Low-paid work conditions of 60 years ago 'still exist'

THE CONDITIONS which led some 60 years ago to the establishment of a system for setting minimum pay and conditions for 190,000 vulnerable low-paid workers still exist, an industrial relations expert has told the Commercial Court.

Dr Michelle O’Sullivan of the University of Limerick said only 6 per cent of workers in the catering sector are in trade unions and the joint labour committee (JLC) system provided a negotiating forum for workers who would otherwise not have one.

Workers in the catering sector have the lowest average earnings of any sector, she said.

She had concluded from a study of the JLC system that it benefited not only vulnerable workers but also employers as it created a level playing field and guarded against undercutting of wages among employers and erosion of standards in areas such as the security industry.

She said the Labour Relations Commission was concerned the absence of JLCs would lead to such an increase in complaints from non-unionised workers that relevant bodies would be unable to cope.

The system also provided for minimum working conditions tailored to particular industries and not available in other legislation, she said. She agreed aspects of the system required modernisation.

Dr O’Sullivan was giving evidence in the action by fast-food operators challenging the constitutionality of the laws under which minimum pay and conditions are set under employment regulation orders (EROs) proposed by JLCs for approval by the Labour Court.

The action is by John Grace Fried Chicken Ltd, Cook Street, Cork; its operator, John Grace; and the Quick Service Food Alliance (QSFA) Ltd, also of Cook Street, Cork, which represents the interests of owners of fast-food restaurants including Subway, Abrakebabra, Supermac’s and Burger King. The respondents are the catering JLC, the Labour Court and the State.

While the case relates to catering workers, it has implications for all workers whose minimum pay and conditions are set under this system. The action concluded yesterday and Mr Justice Kevin Feeney reserved judgment, saying he would deliver his decision after Easter.

The operators claim the system allows for the setting of wage rates higher than the national minimum wage of €7.65 per hour; Sunday pay rates higher than those set under the Organisation of Working Time Act; and more favourable working conditions.

They claim such measures have been put in place in the absence of any policy guidelines from the Oireachtas, in breach of their property rights and rights to fair procedures. A number of prosecutions of fast-food operators over alleged failure to implement the terms of a May 2008 ERO for catering workers have been stayed pending the outcome of the case.