Underhand way of attempting to cut the minimum wage

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It appears that the government, in what can only be considered as a deeply undemocratic and unjust move, will attempt to legislate for a €1 cut to the minimum wage over the coming days.  This will most likely happen in the form of an amendment tacked on to legislation such as the Social Welfare (Miscellaneous Provisions) (No.2) Bill, the Financial Emergency  Measures in the Public Interest (No.2) Bill or other legislation to be rushed through in the coming days.

The manner in which the cut to the minimum wage is apparently to be legislated for is seriously flawed and undermines democratic principles of accountability and process.  Rushing a decision by including this in other legislation will deny TDs the right to properly consider and debate this critical issue.

There is no rationale for this draconian move other than the obvious intent of this government to embed a low-waged labour market strategy, and to ensure that the ‘race to the bottom’ is actively facilitated.

Approximately 5% of the working population survives on an income of €8.65 per hour.  Fianna Fáil and the Green Party are hell bent on pushing the poorest paid workers in this country deeper into poverty.  Ordinary people know that generating greater security and stability in society and in our economy can only really be achieved by a bottom-up approach, i.e. by protecting low paid workers.  We, to our detriment, know that the approach of protecting those at the top does not work in society’s favour.

Cutting the minimum wage at this time will not only hurt workers surviving on a shoestring but will also damage consumer spending and the economy.  It will not generate any new jobs, nor will it help to reduce the government deficit.

It will disproportionately impact on women, who represent six out of ten minimum wage workers, and will substantially increase the gender pay gap. Young people will also be disproportionately hit by such a move.

This government does have other options to address the constraints being faced by small and medium enterprises, such as tackling the fixed costs that are crippling businesses.

We refuse to accept that this unnecessary and savage attack on the lowest paid will be allowed to become law in this country. The public at large is appalled by the announcement that this was the government’s intention. There is a threshold of decency that we will not allow our society to cross.

Sign the Claiming Our Future petition to protect the minimum wage here. The hope is to collect 5,000 signatures in 72 hours. Please sign if you want the measure to be stopped.

MANDATE
MIGRANT RIGHTS CENTRE IRELAND
NATIONAL YOUTH COUNCIL OF IRELAND
NATIONAL WOMEN’S COUNCIL
THE POOR CAN’T PAY
SIPTU
UNITE
COMMUNITY PLATFORM, which includes:
ATD 4th World,
Age Action Ireland,
Community Action Network,
Community Workers Cooperative,
Cairde,
Debt & Development Coalition, Ireland,
European Anti-Poverty Network (EAPN) Ireland,
Focus Ireland,
Gay and Lesbian Equality Network,
Immigrant Council of Ireland,
Irish Association of Older People,
Irish National Organisation of the Unemployed,
Irish Penal Reform Trust,
Irish Refugee Council,
Irish Rural Link,
Irish Traveller Movement,
Migrant Rights Centre Ireland,
National Adult Literacy Agency,
National Traveller Women’s Forum,
National Women’s Council of Ireland,
Older Women’s Network,
OPEN,
Pavee Point,
Rape Crisis Network Ireland,
SAFE Ireland,
Simon Communities of Ireland,
Threshold,
Voluntary Drug Treatment Network,
Vincentian Partnership for Justice,
Women’s Aid.

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2 Responses

  1. Tomboktu

    December 8, 2010 7:23 pm

    A cut in the minimum wage does not need to come in any of the legislation mentioned by Siobhán O’Donoghue.

    11.—(1) The Minister shall, by order, after taking into account the impact the proposed rate may have on employment, the overall economic conditions in the State and national competitiveness, declare a national minimum hourly rate of pay for the purposes of this Act.

    (2) A national minimum hourly rate of pay may include an allowance for board with lodgings, board only or lodgings only at such rates as the Minister may specify in the order under subsection (1).

    (3) Subject to sections 12 and 13, the Minister may, by order and after taking into account the matters referred to in subsection (1), amend or revoke an order made under this section, including an order made under this subsection.

    The procedures require the following:

    4.—Every order (other than an order made under section 1 (2)) or regulation made by the Minister under this Act shall be laid before each House of the Oireachtas as soon as practicable after it is made and, if a resolution annulling the order or regulation is passed by either House within the next subsequent 21 days on which that House has sat after the order or regulation is laid before it, the order or regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under the order or regulation.

    Sections 12 and 13 don’t provide a mechanism for stopping the change either:

    12.—(1) The Minister shall, from time to time in accordance with this section or section 13 , review the national minimum hourly rate of pay.

    (2) Where in the opinion of the Minister there is in existence or proposed a relevant agreement (“national economic agreement”) among economic and social interests in the State which includes a recommendation in relation to the national minimum hourly rate of pay of employees for the duration of the agreement, the Minister shall, within 3 months after being advised of the recommendation, and taking into account the matters referred to in section 11 (1)—

  2. (a) accept or vary the recommendation and declare the national minimum hourly rate of pay under section 11 accordingly or amend the order, or
  3. (b) reject the recommendation.

    4. (3) If the Minister varies or rejects a recommendation under subsection (2), the Minister shall, as soon as practicable, make a statement to the Oireachtas giving his or her reasons for that variation or rejection.

    13.—(1) Any organisation claiming to be substantially representative of employees or employers in the State may apply to the Minister for his or her opinion as to whether a relevant national economic agreement exists for the purpose of section 12 .

    (2) Where in the opinion of the Minister there is no relevant national economic agreement as referred to in section 12 or, if there is such an agreement, it makes no recommendation in relation to the national minimum hourly rate of pay of employees that should obtain for the duration of the agreement, the Minister shall, in writing, advise the applicant accordingly.

    (3) Any organisation which the Labour Court is satisfied is substantially representative of employees or employers in the State may separately or jointly, not earlier than 12 months after the Minister has last declared a national minimum hourly rate of pay of employees under section 11 , request the Labour Court to examine the national minimum hourly rate of pay of employees and make a recommendation to the Minister.

    (4) The Labour Court in undertaking an examination as the result of an application under subsection (3), shall consult with such persons, including representatives of employers and employees in the private sector and public sector of the economy, as it thinks appropriate and if it is satisfied that general agreement is reached between the parties as to the appropriate hourly rate of pay of employees, recommend in writing to the Minister that rate accordingly.

    (5) If, after the consultations referred to in subsection (4), the Labour Court is satisfied that general agreement between the parties cannot be reached, it may still make a recommendation to the Minister, but in doing so it shall have regard to the following matters:

  4. (a) the movement in earnings of employees since the Minister last declared the national minimum hourly rate of pay under section 11 or amended the order;
  5. (b) relevant exchange rate movement;
  6. (c) the likely impact of any proposed change on—
  8. (i) the level of unemployment and whether it is increasing or decreasing,
  10. (ii) the level of employment and whether it is increasing or decreasing,
  12. (iii) inflation in the economy, and
  13. (iv) national competitiveness.

    14. (6) The procedures of the Labour Court in relation to an application or hearing under this section shall be as determined by the Labour Court.

    (7) The Minister shall, within 3 months after receiving a recommendation of the Labour Court under subsection (4) or (5), and after taking into account the matters referred to in section 11 (1), accept or vary the recommendation and declare the national minimum hourly rate of pay under section 11 accordingly, amend the order or reject the recommendation.

    (8) If the Minister varies or rejects a recommendation under subsection (7), the Minister shall as soon as practicable make a statement to the Oireachtas giving his or her reasons for the variation or rejection.

    Reply

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