Written Answers. ›
National Minimum Wage
21 Deputy Seymour Crawford asked the Minister for Enterprise, Trade and Innovation the analysis that he has undertaken of the job impact of reducing the minimum wage; and if he will make a statement on the matter. [45377/10]
Comment on this
37 Deputy Jack Wall asked the Minister for Enterprise, Trade and Innovation the discussions he has had with the National Competitiveness Council regarding the proposed change in the national minimum wage; if he has received any request from the council to reduce the level of the minimum wage; and if he will make a statement on the matter. [45529/10]
Comment on this
I propose to take Questions Nos. 21 and 37 together.
A recent study entitled "Review of Labour Force Competitiveness", undertaken by Forfás for my Department, concluded that while 4.9 percent of employees in Ireland (83,700) were earning €8.65 per hour or less in October 2007, it is likely that the national minimum wage actually influences the wage levels of another 26 per cent of the labour force. On that basis it is estimated that the national minimum wage may affect the wages of all those within a range of 1.5 times the national minimum wage. The report is published on the Forfás website.
The Forfás report found that the national minimum wage impacts on sectors in different ways — sectors such as wholesale and retail, hotels and restaurants, and other services sectors tend to have significantly more workers engaged on or just above the national minimum wage than internationally trading sectors. While the sectors and occupations where the greatest job losses have occurred generally coincide with the sectors where the national minimum wage is most prevalent, these sectors have also experienced a major collapse in demand for their output.
I met with the Forfás Board to discuss a number of issues including this report. I have not had any discussions with the National Competitiveness Council regarding the proposed adjustment to the national minimum wage. I have not received a request from the Council to reduce the level of the national minimum wage.