Louise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

1. To ask the Minister for Enterprise, Trade and Employment when workers can expect the progression towards a living wage to begin; the estimated timeframe for its delivery; if he will outline the benchmarking which will be used to calculate a living wage; and if he will make a statement on the matter. [43739/22]

Louise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

When can workers expect to see some serious progression towards a living wage? Will the Tánaiste outline the estimated timeframe for delivery and the benchmarking that will be used to calculate it? We can all agree we are in the middle of a cost-of-living crisis. This is going to have more of an impact on those workers on low pay than on those who are not. They do not have a cushion or savings. They are the people most desperately in need of that protection.

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

I thank the Deputy for the question. We want to reward work and ensure that work pays more. Minimum wage workers are among the hardest working people in Ireland and deserve to paid more, particularly at a time of rising prices. Yesterday the Government accepted the Low Pay Commission's recommendation to increase the national minimum wage by 80 cent to €11.30 per hour commencing on 1 January 2023. At least 164,000 people will be in line for an increase but the real figure is likely to be much more, given that there will be knock-on increases for those currently earning slightly above the minimum wage. It works out at roughly €30 a week, €120 a month or €1,600 a year if working full-time. As the Deputy is aware I want to move from a minimum wage to a living wage so that work pays more. I outlined proposals back in June after which we started a public consultation seeking submissions from the public on the Low Pay Commission's recommendation and our straw-man proposal. That provides an example of how a living wage might be phased in over four years. The public consultation closed in August. It received 46 submissions. The work of an interdepartmental working group and public consultation results will inform a final Government decision on the adoption of a living wage over a specified number of years. I hope to be able to make an announcement on that this month or next. The new national minimum wage of €11.30 is in line with the living wage straw-man proposal. As such, next year can be considered the first year of a four-year plan to reach a living wage calculated at 60% of the median wage.

Louise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The progression towards the living wage is a commitment given in the programme for Government. I acknowledge the advances that have been made by the Department of Enterprise, Trade and Employment, specifically in regard to the straw-man proposal and the public consultation. As the Tánaiste is aware, however, the 80 cent increase in the minimum wage was recommended by some, but not all, of the members of the Low Pay Commission. When are workers going to see a very real move towards the living wage? The Tánaiste has given himself time to do it but events have overtaken the announcement he made in June. People are in a serious crisis at the moment. What they need to see is a step change quickly towards a living wage. Will the Tánaiste also, as in my question, outline the mechanism by which he will calculate that living wage when eventually we get there?

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

I thank the Deputy. The recommendation was made by a majority vote of the Low Pay Commission. Two members dissented but eight or ten were in favour so a very clear majority was in favour of this recommendation. What we will see next year is a not insignificant increase. It brings us closer to the 60% median, not as close as the Deputy or I would like, but it does bring us closer to the 60% median so we are on the right trajectory. The sum of €1,600 a year is not a small amount of money. It is enough perhaps to pay the rent or mortgage for a month. It is enough, depending on how far a worker travels, to fill the car for several months. It is not an insubstantial amount of money but also it is not the limit of what we are going to do to help people on low pay or on minimum wage. It is just the start. There is going to be a good deal more. This will be seen in the budget, particularly in what we will do to help people with energy bills and welfare increases. We will take other actions as well.

Louise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It will not pay the rent in my constituency and I doubt it will in the Tánaiste's constituency either. It is not that I do not acknowledge that there is a move. However it is not adequate. It goes without saying that I agree with the minority report of the trade union representatives. The majority may have voted in favour of the 80 cent but the workers' representatives on the commission did not. That tells a tale in itself.

If the Tánaiste sticks with the timetable as outlined, the commitment given in his programme for Government will not be realised. He has pushed it out to beyond the end of the term of this Government. If he is going to put something into the programme then there should be a realistic timeframe for introducing it and he has pushed it out beyond the term of Government. How can people take seriously commitments given in the programme for Government if those that affect low-income workers and the people who most need it are going to be pushed beyond the end of the lifetime of the Government?

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

I take the Deputy's point but I have to bear in mind other impacts such as the cost on small businesses. All of the employer representatives favoured the 80 cent increase. That is not to say that all employer organisations do by any means. Many have been very critical of the increase yesterday. All of the independent and academic members favoured the increase, as well as one of the workers' representatives. I always have to bear in mind that I do not want to increase the minimum wage to the point where businesses cannot survive any more and are forced to lay off staff or cut hours. I do not think that will happen with an 80 cent increase by the way. I think we will see a further increase in employment next year but it is something we have to bear in mind. That is why the recommendation is for a four-year introduction period. It can be quicker, I am certainly not ruling that out, but that will depend on economic circumstances. I do not think anybody would say that wages should just go up or down regardless of what may be happening in the wider economy or the wider world. We need some flexibility in that regard.