Government will be ‘slaughtered’ if there is no minimum wage increase, says Cork TD

The Government will be “slaughtered” if it does not sanction a recommended increase to the national minimum wage, an Oireachtas committee member has said.

When asked about the recommendation reportedly made by the Low Pay Commission (LPC), Public Expenditure Minister Paschal Donohoe said the Government would also take into consideration the growing strain on small businesses. 

He said that the LPC report “will be brought to Government and we will have to give it very serious consideration”, but he added that “we are also aware of growing challenges many small businesses are facing at the moment in keeping jobs, staying viable, and staying open”.

Cork TD and member of the Oireachtas committee on enterprise, trade and employment Mick Barry said that the LPC has reportedly proposed to the Government that the national minimum wage should rise from €12.70 to €13.50 an hour from January 1 but that there is concern in the Government about negative impacts on small and medium businesses.

However, the People Before Profit-Solidarity TD said: “I don’t believe that the current rate of €12.70 an hour is enough for people to live on. I don’t believe that the recommended new rate of €13.50 an hour is enough for people to live on either. The cost of living is up by approximately 20% in recent years and the price of rent has gone through the roof.

“In reality, the minimum wage would need to be increased by about a fiver to allow the low paid keep their heads above water, and I’ll tell you one thing for sure, if the Government don’t sanction this increase they’ll be slaughtered in the court of public opinion.”

Jamie Budd, owner of Budd’s restaurant in Ballydehob, said: “Essentially, what’s going to end up happening is everyone is going to have to put their prices up to offset rising costs.

“We’ve already noticed deterioration of locals coming in because they can’t afford it, in rural areas like ours, if we put our prices up again we’re going to isolate people.

“In of wages, we all want to see everybody getting a fair wage. Every business owner has been on the other side of it and worked for somebody else, we know how low the wages are in this industry for the physicality and mental strain of this industry.

“We want to see our staff get paid more but it has to be a balance and, unfortunately, it isn’t at the moment, it’s been like an avalanche of costs hitting us since last year.”