Temporary protection for 200,000 workers
His comments came after trade unions warned that emergency legislation was required to prevent unscrupulous employers from “plundering” the wages of vulnerable workers.
Mr Justice Kevin Feeney declared unconstitutional laws under which minimum pay and conditions are set under Employment Regulation Orders proposed by Joint Labour Committees (JLCs) for approval by the Labour Court.
Opposition parties urged the Coalition to appeal the judgment to the Supreme Court. But Mr Bruton said his preference would be to accept the judgment and proceed with reform of JLCs rather than appeal.
The Government has committed to an overhaul of the system under the terms of the EU/IMF bailout, although there is disagreement between the Coalition partners on how far the reforms should go.
Mr Bruton said that while discussions were ongoing with the Attorney General about the judgment’s implications, interim measures could be introduced to protect affected workers while work continued on a long-term reform package.
JLCs are independent bodies established by the Labour Court to regulate conditions of employment and set minimum rates of pay for employees in certain sectors, such as retail, hospitality and catering.
The court judgment, following a challenge brought by an alliance of fast-food outlets, found that the system was unconstitutional.
The judgment prompted dismay among unions, which said it was devastating news for low-paid workers covered by the system.
“It’s the case of all their birthdays coming at once for the most unscrupulous employers in the state who are now free to plunder the wage packets of poorly paid workers,” SIPTU vice-president Patricia King said.
“The Government must urgently introduce legislation to protect the JLC wage-setting mechanism.”
The call was echoed by the Unite trade union, which labelled the judgment “an affront”.
Fianna Fáil and Sinn Féin both called on the Government to appeal the verdict.
“The average wage of those on wage rates governed by the JLCs is €18,000,” said Sinn Féin’s Peadar Tobin. “These are the most vulnerable, lowest-paid employees in the work force.”
But Mr Bruton said he envisaged the introduction of temporary protection measures rather than a Supreme Court appeal.
“(The judgment) underlines what we have been saying: That this system needs reform. I think the immediate priority for me will be to explore ways in which we can protect vulnerable workers who might feel their position has now been completely undermined,” he said.
“My preference would be to provide protection while a proper reform package is put through. I think the judgment has raised issues of the frailty of this system… rather than appeal that, I think we should move to have a robust reform package put in place and approved by the Dáil.”
Mr Bruton’s proposed reforms have met resistance from Labour, however, meaning the Cabinet is unlikely to agree on the final changes until the autumn.
