MINIMUM WAGE:THE GOVERNMENT is to allow employers seek an exemption from paying the national minimum wage on more than one occasion in the future.
The move, which is in addition to the plans to cut the rate of the national minimum wage by €1, forms part of commitments set out in the new EU-IMF programme for Ireland in relation to “labour market adjustments”.
The programme, which was published on Sunday night, said that the existing scope of the inability to pay clause in the national minimum wage legislation would be “enlarged”. However, it did not specify the nature of the changes that would be made.
The move to enlarge the inability to pay clause in relation to the national minimum wage was not included in the four-year plan for economic recovery announced by the Government last week.
However, Government sources said yesterday that the reforms envisaged related to removing existing restrictions on the number of occasions an employer can seek an exemption from paying the minimum wage rate.
Under existing rules, an employer who cannot afford to pay the national minimum wage due to financial difficulties may make an application to the Labour Court seeking an exemption from having to pay the rate for between three months and one year.
The application must be supported by the majority of staff in the employment concerned.
The Government announced in its four-year plan that the national minimum wage would be reduced by €1 from the current rate of €8.65 per hour.
However, this move is now expected to be the focus of a new campaign of opposition launched by the Irish Congress of Trade Unions.
Ictu believes the Government will have to introduce legislation to facilitate its plans to reduce the minimum wage rate.
The general secretary of Ictu, David Begg, said on Sunday that there was no provision for the Minister for Enterprise to reduce unilaterally the rate of the minimum wage.
He said Ictu had in recent weeks withdrawn an application submitted to the Labour Court some time ago to have the minimum wage rate increased.
Mr Begg added that they had feared the Minister could use any report produced by the Labour Court on foot of this application to facilitate a cut in the rate of the minimum wage.
The campaign is expected now to focus on lobbying Government TDs who, Ictu believes, will have to vote specifically on a Bill to allow the Government to cut the minimum wage.