Sir, - It has been assumed that the Government's introduction of a minimum wage means that every worker will be entitled to a minimum basic hourly rate of £4.40. However, if the current Minimum Wage Bill is passed this will not be the case.
As a result of loopholes in the Bill, employers will have to guarantee only that an employee's wages averages £4.40 per hour. In order to arrive at this employers can take into consideration service pay, staff premiums, unsociable hours premiums, public holiday premiums, commission, bonuses and tips. In practice this means that an employee on a basic rate of £3.50 could be made to work unsociable hours or public holidays to ensure that his or her average hourly rate works out at £4.40.
In addition, the Bill departs from normal practice in labour legislation by failing to provide for anti-evasion practices. There is no provision in the Bill to ensure employers give full-time workers a 39-hour week. So, for example, employers will be free to reduce working hours without any penalty thus avoiding the intent of the Bill.
Similarly, it is easy to imagine a situation in which an employee earning less than the minimum wage has his or her hours cut in order that their wage averages out at the required £4.40 per hour. But now the employee has to do the same amount of work for the same weekly wage in far less time.
Clearly, there is an urgent need for the Government to address not only the derisory minimum wage itself but the way in which it is calculated. Only if this is done can we arrive at a situation in which a realistic minimum wage relates solely to a guaranteed basic hourly rate and that any additional work under different conditions is properly rewarded. Moreover, it is incumbent on the Government to ensure that the Bill benefits those for whom it was supposedly designed - employees. - Yours, etc.,
Ciaran Lynch, Chairperson, Labour Party - Ballyphehane Branch, Cork South Central, Constituency Council Member, South Douglas Road, Cork.