Government scapegoats lower paid in Budget 2011

Tuesday 7 December 2010

MANDATE trade union has accused the Government of ‘scapegoating’ workers on lower and middle incomes in this afternoon’s Budget. The union – which represents over 45,000 workers in the bar and retail trades – has criticized the inclusion of lower paid workers in the tax net and the cuts made to welfare payments such as Child Benefit.

John Douglas, Mandate’s General Secretary, says the Budget measures combined with the proposed €1 per hour reduction in the National Minimum Wage represent an extraordinary ‘double whammy’ aimed at the ‘working poor’. Mr Douglas said that as his union had feared, the lower paid are being used as scapegoats to cover up a decade of economic blunders by a Government that no longer has a mandate to govern.

“The Government’s tax strategy is totally regressive as it focuses on bringing more lower paid workers into the tax net and doesn’t address the issue of getting more tax from those on very high incomes. In addition, they have also cut welfare benefits – like Child Benefit – which help families on lower incomes to keep their heads above water.”
John Douglas said that the proposal to cut the National Minimum Wage is a retrograde step that will actually damage the economy.

“Cutting the wages of the lowest-paid workers will only degrade working conditions and lead to a decrease in productivity, damage consumer spending, and will place those with the lowest incomes in an impossible situation. This is all the more pointless when we know that it is the lower-wage earners who spend proportionately more in the local economy than higher paid workers.”

“Ireland’s minimum wage has been consistently misrepresented as disproportionately high when this is not the case. This rhetoric diverts from the real issue of wage disparity and social inequality. Other EU countries such as France, Belgium, and the Netherlands have similar minimum wages, yet their cost of living is considerably lower. In fact, other EU countries are also continuing to increase minimum wages in the recession, in order to encourage consumption.

“It is clear that this Government’s days are numbered and that they only enjoy minimal electoral support. Despite having no mandate left they seem determined to press ahead with making swingeing cuts to the minimum wage and to welfare which will devastate the lives of the people on the margins of our society. The people of this country need to show that they will not tolerate such undemocratic action and insist that there is a General Election at the earliest possible date so that we can put in place a new Government that will look to address our problems through creating jobs and growing the economy,” he concluded.