Constructive engagement on pay issues needed after review counters low wage agenda

As has been clarified by Minister Brendan Howlin last week following questions by Labour backbench TDs, the publication of the Duffy/Walsh review on ERO/REA wage setting mechanisms, full engagement by all stakeholders on wage issues is needed in any reforms.

If we look at the review itself, despite arguments to the countrary, it counters the argument that lowering rates of pay will increase employment and does not find evidence of substantial wage premiums in the sectors covered by the existing system.

These findings are most welcome as much of the debate on the need to reform the JLC/REA system has implied that these fair rates of pay were a significant barrier to job creation. This argument implied that it is those on low incomes in our society that are making the economy uncompetitive and this is not the case.

It is also to be welcomed that this review recommends that the fundamentals of the existing JLC/REA system be maintained but that some reforms are needed. I recognise the need for reform of many of the out-dated aspects of the current system and to consider ways to make it more responsive and effective- but the wage rates including premium rates of low and middle income earners in these sectors must be maintained.

We now need to move on with constructive engagement on pay issues while also remembering that workers need and deserve a sufficient wage to give themselves and their families a decent standard of living.

Please contact me on 01 618 3280 if you have any questions on this process or send me a message to john.lyons@oireachtas.ie