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IBEC calls for freeze on minimum wage
The Irish Businesses and Employer's Confederation (IBEC) has called for a freeze on the national minimum wage.
IBEC is pushing for the freeze in an attempt to reduce the disparity between rates in Ireland and those in other parts of the European Union. This move would see the minimum wages being frozen at the current €8.65 per hour.
Speaking at an Oireachtas committee, IBEC director Brendan McGinty said: "If Ireland is to become competitive again in the EU market, and in particular against the UK, all of our wage rates - including the national minimum wage- must revert towards the average rates in these countries," reported the Irish Independent.
However, his point of view was strongly opposed by the think tank Tasc. The director of the organisation Paula Clancy pointed out that cuts in wages would take money away from workers and negatively impact income tax contributions, according to the newspaper.
It would also hamper the capacity of small businesses to create jobs and maintain employee benefits.
Posted by David Farrior
