Dara Calleary (Mayo, Fianna Fail)
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253. To ask the Minister for Jobs, Enterprise and Innovation the terms of reference, and guidelines, to the recently announced Low Pay Commission; and if he will make a statement on the matter. [9272/15]

Richard Bruton (Dublin North Central, Fine Gael)
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The Terms of Reference for the Low Pay Commission agreed by Government are as follows:

"Context

The National Minimum Wage Act 2000 provides for a “national minimum hourly rate of pay” – the minimum wage. The aim of the legislation is to provide for a guaranteed, and regularly updated, minimum wage rate that will help as many low-paid workers as reasonably practicable, without creating significant adverse consequences for employment or for competitiveness.

The minimum wage was last set, on 1 July, 2011, at €8.65 per hour, an increase of €1, or 14%.

Establishment and Composition

The Government has decided to establish a permanent, independent, advisory Low Pay Commission, initially on a non-statutory basis but to be underpinned by legislation in early 2015, which will make recommendations on setting the minimum wage.

The Commission will be a nine member body with an independent chair and;

a) 3 members appointed from among persons who, in the opinion of the Minister, have a deep understanding of the interests of low-paid workers, very good knowledge and experience of working on behalf of workers’ interests or representing workers, particularly low-paid workers or a proven track record in an advocacy or representational role on behalf of the low paid,

b) 3 members appointed from among persons who, in the opinion of the Minister, have a deep understanding of the interests of employers, particularly small to medium-sized employers and those operating in traditionally low-pay sectors, and who possess a good knowledge and understanding of the particular issues faced by Irish businesses, particularly in relation to labour costs, and competitiveness, and

c) 2 members appointed from among persons who, in the opinion of the Minister have particular knowledge or expertise in relation to some or all of the following: economics, labour market economics, statistics, and employment law and proven competence in analysing and evaluating economic research and statistical analysis.

Appointments to the Commission will be made after considering expressions of interests made to the Public Appointments Service from interested members of the public. The Minister will comply with Government policy on gender representation in appointing the membership of the Commission.

The Commission will be statutorily independent in the performance of its functions.

Recommendations on the National Minimum Wage

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister by mid-July each year on the minimum wage, with a view to securing that

- the minimum wage is adjusted, when appropriate, incrementally and non-disruptively,

- the minimum wage is set at a rate that is both fair and sustainable, and

- the minimum wage is, when appropriate, progressively increased, if and insofar as current economic circumstances, and the conditions of the labour markets directly or indirectly affected permit, in particular, having regard to productivity trends, international comparisons, particularly in Great Britain and Northern Ireland, and the need for job creation.

In making recommendations on the minimum wage, the Commission will be required to have regard to those three objectives and to make recommendations that are evidence-based. It will be required to collect comprehensive relevant data and to monitor trends.

In particular, the Commission will be obliged to have regard to:

- changes in earnings since the most recent making of a minimum wage order;

- changes in currency exchange rates;

- whether unemployment has been increasing or decreasing; generally and in the sectors directly or indirectly most affected;

- whether employment has been increasing or decreasing; generally and in the sectors directly or indirectly most affected; whether productivity is increasing or decreasing generally; and in the sectors directly or indirectly most affected;

- changes in income distribution; and

- the likely effect of a recommendation on levels of employment and unemployment, the cost of living and national competitiveness.

The Commission will consult with appropriate interests and persons, including representatives of employers and employees in the private sector and public sector.

The Minister will have power to accept, reject or vary the recommendations of the Commission, for stated reasons. Changes to the minimum wage will be made by statutory order. The Minister will make a statement in the Oireachtas setting out the basis for any change.

Reports on Related Matters

In addition to its reports on the minimum wage, the Low Pay Commission may be asked to examine, and to report its views and recommendations on such matters, related generally to the functions of the Commission under the Act, as are specified by the Minister in a request to be agreed by Government and made not later than two months after the start of each year and be part of that year’s work programme of the Commission.

Triennial Report

The Commission will also be required to report every 3 years on the operation of the Act, including on the level and extent of low pay in the economy and the impact of minimum wage orders on income distribution and on employment costs.''

Dara Calleary (Mayo, Fianna Fail)
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254. To ask the Minister for Jobs, Enterprise and Innovation the metrics or parameters the Low Pay Commission will adhere to in adopting an evidence-based approach in setting the minimum wage; and if he will make a statement on the matter. [9273/15]

Richard Bruton (Dublin North Central, Fine Gael)
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The Scheme of the proposed Minimum Wage (Low Pay Commission) Bill 2015 provides that in discharging the functions assigned to it under the Act, the Low Pay Commission shall make such recommendations to the Minister that are designed to set a minimum wage that is fair and sustainable, and when appropriate, is adjusted incrementally, and that, over time, is progressively increased to assist as many low-paid workers as is reasonably practicable without creating significant adverse consequences for employment or competitiveness. To this end, in making a recommendation regarding the appropriate level of the national minimum wage, the Low Pay Commission will be required to have regard to:

(a) changes in earnings during the period since the most recent making of an order relating to the rate of the national minimum wage;

(b) changes in currency exchange rates during that period;

(c) changes in income distribution during that period;

(d) international comparisons, particularly with Great Britian and Northern Ireland;

(e) the need for job creation;

(f) whether during that period—

(i) unemployment has been increasing or decreasing,

(ii) employment has been increasing or decreasing, and

(iii) productivity has been increasing or decreasing,both generally and in the sectors most affected by the making of an order, whether directly or indirectly, and

(g) the likely effect that any proposed order will have on—

(i) levels of employment and unemployment,

(ii) the cost of living, and

(iii) national competitiveness.