Government must tackle low pay, says Ó Ríordáin

The European Court of Justice has today upheld the validity of the EU Directive on Adequate Minimum Wages.

Labour MEP Aodhán Ó Ríordáin said the ruling “confirms once and for all that the EU can act to guarantee fair wages and promote collective bargaining.”

The judgment secures all provisions requiring Member States with low coverage to adopt national action plans to raise collective bargaining levels – a requirement Ireland has yet to meet.

The Labour MEP, the only Irish full member of the European Parliament Employment Committee, said “today’s judgment is a landmark moment for workers’ rights in Europe. It puts beyond any doubt that fair pay and collective bargaining are at the heart of the European social model.”

“The Court has been crystal clear: governments must act to strengthen workers’ bargaining power and ensure that every worker earns a wage that meets the threshold of decency.”

“Yet in Ireland, our Government continues to treat this directive as an afterthought. It missed last year’s transposition deadline and has still not produced the action plan required under EU law to raise collective bargaining coverage. Instead of leading on fair pay, it has chosen to sit on its hands. That is a shameful reflection of a Government that has continually shown zero interest in the daily struggles of working people,” he said.

“Collective bargaining – the cornerstone of fair pay – remains woefully underused in Ireland. Barely four in ten workers are covered by collective agreements, far below the EU average and just half the 80% benchmark set in the Directive. That gap isn’t accidental. Across the country, there is mounting evidence of employers using aggressive tactics to block trade union access, intimidate organisers, and undermine the basic right of workers to come together and negotiate better pay and conditions.

“This ruling ends all excuses. Ireland now has full legal certainty to act – and must do so without delay. The Government must bring forward, before the end of this year, a credible and ambitious plan to increase collective bargaining coverage, protect trade-union rights, and ensure that low-paid workers are no longer left behind.

“Workers deserve better than lectures about competitiveness. They deserve a Government that believes in their worth, in their right to a fair wage, and in their power to bargain for a better life. Europe has shown the way. It’s time for Ireland to catch up,” Ó Ríordáin said.