Fine Gael will reverse the minimum wage cut imposed by the outgoing Government, spokesman Michael Noonan said yesterday.
“The lowest paid people in society are facing severe hardship because of the combination of the €1 cut in the hourly rate of the minimum wage, and the punitive Universal Social Charge," said Mr Noonan.
He and party leader Enda Kenny raised the issue with European Commission José Manuel Barroso in Brussels this week.
“Fine Gael’s proposals for Budget 2011 were based on a number of principles, one of which was that the most vulnerable members of society would be protected. That is why we opposed the cut in the minimum wage.
“Only about 3 per cent of the labour force is on the minimum wage. The €1 cut is more a piece of ideological flag waving by Fianna Fáil than a positive move for the labour market. But it has significant social consequences," he said.
In a statement he said some of the most vulnerable people in society are on the minimum wage, including a large number of part time workers and women.
“Fine Gael fully appreciates that employers should be encouraged to employ more workers. And we appreciate that the wage entry point of the labour force can be an inhibiting factor for small businesspeople intending to employ additional workers.
"However, Fine Gael has an alternative proposal to cutting the minimum wage. We propose that the 8.5 per cent rate of employers’ PRSI would be cut by 50 per cent on wages up to the minimum wage level of €356 per week."
Mr Noonan accused the Government of not assessing the impact of the universal social charge on low-paid people in full time employment and said these people cannot afford to have their wage cut also.
