The Government is proposing the establishment of a new statutory wage-setting mechanism to determine terms and conditions in the waste management sector. The move comes as a dispute at the Greyhound waste company over proposed pay cuts enters its third month.

Minister of State in the Department of Jobs with special responsibility for collective bargaining Ged Nash said he would be seeking the Labour Court to examine establishing a joint labour committee for the waste management sector.

Under the joint labour committee system, representatives of employers and unions meet under an independent chair to determine minimum terms and conditions which are then legally set for particular sectors.

Mr Nash told The Irish Times his view was that "we will be asking the Labour Court to examine the prospect of a joint labour committee system in the waste management sector.

“. . . So we could have a wage-setting mechanism in an industry which is very competitive. My own view is that the system, as it stands at the moment, is not working for anybody.”

Earlier this year, Minster for Enterprise and Jobs Richard Bruton introduced reforms to the joint labour committee system which reduced the sectors covered by these arrangements. The Government's reforms followed a successful constitutional challenge by a group of employers in the catering sector in 2011.

About 80 Greyhound workers have been protesting since June, when a pay cut of more than 30 per cent was proposed. The trade union Siptu, which represents the workers, has contended the staff have been locked out by their employer.

Workers say that up to 100 new employees have been hired by Greyhound since June at lower pay rates following their refusal to accept the cuts.

The company has argued staff were paid about 60 per cent above the industry average. It maintained that the reduction being sought would see staff still earning 10 per cent above the norm industry norm.