IBEC wants Sunday pay rates abolished

EMPLOYERS say Enterprise Minister Richard Bruton needs to go beyond ending Sunday pay rates set by employment regulation orders and abolish them entirely.

But unions have reacted angrily to Mr Bruton’s proposals, claiming that they would end up raising social welfare costs, and questioned the meaningfulness of plans to consult with worker representatives.

Although it welcomed the minister’s reform agenda, employers’ group IBEC said the only way to sustain jobs in the catering, hospitality and other sectors is to end the employment regulation orders and radically reform other agreements.

“We welcome the fact that the minister is prepared to take more decisive measures, beyond the recommendations of the review body. But what he should ultimately do, bearing in mind his indication that a number of the joint labour committees (JLCs) would be abolished, is to abolish the entire antiquated mechanism,” said IBEC industrial relations director Brendan McGinty.

He said any jobs initiative should maintain jobs that already exist, but that is difficult because of some “ridiculous elements” of labour costs, alluding to premium pay on Sundays which Mr Bruton proposes would no longer be set by JLCs.

“We’re in a crisis and the best places for these matters to be dealt with is at the level of the individual company. Let them be agreed [at a level] where people know what’s going on in their business and make decisions in the interests of their own job security,” he said.

IBEC says 21,000 jobs can be created in the relevant sectors in four years with a range of measures, including addressing rents and local authority charges, but labour still represents 60% of costs for some operators.

But Mandate trade union, which has outlined its concerns in a letter to all TDs and senators, said reducing the income of low-paid workers will make it unaffordable for them to work and force them onto welfare and family income supplement and add to the state’s costs.

SIPTU pledged to resist Mr Bruton’s proposals. Union vice president Patricia King said they represented a “serious assault” on some of the country’s lowest-paid workers, many of whom had incomes just above the minimum wage.

Retail Excellence Ireland said the reforms are right for the retention and creation of employment, with potential for 7,000 new jobs in the retail industry if significant reforms of the JLC system are implemented.