Bruton to keep to schedule for reform of wage mechanisms

MINISTER FOR Enterprise Richard Bruton is to keep to his existing timetable for dealing with reforms to wage-setting mechanisms…

MINISTER FOR Enterprise Richard Bruton is to keep to his existing timetable for dealing with reforms to wage-setting mechanisms and is not to wait for the outcome of a High Court challenge.

The Minster has already met employer and union representatives as part of discussions on changes to the system of joint labour committees, employment regulation orders and registered employment agreements under which terms and conditions are set down for over 200,000 workers.

The Minister has set a deadline of the end of next week for the completion of discussions on the issue with stakeholders before bringing final proposals for reform to Cabinet. The Cabinet is expected to make a decision on the issue by the end of the month.

However, the High Court is scheduled to deliver a judgment on June 30th in a constitutional challenge to the joint labour committee/employment regulation order system of setting pay and conditions.

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The case was taken this year by a group called the Quick Service Food Alliance, which includes companies such as Subway, Abrakebabra, Bagel Factory, Burger King, Eddie Rocket’s, Supermac’s and Hillbillies, as well as sandwich bars and Italian takeaways. The group has effectively argued that the making of employment regulation orders by the Labour Court on foot of deliberations by a joint labour committee is an unconstitutional delegation of the lawmaking function which should be reserved for the Oireachtas.

A spokesman for the Minister said yesterday he was determined to press ahead with his schedule for reforms to the existing wage-setting system and was not going to wait on hypothetical issues. In any event it was envisaged legislation would probably be required arising from the reform process.

Meanwhile the Irish Congress of Trade Unions said yesterday that “broad agreement” had been reached on some issues relating to wage-setting mechanisms in talks held on Wednesday night with the Minister.

However, Ictu general secretary David Begg had said a number of “sticking points” concerning Mr Bruton’s reform agenda remained. These included proposed changes to Sunday premium payments, overtime rates and suggestions that all existing agreements would have to be revised.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent