The number of joint labour committees, the wage-setting mechanism that determines terms and conditions for workers in particular sectors, has been reduced under orders signed by the Minister for Enterprise and Jobs Richard Bruton.
The move by the Minister provides for the abolition of two joint labour committees, those covering Dublin hotels and law clerks.
It also allows for amendments to be introduced to the establishment orders in respect of joint labour committee covering contract cleaning, hairdressing, hotels outside of Dublin and Cork and security.
Mr Bruton said that, as the joint labour committee covering agricultural workers was established under primary legislation, change would require the introducion of other primary legislation.
He said his officials were engaged with the Department of Agriculture, Food and Marine to see how this could be implemented as early as possible.
Mr Bruton signalled his intention to reform this area shortly after coming into office. However, the operation of the joint labour committees was suspended in July 2011 following a successful constitutional challenge brought by a group of employers in the catering sector.
The Government subsequently introduced legislation in 2012 under which a review of individual joint labour committees was to be established. The findings of this review, carried out by the Labour Court, was published last October.
Mr Bruton said the orders he signed yesterday gave effect to recommendations contained in the Labour Court review.
Mr Bruton said: “From the start of this process I have said that reform in this area is necessary in order to make the system fairer and more responsive to changing economic circumstances and support job-creation.”
“The Orders I have signed will provide the framework within which employee representatives can come together voluntarily to negotiate terms and conditions for workers in their respective sectors. For vulnerable workers, the advantage of joint labour committees is that they see fair terms and conditions such as wage rates, sick pay etc. agreed and given effect by employment regulation orders. For employers, the advantage of the joint labour committee system, based on the principle of self-governance, means that they can agree and set minimum pay and conditions, agree on work practices which are custom-made to their industry - a flexibility which cannot be achieved by primary legislation. Where both parties to a joint labour committee see commonality of purpose and outcome then an agreement may emerge.”
The employer’s group Ibec criticised the Government’s decision to retain what it described as the out-dated joint labour committee wage setting system.
Ibec Head of Industrial Relations and Human Resources Maeve McElwee said: “The joint labour committee system should have been consigned to history. It was established in 1909, at a time when employment protection laws did not exist. We now have more than 40 pieces of legislation to protect workers and a national minimum wage. There is no justification for extra wage-setting rules in specific sectors.”
Ibec said that the retention of committees, such as those affecting the retail/grocery, catering and agriculture sectors, was misguided and at odds with the economic needs of the country. Ibec criticised the retention of a committee which will be allowed to set special rates of pay in the hotel sector, but only outside the cities of Dublin and Cork. Businesses in these four sectors face enormous competitive pressures and simply cannot afford to pay higher rates of pay.
“At a time when unemployment remains at crisis levels, there is no justification for giving unelected committees the power to raise wages beyond the point that employers can afford to pay. These committees were struck down as unconstitutional by the High Court in 2012; it is a serious mistake for the Government to resurrect them. This unnecessary regulation will undermine the ability of employers to create and sustain jobs in this economy,” concluded Ms McElwee.
