EMPLOYERS’ GROUP Ibec has said the programme for government has prejudiced the outcome of an independent review of wage-setting mechanisms and registered employment agreements.
Ibec, which yesterday met the body carrying out the review, called for the employment regulation order system to be abolished and for the registered employment agreement system to be reformed.
Ibec said the Government should adhere to the structural reforms agreed by the previous administration with the International Monetary Fund, including keeping the national minimum wage at the revised level of €7.65 and allowing the current review to consider abolishing the employment regulation order system.
Employment regulation orders are made by joint labour committees (JLCs) comprising union and employer representatives; registered employment agreements are collective agreements made between trade unions and employers, which are registered with the Labour Courts.
Ibec said the programme for government was prejudicing the outcome of the review by favouring reform of the committees system over abolition. It said the programme also committed the Government “to preserving one of the most objectionable aspects of the JLC system: the retention of the casting vote by the chairman of a JLC”.
Ibec director of industrial relations Brendan McGinty said: “Wage rules under the JLC system are putting viable businesses in jeopardy. Many of Ireland’s regulated wage rates are too high by international standards and are a major stumbling block to regaining competitiveness and creating jobs.”
The High Court will tomorrow begin hearing a legal challenge to the employment regulation order system being brought by a group representing a number of companies in the catering industry.
