Minister for Social Protection Joan Burton has renewed her push for increased pay, claiming low wages were one of a number of "growing features of the modern work environment".
In an interview with The Irish Times, Ms Burton said Ireland should start working towards the concept of a "living wage" as the economy recovers, which would be higher than the minimum wage of €8.65 per hour.
The "living wage" could be introduced gradually and on a voluntary basis, she said, adding "it is a really important aspiration for the Labour Party".
The Dublin West TD's suggestion, which comes ahead of the Labour Party conference in Killarney this weekend, is likely to meet resistance from Fine Gael, which has rejected similar moves in the past.
Ms Burton, who is Labour’s deputy leader, said she would not like to see Ireland become a low-wage economy as employment increased with recovery.
She also said she was “deeply concerned” with the increased prevalence of so-called zero-hour contracts which stipulate an employee must be available for work but is not given specified hours of work.
"Low wages and zero-hour contracts are now growing features of the modern work environment," Ms Burton said. "Customers like dealing with businesses that pay their employees a wage that the employee can live off and provide for a family, and I think that is something we should work to."
Pioneered
Ms Burton pointed to the UK where the idea of a living wage has been pioneered, particularly in London. Introduced in 2005, it has been increased on numerous occasions, and currently stands at £8.85, the equivalent of about €10.60.
The living wage for the rest of the UK stands at £7.65 (€9.16), and both levels are above the national minimum wage of £6.31 (€7.56).
The London living wage is not binding on employers, but it has been championed by Boris Johnson, the city's mayor.
“He has seen that it actually works,” Ms Burton said. “I think in Ireland there is a possibility to build a framework around a living wage.
“Our minimum wage is quite good, but one of the problems I see for people on social welfare going back to work is they don’t get enough hours.
“A lot of employers would pay the minimum. We’re talking about entry and middle-level jobs. They might pay the minimum wage plus a euro, three euro, four euro-plus, depending on the kind of job.
“But if the people don’t get enough hours they are not going to have a sufficient wage.”
Ms Burton said her department was paying €250 million annually on family income supplement to support people on low wages or those who got relatively few work hours. A living wage would help reduce the amount of the supplement paid by her department.
Ahead of an anticipated Cabinet reshuffle next year, she said she was "very happy and interested in the Department of Social Protection", but added she was "somebody who has always been up for a challenge".
Labour leadership
Tánaiste Eamon Gilmore has faced calls to leave the Department of Foreign Affairs and take a domestic ministry to enable him focus on the Labour leadership, but Ms Burton said she was "happy" to see Mr Gilmore in whatever position he felt was suitable. "I know recently he has indicated he is very happy in foreign affairs so that really is his call."
She also welcomed recent opinion polls which showed Labour recovering, and said the conference would provide party members with an opportunity to take stock half way through the Government’s term of office.
