Catherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this important Bill, which is a step in the right direction. I thank the Minister of State, Deputy Nash, for his work on it. Over the past four years, the Government has worked hard to steer this country through a very difficult economic crisis. I believe we are finally seeing light at the end of that tunnel. More than 100,000 new jobs have been created since the launch of the first Action Plan for Jobs in 2012. In April of this year, the unemployment rate fell below 10%. It has been said time and again that work should pay more than welfare and that no household with a person in full-time work should be poor. I could not agree more. I know the Government is continuing to commit itself to making work pay. It is committed to protecting the most vulnerable workers and to addressing the issue of low pay. In fact, one of the first actions it took when it came into office was to restore the minimum wage to €8.65 after the previous Government had cut it to €7.65.

The Government's commitment to this issue is reflected in the decision to establish an independent Low Pay Commission with the important task of making an annual recommendation to the Government about what the appropriate level for the minimum wage should be. The interim commission, which comprises a number of people, first met in February to examine existing data, commission new research if necessary, and consult directly with workers and employers to decide on what the national minimum wage should be. In this context, it is important to look at the hourly living wage rate, which should provide employees with a level of income that is sufficient to allow an acceptable minimum standard of living. As we all know, the current hourly living wage rate is €11.45. At a time when 100,000 workers are on the minimum wage, I am hopeful that the current rate will increase in the near future. The Low Pay Commission will also take account of changes in earnings, productivity and overall competitiveness, and the likely impact that any adjustment will have on employment and employee levels. It is important that job creation and competitiveness are taken into account during this process.

It is important to refer to low-hour contracts in the context of this Bill. This issue has received a great deal of attention recently following the Dunnes Stores strike. We have been told that almost three quarters of Dunnes Stores employees are on part-time contracts. These people are not guaranteed a minimum number of hours of paid work each week, yet they must be on call in case their employer wants them to work. How can we expect people to live - to have a life outside work - if they cannot plan from one week to another? Employers who engage in this behaviour must be taken to task. I think legislation is needed in this area. I was pleased to see that the University of Limerick has started work on a study of zero-hour and low-hour contracts in the Irish economy, with specific reference to how such contracts are affecting employees. This study will cover the public and private sectors, with a particular focus on the retail, hospitality, health and education sectors. It will also assess how current employment rights legislation applies to employees on such contracts. One of the key objectives of the study is to fill the gaps in the knowledge that is currently available about the impact of the use of contracts on employees. This will enable the Government to consider any evidence-based policy recommendations that may be necessary on foot of the study.

The Low Pay Commission will advise the Government each year on any changes required to the national minimum wage. Its first report is due in July. I look forward to reading it. This is a challenging area. I thank the Minister of State for the work he has put into it. We are moving forward with this Bill as a first step. Members of my own family are in the minimum wage bracket. Some of them are on contract hours.

They are not happy, and rightly so. The Low Pay Commission is really the beginning of an improvement in everybody's life, particularly those on low earnings. My father used to say we have to creep before we walk and walk before we run. I am constantly reminded in this Chamber that some people do not think there is any process for getting from A to Z. Many Deputies have described this Bill as a cosmetic process. It is easy to criticise without having anything concrete to offer instead. For 15 years during the height of the boom and employment, the Fianna Fáil Government had people on the minimum wage. Only when Fine Gael and the Labour Party came into government was the minimum wage cut reversed to €8.65 from €7.65 an hour. We should keep on reminding people of that.

Nobody likes not being able to plan his or her week and plan what he or she does around their earnings. Unfortunately, in this country everybody has to do that, whether on the minimum wage or not. People have to change their lifestyle and do other things. I hope this commission will open up a new avenue for those who should be on more than €8.65 an hour.

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