Minimum wage increase
Senator Cullinane supports the proposed 50-cent minimum-wage increase, rejects business opposition as excessive, and argues for a broader living-wage approach with budget support for vulnerable small firms.
I raise the issue of the planned increase in the minimum wage, which I suppose was leaked. It has not been confirmed yet, but we hear that the Low Pay Commission, set up recently - we had lengthy debates in this House on the Bill - will recommend a 50 cent an hour increase in the minimum wage. It is interesting that the proposal has received a mixed reaction. Business groups state, wrongly in my view, that this will set the country back economically. They have completely overreacted to the proposal. The trade unions state it does not go far enough and I tend to be on their side. It is interesting that this morning IKEA has stated that not only will it pay the increase in the minimum wage but it will, from next week onwards, pay a living wage to all of its employees.
Comment on this
It is pointing the way forward for companies which can afford pay increases. I accept that there are some small businesses for which increased labour costs would be difficult.
Comment on this
The Government can do things to support those companies in the budget. However, very profitable companies can and should be paying better wages. We know who they are. Many of them are making very big profits in this country and should be paying a living wage and, where they can be, they should be supported and encouraged to do so. For me, it reinforces the need for the Low Pay Commission to be a living wage commission and to look at all of these issues. In reality, I do not think we should be looking at the issue solely through the prism of pay increases. For many low paid workers, pay increases are part of the solution, but what they need is access to good quality public services. For many people in low paid jobs the lack of wages is one issue, but the fact is they cannot depend on public services, be they housing support, health or education services, because of the impact of rising costs on them. That is the flaw in the logic of the Low Pay Commission. It is important for us to have a debate on the issue of low pay when we come back after the summer recess. I commend IKEA, something I would not have seen myself doing last week. It has, however, made that move.
I support the words of the Fianna Fáil group leader on the private health insurance company mentioned which has behaved despicably. I will lend my support and that of Sinn Féin to any motion he wishes to table in that regard.