Get the app today! App Store Play Store

Small Firms Association Calls For Three-Year Minimum Wage Freeze

Published on Mar 3 2015 3:06 PM in Retail

Small Firms Association Calls For Three-Year Minimum Wage Freeze

The Small Firms Association has called for the National Minimum Wage to be frozen at its current rate for three years, in a presentation to the Joint Oireachtas Committee on Jobs, Enterprise and Innovation.

Director of the Small Firms Association (SFA), Patricia Callan explained the groups position that small businesses are key to economic recovery and, "increasing business labour costs without productivity gains, will not only dampen this recovery, but will ultimately lead to both the prevention of job growth and to job losses across the sector."

Callan further commented that using the review methodology in the National Minimum Wage Act 2000, which uses factors such as inflation and unemployment figures, "there is no rationale for increasing the national minimum wage at present". Additionally, an increased national minimum wage may also lead to businesses offsetting the cost by a reduction in hours, jobs or skills investment.

In its submission, the SFA made the case to keep the current NMW rate for 3-years "to give small businesses who are just starting on the recovery path, certainty over their labour costs, which is essential in particular to businesses operating in the sectors and regions most affected by the NMW."

Callan concluded that, "An ill-considered review of the National Minimum Wage will cost jobs. Small businesses are taking tentative steps to recovery and in many cases growth. The job of Government is to make sure these steps can be taken with confidence and with the necessary supports in place."

© 2015 - Checkout Magazine by Jenny Whelan.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email