Rabbitte denies attack on Bruton wage-reform plans

Labour minister Pat Rabbitte has dismissed suggestions of a leadership-backed attack on Richard Bruton’s wage reform plans.

Amid speculation of a rift within the coalition, Pat Rabbitte said deputies in both government parties had a view on the jobs minister’s proposals to cut the pay of low earners.

But he said Labour backbenchers who spoke out against the plans were not sent out by party chiefs.

“Utter, complete nonsense,” Mr Rabbitte said. “You don’t know Labour backbenchers if you think they have to get an injunction from the leader to go out and make a public statement.”

A number of Labour TDs have expressed concern at plans to reduce overtime and Sunday premium payments, which would affect 200,000 workers in service areas like hotels, catering, hairdressing and security.

Mr Bruton has said radical reform was needed in how wages are set and claimed the Government had charged him with developing proposals.

Tánaiste Eamon Gilmore said individual TDs were entitled to express their opinions, but claimed they did not need his backing.

“I wouldn’t discourage them (TDs) from doing so, I think people who are elected to the Dáil are entitled to express their opinion on a matter that is in the public domain,” he told RTE Radio.

He claimed the Government was committed to reforming the Joint Labour Committee (JLC) system, set up to regulate conditions of employment and set minimum rates of pay for employees in certain sectors

Taoiseach Enda Kenny was forced to play down down his description of the move as a “personal agenda” for Mr Bruton on Friday, which had sparked speculation of Cabinet rift and a solo-run by the senior Fine Gael minister.

Despite speculation of a rift the coalition continues to enjoy a political honeymoon with voters as a new opinion poll shows a small increase in support for the government parties.

Fine Gael is up two to 41%, Labour up one to 19%, while Fianna Fáil and Sinn Féin remain unchanged at 16% and 11% respectively.

The Sunday Business Post/Red C poll was carried out between Tuesday and Thursday last week, as the wage row was brewing.

Mr Bruton plans to discuss his proposals with unions and employers by June 10. An action plan will be brought before Cabinet in the second half of next month.

Retailers have welcomed proposals to phase out Sunday premium payments but urged government to go further and abolish the Retail Joint Labour Committee (JLC).

The Construction Industry Federation said focusing on low-paid sectors would leave construction stranded with high costs.

It claimed the entry rate for somebody with no prior experience in the industry is €32,000.