Isme turns up heat on minimum pay rise

Business group Isme has upped the heat in the row over a raise in the minimum wage, saying it wants three employer representatives on the Low Pay Commission to step down as their membership was “now futile”.

Isme turns up heat on minimum pay rise

The Low Pay Commission recommended the minimum wage would rise by 30c per hour. That will mean the lowest paid will receive €9.55, or an extra €12 for a 40-hour week, according to advisory group Peninsula Ireland.

But Isme said that despite the dissenting votes of the employers, the Low Pay Commission “could cite no objective evidence” in its arguments for a 3.2% increase.

“The phenomenon whereby increased minimum wages do not translate to increased earnings for workers has been well researched as late as last year, in a detailed study of Seattle’s minimum wage increase by the University of Washington,” said Isme chief executive Neil McDonnell.

“This found that increasing the hourly minimum wage had little effect on the earnings of low-paid workers, because their worked hours fell, or in some cases they lost their jobs.

“Where wages were rising, there was little correlation with the minimum wage increase: Where labour is in demand, wages will rise even in the absence of a minimum wage”.

Isme said there was no point in the employer representatives continuing to sit on the commission, which it described as a “political charade”.

Alan Hickey at Peninsula Ireland said employers should prepare now for the introduction of the wage increase.

more courts articles

DUP calls for measures to prevent Northern Ireland from becoming 'magnet' for asylum seekers DUP calls for measures to prevent Northern Ireland from becoming 'magnet' for asylum seekers
UK's Illegal Migration Act should be disapplied in Northern Ireland, judge rules UK's Illegal Migration Act should be disapplied in Northern Ireland, judge rules
Former prisoner given indefinite hospital order for killing Irishman in London Former prisoner given indefinite hospital order for killing Irishman in London

More in this section

Joe Biden Biden increases tariffs on Chinese imports of electric cars and chips
Construction - digger working at building site on sunny day Large investment funds eye office and data centre projects now interest rates are about to turn
Housing and renewable energy remain key focus for Cork businesses amid election season Housing and renewable energy remain key focus for Cork businesses amid election season
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited