Forum set up to discuss creation of living wage
The body’s chairman designate, Donal de Buitléir, told the Dáil’s jobs committee the commission was focused on bringing in its recommendations on the minimum wage by the deadline of July 15.
He said the issue of a living wage — one pitched higher than the minimum level which takes into account other economic and social factors — would need to be looked at in detail and is likely to “come up” on the agenda.
Ahead of the July decision on the level of the minimum wage, Mr de Buitléir said the commission had received 46 submissions on the matter: 33 from organisations, and 13 form individuals.
Business Minister Ged Nash has announced the setting up of a forum to discuss bringing in a living wage, which would include trade unions, employers and civil society groups.
Mr Nash said the Government would not legislate for a living wage, but he hoped progressive employers would voluntarily back such a move.
Independent TD Maureen O’Sullivan told the Dáil last month that 25% of employees, 345,000 people, earned an hourly wage of less than the living wage threshold, which is considered to be €11.45, as she asked the Government to move with urgency on the issue.
The minimum wage has been stuck at €8.65 an hour since the Government restored the controversial cut to the amount imposed by the previous Fianna Fáil-Green administration.
At the launch of the Low Pay Commission in February, Taoiseach Enda Kenny would not commit to a specific increase in the €8.65 rate of the minimum wage, saying it would change “incrementally” over time.
The minimum wage review is examining unemployment and employment rates generally, looking at the expected impact of a cut or increase on employment; the cost of living; national competitiveness; and changes in income distribution; and exchange rates.
The Low Pay Commission will not investigate the controversial area of zero-hours contracts, Mr de Buitléir told the jobs committee it had not been tasked with probing the issue.Concern over the use of zero and minimum hours contracts has been highlighted by the on-going dispute at Dunnes Stores.
He said the matter was being considered for the Government by a team from Limerick University.
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