Cabinet in talks on JLC reforms

TENSE discussions over the reform of wage agreements will continue at Cabinet today but Labour and Fine Gael ministers do not expect agreement will be reached.

Minister for Enterprise Richard Bruton had hoped to reach a conclusion today on the reform of Joint Labour Committees (JLCs), which had become the first source of division between the Coalition partners.

But Government impetus on the contentious issue declined after the High Court postponed a ruling in a case challenging the constitutionality of the legally binding agreements, which cover areas such as overtime and Sunday pay in certain sectors including retail and hospitality.

The ruling, which could strike down the legally enforceable pay rates, is expected to be made this Thursday.

Mr Bruton brought his proposals for reform of the JLCs to cabinet last week, but senior ministers from Fine Gael and Labour clashed over the impact that proposed changes would have on the social welfare bill.

Mr Bruton insisted changes to rules governing overtime and Sunday pay would lead to a reduction in the welfare bill by taking more people off the Live Register.

But Labour ministers believe reform could lead to pressure on the social welfare bill by pushing more families into the poverty line.

Labour leader and Tánaiste, Eamon Gilmore, said yesterday: “There has been and is the case that there is an agreement in government that there is a necessity to reform the JLC system.”

Asked if it was likely agreement would be reached on the issue at today’s meeting, he said: “There’s no question of rubber stamping anything.”

He added: “The Cabinet is discussing the proposals and the outcome of the discussions that have taken place with the unions and employers. And the Cabinet will make a decision on that.”

Sources close to Mr Bruton said it is unlikely that anything will be decided today because the pending High Court ruling would have to be considered.