Hoteliers challenge JLC decision

Hoteliers have launched a High Court challenge against a government decision to retain a Joint Labour Committee to determine pay and conditions for those working in the sector outside of Dublin and Cork City.

They claimed yesterday that the decision was unfair, unreasonable and unlawful, and meant employers would have to provide different terms and conditions to workers based on the geographic location of hotels and guesthouses.

The case arises out of Enterprise Minister Richard Bruton’s decision to retain a Joint Labour Committee to set wages, terms and conditions for workers in the hotel industry outside of both cities.

In proceedings against the minister, the hoteliers want the decision to retain the JLC quashed. The action was brought by the Irish Hotels Federation, representing more than 1,000 hotels and guesthouses, and William Neville & Sons Ltd, trading as the Riverside Park Hotel, Enniscorthy, Co Wexford.

The hoteliers also seek various declarations, including that the minister’s decision in relation to the JLC was an error in law and that it breaches constitutional justice.

They further seek a declaration that in making the decision the minister acted outside of his powers.

Permission to bring the action was granted, on an ex-parte basis by Mr Justice Gerard Hogan. The judge made the action returnable to a date in early May.

Siobhán Phelan, counsel for the hoteliers and guesthouse owners, told the court that the operation of JLCs was suspended in 2011 following a successful constitutional challenge by a group of employers in the catering sector. The Government in 2012 introduced legislation under which a review of individual joint labour committees was to be established.

Earlier this year, the minister, on foot of a recommendation from the Labour Court which is now a notice party in the High Court proceedings, made orders retaining the JLC governing hotel workers outside of Dublin and Cork.

Ms Phelan said it was the applicant’s case that no intelligible or adequate reasons had been advanced as to why making the orders retaining the JLC in relation to hotels outside of Dublin and Cork would help avoid industrial unrest.