The SFA make their case in the context of internationally traded goods and services. In this context it's a case of getting the work by meeting the market price or not getting it.Theres no guarantee that any savings from cutting the min wage would be passed on to consumers in the form of lower prices. If anything, it would make many workers a bit poorer who will in turn have to cut back on their own spending, thereby further reducing consumer spending.
The SFA suggestion needs to be thought out a bit more regarding the knock-on effects.
Also, why 1Euro ? where did that figure come from ?
I'm always suspicious of nice, handy soundbite numbers.
Theres no guarantee that any savings from cutting the min wage would be passed on to consumers in the form of lower prices. If anything, it would make many workers a bit poorer who will in turn have to cut back on their own spending, thereby further reducing consumer spending.
The Small Firms Association has called for a €1 per hour cut in the minimum wage from €8.65 to €7.65 in order to preserve competitiveness in the workforce.
So, would a measure like this help the Irish economy regain some of its competitiveness or will lead to the exploitation of those workers in our society who can least afford it?
Would'nt it be more in line to keep everyday expenses like ESB, insurance, fuel etc down for both the business and the householder
It's a non-runner. As someone said, the SFA are postering but I think they could spend their time looking for other changes other than reducing the minimum wage. Employers PRSI contributions could be reduced? What about making more small firms VAT exempt by increasing the threshold? Other things could be looked at such the reasons for higher insurance costs for businesses here compared to other Countries. Energy and water costs need to be looked at. I think the minimum wage is an easy target but it is the wrong one.
I do not for a minute accept that it is exploitation. Only about 5% of the population are on the minimum wage and I strongly suspect that the vast majority of those are not running a home on that wage. If they are they are entitles to income support etc so the suggestion that they are commuting from the outer suburbs in their droves just doesn’t stack up.It's exploitation if you ask me. It would make more sense for someone on such a minimum wage to go on the dole and work in the black economy and get 12 hours sleep a day than to stress for a pittance and pay for travel costs (obviously someone on such a wage wont afford somewhere central thereby commuting for hours every day) and lunch costs out of this. Just add up the price of a sandwich every day or a packet of tayto. In a shop near my work a packet of tayto is 80 cents for god sake. I bought a pack of 20 Tayto in Dunnes for just over twice that. I'd be against paying someone such a degrading wage as it would only produce a more unequal society. As Purple said (if I read Purple correctly) its the benchmarking fiasco which is getting us into this mess and also in my view the greed and high cost of property forced everyone to be again serfs to landlords and driving up the cost of everything. How is someone supposed to start a business or employ anyone if they cant afford premises or paying most of your income on rent. No matter how good your idea is, straight away youre screwed . I think shops which have had way too high prices for years can find savings elsewhere before we even look at paying someone a subhuman wage. Just my two cents.
Is there any need to ask them? I doubt there's anyone in the building industry who's not earning significantly less than in previous years. Even some of the guys at the top may be finding themselves fighting bankruptcy.You won't see the developers & builders who have made millions, being asked to give 5% back.
Is there any need to ask them? I doubt there's anyone in the building industry who's not earning significantly less than in previous years. Even some of the guys at the top may be finding themselves fighting bankruptcy.
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Very few people are on the minimum wage (as of 2005 it was under 4% here whereas it was 16% in France). Of this small percentage the majority are young and/or casual workers. The idea that there are anything more than a handful of households in Ireland where the main earner is on the minimum wage is nonsense so viewing it in those terms is spurious.After 10 yrs of making money hand over fist I think a lot of them can afford to tighten their belts a lot more than low paid workers, who have been low paid over the past 10yrs. Ditto theres a lot of low grades in the public sector, who earn very little.
AgreedIt is also nonsense to suggest that any significant number of people have been on the minimum wage for 10 years.
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