Union calls for minimum pay watchdog
SIPTU's national equality secretary, Rosheen Callender, criticised the fact that there are only 17 inspectors attached to the Department of Enterprise, Trade and Employment with responsibility for covering the whole country to ensure employers comply with minimum wage legislation.
"It's all very well for the Tánaiste to boast that she introduced the National Minimum Wage and is now increasing it to E7 an hour. But even the best laws in Europe are useless if they are not enforced," said Ms Callender yesterday.
It has emerged that there were no prosecutions last year as a result of 950 workplace inspections. In addition, there have only been four prosecutions since the National Minimum Wage was introduced in 2000.
"A substantial increase in the number of Inspectors is urgently needed in order to make this legislation effective, particularly for workers in small and non-unionised firms," said Ms Callender.
However, the Minister for Labour Affairs, Frank Fahey claimed the results of inspections demonstrated a high level of compliance by employers.
The National Minimum Wage has increased from E6.35 to E7 per hour a 10.2% increase as part of the Sustaining Progress national wage agreement.
The sub-minimum rates which apply to under 18s, first time job entrants and those engaged in training also increased proportionately. However, the Small Firms Association has warned that the increase will result in further job losses by impacting negatively on prices and competitiveness.
SFA director Pat Delaney claimed the new rate of E7 per hour meant Ireland now had the third highest National Minimum Wage in the EU.
"Further increases in the National Minimum Wage will slow employment prospects further and result in thousands of more unskilled and part-time jobs being lost. Such comparisons show Ireland for what we have become a high cost, uncompetitive economy," said Mr Delaney.
He also claimed that the welfare and taxation systems offered better protection to workers against exploitation than the National Minimum Wage.
Mr Delaney pointed out that one-in-four employers in a recent SFA survey stated that the National Minimum Wage was a major problem for their business. He expressed concern that the new rate would affect the services industry particularly hard due to the fact that labour costs account for a high proportion of the overall costs of such businesses.
Mr Delaney predicted the increase would also result in employers being forced to either reduce staff numbers or working hours, or both.
In contrast, a recent Economic and Social Research Institute study on the National Minimum Wage concluded that the latest increases gives "little reason to expect a detrimental impact on employment levels or competitiveness".
The ESRI report said the latest increase, while substantial, would help restore the relationship between the minimum wage and average earnings.
Anyone seeking information on the increase in the National Minimum Wage can contact the Employment Rights Information Unit on 1890-201615.
