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Government accused of resisting EU changes to minimum wages

Gerry Light also queries whether the Government's position has been overly driven by the concerns of employers
Gerry Light also queries whether the Government's position has been overly driven by the concerns of employers

The Government has been accused of abdicating its moral and political responsibility to vulnerable and low paid workers by resisting a proposed EU directive aimed at ensuring adequate minimum wages in member states. 

In today's letter to Tánaiste and Minister for Enterprise Trade and Employment Leo Varadkar, the General Secretary of the Mandate trade union, which represents thousands of lower paid workers in retail and hospitality, says the Government position is "particularly reprehensible" at a time when many lower-paid workers are putting their health and lives at risk by turning up to work daily during the pandemic to deliver essential services. 

Gerry Light also queries whether the Government's position has been overly driven by the concerns of employers.

Some weeks ago, it emerged that the Irish Government was one of nine EU member states resisting a proposed EU directive aimed at ensuring that member states would have mechanisms to ensure adequate minimum wages. 

The directive would also force governments to deliver a framework for collective bargaining to take place, where collective bargaining coverage stands below 70%.

Such a provision could affect Ireland, as collective bargaining coverage here stands at around 30%. 

At that time, the Department of Enterprise, Trade and Employment confirmed that Ireland supports the objectives of the proposed EU Directive, but argues that a Council recommendation would be a preferable legal instrument "...as it would allow Member States greater flexibility in achieving its objectives".

The Government expressed concerns that an EU law in the form of a directive could result in a "lowest common denominator" approach to a minimum wage and workers' rights "at a time when ours are better than the current EU average in most areas."

The Department also pointed out that the current Government and its predecessor introduced a number of increases to the minimum wage, resulting in Ireland now having the second highest minimum wage in the European Union. 

In today's letter, Mr Light notes that his union represents many thousands of workers employed in sectors associated with low pay and precarious work practices, who face challenges arising from living on wages either on or marginally above the statutory minimum wage. 

Mr Light, a member of the Low Pay Commission for the last five years, outlines the reasons he believes underpin low pay and associated workplace poverty: "First, the reluctance of the State to ensure the provision of an adequate statutory living wage and second, the denial of meaningful statutory rights which would allow the impacted workers bring the power of their collective voice to bear on matters which directly impact them and their dependents."

He says it is clear that these core issues have been identified in the EU proposal document - adding that it is vitally important that the Irish Government supports these laudable objectives "in the strongest manner possible." 

Mr Light launches a broadside against the Government and Mr Varadkar in particular for its "totally unacceptable" position in refusing to consent to a directive. 

"In this specific regard it must be said that the response thus far of the Government and you in particular as the relevant Minister is totally unacceptable and can only be seen as an abdication of moral and political responsibility towards some of the most vulnerable workers in our society," says Mr Light.

Mr. Light acknowledges that such workers have frequently been lauded by Government ministers, but adds: "... yet when you are offered an opportunity to move beyond these words and show genuine tangible support you fundamentally fail to grasp it."

"One would hope that your position is not overly influenced or determined by employers and their representative groups as, contrary to the experience of many low paid workers, they have been adequately supported throughout the Covid experience."

Mr Light's criticism continues: "By joining your voice to other EU countries who are requesting that the proposal be advanced as a recommendation rather than a legally enforceable directive you know fully well that such an approach will provide no more than lip service to low paid vulnerable workers, in fact it could be argued that expectations are being falsely and unfairly created in the minds of these workers in that something beneficial will ultimately emerge when in reality they have not been afforded any legal powers to make this happen."

He urges the Tánaiste to reflect on the current Government stance, and to ensure that the proposals are introduced as a directive rather than a recommendation. 

The other countries resisting the EU directive are Austria, Denmark, Estonia, the Netherlands, Sweden, Hungary, Malta and Poland.