Paul Gavan (Sinn Fein) | Oireachtas source

Yesterday, the Low Pay Commission recommended increasing the national minimum wage by just 10 cent an hour. Its recommendation is nothing short of disgraceful. Key sectors of the economy where low pay and precarious work is widespread, such as retail and hospitality sectors, are experiencing unprecedented economic growth. This morning, I heard somebody from IBEC on the radio say that while IBEC believes in the minimum wage it does not consider that now is the right time for an increase. This is at a time when activity in the hotel sector is up by somewhere around 30% but IBEC has deemed now not to be the right time for the lowest paid people in society to receive a pay increase.

If one accounts for inflation, which is between 1.7% and 2.2%, the proposed 10 cent increase would mean workers earning the minimum wage will suffer a pay cut. I ask Senators to think about that situation. After all the talk by this new Government about new politics and fairness, the lowest paid workers in society face a cut in the real value of their pay. It is striking that the Low Pay Commission's trade union representative felt it necessary to issue a minority report, as did the Migrant Rights Centre, where they were critical of the report's recommendations. They noted the Low Pay Commission's failure to apply parity of esteem to the competing interests of workers and business. They said that the persistence of this approach would be a serious challenge to the work of the Low Pay Commission going forward. Indeed, this disgraceful proposal underlines why it is important for all workers to be members of trade unions. Ultimately, it is through collective bargaining with their employers that workers will most likely achieve payment of a living wage, as well as other key benefits such as sick pay, pensions and security of hours.

The latest report calls into question the usefulness of the Low Pay Commission about which my party has always had serious reservations. It is too easy for the Members on the Government side to shrug their shoulders and say the commission has made its recommendation. I accept that there were good intentions behind the establishment of the commission but issues of low pay, in-work poverty and labour market inequality belong in the political arena. They have societal wide consequences that are far too important to be relegated to a commission that is comprised of 12 people who meet now and again. I call on the Minister to reject the recommendation and instead make the first in a series of step increases towards a living wage figure of €11.50 per hour. I ask him to set out concrete steps to end the scandal of poverty pay in this country. I ask the Leader to invite the Minister to attend the House at the earliest opportunity when we reconvene to debate the issue of low pay.