Finian McGrath (Dublin North Central, Independent)

I thank the Leas-Cheann Comhairle for giving me the opportunity to speak in this important debate on the issue of low pay and the joint labour committee system. Cutting low pay rates further will not do anything for the economy, job creation or the country as a whole. Attacking the low paid and making them pay for the actions of the greedy should never be an option in a democratic society. I will show clearly why this type of economic vandalism will never work and want to push the issue of low pay, particularly concerning job creation. I am glad the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, is present to listen to the arguments.

In recent days I heard the Minister of State, Deputy Michael Ring, talk about middle Ireland losing out and constantly being hammered by taxes, cuts and new charges. I accept his point that such people are suffering, but what about those who have lost their jobs and those on low wages who are really being hammered? Middle Ireland is hurting, but low-paid workers are on the floor. That is the reality for many. Does the Minister think it is fair for a cleaner, his wife and two children to have to live on €330 a week? After three years in the job his hourly rate is €9.50, rising to €10.50 for night work, with time and a half on Sundays. This is tough going for any family, yet that is what is happening in the real world. Could the Minister and his family survive on such an income? I ask him to give a commitment not to cut such wages in any form under the joint labour committee system. Some 23,000 cleaners will be directly affected if the proposed changes are made. I plead with the Minister to consider these situations.

Is the Minister also aware that economic research shows that the abolition of the JLCs could cost 10,000 jobs due to the reduction in the spending power of low paid workers? Does he and his Government understand the findings of the Duffy-Walsh report, which states that lowering the pay of these low paid workers is "unlikely to have a substantial effect on employment"? There is a strong economic argument against hammering lower paid workers.

In recent days we all have received letters from staff members of Vodafone Ireland which announced recently that it will move 130 jobs based in Ireland to offshore locations in Egypt and India. I ask the Minister to use his influence and any methods at his disposal to stop the relocation of those jobs from Ireland and to develop his job retention strategy in a more sensible way.

The motion before us states:

- according to the OECD, Ireland suffers from some of the highest levels of low-pay; Over 21% of full-time employees are low-paid, compared to a eurozone average of 14.7%, and EU Commission data shows that labour costs (including wages and employers' contributions) in the food and accommodation sector in Ireland are 6% below the EU 15 average;

- very many people covered by Joint Labour Committee/Employment Regulation Orders (JLC/EROs) and Registered Employment Agreements (REAs) are vulnerable people such as immigrants and young people and those working in small employments not amenable to trade unionisation;

- the majority of workers covered by the JLC/EROs and REAs system are women and that any reduction in remuneration in this sector will widen the gender income gap contrary to national and EU policy;

- due to the serious and disproportionate reduction in male employment, female workers form a higher proportion of primary bread winners and that reduction in female earnings would have a major impact on household and child poverty contrary to national and EU policy;

- reduction in the remuneration of already lowly paid employees will result in a reduction in revenue to the State through PAYE and VAT and will lead to an increase in claims for Family Income Supplement payments...

Low pay leads to more poverty and more disadvantage, and we must acknowledge that.

I strongly support the motion tabled by the members of the Technical Group and the United Left Alliance. It is important to listen to all sides of the debate. We on this side of the House stand up for low paid workers. It is also important to challenge the Labour Party and its history of supporting workers on the ground. I call on Members of the Labour Party to support us on this motion at 8.30 p.m. tomorrow. This is an important motion. It is about protecting more than 200,000 low paid workers, retaining and preserving jobs and thus preventing people from having to obtain rent supplement and a medical card, which end up costing the State more. These are issues that are not mentioned when one reads coverage of the broad debate in the broader media. It is important that we stand up for and respect these people, make a strong effort and give a commitment to support them in this motion.

I call on all Members of this House to support the motion.

See this speech in context