THE IRISH Congress of Trade Unions (Ictu) has said that it is to seek an increase in the rate of the national minimum wage.
However, employers’ body Ibec strongly criticised the move and said any increase in the minimum wage would cost jobs.
Ictu said that it would not be putting a figure on its submission, which is to be given to the Labour Court before tomorrow’s deadline.
A spokesman for Ictu said that when the minimum wage was established, it was supposed to be pegged at 60 per cent of average earnings.
The spokesman said the minimum wage was currently set at €8.65. If the new national pay rises were applied, average earnings would reach €20.23 per hour.
Ictu said that in its submission to the Labour Court, it would be highlighting the “loss of value” of the minimum wage. It said it would argue that the rate had been allowed to “drift away” from average earnings.
However, Ibec director Brendan McGinty said it did not make any sense to raise the minimum wage at a time when thousands of jobs are being lost every week.
“Companies simply cannot afford an increase and any rise will result in job losses. Living standards of those on the minimum wage are not under threat as the cost of living will actually fall next year. No increase is justified.
“The move by Ictu is not in the national interest or in keeping with the public mood, particularly at a time when the Taoiseach has begun a process of engagement with the social partners to build consensus on a programme for economic renewal,” he said.
Mr McGinty said the national minimum wage was last increased by 4.2 per cent from €8.30 per hour to €8.65 per hour from July 1st, 2007, without any increase in output.
“It applies to about 5.2 per cent of the workforce and has a disproportionate effect on employers in the hospitality, retail and manufacturing sectors, which are currently facing extremely difficult trading conditions,” he said.
Ibec said that the Government’s decision to exempt those on the national minimum wage from the 1 per cent income levy had removed all workers on the minimum wage from the tax net. It said there should be a moratorium on any review of the national minimum wage until 2010 at the very earliest.
It is expected that the Labour Court will meet the social partners on the minimum wage as part of a review process. It will subsequently make a recommendation to Minister for Labour Affairs Billy Kelleher, who will make a decision on the issue.
