Minister of State for Business and Employment Ged Nash said he supported wage increases in profitable companies and where circumstances allowed.

Mr Nash also told the Dáil he was in favour of changes to the national minimum wage on a progressive basis and where circumstances allowed.

“While clearly we are creating jobs across the economy, recovery should not be allowed to be characterised by any class of a race to the bottom,’’ said Mr Nash. “It is very important that people’s pay and terms and conditions are protected and secured, and we are taking measures to ensure this is the case.’’

Mr Nash said the joint labour committee system had been re-established to this end. He also said the Government was working to reinstate registered employment agreements and that significant progress was being made in dealing with Ireland’s collective bargaining laws.

“We need to do this . . . We need to make sure the jobs we are creating are decent and sustainable and that people are well paid.’’

Socialist Party TD Paul Murphy said a recent report found Ireland had the second-highest percentage of low paid jobs among OECD countries.