Abolition of sub-minimum youth wages
Deputy Bacik welcomed the Low Pay Commission’s recommendation to abolish lower pay rates for under-20s, arguing young workers face the same living costs as others. The Taoiseach said the Government would consider the report, assess the economic impact, and stressed a balanced approach on workers’ rights and small business costs.
Yesterday, the Low Pay Commission recommended the abolition of sub-minimum wages for workers under the age of 20. I cannot say that any of us were surprised by the recommendation because maintaining a discriminatory system for young people could never have stood up to scrutiny when evaluated on the evidence. We all know that young workers have rent to pay and other living expenses. They are affected by price hikes and increases in the cost of living, including in respect of everyday goods, travel and transport. Those are the normal expenses that so many are struggling to cover in this cost-of-living crisis. It is true that there is still a way to go, but as our school completion rates become the envy of other countries, which I acknowledge, the rationale for pay discrimination that leaves young people so vulnerable simply cannot hold water. This is an argument the Labour Party has made for years. Labour Youth has been spearheading a campaign for the abolition of sub-minimum wages for workers under the age of 20. We have also been campaigning on the basis that Ireland needs a pay rise. We need to tackle the serious levels of low pay across the country. I pay tribute to all who have campaigned on the issue and to the members of the Low Pay Commission for this important recommendation.
The commission was established by my Labour Party colleague Deputy Nash. It is an important body. I hope the Taoiseach and his colleague the Minister of State, Deputy Peter Burke, will act on its recommendation without delay. I also welcome the recommendation that a review mechanism should be built in to ensure no unforeseen consequences arise from a change in policy. It is important that the recommendations are acted upon.
We know that campaigns on workers' rights are not always popular endeavours. We must recall, and we in the Labour Party are particularly mindful, that workers' rights are core to the welfare of our communities. Workers' rights dictate whether economic success is worthwhile and trickles down to communities. Workers' rights make the difference for us all between living to work and working to live. They impact on our health and housing, and on the social cohesion of our communities. They are foundational to us, as a party, and to our communities across the country.
In recent times, we saw what appeared to be a shift within Fine Gael towards a not entirely convincing commitment to workers' rights. Even that slight shift appears to have changed again in recent months. Our concern is that the advent of a new energy in Fine Gael has meant the advent of a dangerous precedent for those bodies which have been pushing for better conditions for workers. We have seen some public efforts made from within the Taoiseach's party to exert influence over the Low Pay Commission and to slow progress towards a living wage for those lowest paid workers in Ireland. I give the Taoiseach the opportunity to repudiate any rowing back of his party's commitment to workers' rights. Will he act on the Low Pay Commission recommendation to abolish sub-minimum rates of pay for young people? Will he lead the charge in advocating for the introduction of a real living wage to ensure the lifting of all boats as our economy strengthens?
Comment on this
I thank the Deputy for raising this important matter. The Government welcomes yesterday's publication of the report of the Low Pay Commission. The Government, and specifically the Minister of State, Deputy Peter Burke, will now give it consideration. He will carry out an economic impact assessment and will then make recommendations to Cabinet, if that is the appropriate thing to do.
We must always take a balanced approach to these issues. I will not get into a political ding-dong but I am proud of the record of my party and this Government on workers' rights. I can point to a number of things we have done over the course of the past four years, including the increase of the minimum wage, the introduction of the statutory sick pay scheme, the parental leave Bill and the work being undertaken by the Minister for Social Protection, Deputy Humphreys, in respect of auto-enrolment in pension schemes, which will address the pension apartheid that has existed in this country for many years and about which I am sure the Deputy feels strongly. We have taken a number of actions to help support workers, including with regard to remote working, to try to support a work-life balance.
We must also listen to people who run businesses, however. The Deputy and I were both in Munster in recent weeks during the election campaign, visiting cafés, restaurants and small shops. The owners of such businesses have pointed out that the pace at which charges and costs have come at them has had a real impact. Nobody in government or in opposition wants to do anything that would in any way hinder the ability of somebody to provide employment in towns and villages. We will continue to support workers and small and medium enterprises. I do not buy into the idea that it is one or the other. It is about taking a balanced approach and the pace at which we do it.
The sub-minimum wage is currently a percentage of the overall minimum wage. As the minimum wage has increased, so too has the sub-minimum wage. The minimum wage rose by approximately 12% on the most recent occasion, which was significantly above the rate of inflation. That would have had a knock-on benefit for people on all forms of the minimum wage. The Government remains committed to the introduction of the living wage. This is a question of balance, the pace at which new costs come and how the Government can best support businesses that, as the Deputy knows, are under real pressure. I am talking about small and medium businesses, including those owned by people I have met in the Deputy's constituency and who have said to me that we need to be cautious about the pace at which new charges are put on businesses.
We will consider the report. I welcome its publication. We will carry out an economic impact assessment and the Minister of State, Deputy Peter Burke, will then bring proposals to Cabinet.
Comment on this
As the Taoiseach knows, we have always acknowledged any steps forward on workers' rights. We are, however, concerned to guard against any rowing back of workers' rights. As the Taoiseach acknowledged, I have engaged extensively with small businesses in my own constituency and elsewhere. I am conscious that the Low Pay Commission is statutorily obliged to have regard to the impact of its recommendations on businesses. That is already built in so any attempt to review further or to build in some other review mechanism sounds like a political review.
We are conscious that 20% of workers in this country are trapped in low pay. We need to address that not just at national level but at EU level. I spoke earlier to mark the election of my good friend and Labour Party colleague Deputy Ó Ríordáin to the European Parliament. His election and the fact we now have an Irish MEP in the Socialists and Democrats group for the first time in a decade will make a difference. It matters when Labour Party activists are in the room at national level and European level. The minimum wage directive is, or can be, a real game-changer for those trapped in low pay.
It will mandate all member states to ensure a living wage by 2026. I am glad to hear the Taoiseach's commitment to move towards a living wage but I want to ask how he proposes to implement this directive. Will he adopt the recommendation of the Low Pay Commission?
Comment on this
I acknowledge the Labour Party's success in the European elections and congratulate Deputy Bacik's colleague Deputy Ó Ríordáin on his election to the European Parliament. I believe he is still Deputy Ó Ríordáin.
Comment on this
I know Deputy Bacik would not wish to misrepresent our position. There will be no rowing back on workers' rights. There is nothing I have said, nothing the Government has done and nothing the Government has indicated that suggests I am rowing back. The question, and it is a legitimate question, is on the pace at which costs come at small businesses. This is why, prior to my election as Taoiseach, the Government carried out a cost of doing business review. It was carried out by the Department of Enterprise, Trade and Employment and the Department of Social Protection. This report has been sent to the Low Pay Commission for the very reasons Deputy Bacik outlined. It is statutorily obliged to take into consideration the cost of doing business and the impact of it to arrive at an evidence-based approach. It now has this and I have no doubt it will do its job. I acknowledge the job it does.
We generally make decisions on Low Pay Commission reports around the budget time. It is not on budget day but around budget time. It is a good time to do it because it allows us to look at things in the whole. This is what we will do. An economic assessment of that report will be carried out now and we will make decisions around budget time.