Ged Nash urges employers to back voluntary ‘living wage’

Employment Minister Ged Nash said he wants state agencies, departments, and local authorities to pay a “living wage” as he announced a forum on special pay rates with employers in the autumn.

The Labour minister said that paying €11.50 an hour in some sectors would help productivity, reduce absenteeism, and boost staff retention in workplaces.

The junior jobs minister unveiled plans yesterday for a conference with employers and trade unions among others which will look at how the notion of a living wage could be voluntarily introduced in Ireland.

A system of living wage rates already applies in the UK, where more than 1,600 employers pay special hourly rates in specific sectors, such as hospitality, cleaning, and finance.

“I recognise that there are many struggling firms in this country, as well as struggling workers,” said Mr Nash.

“It is not my intention to insist that the living wage becomes the minimum wage. But I do believe that work should always pay and that there is a business case to be made to employers who can afford to do so to pay a living wage and ensure the benefits of the recovery are felt by their workers too.”

The living age here is considered €11.50 per hour, almost €3 more than the current minimum wage of €8.65. The special rate is considered an amount a worker needs to earn to cover the basic costs of living.

Such a wage would reduce absenteeism, increase productivity, and help staff retention in the workplace, suggested the minister.

Mr Nash’s conference, on September 30 in Dublin Castle, will hear from employers — both in Ireland and Britain — about how the wage model has worked across the water. Retail giant Ikea have already said it will begin paying a living wage by April next year for workers in their Ballymun store, in north Dublin.

However, Ibec has said some employers would struggle if a living wage was introduced and some could have to shed some staff.

Mr Nash also said that he wanted the public sector to look at introducing the living wage here, in state agencies, departments as well as local authorities.

“The Government should become a living wage employer… I will campaign on this,” he said yesterday.