Dáil debates

Thursday, 9 July 2015

National Minimum Wage (Low Pay Commission) Bill 2015: Report and Final Stages

 

3:20 pm

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party) | Oireachtas source

With regard to the issue which has just arisen, I am aware of at least one worker in the fast-food industry who receives less than the €8.65 rate by virtue of being under 18. I do not know how widespread it is, but certainly I am in favour of no exemption for under 18s whatsoever and everybody being entitled the minimum wage.

The Minister of State mentioned that wages are rising rather than reducing. On 16 June 2015, the CSO produced a report on earnings and labour costs. According to the most recent and up to date figures we have, average annual earnings declined again in 2014. They have declined every year since 2009. In 2013, they were €35,830 and in 2014, they were €35,768. This indicates a continuing, although slowing, rate of decline which is, broadly speaking, the model of this so-called recovery we have.

A discussion has emerged around the living wage in Britain. More extensive research has been done in Britain than here on the impact of the living wage. Research has shown that if the minimum wage were to become what is assessed to be the living wage, 6 million workers would be lifted out of poverty and Exchequer funds would be increased to the tune of €1.5 billion.

Similarly, if we had a significant increase in the minimum wage to a level in the region of a living wage, it would have a massive impact on people's lives and would bring increased tax revenue, which could in turn be used to offset other costs for small businesses.

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