Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Question 46: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the minimum wage should be increased, reduced or maintained at the same level; and if she will make a statement on the matter. [7745/09]

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I understand that in November 2008, the Irish Congress of Trade Unions asked the Labour Court to review the national minimum wage and to make a recommendation on its adjustment to me. The court subsequently invited submissions on the issue. Various submissions were received from IBEC, ICTU, the Department of Finance and other interested parties. The Labour Court held discussions with these parties. I understand the matter is being considered by the court. If the court is satisfied that general agreement on an appropriate minimum wage has been reached by the various parties, it will recommend that rate to me. If general agreement is not reached following the consultations, however, the Labour Court can make a recommendation to me anyway. In doing so, the Labour Court would need to have regard to the movement of earnings of employees, the relevant exchange rate movement and the likely impact on employment, unemployment, inflation and national competitiveness. When I consider any Labour Court recommendation on the minimum wage, I am required under the relevant legislation to take into account the impact the proposed rate might have on employment, the overall economic conditions in the State and national competitiveness. The key consideration is to ensure the national minimum wage is set at an appropriate rate. It would be inappropriate for me to comment or express views on the level of the minimum wage in advance of the Labour Court recommendation.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

I am asking this question at a time of rising unemployment. As the Minister of State knows, between 600 and 700 jobs are being lost in this country every day. More than 150,000 people have lost their jobs since the Tánaiste, Deputy Coughlan, became Minister for Enterprise, Trade and Employment. It is reasonably estimated that at least 500,000 people will be on the dole by the end of the year. I believe employers and employees need certainty. In recent weeks, the Minister of State with responsibility for labour affairs has suggested that the minimum wage might be reduced. The Irish Congress of Trade Unions has called for an increase of up to €1 in the minimum wage. We need clear direction and certainty from the Government. Employees need to know that the minimum wage, which is extremely low, will not be cut. Employers need to have certainty about their labour costs for the next two or three years. It is important, regardless of the Labour Court's recommendations, for Ministers to clearly state that the minimum wage will neither increase nor decrease over the next two years. That would give employees and employers the certainty they need, regardless of the recommendation that is made.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy. I did not suggest that the minimum wage should be increased or decreased. I pointed out that I am obliged under the relevant Act to consider any recommendation that is made to me by the Labour Court. When the Labour Court is adjudicating on this matter, it is obliged to seek submissions and to take into account issues such as employment, unemployment, inflation and national competitiveness. When it decides on a rate and makes it known to me, as the Minister of State with responsibility for labour affairs of the day, I will have to make a decision within three months on whether to accept, reject or amend it. Statutory provision has been made. I do not think we should override the legislation that was passed by this House. When the Labour Court makes known its findings to me, I will have three months to make known my decision to the public.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

I understand that.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I accept that certainty is required by employees, employers and everybody else involved in the broader economy.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

We need to get real. If the Labour Court follows the terms of the Act by taking into account issues like employment and competitiveness, the only conclusion it will be possible for the court to reach will be to recommend a major reduction in the minimum wage. We have been losing jobs by the second since our competitiveness fell off a cliff. That is where the economy is. If the Labour Court is faithful to the legislation in this area, the only proposal it will be possible for the court to make will be a savage cut in the minimum wage. That would be wrong and most inappropriate. We need the Government to govern, rather than to outsource its power to agencies, courts, bodies and the social partners. It should clarify its policy on the minimum wage. I suggest that its policy should be to provide for no increase or decrease in the minimum wage for at least two years.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

The Labour Court must take many issues into account, including the earnings of employees as well, so the argument is not one-sided.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Then we are back to deflation.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Allow the Minister of State to finish.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I am simply making the point that the Labour Court will make its adjudications. It consists of wise counsel and is well represented and reflective of the broader society out there. When the court makes the determination, we will make an adjudication on that. Until such time as it does this, I will not give my personal opinion because that would undermine the court's decisions.