Written answers

Thursday, 26 March 2015

Department of Jobs, Enterprise and Innovation

Low Pay Commission Establishment

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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8. To ask the Minister for Jobs, Enterprise and Innovation the position regarding the low pay commission; and if he will make a statement on the matter. [9968/15]

Photo of Gerald NashGerald Nash (Louth, Labour)
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The establishment of a Low Pay Commission is one of the key commitments in the Statement of Government Priorities agreed in July last.

The General Scheme of the National Minimum Wage (Low Pay Commission) Bill was approved by Government in January. The General Scheme, together with a Regulatory Impact Assessment, has been published on my Department's website and forwarded to the Joint Oireachtas Committee on Jobs, Enterprise and Innovation for pre-legislative scrutiny.

The Commission will be a nine member body comprising an independent chairman, three members who will have a deep understanding of the interests of low-paid workers, three members who will have a deep understanding of the interests of employers, particularly small to medium-sized employers and those operating in traditionally low-pay sectors, and two members who will have relevant knowledge or expertise in relation to some or all of the following; economics, labour market economics, statistics, and employment law. The term of office of its members will be three years, subject to a maximum of two consecutive terms.

The 9 members of the Commission have been appointed. With the exception of the position of chairperson, the appointment process was managed by the Public Appointments Service (PAS). The Commission was officially launched on 26th February last to operate on an interim administrative basis and the Commission held its first meeting on the same day. It is intended that the interim membership will constitute the Commission when it is established on a statutory basis.

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister of the day on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels.

Alongside examining the National Minimum Wage, the Low Pay Commission will also be tasked with examining matters related generally to the functions of the Commission under the Act. This work programme will be agreed by Government and presented to the Commission in February of each year.

In discharging its functions, the Commission will be required to ensure that any advice or recommendations it makes to Government is evidence-based; utilising agreed data, carrying out research and consultations with employers, workers and their representatives and taking written and oral evidence from a wide range of organisations. This is to ensure that any suggested changes to the National Minimum Wage have minimum adverse impact on employment and competitiveness.

In addition, the Commission will be asked to consult with employers and workers who are directly affected by the National Minimum Wage. The Commission has already commenced its work in this regard and has recently placed notices in national newspapers seeking submissions on the issue.

The Commission is expected to submit its first report by the middle of July.

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