The notion that Ireland’s economy will recover by cutting €40 from the wage packets of those earning as little as €346 per week is “immoral” and “economically illiterate”.
This is the view of Labour Galway West TD Derek Nolan, who has condemned IBEC’s claim that the Government’s decision to reverse the cut in the minimum wage will hinder job creation.
IBEC’s director of industrial relations Brendan McGinty said the decision to reverse the cut would leave the minimum wage rate in Ireland 28 per cent above the British rate and that this was unsustainable.
However Dep Nolan rejected this saying “IBEC need to face facts” in relation to this issue.
“The cut in the minimum wage did not stimulate growth in the Irish economy,” he said. “It ruthlessly hit those struggling on the very lowest wage. Its introduction was a brief success for those who subscribe to the low wage agenda without social conscience, many of whom pocket several multiples of the minimum wage every day.”
Dep Nolan said the Government has made “a significant contribution” to reducing business costs through its jobs initiative and PRSI reduction.
“We are supporting those on the lowest incomes and not undermining employment,” he said. “IBEC would be better placed engaging with the Government to create jobs, rather than attacking the lowest paid workers in society.”
