Sinéad Gibney (Dublin Rathdown, Social Democrats)
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34. To ask the Minister for Enterprise, Trade and Employment the means by which workers' rights will be advanced in tandem with the Action Plan on Competitiveness and Productivity, particularly in light of previous commitments around the living wage, paid sick leave, sub-minimum rates of pay and the recommendations of the Low Pay Commission; and if he will make a statement on the matter. [50796/25]

Alan Dillon (Mayo, Fine Gael)
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The issue of advancing workers’ rights is central to the work this government is doing. I am committed to ensuring that our policies and action plans are delivered to ensure that we continue to add jobs and improve living standards across the country. I would highlight the strong position our labour market is in, with numbers at work up 63,900 in the year, with record rates of employment and participation. Since 2020, we have added well over 650,000 jobs – an increase of a third. This is testament that our policies are working.

In relation to the issues raised on the minimum wage and the work of the Low Pay Commission, I would flag the very significant increases in the minimum wage in recent years. The National Minimum Wage increased by 80 cent this year to €13.50 per hour, following an increase of €1.40 in 2024 with 195,300 workers estimated to have directly benefitted. Ireland has the second highest minimum wage in the EU (after Luxembourg), and when adjusted for price levels, we have the fifth highest minimum wage.

On the living wage, earlier this year, the Government adjusted the implementation timeline for the living wage to 2029, from 2026. This decision was not taken lightly and given the increases in the minimum wage in recent years, the minimum wage is likely to be close to the target living wage (60% of median earnings). The Government remains committed to fair wages for all workers, and to the introduction of a Living Wage during its term. I still expect that the minimum wage will increase over the coming years, but it is important that we manage these increases in a way that does not damage employment or competitiveness.

On sub-minimum rates (youth rates) of the minimum wage. Currently, the minimum wage for those aged 19 and under is less than the minimum wage for those aged 20 and over. The minimum wage for those aged 19 is 90% of the prevailing rate, for those aged 18 it is 80% and for those aged 17 and under it is 70%. While the Low Pay Commission recommended abolishing these rates, they acknowledged that this is a complex matter.

Therefore, my Department commissioned an economic impact assessment on the issue. This report is being finalised at present, and it will provide us with more up-to-date data and information on the issue.

The Government is committed to ensuring a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness.

More generally, the decisions we have taken on the minimum wage have resulted in strong and sustained increases in pay for the lowest paid in our economy. The Government has also introduced a range of other measures to assist workers including statutory sick pay, the right to request remote work and an additional public holiday.

I would also like to stress the commitment to workers’ skills and training in our recently published Action Plan on Competitiveness and Productivity. This Plan highlights collective bargaining as part of its planned actions to strengthen the engagement skills of social partners, with the aim of driving productivity and transformation. Specifically, the Action Plan recommends the following:

• Action 59: Complete the development of an Action Plan on Collective Bargaining in order to enhance collective bargaining in ways that contribute positively to economic performance and social well-being, while supporting competitiveness and driving productivity. (in 2025)
• Action 24: Invest in the engagement skills of social partners to drive productivity and transformation, including a series of capacity building actions to support dispute avoidance and resolution being included in the Action Plan on Collective Bargaining later this year. (2025-2030).
  
  A central pillar of the Plan are the actions under the theme of embracing research, innovation and skills. Investing in our workers and building skills and facilitating training and lifelong learning are fundamental to our plans in these areas.
  
  More broadly on the issue of workers’ rights, I would reiterate our commitment to a safe working environment, fair treatment and fair wages for workers, contributing to quality jobs and improved work life balance.
  
  There are a number of initiatives here I would point to:
• The Employment (Contractual Retirement Ages) Bill 2025 (published on 1 April 2025). The Bill, once enacted, will deliver a new employment right allowing, but in no way compelling, an employee to stay in employment until the State Pension Age of 66.
• The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 (was commenced on 1 July 2024) provided for the establishment of the Employment Law Review Group. The group will conduct an ongoing assessment of employment law to ensure Ireland’s legal framework is fit for purpose.
• In April 2023, the Government enacted the Work Life Balance and Miscellaneous Provisions Act, providing all employees with the right to request a remote working arrangement and providing parents and carers with the right to request a flexible working arrangement. A Code of Practice is also available.
• The European Union (Transparent and Predictable Working Conditions) Regulations came into effect in December 2022. These regulations ensure that employees are given more detailed information about their jobs.
• December 2022 saw the introduction of the Payment of Wages (Tips and Gratuities) Act 2022 which obliges employers to distribute tips fairly and to prominently display their tip distribution policy. The Act provides a more secure financial foundation for workers in the hospitality and service industry.
• The introduction of statutory sick leave (January 2023) was also a key policy development. For the first time in Ireland, employees have a statutory right to employer-paid sick leave. From 1 January 2024, the number of statutory sick leave days increased from 3 to 5. The public health benefits of paid sick leave are well established and are a key part of the policy underpinning this Act. This policy is a public health measure that protects fellow employees and members of the public generally, including by reducing the risk of workplace accidents and the likelihood of infectious disease transmission in the workplace.