Bruton intent on new pay rules

ENTERPRISE Minister Richard Bruton last night insisted he would push on with controversial changes to pay rules despite a backlash from Labour TDs.

More than 200,000 people would be impacted by the overhaul of the joint labour council wage deal the minister is set to bring to cabinet by the end of the month.

However, claims by Mr Bruton that any changes would only hit new employees and not those on existing contracts were dismissed by SIPTU and viewed as unrealistic by some Labour TDs.

Mr Bruton conceded that limiting the overhaul to new employees could eventually feed into terms and conditions set for other workers.

His push to end the practice of workers in the retail, catering and hospitality industries receiving premium Sunday pay has caused considerable unease with Fine Gael’s coalition partners.

But Mr Bruton insists that reform in the sector is vital so that less restricted employers would be able to take on more workers.

“We can’t pull up the ladder behind people working and say that there will be no changes made,” he said.

“We have to open up the opportunities for young people, for less skilled people, as those are the jobs needed in the economy.

“We are looking at reforming the structure that regulates in great detail Sunday trading with a whole range of burdensome regulation.

“There is clear evidence from these sectors that there are opportunities for them to grow. Why should a bar serving food automatically have to pay a premium?

“We can’t have restrictions there that deter job creation when we have 440,000 people on the Live Register — that does not make sense,” he told RTÉ radio.

Mr Bruton concluded the consultation process on Friday and is keen to bring a full package to cabinet by June 21.

The minister also dismissed renewed calls for Ireland to default and leave the eurozone.

Irishman Desmond Lachman, the former International Monetary Fund deputy director, said Ireland, Greece and Portugal had no other option in the medium term.

“It would be far more sensible for these countries to default on their debt and exit the euro because that is the end game. Instead of going through years of recession and high unemployment and then finding that you are forced to default,” Mr Lachman said.

Mr Bruton insisted such a move would lead to “chaos”.

“Ireland is very different. Default has huge implications for any country — think of what would happen to the money in people’s accounts. Think of the chaos that would be caused. That would be government pushing the nuclear button,” he said.