Union Leaders Call Dropped Living Wage Plan Shameful

Union leaders in Dublin called the government's decision to drop the living wage target shameful on Tuesday.

The criticism came at an event hosted by the Irish Congress of Trade Unions. The group argued that quality jobs require more than just employment.

Minister for State Alan Dillon said the government aims to create jobs that pay fairly and offer learning opportunities. He noted a recent announcement that the national minimum wage will rise by five percent. The new rate of €14.94 per hour takes effect in January.

The living wage, previously targeted at €16, is no longer being pursued. Owen Reidy, the general secretary of the Ictu, called this shift a failure to address in-work poverty.

"A living wage should be a basic principle in any modern liberal democracy where there’s some decency, but that is gone now," Reidy said.

Speakers also focused on the slow progress of collective bargaining. Dillon defended the government's action plan to promote this mechanism. He stated that jobs are about voice, respect, and opportunity, not just pay.

Dillon said the plan strengthens awareness and capacity within the existing industrial relations framework. Critics at the meeting challenged this approach. Former Labour Court chairman Kevin Duffy described voluntarism as a euphemism for an employer veto on union recognition.

Michael Doherty, who compiled a report on collective bargaining, said the document is now on the shelf. The report came from a working group that included union, employer, and government representatives.

Government officials have cited constitutional concerns for not legislating mandatory employer engagement. Duffy and Doherty said there is no basis for claiming a constitutional prohibition.

"It generally seems to come back to that phrase ‘the attorney general advises against it’, but, of course, we never get to see that advice," Doherty said. He suggested a test case might be needed to resolve the issue.

Reidy added that artificial intelligence requires collective bargaining. He warned that if job losses from AI are not handled, social cohesion could suffer.

The event ended with a focus on the need for constructive engagement across workplaces. The government maintains its commitment to improving wages and inclusive work.