PAY RATES:THE GOVERNMENT is to introduce substantial reform to the system for setting pay and conditions in various sectors of the economy.
It is also to halve the lower rate of PRSI until end-2013 on jobs that pay up to €356 per week.
The Government is also to restore the minimum wage to its original €8.65 rate from the beginning of July. Minister for Finance Michael Noonan signalled in his jobs initiative statement to the Dáil that areas of the existing wage-setting measures under consideration for reform included overtime arrangements and premium payments for Sunday working. Mr Noonan said that the Minister for Enterprise, Jobs and Innovation had recently received the Report of the Independent Review of Employment Regulation Orders and Registered Employment Agreements and would be publishing this shortly.
“The report says that the system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions. The downturn in the economy has had a profound effect on the labour market, with areas such as retail and accommodation and food being among those hardest hit.
“In this environment, it is necessary to ensure that these structures are flexible and adaptable to changing circumstances, and that they reflect the realities of our modern economy.
“In particular, there are issues relating to overtime and premium payments for Sunday working, the number of joint labour committees and the general functioning and supervision of the system.”
He said that following publication of the report the Government was determined to proceed with urgency to substantial reform of the system. Under current arrangements, joint labour committees – which comprise union and employer representatives as well as an independent chairman appointed by the Minister for Enterprise – submit proposals covering pay and conditions to the Labour Court.
If approved, the court makes a legally-binding order, known as an employment regulation order, setting out the minimum terms to apply across the sector concerned.
The High Court was told in March that about 190,000 workers in various sectors are covered by wage levels set by such a process. Mr Noonan also said the Government would be putting in place changes to employers’ PRSI to assist job creation. He said the Government would halve the lower rate of PRSI until end-2013 on jobs that pay up to €356 per week. This measure would take effect from July 1st.
“The existing employer job [PRSI] incentive scheme will remain in place until the end of this year so that enterprises and businesses that had planned to take on staff under this scheme in that period may continue to do so.”
Employer PRSI on share-based remuneration is also to be abolished.