Louise O'Reilly (Dublin Fingal, Sinn Fein)
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55. To ask the Minister for Enterprise, Trade and Employment the status of the transposition of the EU Adequate Minimum Wages Directive; and if he will make a statement on the matter. [30130/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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The Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed by 15th November 2024. The Directive aims to ensure that workers across the European Union are protected by adequate minimum wages allowing for a decent living wherever they work.

The Directive includes three sets of measures:

1. One of the goals of the Directive is to increase the number of workers who are covered by collective bargaining on wage setting. It will require Ireland to develop an action plan to enhance collective bargaining coverage by the end of 2025.

2. To ensure minimum wages are set at adequate levels, the Directive also requires countries with statutory minimum wages, as in Ireland, to put in place clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy, and to involve social partners in the regular and timely updates of minimum wages.

3. The Directive provides for improved enforcement and monitoring of the minimum wage protection established in each country. The Directive introduces reporting by Member States on its minimum wage protection data to the European Commission.

My Department’s analysis of the Directive suggests that our current minimum wage setting framework, namely the Low Pay Commission, is largely already in compliance with the minimum wage provisions of the Directive. Initial legal advice suggests that limited changes are required to ensure the transposition of these elements of the Directive. Work is underway to ensure transposition by the deadline of November 2024

In relation to the collective bargaining elements of the Directive, Article 4 requires Member States with a collective bargaining coverage below 80%, such as Ireland, to provide “for a framework of enabling conditions for collective bargaining” and to publish an action plan to promote collective bargaining by the end of 2025.

A technical working group has been established with Department officials and the social partners to consider the content of Ireland’s action plan. The working group has had three constructive meetings to date, most recently on the 8th July 2024.

My Department has also requested legal advice from the Office of the Attorney General as to whether any legislative change is required in order to transpose Article 4 of the Directive into Irish legislation by the transposition deadline of November this year.

Legislative changes may separately be considered as part Ireland's action plan; this has not yet been decided upon. The action plan is about ensuring the autonomy of social partners and does not compel any party to engage in negotiations or conclude agreements.

My Department, through the Permanent Representation to the EU in Brussels, is also engaging with other Member States to share best practice with regard to the development of the action plans and the transposition of the Directive.