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02nd Sep 2022

Calls to increase minimum wage to €14 per hour in upcoming Budget

Stephen Porzio

Mandate Trade Union also called for the upcoming budget to enable people to access more hours at work.

An Irish trade union has called for the minimum wage to increase to €14 per hour in this year’s Budget, which would represent an increase of €3.50 on its current rate.

The call comes from Mandate Trade Union – which represents almost 30,000 workers in the retail, bar and administrative sectors – and was included in its pre-Budget submission launched on Friday (2 September).

Also as part of the submission, the union said the upcoming budget should enable people to access more hours at work.

It also called for the removal of sub-minimum rates of the minimum wage, a reduction in public transport fares of 50% and a reduction in childcare fees of 50%.

“Our members are being squeezed very hard right now between low wages and a high cost of living. The only viable solution is to increase incomes and reduce the cost of essential services workers rely on,” Mandate’s Assistant General Secretary Jonathan Hogan said.

Hogan explained that the €14 per hour figure proposed is based on last year’s Living Wage of €12.90 “plus inflation” and is to ensure the retail, bar and administrative sectors’ most vulnerable workers have an adequate income.

“We should also enable workers to improve their own wages directly with their employer and the best way to do this is through enhanced collective bargaining rights,” Hogan added.

“Increasing the hourly rate of pay for a worker is irrelevant if their employer cuts their hours or refuses to give that worker extra hours.

“If the government allowed trade unions to do their jobs by improving collective bargaining rights, allowing access for unions in the workplace and reforming the 1990 Industrial Relations Act to prevent victimisation of workers, then workers could win their own pay increases in profitable enterprises which would help them through this cost of living crisis.

“Two years ago, our members, who are essential workers, were being hailed, quite rightly, as heroes for putting their health at risk during the pandemic.

“Now it appears normal service has resumed, where retail and other essential workers are expected to survive on low wages with inadequate social services and sub-standard trade union rights. This is simply not good enough.”

On top of the above, Mandate emphasised the need for a new housing policy in its pre-Budget submission.

“The government should declare a housing emergency to free up resources and legislative instruments, and should also hold a referendum to insert a new right to housing in the constitution,” Hogan said.

“Specifically, we’re calling for an immediate Rent Freeze, new rent controls and secure long-term tenancies for renters.

“Our members also need the government to double their investment in housing and support a major State-led housing programme for the provision of public, affordable and cost rental homes for all.”

The key recommendations of Mandate’s pre-Budget submission include:

  • Remove sub-minimum rates of the minimum wage
  • Ensure the minimum wage is a Living Wage of at least €14 per hour
  • Declare a housing emergency and implement key Raise the Roof policies
  • Introduce price caps on energy
  • Reduce public transport fares to 50% of April 2022 levels
  • Reduce childcare fees by 50% and begin the process towards universal childcare
  • Legislate to allow workers to increase their working hours where the opportunity arises
  • Legislate to allow trade unions shopfloor access to meet with members and workers
  • Legislate to ensure trade unions are recognised by employers in order to represent their members for industrial relations and collective bargaining purposes
  • Amend the 1990 Industrial Relations Act by removing the bar on collective industrial action for individual members

Mandate’s full pre-Budget submission is available to read on its website here.

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