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Dáil Éireann debate -
Tuesday, 30 Jan 2001

Vol. 529 No. 1

Written Answers. - Low Paid Employment.

Brian O'Shea

Question:

156 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals she has to tackle the problem of low paid employment; and if she will make a statement on the matter. [1072/01]

My colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, was the first Minister to introduce national minimum wage legislation to tackle the issue of low pay. The National Minimum Wage Act, 2000, came into force on 1 April 2000 and the national minimum hourly rate of pay has been set at £4.40. An ESRI impact study published in June 1999 estimated that 163,000 employees, particularly women and young workers, would benefit from the introduction of the legislation.

The Tánaiste has signed an order to increase the national minimum hourly rate of pay to £4.70 from 1 July 2001 and to £5 from 1 October 2002, as recommended in the Programme for Prosperity and Fairness. In addition to increasing the national minimum wage, the Government continues to improve the position of the low-paid through tax reform and tax reductions and it is committed to removing employees earning the national minimum wage from the tax net. Substantial progress towards this objective has already been achieved.
The joint labour committee system continues to operate in certain sectors of the economy and employment regulation orders stipulate statutory minimum pay and conditions of employment for workers employed in those sectors. Employment regulation orders are made by the Labour Court, following consideration of the proposals formulated by the relevant joint labour committee. Employment regulation orders, therefore, provide important statutory protection for many thousands of workers over and above the national minimum wage legislation. Apart from statutory minimum pay, low paid employees also benefit from the pay terms of the Programme for Prosperity and Fairness, including the recent adjustment to the pay terms.
In summary, therefore, the position of low paid employees has improved and will continue to improve arising from statutory minimum pay, the pay terms of the national agreement, tax reform and tax reductions.
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