Vol. 491 No. 3
24 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has set up the dialogue with the social partners in relation to the introduction of a minimum wage; her views on the level the minimum wage should be introduced at; and when it should be introduced. [12237/98]
27 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment when the report of the Commission on a Minimum Wage will be published; and if she will make a statement on the matter. [7246/98]
33 Mr. Bell asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will introduce the planned legislation on the national minimum wage; and if she will hold further discussions on the matter with the social partners. [12107/98]
50 Mr. Howlin asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding the early implementation of the national minimum wage. [12106/98]
71 Mr. Gilmore asked the Tánaiste and Minister for Enterprise, Trade and Employment if a timetable has been set out for the implementation of the report of the Minimum Wage Commission; and if she will make a statement on the matter. [12055/98]
88 Mr. Bell asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will implement the national minimum wage any earlier than the year 2000; when she will introduce the necessary enabling legislation; and if she will make a statement on the matter. [12135/98]
I propose to take Questions. Nos. 24, 27, 33, 50, 71 and 88 together.
The commission's report was published on 5 April and concluded that the initial rate should be set at around two thirds of median earnings and should take into account employment, overall economic conditions and competitiveness. In the latter respect, the commission left undone considerable work of analysis.
The Government has established an interdepartmental group of officials to assist it in formulating proposals and a plan of action. It is particularly important that the minimum wage should be implemented in a manner which minimises any adverse impact on employment. There is a strong commitment in the Programme for Government to introduce an hourly minimum wage and I fully support its introduction.
The interdepartmental group commenced work in April and has been mandated to come back to Government as early as possible. What is clear is that the initial rate should be established in the context of negotiations on a successor to Partnership 2000 which, as the commission pointed out, expires for some in April 2000. Well before such negotiations I envisage that there will be consultations with the social partners and I have taken the initiative to meet the main organisations in the next few weeks.
In a recent interview on an RTE Sunday radio news programme the Minister indicated that she accepted the recommendation of the commission of a minimum wage of £4.40 per hour. She is now indicating that the initial rate should be struck in the context of negotiations on a successor to Partnership 2000. When should a minimum wage be introduced and at what rate? Does she envisage it will be introduced prior to the year 2000? The Taoiseach appeared to imply at the IMPACT conference that it would be introduced as early as possible. Will the unions, including IBEC, be invited to make submissions to the interdepartmental working group?
I accept the commission's report which states——
Including the rate?
—"the initial rate should take into account employment, overall economic conditions and competitiveness".
It recommended a rate.
We are talking about £4.40 and the year 2000. The initial rate should be established in the context of negotiations on a successor to Partnership 2000. There are pay agreements which expire in April 2000. It is important that we do not dismantle any of the national agreements entered into. Social partnership has served the economy extremely well, it is one of the factors which makes Ireland so attractive for inward investment and which is fuelling the Celtic tiger and high growth in the economy.
There are sectors where there will be difficulties. We want to introduce a minimum wage in a way that will protect jobs and workers' rights. That is why we have asked an interdepartmental working group to analyse the commission's report and recommend to Government how we can introduce it without putting anyone out of a job. Everybody wants to achieve the same thing. There is a minimum wage under the JLC model for approximately 100,000 workers. We will be looking for a commitment from all the parties to social partnership that there will be no relativity impact in introducing a minimum wage to ensure there will be no wage inflation. That is extremely important.
We are talking about having IBEC involved. When I appointed the commission I spoke to the social partners. While the representatives on the commission are not the nominees of the social partners, there are two employers, one former trade union official and one teacher as well as the chairperson of the Labour Court. It is a good balance. Submissions were received from the social partners with which I have had informal preliminary discussions. I intend to formalise these in the next few weeks. There is much concern in some sectors but we can introduce a minimum wage in a way that will protect jobs and vulnerable workers who are being discriminated against in some firms.
The Minister mentioned the JLC model. How does she envisage this system working and can it be used as a model in those areas of the economy in which there has never been a minimum wage? The Minister also mentioned that an interdepartmental working group has been established and that she intends to have discussions with the social partners. The proposed timeframe, the year 2000, announced unilaterally by the Minister, is the source of considerable disappointment. When will the required legislation be introduced and will the Minister be influenced to any extent by national minimum wage legislation in the United Kingdom?
Is the Minister going back on what she said on the Sunday radio news programme to which I referred and now accepting that the initial rate will have to be established in the context of negotiations on a successor to Partnership 2000? Is she sticking to the rate of £4.40 mentioned on radio?
With regard to Enterprise Ireland, can the Minister give any assurances with regard to a minimum wage that the legislation will allow the new agency to assist small businesses without prejudice to manufacturing and domestically and internationally-traded services? Because of the enormous publicity generated in recent months many business people are now paying up to £4.40 per hour.
I expect to introduce the legislation in 1999. It will be framework legislation and provide for the introduction of a minimum wage. We will, as recommended by the commission, have to establish a minimum wage commission. Over time the minimum wage will have to be reviewed on an ongoing basis.
Deputy Broughan is disappointed that it is not being introduced immediately. If it was an easy task, I am sure his party would have introduced it when in Government. As he is well aware, it is an extremely difficult task and will have implications. We want to ensure it is introduced in a way that will not impact on competitiveness.
To respond to Deputy Owen, we will not negotiate on the rate. A rate of £4.40 has been recommended and we will have to assess its impact on other sectors. In particular, we want a commitment from the social partners — it was given orally to the commission — that there will be no relativity impact. At present values, it will add £800 million per year to the wage bill. We cannot have a minimum wage and many other things. We want to introduce it, therefore, in a way that will minimise its impact on the economy and protect jobs and vulnerable workers and at the same time maintain our competitive position. This is achievable if there is good will all round. The approach adopted is the best way to proceed.
On a point of order, the Minister said that the initial rate should be established in the context of negotiations——
The Deputy is out of order. She is not entitled to make a statement. Question Time is concluded.
The rate is either £4.40 or it is not. The Minister is misleading the House.
The Deputy should resume her seat. We now proceed to private notice questions. I will call the Deputies in the order in which they submitted their questions to my office.
