Labour Youth’s supports the call for wage increases made today by David Begg the President of the Irish Congress of Trade Unions.
Labour Youth Chairperson Ciarán Garrett comments “Increasing wages isn’t just the morally right thing to do. It is the right thing to do deliver meaningful economic recovery. Ireland needs wage increases. Labour Youth wants to see the minimum wage increased to 10E an hour. Eurostat statistics show that 20.7% of the workforce is low paid. Shockingly, one in four people now suffer from multiple cases of deprivation. Not only would a 10E an hour minimum wage have huge societal benefits; it would also be an economically beneficial move.”
“One of the biggest challenges facing the economy is the collapse in consumer demand. Ireland has witnessed the biggest fall in demand in Europe. The fall in consumer demand doesn’t benefit workers because they face job losses, it doesn’t benefit businesses because they face reduced profits, nor does it benefit the government which faces reduced VAT revenue and more social welfare spending. You hear a multitude of commentators talk about stimulating the economy, and increasing wages would be one of the most effective ways to do just that. Once people start spending more it benefits business, employees, job-seekers and VAT returns for the government.”
“Increasing the minimum wage would save considerable money for the government and tax-payers. Currently the government is subsidising low-paid workers. Last year the government spent €161 million on the supplementary social welfare allowance, €214 million on family income support and €400 million on rent allowance. These measures support low-income workers with the daily cost of living. Rather than the government spending hundreds of millions each year subsidising low pay, which could be spent building new schools and hospitals, it should introduce a living wage so low-paid workers are no longer dependent on income supports from the State.”
“A study by NERI shows employers’ minimum hourly labour costs in Ireland are actually below the European average. Labour costs are the total amount of money the employer pays each hour an employee works. It includes wages and employers’ PRSI contributions. In Denmark it costs an employer €39.61 for each employee per hour, while in Ireland it costs €24.57. Research also shows that business profits in Ireland have increased by 21% since 2007, at a much faster pace than anywhere else in Europe. The argument that employers can’t afford to pay a living wage should be dismissed in the context of lower-than-European-average labour costs, high increases in business profits, and the increased benefits to business of paying a living wage.”
ENDS