National Minimum Wage (Inclusion of Construction and Construction-related Craft Apprentices) Bill 2026: First Stage

I move: That leave be granted to introduce a Bill entitled an Act to provide for the inclusion of construction and construction-related craft apprentices within the application of the National Minimum Wage Acts 2000 and 2015 and, for this purpose, to amend the National Minimum Wage Act 2000. When the National Minimum Wage Act 2000 was introduced it was determined that apprentices would be excluded from the Act in recognition of the unique nature of apprenticeships which combine practical work with structured training. However, there is substantial research showing a relationship between low apprenticeship pay and poor completion rates. Surveys carried out by Connect Trade Union and my colleague, Teachta Mairead Farrell, alongside discussions at committee level have highlighted the financial difficulties facing apprentices. Connect Trade Union reported that apprentices cannot afford to stay in their chosen craft and that some are being forced out of their training or to emigrate because of low pay and exploitation by unscrupulous employers. The findings are concerning. Some 46% of respondents to the Connect Trade Union survey reported earning less than €7 per hour during a stage of their apprenticeship. More than one quarter reported being paid less than agreed minimum wage apprenticeship rates and more than 90% reported being paid less than the national minimum wage during a stage of their apprenticeship. Apprentices are dropping out at a higher rate than third level students. The average age of someone starting an apprenticeship is now approximately 21 years. Many apprentices are adults with rent or mortgage payments, household bills and family responsibilities. Expecting them to survive on less than €8 per hour during the early stages of training is increasingly unrealistic in the cost-of-living crisis. Low pay makes apprenticeships less attractive, contributes to drop-outs, and undermines efforts to develop the skilled workforce Ireland urgently needs. The Low Pay Commission has recommended abolishing sub-minimum wage rates for workers under 20 years of age while the National Youth Council of Ireland has also called for the abolition of sub-minimum rates of pay. Furthermore, the committee for further and higher education, following meetings with apprentices, providers and stakeholders, has recommended introducing a minimum wage floor for apprentices. Construction and construction-rated craft apprentices should be the starting point for reform. Ireland needs more skilled craft workers to address the housing crisis. Improving pay would help retain apprentices, increase completion rates, and strengthen the future construction workforce. The Construction Industry Federation at WorldSkills Ireland 2026 stated, "Ireland will continue to struggle to tackle its housing shortage unless it makes a much bigger commitment to apprenticeships." We all know of the crisis in housing but future housing requires a skill commitment today and we need to encourage young people to enter construction apprenticeships. We know from costings that it may not be feasible to introduce in one go placing all apprenticeships in minimum wage, so prioritising construction and construction-rated craft apprenticeships would provide a practical first step with other apprenticeship programmes considered for inclusion in the future. This Bill will place those in craft and construction apprenticeships on minimum wage during on-the-phase jobs only. Year 1 is 13 weeks paid on-the-job phase and year 2 of the on-the-job phase is 26 weeks. The estimated annual cost of this is €43.16 million. The proposed funding source for this is through the National Training Fund which has a recorded surplus of €364 million in the previous year. This fund is financed by employer contributions and is intended to support training and skills development. The exemption introduced in 2000 recognised the distinctive nature of apprenticeship training. However, evidence of financial hardship, low pay, and apprentices leaving their chosen trade demonstrates the need to reconsider that approach. Introducing a minimum wage for construction and construction-related craft apprenticeships would be a targeted and practical first step and would help apprentices meet living costs, improve retention, and support Ireland’s need for skilled construction workers. With an estimated cost of €43.6 million under the proposed 2027 rate, funding through the National Training Fund could provide a route to reform, with the longer-term aim of extending minimum wage protection to other apprenticeships.

It is not opposed.

I move: "That the Bill be taken in Private Members' time."