Dáil Éireann Debate, Thursday - 11 July 2024
36. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment for an update on his work and that of the Labour Employer Economic Forum on the transposition of the Adequate Minimum Wages Directive; and if he will make a statement on the matter. [30098/24]
Amharc ar fhreagraTo ensure minimum wages are set at adequate levels, the EU Directive on Adequate Minimum Wages requires countries with statutory minimum wages to put in place clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy, and regular and timely updates of minimum wages.
My Department’s analysis of the Directive suggests that our current minimum wage setting framework, namely the Low Pay Commission, is largely already in compliance with the provisions of the Directive. Initial legal advice suggests that limited changes are required to ensure the transposition of the minimum wage elements of the Directive.
One of the other goals of the Directive, under Article 4, is to increase the number of workers who are covered by collective bargaining on wage setting. The Directive requires Member States with a collective bargaining coverage below 80%, such as Ireland, to provide “for a framework of enabling conditions for collective bargaining” and to publish an action plan to promote collective bargaining by the end of 2025. We intend to publish the action plan ahead of that date.
A technical working group has been established with Department officials and the social partners to consider the content of Ireland’s action plan. The working group has had three constructive meetings to date, most recently on the 8th July 2024.
My Department has also requested legal advice from the Office of the Attorney General as to whether any legislative change is required in order to transpose Article 4 of the Directive into Irish legislation by the transposition deadline of November this year.
Legislative changes may separately be considered as part Ireland's action plan; this has not yet been decided upon. The action plan is about ensuring the autonomy of social partners and does not compel any party to engage in negotiations or conclude agreements.
My Department, through the Permanent Representation to the EU in Brussels, is also engaging with other Member States to share best practice with regard to the development of the action plans.
Minister Burke met with the social partners at the LEEF plenary meeting held on 24th June 2024 at which Ireland’s action plan was discussed and will chair a meeting of the LEEF Subgroup on Employment and Enterprise in September. I also intend to meet with the social partners in July to discuss the content of collective bargaining and the action plan in more detail.
