Dáil debates

Wednesday, 14 June 2023

National Minimum Wage (Equal Pay for Young Workers) Bill 2022: Second Stage [Private Members]

 

10:32 am

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source

Before I start, I want to add my own words of condolence to the family, friends, fans and community of Christy Dignam. He will be sorely missed. We will miss his voice, his humour and we will miss his activism.

He will leave a hole in the community that will be very hard to fill. I know his family are grieving. I hope they take some consolation from the massive national outpouring of grief for a man who was effectively a national treasure. I want to associate myself with the previous remarks. I thank an Cathaoirleach Gníomhach for her indulgence.

I thank the Deputies for bringing forward this legislation to abolish sub-minimum rates of pay for younger workers. I welcome our guests from the trade union movement, the ISSU and others in the Gallery who have a very keen interest in this matter. For many of the people in the Gallery, this is actually a bread-and-butter issue for them. This is not some aspirational thing; it is pounds, shillings and pence. This legislation would make a very real and meaningful difference. Those to whom it relates need it now, not in 12 months' time. The prudent and fair thing to do would be for the Government to withdraw its amendment.

Sinn Féin supports the aims outline din the Bill. We look forward to teasing through any issues on Committee Stage. The Bill is similar to Sinn Féin’s National Minimum Wage (Removal of Sub-Minimum Rates of Pay) Bill 2021, which my colleague, Senator Gavan, brought before the Seanad. I commend the Senator on his work in respect of this matter, which he has been campaigning on for some time. He has done a major amount of work on it. This legislation builds on that work.

Sub-minimum rates of pay are used as a mechanism by some, not all, to exploit young workers and they have no place in a modern economy. It is a practice that has been criticised by the European Committee of Social Rights. The committee found that Ireland is in breach of the European Social Charter in terms of sub-minimum rates of pay for workers aged 18 and 19. These rates of pay are open to abuse by some employers as a mechanism through which a young worker is paid as little as 70%, 80% or 90% of the minimum wage.

It will not be lost on the Minister of State that it is not called the national minimum wage for nothing. It is called the minimum wage because it is the minimum, basic and absolute lowest rate that can be paid. These reduced rates are exploitative of young workers and the State should recognise the principle of equal pay for work of equal value. Workers, whatever their age, pay the same tax, PRSI and USC. There is no reason why such discrimination should persist. As Mandate Trade Union stated, this is an outdated and old-fashioned concept based on the belief that young workers live at home do not face the same issues as older workers or, indeed, that they are fortunate enough to live in a house with a lot of wealthy individuals and most people are not. In 2023, this could not be further from the truth as young workers grapple with the inflation crisis, the cost of transport, the cost of education, the cost of rent and the general impact of the cost of living.

In 2018 and 2021, Senator Gavan introduced legislation to abolish the exploitative practice of sub-minimum rates of pay. This issue continues to have an impact on young people five years after Sinn Féin first introduced legislation to deal with it. The Government continues to do nothing other than sanction reports into the discriminatory practice as sub-minimum rates of pay remain in place.

There are workers over the age of 18 who are only being paid 80% or 90% of the national minimum wage simply because of their age. These workers are doing the same work as their colleagues and should get the same pay. This is just another way for businesses to take advantage of cheap labour. Due to their nature, the rates of pay involved can be used exclusively to target younger workers. Such rates have been abolished in Germany, Spain, Korea, Canada and Belgium. It is about time we did the same. When rates of pay are negotiated where there is trade union representation, sub-minimum rates are removed from collective agreements. The concept of sub-minimum rates of pay is outdated and punitive. I would also point out the plight of apprentices who are excluded from the minimum wage in the early years of their apprenticeships and, as a result, they are considerably less well-off than young workers in other forms of employment. Issues such as this are causing chaos in the apprenticeship system across the board.

Last March, ICTU wrote to the Minister for Further and Higher Education, Research, Innovation and Science to state that the trade union movement believes the minimum wage exemption for apprenticeships, including craft apprenticeships, is no longer sustainable or fair, is counterproductive and should be abolished. Connect Trade Union also pointed out that contrary to when the clause excluding its application to apprentices was introduced in the National Minimum Wage Act, many of those now undertaking apprenticeships have previously gone to college or undertaken other work. As a result, they are often older than the apprentices we would have seen previously. These are issues which have to be addressed and must be resolved. The best defence for any worker against being exploited at work is to join their trade union and be active within that trade union.

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