Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 22 Jun 1999

Vol. 506 No. 5

Written Answers. - National Minimum Wage.

Michael D. Higgins

Question:

62 Mr. M. Higgins asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress made in implementing the interim report of the interdepartmental group on implementation of a national minimum wage; the timetable for the introduction of the national minimum wage; if she has received a report from the ESRI suggesting that the cost of introducing it was considerably less than has previously been anticipated; and if she will make a statement on the matter. [15829/99]

I published the final report of the interdepartmental group on implementation of a national minimum wage today. The group sets out detailed recommendations for the implementation of the national minimum wage. The group recommends that the date for implementation should be 1 April 2000 for all sectors of the economy. Other recommendations cover the definition of working time, pay reference period, reckonable pay, under 18 rate, job entrants and certified training rate, repercussive claims, firms in financial difficulty, uprating mechanism, the interaction with joint labour committees and enforcement.

The group's report includes the impact study undertaken for the group by the ESRI. The ESRI study concludes that approximately 163,000 employees will benefit from the introduction of the national minimum wage. Over half of these beneficiaries will be women and over 40 per cent will be persons aged under 25. Approximately 80,000 workers will get an increase of at least £1 per hour.

The ESRI study estimates that the impact of the introduction on 1 April 2000 of the national minimum wage on the national wage bill will be an increase of 1.6 per cent of total gross earnings. This is much lower than the figure of 4 per cent estimated by the National Minimum Wage Commission, in its report last year, mainly due to wage growth between 1997 and the year 2000.

I share the concern expressed by the group that the possibility of repercussive claims should be curtailed. Such claims could seriously erode the competitiveness of the economy and employment levels. I will shortly be in a position to finalise my proposals for the necessary legislation following consideration of this report and submissions received from interested parties on it.

Top
Share