The Low Pay Commission unanimously recommended raising the minimum wage to €14.15 from January 1st – an increase of 65 cents on the current €13.50 hourly rate, which the Government approved in yesterday’s (Tuesday) budget. The Commission’s recommendation reflects the strong labour market and general economic environment as well as Government’s decision to push out the timeline to reach a living wage by another three years.
Irish Congress of Trade Unions general secretary, Owen Reidy said:
“If Government hadn’t reneged on their commitment to over 200,000 of the country’s lowest paid workers to reach a living wage from January, the minimum wage would be increasing by 95 cents, instead of 65 cents. Adding on another three-year wait for a living wage leaves minimum wage workers up to €600 out of pocket next year alone.
“Coming out of the pandemic, Government made a commitment to move to benchmarking the minimum wage to wages across the economy by 2026, as part of a series of measures to improve basic employment conditions. But within days of returning to power, they chose to water down these commitments over facing down the unsubstantiated scare stories from parts of the business lobby.”
Mr Reidy said: “It beggars belief that minimum wage workers are being short-changed up to €600 by Government at a time when the labour market and general economic environment have never been stronger. Unions aren’t alone in this view. The Low Pay Commission is unanimous in recommending Government keep their decision to delay the living wage until 2029 under constant review.
“In the same vein, the Commission also recommends ‘removing sub-minimum rates should remain a priority’ for Government. Yet, Government has since confirmed they won’t be scrapping the lower pay rates for young workers during their term of office. It is unacceptable that they are standing over pay discrimination by age and good employers being undercut by bosses benefitting from subminimum wage rates. They need to abolish sub-minimum wage rates now. Our young workers deserve no less.”
He added: “Unions have never denied sector specific challenges and that some businesses are struggling more than others and should be supported, as recommended by the Low Pay Commission. But supports should be targeted and time-limited. Instead, the approach taken by Government to cut business costs through a delayed living wage is benefiting every low-pay employer, whether big or small, profitable or struggling, and leaving over 200,000 minimum wage workers to pay a heavy price for Government’s attempts to silence the relentless lobbying from business.”
