Proposed Increases in Minimum Wage Will Undermine Competitiveness and Jobs Growth

Chambers Ireland has reacted with concern at reports that the Low Pay Commission will be proposing a 5.8% increase in the minimum wage. Chief Executive Ian Talbot this morning (19 July 2015) said;

“While we await the Commission’s report and in particular it’s rationale, the prospect of an almost 6% increase, not just in the minimum wage itself but also in all those agreements where wages are set as a multiple of the minimum wage, will impede jobs growth. It will also lead to significantly increased wage expectations across the whole economy which are not realistic.

We are experiencing a fragile recovery, our minimum wage is already amongst the highest in Europe and economic uncertainty continues to pervade the Euro zone. While we all look forward to stable growth, stronger employment numbers and more substantial wage rises, the timing of this proposal will undermine our competitiveness and be counterproductive. We continue to call for other methods of increasing net pay such as reductions to the marginal tax rate and USC and improved affordability of childcare.

We therefore urge the Government to act responsibly in considering this proposal”, he concluded.

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For further information contact Mark O’Mahoney, Chambers Ireland on 01 400 4328, 087 970 76 76 or email mark.omahoney@www.chambers.ie

Chambers Ireland – Ireland’s largest business network creating the best environment for members locally, regionally and nationally.