A Living Wage or a Death Sentence for Small Business?

Niall talks to business owner and podcaster Paul Treyvaud about the Government’s expected decision to increase the minimum wage by 79 cent to €14.94 an hour from January, and the continuing debate over plans for a €16 living wage.

For workers struggling with rent, food, energy and other everyday costs, higher wages may seem essential just to keep up. Supporters of a living wage argue that anyone working full time should earn enough to have a reasonable standard of living.

But many small business owners say they are being squeezed from every direction. Energy, insurance, rates, stock, VAT and labour costs have all increased, and another compulsory wage rise could mean higher prices, reduced opening hours, fewer employees or, in some cases, businesses closing completely.

On the other side of the argument is a simple question: if a business cannot afford to pay its workers a decent wage, should that business be operating in the first place?

Niall asks Paul who should ultimately take priority, the worker struggling to pay the bills or the employer struggling to keep the doors open?

And should Ireland move towards a €16 an hour living wage, even if some businesses say they simply cannot afford it?