Department of Finance claim that there are serious risks to increasing the minimum wage – TheLiberal.ie – Our News, Your Views

Department of Finance claim that there are serious risks to increasing the minimum wage




Minister for Labour Affairs and Public Service Transformation, Dara Calleary TD, speaking at the official launch of Equinoxe AIS at The Innovation Centre, IT Sligo,  Photo: James Connolly / PicSell8 21OCT10

A recent report written by the Department of Finance outlining what they believe to be major risks in increasing the national minimum wage has been submitted to the Dail recently.

A leading Fianna Fail TD Dara Calleary has agreed with the departments recommendations saying that any increase in the minimum wage would greatly reduce employment and put at risk gains the state has made since 2008.

Mr Calleary also strongly criticised a proposed motion that would see a new system being introduced in the future which would allow the minimum wage to be reduced if needed. Mr Calleary slammed the proposal by saying: “that it was done once before and it was a mistake” and it should not be allowed to happen again under the new system.

Mr Calleary made his comments whilst he was speaking during a highly contested debate on the National Minimum Wage (Low Pay Commission) Bill which puts the low pay commission on a statutory footing. The new report made by Fianna Fail has called for a 6.4% increase in the minimum wage would bring it to €9.20 an hour, this amount falls significantly short of what members of the county’s largest trade union had proposed back at the beginning of the year. Bosses at the trade union believe that the minimum wage should be set at €11.45 an hour.

However Mr Calleary did suggest that the Revenue Commission should “name and shame rogue employers who fail to adhere to the law and pay the minimum wage2. Mr Calleary believes that the Revenue Commissioners should keep a quarterly register of employers prosecuted under the legislation.

Mr Calleary added: “People will then know those companies playing with their workers’ lives and seeking competitive advantage.”

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