IMF backs reverse on minimum wage

REVERSING the minimum wage cut has got IMF backing, the Government signalled — but other employees face changes to their own wage agreements as a result.

Enterprise Minister Richard Bruton said he expected the controversial move to be included in the new memorandum of understanding drawn-up between Ireland and the EU/IMF to be announced tomorrow.

While putting the hourly minimum wage rate back up to €8.65 was an election pledge, a drive to loosen other sectoral pay deals, known as joint labour agreements which mainly involve workers in construction and hospitality, is likely to spark protest.

The move came as Taoiseach Enda Kenny scrambled to try and clear up confusion he created when he re-branded next month’s “jobs budget” as an initiative.

Mr Kenny insisted the package would not contain any tax increases, but denied opposition charges that he was engaged in a clumsy U-turn over the much trumpeted job creation legislation which is meant to be the centre-piece of the Fine Gael/Labour Coalition’s first 100 days in power.

Mr Kenny, who until last week was calling the package a jobs budget, said he had made a point of changing the name to an “initiative”, not because he was downgrading it, but because people had got the view it would be a version of the full December budget, including tax measures.

However, the Government’s message appeared to be still mired in confusion as Tánaiste Eamon Gilmore continued to refer to the measures as a full “jobs budget”.

Fianna Fáil leader Micheal Martin ridiculed the change, insisting the Taoiseach seemed to be preparing for “another U-turn on the much hyped but now hidden jobs budget”. “Is it a budget, is it a supplementary budget, an initiative, an economic stimulus or simply a revenue neutral press release?” he asked in the Dáil.

Mr Kenny claimed the Fianna Fáil leader was trying to manufacture a row which was unhelpful to the 440,000 people out of work.

“The person who gets a job as a plumber or a plasterer or a chippie or whatever is not going to be worried whether it’s a budget or a jobs initiative. He or she is going to be proud and privileged to have the dignity of having a job and being able to contribute to our society,” he said.

Sinn Féin leader Gerry Adams said the revised IMF/EU memorandum would mean more cuts and austerity because Ireland could not afford the bailout costs.

Mr Gilmore said he did not think it mattered what the package is called so long as it remained at the very top of the Government’s economic recovery plan.