A campaign has been established, www.smealliance.ie, which includes the VFI and a range of other trade and employee representative organisations, and is calling for immediate and essential reform in the key areas of the national minimum wage and taxation. It is also seeking recognition for SMEs and employer representation at the Labour Employer Economic Forum (LEEF) and on the Low Pay Commission.

National Minimum Wage Reform

The way in which we consider changes to the minimum wage must change. Calculation of the minimum wage must reflect the fact that 48% of the workforce are employed by public service or multinationals, which enjoy far higher wages than the rest of us. At a minimum, public sector pay must be disregarded from calculations. Future increases in the NMW must not exceed CPI.

Tax Reform

Meaningful tax reform has been postponed for too long. We will rarely have a better time to address it. We want to see:

• The 8.8% rate of PRSI must apply to the entirety of the National Minimum Wage, currently €495.30 per week.
• The food service and grooming sectors require the permanent establishment of a 9% VAT rate.
• Our 23% standard VAT rate is too high and should revert to its historical 21% rate.

Industrial Relations Reform

The manner in which Government engages with employers is flawed. SMEs employ 68% of the active workforce, which totals 2.3m people, but they have no representation in industrial relations matters with Government.

We require pro-rata representation on the Labour Employer Economic Forum (LEEF) and on the Low Pay Commission.

All legislation affecting labour and overhead costs for SMEs must be subject to the SME Test and regulatory impact assessment. As is required by Irish and EU law.

Pat Crotty, CEO of the Vintners’ Federation of Ireland (VFI), says: “As key contributors to local economies and community hubs, pubs are deeply affected by the increasing cost of doing business. The current minimum wage structure, without consideration for the unique challenges faced by SMEs, particularly in the hospitality sector, is unsustainable.

“We need a fairer, more balanced approach to wage and tax reform that acknowledges the significant pressure pubs face in keeping doors open and staff employed. The VFI fully supports the SME Alliance’s call for representation at the national level, ensuring the voice of small businesses is heard in shaping a viable future for all sectors, including our own.”

Among those organisations who have initially signed up to the campaign are the Irish Hairdressers Federation; Restaurants Association of Ireland; Irish Hardware Association; Nursing Homes Ireland; Retail Excellence Ireland; Hair and Beauty Industry Confederation; Vintners’ Federation of Ireland; and Convenience Stores & Newsagents Association.