Maurice Quinlivan (Limerick City, Sinn Fein) | Oireachtas source

In recent weeks, the Joint Committee on Enterprise, Trade and Employment met representatives from a number of trade unions and others to discuss the recent minimum wage increase and the Low Pay Commission's recommendations on a living wage. As representatives of the Irish Congress of trade Unions, ICTU, pointed out at the joint committee last week, while much is made of Ireland having one of the highest minimum wage rates in the EU, when the purchasing power of the minimum wage workers is considered this drops the minimum wage rate from second to seventh place among our EU peers. Dr. Bambrick from ICTU also noted that the increases in the minimum wage have not kept pace with wage growth in the wider economy in the last two decades. The current hourly rate is now just 52% of median earnings, delivering salaries below the 60% poverty line and the 66% official low pay threshold.

When first introduced, the minimum wage was approximately equivalent to two thirds of the median hourly wage. Surely the Taoiseach accepts that this straw man proposal falls far short of delivering what is an appropriate income for workers in a modern 21st-century economy. It is worth noting that in preparation for the EU directive on adequate minimum wages, Germany has already increased its minimum wage to 60% of median income. As there is no substantive evidence that its introduction will impact on employment and statutory protections are already in place for employers, will the Taoiseach explain why he continues to take such a regressive approach to the introduction of a living wage?

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