Hourly pay rates should remain, report finds
A review of special hourly rates for low paid workers did recommend, though, that the Joint Labour Committee (JLC) system should be more flexible and responsive to the needs of sectors.
The independent report also called for collective bargaining among employers and workers as an alternative to relying on the present wage-setting agreements.
Pay rates decided by JLCs are normally above the minimum wage and apply to Sunday, weekend and overtime work, particularly in the retail catering and service sectors.
Enterprise Minister Richard Bruton published the review and pledged to bring an action plan back to Government on its findings by the end of June.
The 117-page report, released by the minister last night, concluded that current rights legislation “did not adequately” cover agreements with employers on specially hourly rates.
The review, headed by Labour Court chairman Kevin Duffy, had investigated the size of wage differences in sectors and “did not find evidence of substantial wage premiums”.
Crucially though, as pointed out by the minister, the review of JLC and affiliated pay systems said that schemes needed a “radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market changes”.
Mr Bruton has said this is in line with the Programme for Government and the EU/IMF bailout deal.
Last night the minister pledged to consult social partners as well as European authorities on findings in the report.
The report also said schemes for Sunday pay, which cover retail, catering, hotel and service trades, should be discussed to ensure “fairer arrangements across affected sectors”.
The review though did suggest some immediate changes, such as an end to special wage agreements for geographically-based schemes.
It also proposed an end to pay systems for milling and clothing workers as well changes to contract cleaning wage deals.
It also proposed that legislation be enacted so employers could withdraw from special wage agreements on economic grounds.
Mandate general secretary John Douglas last night overall welcomed the report and said:
“It finally puts a lie to the cheap rhetoric and hysteria by employers representatives over the last few months that the abolition of the JLCs would create jobs. It found that the system works reasonably well for workers who otherwise would be exploited.”
But employers group IBEC said the report favoured maintaining “the antiquated JLC system and “was totally out of touch with the need to create and sustain jobs”.
