Interim measures on wage protection

The Government is examining ways to protect the pay and conditions of tens of thousands of workers after the High Court ruled wage contracts for low-earners were unconstitutional.

Jobs Minister Richard Bruton said he wanted interim measures to ensure vulnerable workers would not suffer but stressed reforms were needed to the Joint Labour Committee (JLCs) system.

Trade unions said the court’s ruling was devastating news for workers while business chiefs demanded the JLCs be abolished.

Mr Bruton said: “It is not Government policy to scrap the JLC.

“Our policy is to retain the JLC but in a reformed framework.”

Mr Bruton has had preliminary discussions with Attorney General Maire Whelan to determine the scope of the interim measures.

The minister is examining ways to rewrite the wage contracts, known as JLCs, including Sunday premium rates, Employment Regulation Orders and Registered Employment Agreements.

He accepted the High Court judgment had underlined the argument that the system needed to be reformed.

Siptu said the judgment was devastating news for those on low pay as it had stripped away the only protection they had on their wages.

Patricia King, Siptu vice president, warned the union would do all in its power to defend workers whose wages are targeted, including strike action.

“Today’s High Court judgment removes the only protection low-paid workers had on their wages and conditions and is absolutely devastating news for them,” Ms King said.

“It will also be very bad news for good employers who have tried to do the right thing by their employees.

“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.”

Mandate trade union said it would protect its members against any attack on their pay.

John Douglas, general secretary, said: “I want to assure all workers that the trade union movement will not be found wanting when it comes to protecting them from opportunistic attacks on their pay and conditions by whatever means that are necessary and appropriate.”

Unite called for emergency legislation to safeguard the wage agreements.

Jimmy Kelly, Irish regional secretary, said 200,000 low-paid workers will live in fear that their wages could be slashed unless action is taken.

“What are we as a society if we cannot protect those among us who have to decide between bread or shoes for their children?,” Mr Kelly said.

“This ruling is an affront to our decency as a people.”

The High Court action was taken by the Quick Service Food Alliance in the name of chairman, John Grace, who runs a food outlet in Cork.

The QSFA claimed the JLC system was unconstitutional, arbitrary and unfair.

Mr Grace said: “There is already a national minimum wage and there are 25 other pieces of legislation protecting employees’ rights. The JLCs were totally arbitrary, unfair and are now unconstitutional.

“We are satisfied the current system of setting minimum rates of pay by JLCs was a serious impediment to job creation and job retention.

“This High Court decision is one that will pave the way for increased employment in a number of sectors, not just catering.”

The QSFA represents more than 200 businesses across the country.

The Restaurants Association of Ireland called on the Government to immediately abolish JLCs.

It claimed Sunday Premium Payments was causing 40% of restaurants to close on Sundays.

Adrian Cummins, chief executive, said: “The High Court has proven that what the Restaurants Association of Ireland has been saying for the last two years is 100% correct, that these anti-business Joint Labour Committees were not constitutionally sound.”

The Small Firms Association called for the JLC system to be abolished immediately in light of the ruling.

Patricia Callan, SFA director, said: “The inflexibility of the current unconstitutional system has no place in a modern economy and has resulted in jobs being lost and a reduction in the working hours of others in those affected sectors, and continues to be an impediment to job creation.”

Chambers Ireland said the judgment would help to boost employment.

Sean Murphy, deputy chief executive, said: “Job retention and creation is a top priority for business. Today’s ruling should have a positive impact on the Government’s plans to reform these wage setting mechanisms, and in turn help to create more jobs in the future.”

The Irish Hotels Federation called on the Government to accept the ruling, which it stated has shown JLCs to be deeply flawed, inequitable to employers and a severe impediment to job creation.

Tim Fenn, IHF chief executive, said: “By accepting the decision of the High Court, Minister Richard Bruton would remove a serious barrier to job creation and enable hoteliers to unlock the significant additional employment capacity within the sector.”

Sinn Féin and Fianna Fáil called for the High Court’s ruling to be appealed.