Increased pay rates for work permit holders could lead to inequality and racial tensions, minister told

Inequality and increased racial tensions were among the consequences warned of when the Government sought to increase the minimum pay rates for non-EU workers in the meat processing sector at the start of this year.
There was some consternation expressed by employers and their representative bodies across a number of sectors in December when then minister of state for business Neale Richmond announced increases to the minimum pay rates for thousands of holders of work permits required by migrants from outside the European Economic Area (EEA).
A range of sectors were impacted with significant variation in the rates of pay involved.
Substantial increases to the minimum rates for meat processing operatives and healthcare assistants – from about €22,000 and €27,000 respectively to €30,000 per annum – attracted particularly strong reactions from interests in the respective sectors, documents obtained under the Freedom of Information Act show, with many of those who wrote to the minister suggesting companies’ viability would be threatened.
A senior official at one prominent company operating in the meat processing sector also warned “the unintended consequences” of the move would be “inequality and racial tensions”.
“As an example,” they wrote, “you could have a current employee from Ireland or any EU country working for €13 per hour and a permitted employee paid approx €15 per hour. The bad feeling and potential racial tensions this would cause would have catastrophic consequences for individual businesses and more broadly has the potential to be used by far right groups to fuel their racist propaganda.
“The shameful events in our capital city in November show how some people, with ideology based on hatred and division, would love to use this as justification for their agenda.”
“At Shannon Vale Foods,” the letter continued, “we have some wonderful people working with us from all over the world. I want to protect our workplace culture and ensure equality for all colleagues, which is why I’m sharing my concerns.”
Meat Industry Ireland (MII), which represents the meat processing facilities, sought a deferral of the proposed increases which were to come into effect in early January to allow time for a further review of the rates.
It argued the changes amounted to an increase of 30 per cent and would have a major impact on many operators in the sector. It also suggested they did not take account of productivity bonuses which it said were a common feature of remuneration structures in the industry.
In the end, the increases to minimum rates for meat workers holding permits went ahead as planned.
Dale Crammond, Director of Meat Industry Ireland, says now “companies have responded to the increased salary thresholds in different ways.
“For businesses in the sector, it is important that changes to labour costs are balanced against rising operational expenses to ensure the sector retains its international competitiveness. MII welcomes the Government’s decision to carry out a strategic review on the labour needs of the sector.”
Increases to the minimum rates for healthcare assistants were deferred, in large part because Mr Richmond and the department accepted the argument that many operators in the nursing home sectors were funded by the HSE under set term contracts and would have no way of recouping the increased costs.
A key issue for the workers involved is that the €30,000 figure is also one of the levels set as a minimum required to apply for family members to join them in Ireland.
The documents include a letter from one nursing home operator, Amberley Home and Cottages, in Cork, which states its staff are “happy with what they are getting currently. Their concern was that they can’t bring families with their current rate of €27,000”.
In a separate letter, Migrant Nurses Ireland said healthcare assistants were “ecstatic” over the proposed increases.
The new Employment Permits Act comes into effect on Monday, meanwhile, with Minister for Enterprise and Employment, Peter Burke saying the new legislation “consolidates and modernises employment permits law and brings benefits for employers and permit holders alike”.