The Tánaiste has said that if employers and unions agree to raise the new minimum wage above £4.40 in talks on a new National Agreement, then the increase will be considered by the Government. Mary Harney rejected employer claims that today's Minimum Wage Bill was "bad legislation" and would lead to job losses, saying that she did not want to damage employment or put companies out of business. There has been a broad welcome for the Bill from the Congress of Trade Unions however some unions have indicated they will be seeking changes.
The most scathing criticism of today's National Minimum Wage Bill came from the Small Firms Association. Its Director, Pat Delaney, described the Bill, which will give effect to the new minimum hourly rate from April 1 next, as "bad legislation". Not only that, he said, but it would lead to up to 14,000 jobs losses, and amounted unwarranted interference by government in a competitive market.
But tonight The Tánaiste has rejected that criticism. She said that the Bill was a significant development in the protection of workers in the Irish economy, and she emphasised that it had never been her aim to damage employment or to put companies out of business. Asked if the new rate, which was pitched at £4.40 back in 1997 was likely to increase as part of the talks on a new national agreement, Ms Harney said that if an increase were agreed by employers and unions, then it would be considered by the Government. However, given the reaction today by the SFA, that is unlikely to happen easily.
The Congress of Trade Unions has welcomed the Bill, saying it was a stark reminder that distributing the benefits of economic growth could not be left to market forces alone. However, ICTU Deputy General Secretary, Patricia O'Donovan, said that a key priority for Congress would now be to improve the proposed rate of £4.40, in the context of talks on a new National Agreement.
SIPTU welcomed the principle of a national minimum wage, but said that a number of shortcomings still need to be addressed. John Douglas of Mandate said that his group will be seeking a rate of over £5 an hour when the new wage comes into force. The National Youth Council has also said that it would also like to see a minimum rate of £5 an hour, and it is urging the Government to make sure people will be informed about the new law.
The Irish National Organisation of the Unemployed also welcomed the Bill, but criticised the Government for failing to take the low-paid out of the tax net in advance of the Bill. INOU spokesman, Tony Monks, said that the minimum wage would not have the required effect of increased labour market participation unless other related measures were delivered on in the current negotiations.
