Scrap minimum wage ad, says ICTU

THE Irish Congress of Trade Unions has called on the Minister for Enterprise to withdraw what it says is a “potentially unlawful” Government advertisement on the changes to the minimum wage.

From February the rate for the minimum wage will be reduced from €8.65 per hour to €7.65 per hour.

ICTU has taken issue with an advertisement that appeared in a number of Sunday newspapers.

In it, the Department of Enterprise writes that “with regard to existing employees who were on the previous NMW rate, employers should have regard to the possible contractual obligations. While this is a matter of contract law, best practice suggests that any change in an employer’s rate of pay would be agreed between the employer and employee”.

ICTU general secretary David Begg has written to caretaker Enterprise Minister Mary Hanafin requesting she withdraws the advertisement. He said ICTU had already pointed out workers on the €8.65 rate could not have their pay cut without their consent and agreement. He said the Government ad appeared to ignore that legal requirement by advising that “best practice suggests that any change in an employee’s rate of pay would be agreed between the employer and employee”.

“This ad will cause massive confusion. Of course the simplest solution would be to set aside the order to cut the minimum wage, which penalises the lowest paid for the sins of senior bank bosses. It will not save the taxpayer one cent or create a single new job,” said Mr Begg.

Mr Begg also called on the Government to explain why it had rushed in the cut a full four months before the date mentioned in the IMF/ ECB bailout deal.