Jim O'Keeffe (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 132: To ask the Minister for Enterprise, Trade and Employment how the level of the recent increase in minimum wage was calculated and agreed upon; the nature of the meetings he had with business representatives and trade unions; and if he will make a statement on the matter. [12061/05]

Tony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

As part of the mid-term review of part two of Sustaining Progress, the social partners, namely, ICTU and IBEC, agreed to request the Labour Court to review the national minimum wage and to make a recommendation to the Minister to apply from 1 May 2005. ICTU requested the Labour Court to examine the minimum wage in September 2004.

On 1 February the Labour Court submitted its recommendation that the minimum wage should be increased from the current rate of €7 per hour to €7.65 per hour from 1 May 2005. The national minimum wage legislation sets out a series of steps, which the Labour Court must undertake in its examination of the minimum wage. In addition, the legislation provides that the procedures of the Labour Court in respect of an application or hearing to examine the minimum wage shall be as determined by the Labour Court. I have no role in how the Labour Court arrives at its recommendation.

The legislation provides that I have three months to consider the Labour Court recommendation. In considering the recommendation, I am required to take into account the impact the proposed rate may have on employment; the overall economic conditions in the State and national competitiveness. To assist in my deliberations, the ESRI was requested to undertake an assessment of the impact of the increase in the minimum wage.

I met with several employer representative groups, who sought meetings with me, to outline their positions on the proposed increase. Having considered the matter, I decided to increase the minimum wage from €7 to €7.65 with effect from 1 May 2005, in accordance with the Labour Court recommendation.