Eamon Gilmore (Dún Laoghaire, Labour)
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Question 135: To ask the Minister for Enterprise, Trade and Employment when the next review of the minimum wage will take place; the process by which this review is undertaken and the persons or agencies invited to make submissions; the date on which he expects the next increase of the minimum wage to take effect; and if he will make a statement on the matter. [37741/06]

Tony Killeen (Clare, Fianna Fail)
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In the national partnership agreement, Towards 2016, ICTU and IBEC agreed to make a joint recommendation to Government by 1 September, 2006 on a new minimum wage rate to be effective from 1 January, 2007. In the event that no agreement was reached, either party could refer the matter to the Labour Court.

As no agreement was reached between ICTU and IBEC, ICTU has referred the matter to the Labour Court asking that the Court examine the national minimum wage and make a recommendation to me on the matter. In accordance with the terms of the National Minimum Wage Act, 2000, the Court is currently engaging in a consultation process as part of its examination of the application.

As provided for in the minimum wage legislation, the Labour Court must consult with such persons, including representatives of employers and employees in the private and public sector, as it thinks appropriate in undertaking its examination of the minimum wage. If the Labour Court is satisfied that general agreement is reached between the parties as to an appropriate minimum wage, it will recommend the rate agreed.

If, on the other hand, agreement is not reached between the parties, the Labour Court may still make a recommendation on a new rate but in doing so the Court shall have regard to the movement of earnings of employees, relevant exchange rate movement and the likely impact on employment, unemployment, inflation and national competitiveness.

The Act requires that, before declaring a new minimum wage rate, I must take into account the impact the proposed rate may have on employment, the overall economic conditions in the State and national competitiveness.