Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

Low pay is not a recent problem. It has been an issue for decades. It is a feature, unfortunately, of the Irish economy. We have the highest levels of low pay in the EU. It has a real impact on people's lives but it is having an especially big impact now as prices are rising so dramatically.

This is not something that just arose as a consequence of the pandemic. Front-line workers during the pandemic were people who went into work, gowned up and put themselves at risk in hospitals, nursing homes etc., but people also realised that so too were shop workers, the people who drove the buses and trams, and the ancillary workers. They were the people who cleaned the hospitals, for instance. There were sectors people did not realise were vital in just keeping things afloat. Many of those include people who are on low pay. Then there are the areas where we have creativity, fun and joy in our lives such as entertainment, arts and hospitality, where there are very high levels of low pay. There is now a real issue in recruiting and retaining staff. People have to be able to work in an environment they want to work in but also to be able to afford to live. People have found other types of employment directly as a consequence of the lack of available work in those sectors and it is increasingly difficult to get them back. Much of that relates to low pay.

It is not only bad for the individual to struggle constantly but also bad for the economy and society. We are all impacted by this. Low pay results in a lower tax take and means higher need for supports such as housing assistance payment, medical cards and so on. Low pay has a wider impact and it is in all our interests that we get to grips with the problem. The Spirit Levelwas a book which measured this. Countries with greater levels of equality, and we have a lot of inequality here, do better in health, life expectancy and in many other areas. That is another societal gain from where people live in a more equal society. The Government has a role to play in bringing that about. We will support the motion and some of the amendments.

We have to recognise there was an underlying assumption in the budget around the level of inflation. Inflation has exceeded what was expected and therefore there has to be an adjustment. We called for a 60 cent increase to the minimum wage and it was increased by 30 cent. That was before inflation had accelerated. I am not surprised we are being told it is not short term but could be medium term. It is very difficult to judge. However, we need a review of the numbers for the living wage as those will have changed. Nor do we need just one review. It needs to be under constant review. A link to inflation is essential. We must acknowledge that countries that have done better have a system of free collective bargaining and they do not necessarily have to have a minimum wage as a point which people do not fall below.

The bargaining is done for, and sometimes through, particular sectors, and we need to see that here. We need to see a plan for how we will get to a living wage. It cannot just be a case of saying we will do it when we get around to it, without a fixed plan. The national minimum wage is to increase by 2025 from €10.20 to €12.90 an hour. That already looks very tame in comparison with the circumstances in which people find themselves at the moment, with rents, housing assistance top-ups and the increasing cost of heating and food. In an inflationary environment, money just does not stretch as far as it did. There has to be a clear recognition that there is an urgency about this and we need to see timelines for that urgency.

It is in the employer's interest not to have a constant turnover of staff, and retaining staff is at least as important as recruiting them. We will not see stability in certain sectors unless there is an environment where people earn enough to allow them to live in dignity, not just to survive. This low pay issue affects women to a greater degree than men, and that has to be considered especially in the context of sectors that are dominated by women. The Government most definitely has a role to play. We would very much support a right to free collective bargaining. It has been demonstrated in other jurisdictions that it has made a significant difference, so much so that in some cases they do not require a national minimum wage. They also compare favourably with ours as equal societies.

We will support the motion.

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