THERE HAVE been mixed reactions among unions and business groups for changes in how wages will be set in future in sectors covered by the joint labour committee (JLC) system.
Two trade unions representing workers in the affected sectors, Unite and Mandate, criticised the changes announced by the Minister for Jobs, Enterprise and Innovation, Richard Bruton, yesterday.
However, Siptu issued a “cautious welcome” to the Minister’s commitment that the wage-setting system would be made constitutionally sound, following a High Court ruling earlier this month that ruled it unconstitutional.
The union’s divisional organiser, John King, said the proposals were a “marked improvement” on the proposals put forward earlier this summer. “We would, however, be concerned that the Minister is preparing to introduce an inability-to-pay clause which could be used to drive down wages by unscrupulous employers seeking to gain unfair competitive advantage in these sectors,” he said.
However, Jimmy Kelly, Irish regional secretary of Unite, said Mr Bruton was “seeking to dismantle the very structures built up to protect those who are on the lowest rates of pay”.
“These changes will tear up any idea that we as a State value as a people. It is a manifesto for change that could have been drawn up as a wish list for business groups and those seeking to take more profit out of the pockets of working people.”
Mandate general secretary John Douglas condemned the timing of the announcement as “opportunist” and “cowardly”.
“The timing of this announcement means we will now have to wait until the autumn for legislation to protect the lowest paid. This is scandalous and provides worrying delays for these workers and their families that some employers will seek to exploit.”
There was also a mixed reaction among business groups.
Ibec, representing Irish business, labelled the plan to reintroduce the wage-setting system as “misguided and unnecessary”.
“The entire JLC system should have been consigned to history,” director Brendan McGinty said. “Any attempt to reinstate the JLC system will be fraught with constitutional uncertainty and will be open to further legal challenge.”
Both the Irish Small Medium Enterprises Association and Retail Ireland said this was a missed opportunity to help retailers create jobs. Isme chief executive Mark Fielding said the core issue of general pay had not been addressed and the opportunity to bring wage levels down to affordable levels had been missed.
Director of Retail Ireland, Torlach Denihan, said the decision to resuscitate the “antiquated JLC system” was unnecessary given that employees are protected by national minimum wage legislation as well as more than 40 pieces of employment legislation.
However, Chambers Ireland chief executive Ian Talbot welcomed the move, saying the new measures would result in a fairer and more competitive system.
The Restaurants’ Association of Ireland welcomed the decision but called on the Minister to go further by abolishing Sunday premiums.