Tonight's The Frontline

Monday, 18 Jan 2010

David Nally

Editor

Should Ireland's minimum wage be reduced? To those on low wages it will sound like an appalling prospect but with Government prioritising increased competitiveness as the way out of the economic mire, the minimum wage must be vulnerable. An OECD report published last November pointed out that our minimum wage is the second highest in the EU (falling to sixth highest when the figures are adjusted to take account of the high cost of living here) and said that "the level of the national minimum wage should be assessed and reviewed on an annual basis". It also said that unemployment allowances should be reduced in line with falling prices so that being unemployed doesn't become more attractive than having a minimum-wage job.

What do you think of all of this? Is it just another attack on the weakest - an attempt to make the lowest paid pay for the mistakes of the bankers, developers and politicians? Or is it common sense that if our minimum wage is the second highest in the EU and we need to become more competitive then it's got to fall? Jack O'Connor of SIPTU and Mark Fielding of ISME will go head to head on tonight's (18th January) programme and we'll have lots of lively contributions from the audience. Let us know what you think by commenting on this blog or emailing thefrontline(AT)rte(DOT)ie.

We'll also be discussing the Government's banking inquiry which is expected to be formally announced on tomorrow. Will it name and shame? Will it lead to valuable lessons being learned or will it just be a talking shop telling us essentially the things that we already know - banks engaged in reckless property lending over 10-12 years here and no one, especially not the regulators - shouted stop?

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Comments:

In the 1970's people in low paid jobs were used and abused by greedy employers particularly in the catering and services industries like hairdressing. The minimum wage was one of the few good things to come out of the Celtic Tiger, Let employers who made huge profits on the back of cheap labour appreciate their workers and pays them proper wage and not try to exploit them. Roisin Neylon

Posted by roisinneylon on January 18, 2010 at 10:57 PM GMT #

Hi Pat and the panel I'm currently on 204 euros a week social welfare as i lost my job last year. Why should I go work hard as people do in say a restaurant for 40 hours a week and get 240 euros for it if the minimum wage goes to 6 euros an hour.Thats only 36 euros more than what i get when i sit on my butt drawing social welfare. The wage differences between Ireland and other EU countries proves that the european union isnt working. Declan in Wexford

Posted by declan on January 18, 2010 at 11:03 PM GMT #

Is it just me or was Pat Kenny totally dismissive of the gay guy that asked a question on the frontline tonight? I thought his question was no better or worse than some of the others asked and felt that Pat gave a nasty little remark in relation to gay people getting married and washed over him.

Posted by Brian on January 18, 2010 at 11:22 PM GMT #

Re. Minimum Wage. The question that goes to the heart of how people on, or near, the Minimum Wage are feeling was, once again, not asked. A member of the audience that owns a restaurant stated that he could expand his business if his wage bill was lower. Surely he should have been asked how much he paid himself and if he would be prepared to work for the Minimum Wage to enable his desired expansion. The same could and should be asked of all proponents of a reduction.

Posted by Martin on January 19, 2010 at 12:22 AM GMT #

The cries to cut the minimum wage are typical! with effectively 500,000 people on the dole that is a lot of consumers that cannot hope to buy Houses ,cars and to the restraunt owners in the Audience cannot afford to dine out with their high prices currently according to the CSO there is approximately In their most recent survey on the impact of the minimum wage, the ESRI estimate that 5.2% (or c. 70,500) of those employed in private sector non-agricultural firms are earning the minimum wage. 30,000 or 2.2% on sub-minimum rates + 40,500 or 3.00% on actual minimum = 70,500 or 5.2% on minimum wage So that means that the vast majority of employers chose to pay their staff over the minimum wage Why? Cutting the minimum wage is effectively a 12.5% cut on wages not taking in to consideration the hefty taxes that are now becoming apparent in workers’ pay packets this month With estate agents telling us that we are now seeing stabilization in the property market, the Minister of Finance telling us we have turned the corner and now these ISME telling us that the minimum wage is to high . I ask the question who do they think is going to buy the overpriced Houses ,apartments, and who is going to buy the costly cars, pay for the expensive restaurants and stay in the expensive Hotels? with the banks now only offering mortgages at 2.5 times average wage at 30 thousand say this means that the averages starter home can only be 70 ,000. Euro what does that tell you? Prices are still too high relative to the average wages that the ordinary worker gets right now, and house prices have a long way to fall before the ordinary man or woman in the street can afford to buy again. Two bed apartments on the continent are about 65,000 Euros

Posted by Thomas Clarke on January 19, 2010 at 12:26 AM GMT #

The cries to cut the minimum wage are typical! • with effectively 500,000 people on the dole that is a lot of consumers that cannot hope to buy Houses ,cars and to the restraint owners in the Audience cannot afford to dine out with their high prices currently • according to the CSO there is approximately In their most recent survey on the impact of the minimum wage, the ESRI estimate that 5.2% (or c. 70,500) of those employed in are earning the minimum wage. So that means that the vast majority of employers chose to pay their staff over the minimum wage Why? Cutting the minimum wage is effectively a 12.5% cut on wages not taking in to consideration the hefty taxes that are now becoming apparent in workers’ pay packets this month With estate agents telling us that we are now seeing stabilization in the property market, the Minister of Finance telling us we have turned the corner and now these ISME telling us that the minimum wage is to high . I ask the question who do they think is going to buy the overpriced Houses ,apartments, and who is going to buy the costly cars, pay for the expensive restaurants and stay in the expensive Hotels? with the banks now only offering mortgages at 2.5 times average wage at 30 thousand say this means that the averages starter home can only be 70 ,000. Euro

Posted by Thomas Clarke on January 19, 2010 at 12:30 AM GMT #

The biggest problem with the minimum wage is that it is one size fits all across the country. Rural, especially Western counties have lower costs of living, and also have more difficulty attracting investment and creating jobs. In these counties, the minimum wage is unreasonably high and was causing massive unemployment even before the recession. Meanwhile in Dublin, the cost of lliving is much higher and the minimum wage scarcely covers the cost of living. The government's single minimum wage rate for the whole country caused chronically high unemployment in the West and did little to maintain living standards in the East. It seems obvious that minimum wages should be set at local level to take into account local economic conditions. This way, the balance between maintaining employment and standards of living can be maintained, as dictated by realities on the ground. It makes no sense to have employed people on the poverty line in the East, while there is over 10% unemployment in Western counties despite the longest and largest boom in the history of the State. It makes no sense to have the same minimum wage right across the country.

Posted by Tommy Tighe on January 20, 2010 at 11:47 AM GMT #

The biggest problem with the minimum wage is that it is one size fits all across the country. Rural, especially Western counties have lower costs of living, and also have more difficulty attracting investment and creating jobs. In these counties, the minimum wage is unreasonably high and was causing massive unemployment (10%+) even during the boom. Meanwhile in Dublin, the cost of lliving is much higher and the minimum wage scarcely covers the cost of living. The government's single minimum wage rate for the whole country did little good for the low-paid workers in the East and put their Western counterparts out of work. It seems obvious that minimum wages should be set at local level to take into account local economic conditions. This way, the balance between maintaining employment and standards of living can be maintained, as dictated by realities on the ground.

Posted by Tommy Tighe on January 20, 2010 at 11:49 AM GMT #

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