Against: The introduction of a national minimum wage undermines the competitiveness of the economy by driving up wage costs and fuelling inflation. This, in turn, makes Irish exports more expensive, reduces consumer demand and therefore jeopardises the employment of the very people it is designed to help.
If not properly enforced the legislation could see the growth of a black economy. If it is enforced, workers earning slightly more than the legal minimum will demand increases to protect differentials, adding to the inflationary effect.
For: A national minimum wage ensures the benefits of the economic boom reach the lowest-paid in the workforce, who often do not belong to a trade union and are unable to negotiate on equal terms with employers. Good employers will welcome this measure as it creates a "level playing pitch".
The introduction of a minimum wage will put low pay at the centre of the agenda on any successor to Partnership 2000. The tightening labour market is already pushing rates above the proposed minimum rate. Strict enforcement should stamp out black economy practices.
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