Move highlights need for collective bargaining legislation

Unite, which represents workers throughout the economy, today (Wednesday) blasted the government’s decision to scrap plans for a statutory ‘living wage’ to replace the current national minimum wage. The introduction of a new ‘living wage’ equating to 60 per cent of median earnings was originally scheduled for 2026.  The timeline was then pushed out to 2029. (See notes for editors regarding low pay definitions.)

Today, in a statement published on the Department of Enterprise website, the government abandoned its living wage timeline altogether.

Unite general secretary Sharon Graham said: “A day after presenting a budget supposedly aimed at ‘making work pay’, the government has betrayed Ireland’s lowest-paid workers by reneging on its pledge to introduce a statutory living wage. Once again, it has caved to business lobbyists.”

It is estimated that there are currently around 200,000 minimum wage workers in Ireland.

Unite deputy regional secretary Tom Fitzgerald said: “Today’s announcement sent a clear message, low-paid workers cannot look to the government to protect their pay. 

“If workers are to improve their living standards, they must have the statutory right to bargain collectively with their employer – a right taken for granted in most European countries.”

ENDS

Note for editors:

The EU Directive on Adequate Minimum Wages uses 60 per cent of the median wage as a reference value to determine wage adequacy, while both the OECD and the European Commission define low pay as being below 66 per cent of median earnings.

Last month the independent Living Wage Technical Group, to which Unite is affiliated, calculated that the real living wage for 2026/27 is €16 per hour. This figure, which is over €1 more than the new national minimum wage, is calculated on the basis of living costs and represents the minimum hourly earnings needed for a full-time worker to have a minimum acceptable standard of living.