Chambers of Commerce of Ireland (CCI) has expressed disappointment that the second phase of the Sustaining Progress pay agreement did not resolve the issue of the minimum wage.
It also expressed disappointment that, prior to accepting the agreement, IBEC did not secure a commitment from the Government to fund the pay rises granted to local authorities under the agreement.
Speaking this afternoon, CCI chief executive John Dunne said: “CCI is satisfied that the terms of the actual pay deal itself are reasonable. However, we are disappointed that major issues of significant importance to small business remain unresolved.
“Asking the Labour Court to fix the level of the minimum wage misses the main point. The difficulty for small businesses is not the rate but the timing of the increases.
"The minimum wage level should be reviewed upwards or downwards at the beginning of each national pay agreement having regard to economic conditions and apart from any adjustment at that time it should be indexed to move in line with the provisions of the general pay agreement.
"Otherwise, it creates anomalies in small businesses which no amount of platitudes in pay agreement documents can prevent. Given that the issue has been raised by businesses throughout the country, it is inexplicable why it wasn’t included in the most recent agreement.
“We are also disappointed that, once again, in spite of the Government’s track record, IBEC was satisfied to sign this agreement when the Government has no intention of funding the increases agreed for the local government sector," he said.