A LEGAL challenge by a number of electrical contractors to a legally-binding system of setting the pay and conditions of workers in the sector was dismissed by the High Court yesterday.
The action was brought by more than 400 contractors against the Labour Court and the State arising out of a 1990 registered employment agreement (REA) which sets wage levels in the electrical contracting industry.
They claimed the REA was flawed because, they alleged, not all contractors were properly represented in negotiations at the Labour Court when the most recent terms and conditions were set.
They sought declarations the REA was invalid, in breach of the provisions of the 1946 Industrial Relations Act and also breached their rights to earn a living under the Constitution and European Convention on Human Rights.
They claimed the Labour Court was wrong not to cancel the agreement in February 2009 following a request by 1,110 contractors to do so.
The Labour Court and the State denied the claims and argued the 1990 REA was valid.
Yesterday, in a reserved judgment, Mr Justice John Hedigan dismissed the case on grounds including an excessive delay in bringing the proceedings.
Such reviews must be sought within three months of an applicant becoming aware of reasons for doing so, he said.
The contractors said they were aware of the employment agreement in 2003 and no explanation had been given as to why they did not seek judicial review at this time, so their application was well out of time.
The High Court should be slow to interfere with the decisions of expert tribunals like the Labour Court which was within its jurisdiction to decide to proceed with the REA, he also said.
The judge added the constitutional and European convention aspects of the case were also well out of time and should be dealt with as part of a separate application to the court.
Yesterday’s decision has implications for wages and conditions for hundreds of thousands of workers in other sectors governed by registered employment agreements. Had it succeeded, such agreements could have been set aside, leaving those workers with only minimum employment and wage guarantees.
Speaking after the judgment, Denis Judge, chief executive of the National Electrical Contractors Ireland said that it represented a bad day for both employers and employees.
He said that it would result in a number of contractors having to let go staff as they could not afford to pay the rates.
The Technical Electrical and Engineering Union said that Mr Justice Hedigan’s judgment was “a victory for common sense and decency”.