The Irish Congress of Trade Unions has condemned a call for the abolition of the Minimum Wage as "misleading, nonsense economics."
Commenting on remarks by Senator Feargal Quinn, Congress Chief Economist Paul Sweeney said: 'senator Quinn appears to believe that there should be no minimum standards of decency in our society. His claim that the Minimum Wage acts as some sort of mythical barrier to job creation is utter nonsense and has no basis in economic reality.
"Recession, endless austerity, and a huge bank debt burden are the real barriers to job creation. Cutting wages doesn't create jobs, it creates poverty and depresses spending in the economy, particularly the retail sector," Mr Sweeney said.
"Despite five years of crisis, Ireland's cost of living is still the second highest in the EU.
"Unlike Ireland, many European countries do not operate a Minimum Wage backed by law - their minimum rates are set by agreement in each sector of the economy. This is true of Denmark, Italy, Finland and Sweden where the hourly rates are higher.
"Germany – which was cited by Senator Quinn – operates legal minimum pay rates across a number of sectors covering most of the workforce. The opposition SPD is proposing the introduction of a legal, national minimum wage.
"When you take this into account, Ireland's hourly Minimum Wage rate falls to about sixth or seventh position. The Minimum Wage in France rose to over €9 per hour in January, while Iceland has increased its rate by 35% in recent years," Mr Sweeney said.
