolished in Ireland to eradicate discrimination and the exploitation of young workers by creating an equal playing field for all workers. Young workers should have the same rates as their comparable employees by creating fair wages for all ages.

The employers will argue that maintaining the sub-minimum wage rates is necessary because young workers lack experience. However, these national minimum wage and sub-minimum wage employers do not have incremental pay scales that recognise and award workers with rates of pay above and beyond the national minimum wage based on their experience and-or length of service. Instead, there is only one rate of pay, and that is the national minimum wage or the sub-minimum wage. These employers all provide induction training, normally conducted by a worker who is on the national minimum wage by “showing the young worker the ropes” or “shadowing for a day or two”. These young workers are then expected to have the same productivity as their comparable employees, with their pay being up to 30% less than the national minimum wage. This is an utterly imbalanced, unequal, unfair and disproportionate treatment of young workers in Ireland, which must cease and be eradicated immediately.

Mandate Trade Union urges the committee to support the equal pay for young workers Bill and move it on to the next stage of the legislative process. It is of utmost importance that age discrimination in the application of the sub-minimum wage, specifically concerning the national minimum wage, be eliminated without delay. This form of discrimination and exploitation against young workers has persisted for far too long. We firmly believe it is the duty of our Government to protect the rights and interests of all workers, regardless of their age. Young workers deserve to be treated fairly and equally, just like their older counterparts. It is unfair to pay them less solely based on their age, as this perpetuates inequality and undermines their contribution to the workforce.

By passing and adopting the Bill in the Statute Book, the committee can help rectify this long-standing injustice. Doing so would send a strong message that Ireland is committed to promoting equality in the workplace and ensuring a fair wage for all workers. It would also serve as a catalyst for positive change in the lives of young workers who have been unfairly disadvantaged for too long.

Our society cannot truly progress if we continue to tolerate such discriminatory practices. The passage of the Bill would not only make a significant difference in the lives of countless young workers but would also demonstrate Ireland's commitment to upholding the principles of fairness and equality. We strongly urge the committee to prioritise and support the equal pay for young workers Bill, ensuring its progression through the legislative process. Let us work together to put an end to age discrimination and the exploitation of young workers in Ireland. I thank the committee for the opportunity to make representations today.