Thursday 23 November 2017

Wage row a defining moment for Coalition

Taoiseach Enda Kenny may not yet realise it but the moment of truth is rapidly approaching for his two-and-a-half-month-old government.

The emerging conflict between Enterprise Minister Richard Bruton and Labour over the system that sets wages for several sectors of the economy is one that will define government.

When the previous government cut the minimum wage by €1 an hour at the behest of the EU and the IMF both of the then opposition parties pledged to reverse the decision. This month's "jobs initiative" delivered on that promise and restored the minimum wage to €8.65 an hour. This compares with a minimum wage of just £5.93 (€6.82) in the UK.

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