Dáil debates

Wednesday, 31 May 2006

Ceisteanna — Questions.

Wage Levels.

11:00 am

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 2: To ask the Taoiseach if his attention has been drawn to a report by the Central Statistics Office that reveals that hourly earnings only rose by 2.1% in 2005 while inflation rose by 2.5%, and that relative fall is the first since the days of high unemployment during the 1980s; and if he will make a statement on the matter. [18193/06]

Photo of Tom KittTom Kitt (Dublin South, Fianna Fail)
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The Central Statistics Office publishes quarterly releases on earnings in the following sectors: industry, distributive trades and business services, the financial sector and the public sector. The latest figures available are for the fourth quarter of 2005. They showed an annual increase of 3.4% in average weekly earnings for all employees in the industrial sector, 5.7% in the distributive trades, 5.6% in the business services sector, 5.1% in the financial sector and 6.2% in the public sector, excluding health. The consumer price index, also published by the CSO, rose by 2.5% in the 12-month period to December 2005.

The earnings figures for the industrial sector also include a breakdown for broad occupational categories. Weekly earnings increased by 3.1% for manual workers and by 3.7% for clerical and managerial workers in industry between the fourth quarters of 2004 and 2005. Further details of hours per week and average hourly earnings are available for manual workers in industry. They show an annual increase of 2.1% in earnings per hour for manual industrial workers and an increase of 1% in their average hours worked per week.

The trends in industrial earnings represent the situation for about one sixth of all employees. The industrial sector accounts for 266,000 employees, out of a total of 1,653,400 employees across all sectors, as measured by the latest quarterly national household survey for quarter four of 2005.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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I understand the Minister of State is responsible simply for reporting on the statistics. Within that constraint I invite him to ask the CSO to examine what level of displacement the figures suggest. It appears that average earnings in the low-skilled sector, relative to other sectors, have reduced, which may be evidence of displacement. Anecdotal evidence suggests that Irish people who are currently unemployed are failing to get jobs in the open market because incoming workers from other jurisdictions accept rates of pay below what would previously have been acceptable to Irish workers. I am seeking a statistical reinforcement of that analysis. Can the Minister ask the CSO to prove the figures? Is the minimum wage, for example, without overtime or double time, being offered to workers on a shift pattern of seven days on-five days off, irrespective of whether those days fall on a Sunday or a bank holiday, as happened to a person in my constituency?

Photo of Tom KittTom Kitt (Dublin South, Fianna Fail)
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That relates to a different area but I will comment on it. Interesting data have been published today in the latest quarterly national household survey on employment. Deputy Quinn raised the issue of manual workers in industry. Over the past five years, up to December 2005, hourly earnings for those workers grew by 32.8% and prices rose in the same period by 17.3%, which paints a different picture from that in the Deputy's question. In the ten years to December 2005 hourly earnings of manual workers in industry grew by 67.5% and prices rose by 35.5%. There is a duty on all of us to ensure the social partnership discussions on the minimum wage focus on the plight of lower paid workers.

This morning I read the most recent quarterly national household survey and Deputy Quinn's question is relevant to what is contained therein. Employment has increased by almost 90,000, of which close to 50,000 are foreign nationals. The news on the growth of the economy and on employment growth are good, with almost 2 million people now in work. I held a brief meeting with CSO officials on the figures this morning and there is strong growth in construction, in wholesale and retail and in the financial and business sectors. The areas where we need to be vigilant about the potential for displacement include food processing, hotels and restaurants. The Government and the social partners will exercise vigilance in these areas but the overall picture painted by the quarterly national household survey is positive, with many new jobs created for Irish people and non-nationals.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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I thank the Minister of State for the additional information, which I presume is now available to all Members. Does he not share my concern that if he and I were among the 45,000 Irish workers around the country who have been unemployed for over a year, some under the age of 25, there is something wrong with our economy in the fact that of the 90,000 welcome new jobs, 50,000 go to foreign nationals?

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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As Deputy Quinn rightly pointed out, the Minister of State is responsible simply for the statistics.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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The Minister of State responded and the Ceann Comhairle allowed him. I am trying to maintain balance.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Chair must be careful not to allow these questions to be turned into policy questions or we will be here all day.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Within the realm of his responsibility, and given that he quoted the figures in response to my supplementary question, can the Minister of State ask the CSO to examine why there has been an increase in the long-term unemployed, by which I mean those out of work for a year or more, including those under the age of 30, from approximately 43,000 to approximately 45,000 in the past year, against the background of an economic performance for which most countries in the European Union would die? My concern is that Irish people are being left behind.

Photo of Tom KittTom Kitt (Dublin South, Fianna Fail)
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I thank the Ceann Comhairle for allowing us to explore these issues. According to the data published today the total number in the labour force stands at 2,086,300, which accounts for 62.2% of all persons aged 15 or over. The Deputy's question was about long-term unemployment, which actually decreased by 1,600 to 26,200, the corresponding rate falling from 1.4% to 1.3%. That is an important figure but I agree with the Deputy that the Government and social partners must be very vigilant on the plight of low-paid, manual industrial workers. The Government will maintain its focus in that area.

Photo of Dan BoyleDan Boyle (Cork South Central, Green Party)
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Do the statistics indicate a casualisation of labour? To what extent does the CSO collect statistics on how casualisation of employment affects women? Are there separate statistics to show whether the gap between the rise in incomes and the rise in inflation in 2005 is more pronounced among women workers? Are specific statistics available on the average number of hours being worked by employees in this category? Anecdotal evidence indicates that a significant and increasing number of people work fewer than 19.5 hours per week, the threshold under which employment is classified as casual. In light of the shift towards a seven day, 24 hour economy, are statistics available on the days on which persons in this category work? Many of those engaged in this type of work are women casually employed in large multiple stores.

In 2005, the Government, through the Central Statistics Office, announced that the number of people in employment had increased by 95,000 over the previous year. Given that the number of taxpayers did not increase by a similar number, does this indicate that a considerable gap exists between the types of jobs being provided and the rates being paid?

Photo of Tom KittTom Kitt (Dublin South, Fianna Fail)
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The employment heading covers all persons engaged by public bodies, including full-time employees, permanent and temporary, part-time employees and persons on holidays, maternity leave or temporary absence due to illness. The CSO is carrying out a new survey to measure earnings more comprehensively. The information from this survey will be more comprehensive than the statistics available from the current range of surveys and the main results will include trends in employee earnings and employers' labour costs. Information will also be compiled on employment job turnover, job vacancies and the number of employees on the minimum wage. A breakdown of the results by sector and broad occupational group will also be available. The CSO is, therefore, bringing many new statistics into play.

I propose to refer briefly to the new information available on women at work from the quarterly national household survey. The survey indicates that 25,000 additional married women, primarily in the 45 to 54 years age group, are at work. Much of the data and many of the issues raised by Deputy Boyle will be useful for future planning purposes.