Minister refuses to rule out cuts in minimum wage

97i9y3941

Independent.ie
Minister refuses to rule out cuts in minimum wage

The Minister for Health has refused to rule out a reduction in the minimum wage.

Mary Harney said that that for Ireland to remain competitive in spite of current economic difficulties, every option must remain on the table.

The minister was speaking following comments by economist Peter Bacon, who said downward adjustments of the minimum wage could not be avoided.

Minister Harney, who introduced the national minimum wage when she was Tanaiste in 2000, said nothing can be ruled out.

"Clearly, we have to remain competitive in Ireland," the minister said.

"The minimum wage is the base wage in this country. If, for example, we're going to contemplate cutting social welfare payments in the context of the very serious budgetary situation we find ourselves in, then I think everything has to be examined quite honestly."

"Given the economic challenges that this country faces, everything has to be on the table."

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Dont know how this will work,the cost of living will have to come down first quickly,also many people are paying off their houses that are worth way less than where in the boom...

McCruiskeen

I would agree with a reduction in the minimun wage. Our unemployment rate would lower if we had no minimun wage or a reduced minimun wage. There are a decent number of jobs that would be created if people could be paid say 40 hour * 7.50 Euro = 300 Euro a week.

While a lot of people would not work for this amount of money, a lot of young energetic people, who are currently unemployed would be delighted to work for this amount of money and gain experience rather than sitting on their arses all day and going spare and getting depressed.

However, it is currently illegal to offer someone employement on these terms. This would lead to increased competiveness for Ireland and would reduce our currently massive social welfare bill.

A high minimun wage is very damaging, considering our unemployment rate is due to hit over 15% next year. However, profitable employers should not be allowed to use a reduced minimun wage to force wages down unfairly where there is no overriding economic imperative for them to do so, other that to increase profitability.

Perhaps a new minimun wage of say 6 Euro could be introduced for new jobs that are created, thereby allowing those who wish to do so to work for a low wage, while preventing to a certain extent the reduction of conditions for those who are already in employment with profitable employers. This would allow young unemployed people who wish to work for a lesser wage to gain experience and contribute to society should they so wish while not compelling anyone to work for such a low wage. This would also save the state substantial social welfare payments.

I admit that most people on the dole would not work for this amount, but we should not make it illegal for those who do wish to work.

yorkiebar33

McCruiskeen wrote: »

I would agree with a reduction in the minimun wage. Our unemployment rate would lower if we had no minimun wage or a reduced minimun wage. There are a decent number of jobs that would be created if people could be paid say 40 hour * 7.50 Euro = 300 Euro a week.

While a lot of people would not work for this amount of money, a lot of young energetic people, who are currently unemployed would be delighted to work for this amount of money and gain experience rather than sitting on their arses all day and going spare and getting depressed.

However, it is currently illegal to offer someone employement on these terms. This would lead to increased competiveness for Ireland and would reduce our currently massive social welfare bill.

A high minimun wage is very damaging, considering our unemployment rate is due to hit over 15% next year. However, profitable employers should not be allowed to use a reduced minimun wage to force wages down unfairly where there is no overriding economic imperative for them to do so, other that to increase profitability.

Perhaps a new minimun wage of say 6 Euro could be introduced for new jobs that are created, thereby allowing those who wish to do so to work for a low wage, while preventing to a certain extent the reduction of conditions for those who are already in employment with profitable employers. This would allow young unemployed people who wish to work for a lesser wage to gain experience and contribute to society should they so wish while not compelling anyone to work for such a low wage. This would also save the state substantial social welfare payments.

I admit that most people on the dole would not work for this amount, but we should not make it illegal for those who do wish to work.

I agree with much of what you say but if there is to be a reduction in the minimum wage a serious reduction needs to made also in the cost of living and the Government seriously needs to address the current issues facing parents when it comes to school costs.

Doubling the school bus fare to for example and forcing schools to go cap in hand to parents almost every week is hard to swallow when those in power are saying that the cost of living is coming down. Also, issues like increasing motor tax again this year (which was done very quietly) and having a huge tax take on a litre of fuel when other countries have either slashed their rates or frozen them to encourage business doesn't help the issue either whether you are an individual or a business.

I also find it sickening that town councillors like the guy who I posted about here earlier, who are self-employed and enjoying council salaries and expenses should suggest or attempt to garner support that would dictate how everyone else should live. The same applies to TD's and Senators who are literally taking the piss when it comes to their expenses and salaries.

Also the basic costs of groceries and utilities needs to be seriously addressed. I can never figure it out how stores can run half price product sales and weeks later, the same items have returned to their original extortionate prices. If stores can do this for several weeks at a time, why can't it be done all the time? It just goes to show how we have been and continue to be, ripped off.

While I hear what you are saying, simply cutting a person's income is not the complete answer when the cost of living has not come down - at least to the ordinary everyday person.

Boskowski

If they lower the minimum wage they'd also have to lower the dole payments (significantly), because if they don't, why bother?

With regards to people saying we have to lower the cost of living first...
Erm, how is that going to work? Are they going to issue 'directive 5' and tomorrow all shops reduce everything by 15% and the day after we can reduce the wages by the same? I don't think this is how it works. First we gotta have less money in our pockets, which will decrease our spending ability, prices will come down then as a consequence of the increased competition over the reduced spending power.

Sorry, we all seem to think like all those fat ladies who'd love to lose 4 stone without actually doing something. Those who are buying those vibrator belts or slimming pills or something. So that they can continue eating crisps on the couch and lose weight at the same time. It isn't working for the fat ladies and it isn't going to work for our economy. There just won't be any consolidation without actual sacrifices - no pain, no gain. Not going to happen.

The_Conductor

McCruiskeen wrote: »

I would agree with a reduction in the minimun wage. Our unemployment rate would lower if we had no minimun wage or a reduced minimun wage. There are a decent number of jobs that would be created if people could be paid say 40 hour * 7.50 Euro = 300 Euro a week.

I agree with the above poster.
Why work a 40 hour week for EUR300- when you can get 204 in dole payments, rent allowance, medical card and all manners of other allowances?
Quite simply- you are better off on social welfare than working at the average industrial wage at the moment.

Mr. Presentable

Fred83 wrote: »

Dont know how this will work,the cost of living will have to come down first quickly,also many people are paying off their houses that are worth way less than where in the boom...

I agree with reducing the minimum wage - it'll ease the pain for small employers for a start. Also doubt many on minimum wage are paying off houses. But the dole needs a drastic cut too - it should be subsistence level, not quality of life driven, that is, IMO, you should be able to get by on the dole but not be able to go out drinking on a weekend night, or be able to afford a car (or cigarettes, playstations etc).

ceret

Fred83 wrote: »

Dont know how this will work,the cost of living will have to come down first quickly

The cost of living is going down. Look at the Consumer Price Index http://www.cso.ie/quicktables/GetQuickTables.aspx?FileName=CPM01C9.asp&TableName=January+to+December+2009&StatisticalProduct=DB_CP

Nody

Lets face it, the dole is not the main problem (i.e. the 204 a week) but rather all the extras around it for children, mortage relief, medicard etc.