The Daily Star Ireland
Starting tomorrow, the minimum wage will rise by 80 cents to €13.50 per hour, benefiting around 195,000 workers. However, many small businesses are expressing concerns that this increase, part of a series of rising costs, will ultimately result in higher prices for consumers.
Mark O’Keeffe, who owns the Brown Sugar hair salons in Dublin, highlighted that the minimum wage has increased by 36% since 2020. With additional costs such as sick pay, pension auto-enrollment, and higher prices from suppliers, he stated that it is becoming increasingly difficult for businesses to absorb these expenses. O’Keeffe, a member of the Irish Hairdressers Federation, mentioned that some salon owners may be forced to raise their prices, which could lead to clients seeking alternatives, potentially harming businesses.
Some businesses, however, argue that raising prices is not always an option. The CEO of the Convenience Stores & Newsagents Association of Ireland pointed out that if competitors don’t raise prices, others won’t either, especially since prices are already high.
Ben Connolly, a minimum wage worker in hospitality, expressed that the wage increase is necessary given the high cost of living. For many workers in the sector, especially younger waitstaff and bartenders, the raise would provide much-needed relief.
Jim Fuery, Interim Assistant General Secretary of the Mandate trade union, emphasized that the increase will ensure a basic standard of living for low-paid workers. He noted that while employers might view the minimum wage as the ceiling, unions consider it the floor, and every penny workers earn circulates back into the local economy.
Next year marks the 25th anniversary of the introduction of the minimum wage in Ireland, a milestone that Dr. Laura Bambrick of the Irish Congress of Trade Unions recalled. Despite fears in 2000 that the minimum wage would harm the economy, this did not materialize, and she is confident that the same will hold true now.
The Department of Enterprise stated that the minimum wage increase is part of a broader package of support measures for businesses. However, O’Keeffe warned that if business costs are not addressed, many salons may face closures by 2025, with some struggling to make a profit even this year.
