Coalition deny split over cuts to low wage rates

THE Coalition Government has rushed to stamp out any suggestion of a rift between them over plans to scrap premium Sunday and overtime pay rates for low-paid workers.

Enterprise Minister Richard Bruton looked increasingly isolated yesterday after his radical proposals to overhaul special sector wage agreements were played down by Taoiseach Enda Kenny as well as Cabinet colleagues.

Trade unions also claimed the Fine Gael minister’s radical plans — which could affect more than 200,000 workers — went beyond an independent report this week that concluded special hourly rates should remain.

Labour ministers yesterday dampened down Mr Bruton’s hopes of a quick-fire change to wage agreements covered by Joint Labour Committee (JLC) agreements.

Mr Bruton said a “carnage of job losses” in some sectors required a new wage scheme to protect employment numbers.

The premium pay covers workers in retail, grocery and security among other areas.

His plans include letting companies drop out of JLC agreements due to “financial difficulties”. He also wants to remove Sunday hourly work rates from the remit of employment orders, which could allow employers to offer workers time off instead or some sort of allowance.

Taoiseach Enda Kenny said the plans were a “publication of a personal agenda” from his colleague.

“But he will report back to Government and Government will consider all of the implications and then make decisions,” he said.

Earlier, Public Expenditure Minister Brendan Howlin told the Dáil: “The matter will come back to Government for a decision. There are no predetermined decisions.”

Speaking on RTÉ, Social Protection Minister Joan Burton warned lower paid workers could be driven to the dole if wages in sectors such as hospitality, retail and hairdressing are cut.

Despite claiming changes to JLC agreements could create employment, Mr Bruton would not say how many jobs would be gained.

Backbench Labour TDs said they were happy Cabinet members had spelled out that no decision was taken yet on the wage schemes.

Employers group IBEC say the wage agreements are antiquated and were even dropped in 1993 in Britain.