Government not to appeal court ruling on wage deals

The Government has decided not to appeal last week's High Court ruling which struck down the laws surrounding certain wage agreements.

The ruling said that the 60-year-old Joint Labour Committee system of setting wages for catering workers is unconstitutional.

The Cabinet today decided to proceed with reforms of the system as quickly as possible, including any new legislation.

Minister for Enterprise Richard Bruton has already been tasked with finding a compromise on reform, after a split between the Government parties on how to proceed.

"The priority is to proceed with a radical overhaul of the JLC system to make it more responsive to the needs of a modern, 21st century economy," said Minister Bruton.

"The comprehensive reform proposals that have already been the subject of discussions with stakeholders and at Government will address the weaknesses identified by the Court, and would therefore restore protection for workers in the relevant sectors."

"My intention is that legislation be introduced to the Dáil very early in the next term with prioritised enactment thereafter."

Seán Murphy, Chambers Ireland deputy chief executive said: “The previous wage-setting mechanisms were outdated and inflexible.

“The Government’s decision not to introduce legislation based on knee-jerk reactions is positive and will facilitate the creation of seasonal jobs over the summer months, and in turn help to retain and create more sustainable employment opportunities in the future.”

John Douglas, General Secretary of the Mandate workers' union, said that the Government’s decision to ‘long-finger’ the legislation will leave thousands of low-paid workers vulnerable to having their pay cut and their terms and conditions compromised.

“Last Thursday after the High Court ruled that the Joint Labour Committee system of setting wages for lower paid workers is unconstitutional, the Minister for Jobs, Richard Bruton TD, said the Government would introduce 'interim measures' to protect vulnerable workers.

“Now, a few days later, the Taoiseach is saying that it’s not possible to introduce such legislation before the Dáil’s summer recess.

“The reality is that thousands of the most vulnerable workers in shops, hotels, restaurants will be picked off over the summer period by unscrupulous employers. This will start a race to the bottom where good employers in order to compete against the wage slashing of others will reluctantly have to follow.”