SIPTU General Secretary John King has called on the Government to reject employers’ demands to reduce the increase in the National Minimum Wage.
Following media reports that the Low Pay Commission has proposed a 79-cent increase in the hourly minimum wage, employers are demanding the Government ignore the recommendation and introduce a smaller increase.
King said: “Profits are rising faster than wages across low-paid sectors, particularly hospitality and retail. Employers’ demands to suppress minimum-wage increases are nothing but a crude profit grab in sectors where profits are already outpacing wages.
“While employers plead inability to pay, official surveys show a different picture. The Department of Finance’s annual business survey shows that the overwhelming majority of SMEs, including small businesses, turned a profit. Employers’ organisations make several claims but never back them up with evidence. That’s because there is little evidence to support their claims.
“What is particularly outrageous is that employers in the hospitality and hairdressing sectors received a massive public subsidy through VAT cuts. These cuts are equivalent to up to €4,000 per employee. Employers want to keep that subsidy for themselves even though employees are earning below the living wage.”
He added: “The Government had originally intended to raise the minimum wage to the living wage level this year. However, following employer lobbying, this target date was postponed to 2029. Now employers are demanding that the target date be postponed again. The fact is that employers reject the concept of a living wage and are campaigning to ensure it is never introduced.
“The Government must reject employers’ demands to ignore the Low Pay Commission’s recommendation. Amid the cost-of-living crisis, low-paid workers are already struggling to make ends meet.”