Proposed 10 cent minimum wage increase ‘disappointing’, Howlin says

Labour leader says Low Pay Commisison plan would mean €11.50 living wage target not hit until 2029

The Low Pay Commission's recommendation that the minimum wage be increased by 10 cent an hour is disappointing, Labour leader Brendan Howlin has said.

Mr Howlin said at this rate of recommendation the living wage of €11.50 an hour would not be reached until 2029.

Taoiseach Enda Kenny said the commission had taken into account the possible implications of Brexit for the economy.

During leaders’ questions, Mr Howlin called on the Taoiseach to revise the terms of reference for the commission so that wages would reach the promised level.

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“Taoiseach do you believe that 10 cent an hour or 1 per cent is adequate?” Mr Howlin asked.

“Would you not accept that it will be impossible to meet the programme for government commitment of €10.50 an hour in five years if we make progress at that pace?

“To achieve even the €10.50 it will require a fresh mandate to be given by Government.”

The current minimum wage for an adult is €9.15.

Independent entity

Mr Kenny said the commission was an independent entity established to analyse claims for wage increases. He said the Minister for Jobs Mary Mitchell O’Connor would consider the report in its entirety and would report to Government.

The Taoiseach said the low pay commission was given a mandate to make recommendations based on the economic situation as they see applying in this case.

“They made a recommendation of 10 cent an hour. That’s about about €3.90 (a week) and clearly if you were to follow that progress on a yearly basis you’d be waiting a while before you reached €10.50 or €11.50.”

He added: “I do think that the commission in its wisdom and independence has taken into account the possible implications of Brexit.”

Mr Kenny said that “if the situation were to be different economically they may have made a different recommendation”.

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times