Union calls for wage increases for lower paid

ONE of the country’s leading trade unions has called for substantial flat rate pay increases for low-pay workers as new research shows 30% of retail workers are earning less than €10 per hour.

Mandate, which represents 44,000 workers in the wholesale, bar and retail trade, warned the Government that it would resist any calls for wage restraint for low paid workers as part of the ongoing national pay talks among the social partners.

The union’s general secretary, John Douglas said yesterday that Mandate would oppose any new national wage agreement which would further disadvantage the position of lower income families.

Mr Douglas said real improvements could only be achieved through increases in flat rate pay as percentage increases only further widened the gap between low and high earners.

A new report commissioned by Mandate revealed that low pay is widespread in the retail sector which employs 310,000 people or 15% of the national workforce.

It highlighted how the average hourly wage among retail staff is just €11.92 compared to a national average of €15.39.

The study showed three out of 10 shop workers were earning less than €10 per hour with a further 50% earning between €10 and €20 per hour.

Shop assistants are earning an average of between €15,225 and €22,271 per annum, according to Mandate.

Mr Douglas said it was ironic that profitable sectors of the economy like the retail industry had the lowest levels of pay, despite having capacity to pay better wages.

Researcher, Camille Loftus, said the wages of retail staff would have increased by up to 60% in the past three years if earnings had been linked to the value of sales.

She pointed out that nine retails companies were listed among the top 100 firms in Ireland with combined annual sales of almost €20 billion.

Ms Loftus also expressed concern that the national minimum wage, which is currently €8.65 per hour, would be used by employers as a ceiling for those in the low paid sector, rather than proving a floor for low wages.

She warned that rising inflation was also putting poorer families at an ever greater disadvantage as more of their weekly budget was spent on food and fuel compared to higher earners.

Mandate said further tax cuts could not deliver meaningful increases in net income for low-paid workers. Instead the union recommended the introduction of specific refundable tax credits for low earners.

Meanwhile, the Irish Hotels Federation, has called for wage restraint until the end of the 2009 holiday season in order to safeguard the sector’s competitiveness.