Poll: Do you support the introduction of a 'living wage'?

Ibec head Danny McCoy last week called the concept ‘ridiculous’.

By Peter Bodkin Editor, Fora

WITH SPIRALLING HOUSING costs eating into many workers’ pay packets, calls for a new ‘living wage’ have been gathering further momentum.

The Low Pay Commission, whose decision on pay rates the government has pledged to follow, has been coming under pressure from unions to opt for the measure.

A group including Siptu, Ireland’s largest trade union, and the left-leaning Tasc and Neri think tanks last year recommended a living wage of €11.50 per hour be introduced to ensure “a minimum acceptable standard of living” for an adult working full-time.

That compares to the current minimum wage of €9.15 per hour, the second-highest rate in the EU.

Several employers have already voluntarily introduced the living wage for all staff in Ireland, including SSE, Lidl and Ikea.

However speaking at last week’s Ibec manufacturing conference, group chief Danny McCoy said introducing a fixed living wage without taking into consideration individual circumstances was “frankly ridiculous”.

20/6/2012 Small Firms Association Conferences Ibec CEO Danny McCoy
Source: Mark Stedman/Photocall Ireland

The UK also introduced a new, national living wage of £7.20 per hour for everyone aged 25 and over in April, the equivalent of about €9 per hour at the time.

Ireland currently has one of the highest proportions of low-paid workers, defined as those earning less than two-thirds of the median wage, among developed countries.

But many argue businesses are still poorly placed to afford higher wages with the economy in recovery mode and unemployment still rife.

There are also significant differences in the cost of living between different parts of the country, with the average rent in Dublin roughly three times that in Leitrim, the cheapest county for accommodation.

With all that in mind, we’re asking readers: Do you support the introduction of a ‘living wage’?

Have more to say? Tell us in the comments below