No decision on minimum wage before report

THE GOVERNMENT would not make a decision on the minimum wage until it received a Labour Court report on the issue, Tánaiste Mary Coughlantold the Dáil.

It was important, she said, to reiterate the absolute necessity of having clarity.

“Changes to the minimum wage, if any, will be done in the context of proposals that will come from the Labour Court,” Ms Coughlan added. “They are currently with the Labour Court, and I am not in a position to make any adjudication until that matter comes to my desk.”

She said that there was already an inability-to-pay clause in the minimum wage legislation, but from what she could ascertain it had never been used.

Labour leader Eamon Gilmoresaid that the Tánaiste had "hedged her bets" on the issue. As he understood it, the minimum wage had been with the Labour Court since November 2008. "We do not seem to be any further advanced on it," he added. He called on the Government to "come off the fence" on the issue, and give a "categorical and fair assurance" that it would not be cut.

Mr Gilmore said that workers who had taken a pay cut, and particularly those who had their pay cut twice in the past year, should not have their pay cut again.

“At the weekend, we heard the Taoiseach’s radio interview in which he spoke of the necessity for restoring confidence in the economy . . . However, if people are to have confidence in the economy, and consumer confidence is to be restored, people need to have some certainty about their earnings.

“Will the Tánaiste give an assurance that the Government will not be going back a third time to cut the pay of employees whose pay has already been cut?”

Ms Coughlan said that the budgetary process had just been completed and the Finance Bill had yet to be brought before the House. “Therefore, nobody on this side of the House is in a position to predetermine what will happen in the context of budgetary adjustments next year. However, the Government is still very anxious to involve itself in public sector reform.

“That reform will create savings and will, therefore, have a positive effect on the need for any further financial adjustments in next year’s budget.”

Ms Coughlan said that everybody who worked with public servants daily was aware of the anger, disappointment and distress pay reductions had caused but “these difficult decisions had to be made on the basis of the economic difficulties the country has to grapple with currently”.

The Government was aware that notification had been given of industrial action and, if necessary, it would certainly be open to any opportunity to discuss the issues involved with the relevant representatives, the Tánaiste added.

Mr Gilmore said the HSE had sent a circular to agencies and charities it funded, directing them to cut the pay of staff by the same amount as cuts in the public sector, even though there was no legislative basis for that.

In addition, those staff were not public servants and were not included in the legislation passed by the Oireachtas before Christmas, he added.

Ms Coughlan said the circular had been sent in error and Prof Brendan Drumm had issued a clarification to those involved.

Mr Gilmore said the agencies not complying with the HSE’s stated wishes to cut staff pay should not, as a result, have their allocations cut correspondingly by the HSE.