Increase in minimum wage will benefit lower paid workers – Senator Joe O’Reilly

A recommendation by the Low Pay Commission to increase the minimum wage to €9.55 per hour has been welcomed by a Fine Gael Senator, but slammed by a business lobbying group as ignoring the reallities faced by many small businesses. 

The 30 cents increase, along with other supports will greatly benefit lower paid workers here in Cavan, according to Senator Joe O'Reilly.

“Increasing the minimum wage is just one tool in a wider Government programme to help the lower paid and incentivise people into work.

“Affordable Childcare is on the way this September, which will see up to €1,040 per year for children in full time childcare.

“The latest data from the Central Statistics Office shows that show that that Ireland is becoming more equal and that poverty is decreasing.

“Fine Gael in Government recognises that higher levels of public investment in social and economic infrastructure in Cavan, will improve skills, childcare, and empower our communities.

“These are the building blocks for more inclusive, fairer and sustainable patterns of economic growth in our society.'

The Small Firms Association (SFA) were quick to criticise the recommendation. 

Linda Barry, SFA Acting Director, stated: “Two-thirds of SFA members plan to give pay rises this year, but increases will be based on the performance of the individual worker and the ability of the business to pay. An increase in the minimum wage imposed by Government, on the other hand, would ignore the realities facing many small businesses, especially those operating on low margins, including in rural areas and in sectors exposed to Brexit.

“This increase would be the third since January 2016, a 10.4% increase overall. It would be an additional cost on employers on top of increases in insurance costs and rates bills, and is a serious cause for concern among small businesses. 

“In May 2017, 60% of SFA members said they are looking to take on additional staff in the coming year. Constant increases in the National Minimum Wage, however, create uncertainty and represent a barrier to job creation. This could pose a particular challenge for young people looking to enter the labour market, as 15-24 year olds make up almost 40% of those on the minimum wage.â€Â