Labour vows to hike minimum wage by €2 over 4 years

Labour leader Joan Burton has promised the minimum wage would rise by a further €2 over four years, if her party is returned to power, and dismissed claims such a move could threaten the economy.

The Tánaiste and Labour leader said that if returned to government, she would increase the minimum wage by 50c a year over the next four years. She brushed aside suggestions by some in Fine Gael that it would threaten the recovery or improvements in the economy.

The minimum wage is already increasing by 50c in the new year, to an hourly rate of €9.15. This follows recommendations made by the Low Pay Commission earlier this year. Speaking to reporters yesterday, Ms Burton confirmed suggestions by Business and Employment Minister Ged Nash that the minimum wage would go up by €2 over four years, if Labour is returned.

“You are talking about increases of a similar level of 50c. You also need a kind of economy, a wage-led recovery. And Fine Gael’s economics people acknowledge that.

“If we are going to have a prosperous, thriving Ireland, we need people to have a decent level of wages and decent jobs with good terms and conditions. We’re aiming to be a knowledge economy. We’re aiming to ensure that everybody who wants a job is back at work.”

Labour have also promised to push companies and state employers to pay workers a ‘living wage’ in certain sectors or industries, in its election campaign. This would give those workers a guaranteed €11.50 an hour, but it is a voluntary scheme for employers to sign up to.

Ms Burton said that Airtricity, Aldi and Lidl were among the companies that had already signed off on paying the living wage.

She added: “If you look at the city of London, that’s one thing I have in common with Boris Johnson [the city’s outgoing lord mayor]. We’re both very strong supporters of the living wage.

“For a lot of companies in London, if you talk to KPMG and the big accounting companies, it’s very hard to live in a big city area, provide yourself with an apartment, meet commitments in family terms, unless you have a living wage.”