Implementation of Minimum Wage Increase Essential for Women Workers
Published: Tuesday, July 21, 2015
The National Women’s Council of Ireland today said that while a proposed 50c increase in the Minimum Wage does not go far enough, the Government must act immediately to ensure it is implemented. NWCI also called for stronger measures to tackle precarious work.
Minimum Wage increase essential, but regulation of precarious work also needed.
Responding to publication of the Low Pay Commission report, Orla O’Connor, Director of NWCI said, “Almost two thirds of low paid workers are women, 50% of women are earning €20,000 or less and in-work poverty levels are unacceptably high. We also have a widening gender pay gap and we know that the national minimum wage is one proven way to help narrow that gap. Ireland cannot have a meaningful or sustainable recovery if it leaves large sections of the population behind.”
“The 50c increase proposed today will not meet the needs of women workers. It is clear that equality, in-work poverty and minimum essential living standards will need to be given a stronger focus in the future deliberations of the Commission. This minimal increase is nonetheless a small move in the right direction and we are calling on the Minister to implement the increase immediately and ensure that strong regulatory measures are taken to tackle the wider problem of precarious work and non-fixed hour contracts.“
“Over recent years, the sectors where women predominate have been at the frontline of aggressive casualisation. The creeping erosion of wages and hours not only hurts women workers, it also damages the wider economy, putting pressure on social protection supplements that keep working families out of poverty and reducing spending in local communities. National deprivation levels have more than doubled in recent years and as ‘deprivation’ means people cannot afford basic goods and services and that of course impacts on the businesses that provide those basics.”
“It is essential that the Government send a signal that it is serious about turning things around for women and low paid workers by increasing the minimum wage and introducing robust legislation on decent work”
Minimum Wage Increases are a Better Economic Driver then Tax Cuts
Alice-Mary Higgins, NWCI Policy Officer, said that an increase would benefit the wider economy.
“Some the same advocacy groups who have been loudest in calling for expensive tax breaks for the highest earners are now opposing a very small increase in pay for the lowest earners. This is not only disappointing, it makes little economic sense. While higher-rate tax breaks take money out of the public exchequer, an increased minimum wage puts money into circulation and increases spending in local shops and services. Increasing the wages of lower earners is one effective way to ensure that growth in the export economy also translates into increased domestic demand”.
“The international evidence is also very clear, a recent IMF study of 159 countries over 30 years found that when you increase the income of the bottom 20% growth levels rise but when you increase the incomes of the top 20% growth actually reduces. Ireland needs to build from the base up and we can start that now by increasing the minimum wage”
Media Contact :
NWCI Director: Orla O Connor 087 3388104
NWCI Policy and Campaigns: Alice–Mary Higgins: 085 8589103
NOTE: NWCI Communications Officer Silke Paasche is currently on Annual Leave
References: CSO SILC 2014, CSO Men and Women in Ireland 2014,
Link to new IMF report at: http://www.progressive-economy.ie/2015/06/lets-start-race-to-top-imf-on-inequality.html