PAY RATES for tens of thousands of workers to be employed in the future in sectors such as catering, hotels, retail and hairdressing are likely to be reduced on foot of controversial Government reforms to wage-setting mechanisms.
In addition staff in these sectors will lose their current legal entitlements to special Sunday premium payments.
Instead they will have to rely on existing employment legislation which allows employers a choice of measures to recognise Sunday working including the provision of time off in lieu.
Companies will also be allowed to derogate from the terms of employment regulation orders governing terms and conditions in cases of financial difficulty.
The trade union Unite said last night it would not rule out industrial action in protest at the Government’s planned measures. The plan was also strongly criticised by Mandate, the union representing retail workers.
Under the Government’s reform plan, employment regulation orders which are set out following the deliberations of joint labour committees (JLCs) involving union and employer representatives will have to be revised using new criteria.
These include competitiveness factors, average hourly rates set in comparable sectors in Ireland’s main trading partners as well as employment and unemployment rates,
Minister for Enterprise Richard Bruton said yesterday there was an expectation that “hiring costs will come down” as a result of this measure and there would be an opportunity for companies to take on new staff.
However, Mr Bruton said existing staff would not be affected as they have contractual arrangements with their employers.
Despite sharp differences between the Government parties over the initial proposals to reform the JLC system put forward by Mr Bruton, Labour TDs yesterday strongly supported the final measures which were approved by the Cabinet this week.
Fianna Fáil described the outcome as “a worrying development”.