Unions attack 'slash-and-burn' Budget measures

Trade unions and workers’ rights campaigners tonight accused the Government of treating the least well-off as fair game in a slash-and-burn Budget plan.

Opponents to minimum wage cuts and income tax for low earners said they feared the double-whammy salary hit was an attack on the marginalised.

John Douglas, Mandate general secretary, which represents shop workers, said pushing down the wages of the worst paid staff was a political red-herring.

“Every person in Ireland knows they will be punished for the greed of a few, and the mismanagement of our economic affairs,” he said.

“The time has come for this Government and its successor to implement an economic strategy that shares the pain proportionately and equally - unfortunately the four-year plan does not do this.”

The minimum wage rate will drop €1 to €7.65 while income tax bands are brought down to €15,300.

About 47,000 workers are believed to be working on the rate.

Despite claims that tens of thousands of the lowest paid would be hit by a double whammy of income tax and wage cuts, finance minister Brian Lenihan defended the reform.

He refused to discuss specifics, which will be unveiled on December 7, he suggested changes to tax bands combined with the cuts would keep many minimum wage workers out of the loop.

Sean Healy, campaigner with Social Justice Ireland, said: “The reduction in the minimum wage means that people who are the lowest-paid in Irish society are facing a reduction of €40 a week in their salary.

“This is unjust and unnecessary.”

Willie Penrose, Labour spokesman on enterprise, said the cut showed the most vulnerable were fair game.

“The hardship such a cut will cause will be very significant for the tens of thousands of households who rely on minimum-wage employment and will act as a disincentive to work,” Mr Penrose said.

Paula Clancy, director of left leaning think-tank Tasc, said it had long argued that the incomes of those at the lower and middle end of the income distribution should be protected.

“Not just on equality grounds, but also for economic reasons,” she said.

“Middle and lower income earners are more likely to spend all or most of their incomes, thus providing much-needed demand in the economy.”

Martin Ferris, Sinn Féin TD, said: “Cutting the minimum wage and taxing people on anything above it will push more working people into poverty. Once again in the midst of economic calamity Fianna Fáil manage to do one last favour for their friends in business group’s Isme and Ibec.”