Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Ireland (Ratification: 1930)

The Committee notes with interest the Government’s report together with its annexes and in particular the information concerning the adoption of the National Minimum Wage Act, 2000. It wishes to draw attention to the following points.

Article 1, paragraph 1, of the Convention. The Committee notes that, under sections 14 and 15 of the new legislation, sub-minimum hourly rates of pay are provided for employees under the age of 18 (not less than 70 per cent of the national minimum hourly rate of pay) and older employees in their first two years after the date of first employment (not less than 80 per cent of the national minimum hourly rate of pay for the employees in their first year and 90 per cent for those in their second year). In this connection, the Committee recalls paragraph 176 of its General Survey of 1992 on minimum wages in which it stated that the reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age or for other reasons should be regularly re-examined in the light of the principle of equal remuneration for work of equal value and also that the quantity and quality of work carried out should be the decisive factor in determining the wage paid. The Committee would therefore appreciate receiving additional information on this point, including for instance any recent studies and surveys addressing these issues and examining the advisability of continuing to pursue a policy of minimum wage differentials on account of workers’ characteristics such as age.

Article 3, paragraph 2(2). The Committee takes due note of the method of declaring and reviewing the national minimum hourly rate of pay, as laid down in sections 11 to 13 of the National Minimum Wage Act, 2000. It notes in particular that employers’ and workers’ organizations do not appear to be associated in this method but only when, in the opinion of the Minister for Enterprise, Trade and Employment, there exists a "national economic agreement", that is to say an agreement among economic and social interests in the country, which includes a recommendation in relation to the national minimum hourly rate of pay of employees. Furthermore, the Committee notes that, in the absence of such an agreement, or when employers’ or workers’ organizations seek the revision of the national minimum hourly rate of pay in force, they may, not earlier than 12 months after the Minister has last declared a national minimum hourly rate of pay, request the Labour Court to examine that rate and make a recommendation to the Minister. The Committee wishes to stress in this regard that, in so far as the participation of the employers and workers concerned in the operation of the minimum wage fixing machinery is concerned, the Convention requires that: (i) the employers’ and workers’ organizations be directly associated in equal numbers and on equal terms in the application of the established wage-fixing machinery; and (ii) preliminary consultation of those organizations be undertaken which signifies that consultation must take place before decisions are taken and must be effective as offering the social partners the opportunity to have some real influence on the decisions made. The Government is therefore requested to clarify the situation, in law and practice, with regard to the principle of full consultation and direct participation of employers’ and workers’ organizations, as set out in this Article of the Convention.

Article 3, paragraph 2(3). The Committee notes that, under section 41 of the National Minimum Wage Act, 2000, the Labour Court may exempt an employer in financial difficulty from the obligation to pay an employee at a rate that is not less than the national minimum hourly rate, and that such exemption may not be for less than three months or exceed one year. The Committee would be grateful if the Government could supply information on the practical application of this provision specifying the number of applications received and exemptions granted, if any, by the Labour Court since the National Minimum Wage Act entered into force and the approximate number of workers concerned.

Article 4, paragraph 1. The Committee requests the Government to indicate whether the National Minimum Wage Act, 2000 provides for any measures, similar for instance to the posting of notices which is required under section 49(2) of the Industrial Relations Act, 1946, in respect of employment regulation orders, with a view to keeping employees informed of the national minimum hourly rates of pay in force.

Article 5 and Part V of the report form. The Committee notes the statistical information supplied by the Government regarding the number of inspections carried out, violations recorded and the amount of fines imposed in relation to observance or otherwise of minimum wage legislation from April 2000 to July 2002. It also notes the statutory minimum wages set by the most recent employment regulation orders (EROs) which were made by the Labour Court upon the recommendations of joint labour committees (JLCs) for 17 different areas of employment. The Committee requests the Government to continue supplying general information on the manner in which the Convention is applied in practice, indicating in particular: (i) the evolution of the current national minimum hourly rate of pay; (ii) the finalization of proposals for fixing minimum rates of pay in the hotel and catering sectors in the Dublin area; (iii) statistical data on the number and different categories of workers remunerated at the minimum rate of pay; and (iv) the results of enforcement measures (for example inspection visits, infringements observed, sanctions applied etc.).