SIPTU: ‘Inability to pay’ law will lead to huge job losses

NEW Government legislation allowing companies to claim inability to pay staff the minimum wage applicable in their sector will lead to major job losses and an end to decent wages, the country’s largest trade union has claimed.

Within weeks the Government looks set to introduce the legislation permitting employers who can prove financial difficulty to opt out of the wage minimums set by registered employment agreements (REAs) and employment regulation orders (EROs) in their industry.

REAs and EROs apply in a number of industries including construction and catering. Often the legally-binding base pay rates are above the national minimum wage of €8.65 per hour.