Its a difficult argument. Purple, I agree that the amount of people on the minimum wage in Ireland in the past has been small at about 3% (which is why I struggle to understand why the SFA are going on about it) but this is likely to increase as unemployment rises and supply and demand factors start favouring employers. Personally I feel that the current minimum wage (that I couldn't live on) is an appropiate floor especially with inflation going the way it is going. I don't think there is any evidence to show that lowering the minimum wage by €1 would have any dramatic effect on job creation or on the performance of small firms.
Ireland was the last country to the EU to introduce a minimum wage in 2000 (I think) and our record on economic performance and job creation before that was patchy at best. The SFA was also giving out back then that the new rate was too high and it would lead to job losses and small firms closing down. Looks like we have come full circle!
Another problem with the suggestion is that if you reduce the minimum wage by €1, you would also probably have to reduce unemployment benefits by the same to keep the same incentive to work. I know there are some people on this site who would have no problem with that as they think most unemployed people are just lazy good for nothings but I know people who have left go recently who are anything but that and are really struggling to find work and at least one person has taken a minimum wage job even though he is a skilled construction worker.
Ireland was the last country to the EU to introduce a minimum wage in 2000 (I think) and our record on economic performance and job creation before that was patchy at best. The SFA was also giving out back then that the new rate was too high and it would lead to job losses and small firms closing down. Looks like we have come full circle!
Another problem with the suggestion is that if you reduce the minimum wage by €1, you would also probably have to reduce unemployment benefits by the same to keep the same incentive to work. I know there are some people on this site who would have no problem with that as they think most unemployed people are just lazy good for nothings but I know people who have left go recently who are anything but that and are really struggling to find work and at least one person has taken a minimum wage job even though he is a skilled construction worker.