The Irish Congress of Trade Unions said today (June 15) that the debate on the Minimum Wage and poverty should not be driven by "flawed assumptions and simplistic conjecture, given that low pay is such a serious problem in Ireland."
Congress Senior Official Liam Berney said: 'there is a big difference between individual earnings - how we measure low pay - and household income - how we measure poverty. The two should not be confused.
'this debate is too important to be marred by flawed assumptions and simplistic conjecture," he said.
'the Minimum Wage was established following years of campaigning by trade unions to ensure that individuals and households at work could have some form of guarantee around their standard of living. It was not designed to address poverty – that is the job of Social Protection.
"In that context it is hardly surprising that the recent ESRI report should find that many on the Minimum Wage do not live in poverty as that's what it was designed to do - set a floor below which employers cannot legally pay.
'the majority of those on the Minimum Wage are female and young workers. It is no surprise that many live at home as their income would make renting or purchasing their own place difficult if not impossible," Mr Berney said.
"But people on Minimum Wage or low pay struggle with living costs and are more likely to experience deprivation, with many on short term or precarious work contracts.
"It is painfully obvious that there is a causal link between low pay and poverty and the fact remains - as established by the Nevin Institute (NERI) - that Ireland has a serious problem with low pay."
Mr Berney said a recent NERI study showed that one in four workers in Ireland are on low pay, one of the highest rates in the OECD with only the United States and South Korea higher.
"In addition, working people in Ireland receive a far lower level of the Social Wage than their counterparts across the European Union.
"It is the view of Congress – as seen in our Charter for Fair Conditions at Work – that we should now go one step further and raise the Minimum Wage to the rate of the Living Wage (€11.50 per hour) in order to raise living standards and spending power across the economy.
"What we cannot do is wilfully hand ammunition to those whose aim is to ensure wages are kept permanently low and business profits high," Mr Berney said.
