Changes in the minimum wage should track wage increase commitments made under social partnership agreements, Chambers Ireland has told the Labour Court.
Chambers Ireland, which supported the introduction of a national minimum wage, said the core issue with the minimum wage was that adjustments were not synchronised with national pay increases.
In a submission to the Labour Court to be made today, Chambers Ireland says employers experienced a cumulative increase of just over 19 per cent in the minimum wage in 2004 and 2005.
Chambers Ireland chief executive John Dunne said many small companies employed staff on salaries linked to the minimum wage, such as minimum wage plus 30 per cent.
"We estimate that the last increase cost Irish businesses around €200,000 an hour more in knock-on wage claims. This could have been avoided had it been timed to coincide with a national wage agreement."
Last year, Chambers Ireland called for a fundamental review of legislation governing the minimum wage, which currently stands at €7.65 an hour.
The Labour Court is to make a recommendation to Government on a new rate, which will come into effect in January, after the Irish Congress of Trade Unions and employers' body Ibec were unable to reach an agreement.
