Youth subminimum wages
Deputy Barry pressed the case for abolishing age-based subminimum wages after the Low Pay Commission's unanimous recommendation. The Taoiseach rejected claims of exploitation, said many young people are helped by such jobs, and reiterated that the Government would follow its normal decision-making process.
There is a minimum wage in this country but the law allows an employer to pay below it if the worker in question is under the age of 20. It is legal to pay a 19-year-old 90% of the minimum wage, an 18-year-old 80% and those aged 17 and under just 70%. Yesterday, the Low Pay Commission unanimously recommended that the Government abolish these subminimum pay rates. Instead of embracing that proposal, the Minister for enterprise said he would have to apply the SME test before making recommendations to the Cabinet. The Taoiseach's comments earlier on this matter were not satisfactory. There are no circumstances that justify paying an 18-year-old €10.16 an hour in this day and age. There are no circumstances that justify discriminating against a 19-year-old when he or she performs the same work as a 20-year-old. There is never an excuse for exploitation. Will the Taoiseach commit today to implementing the recommendations of the Low Pay Commission by 1 January? It is the right thing to do.
Comment on this
First, I do not believe employers in cafés, restaurants and hotels, of whom we all know many in our communities, are exploiting younger people. They give them opportunities by providing them with summer jobs and part-time work while they are in college. I do not see any evidence of exploitation. The Deputy should reflect very carefully on that charge. It is a very strong charge to make against small and medium businesses in his constituency. I reject it out of hand. The Government follows process. The Low Pay Commission has produced a report. We will consider that report and make a decision in advance of the budget. That is the normal process.