Government to introduce new system for determining pay and conditions

The Government is to introduce proposals to allow for the setting of pay rates and conditions for workers in particular sectors of the economy.

The move follows a decision by the Supreme Court last May to strike down as unconstitutional the system of registered employment agreements, which had been in place under legislation dating from the 1940s and which had covered up to 300,000 workers.

The Supreme Court found that the registered employment agreements had “passed unmistakably into the field of legislation which was the sole preserve of the Oireachtas”.

Under the proposals there would be a specific role for the Minister for Jobs and Enterprise to make an order setting terms and conditions following an examination by the Labour Court.

In addition to improved ministerial and administrative oversight, key changes in the proposals include the introduction of new criteria that must be considered in formulating pay and conditions, including rates applying in neighbouring jurisdictions.

Another key reform is that, in future, the Labour Court would decide on appropriate rates of pay, rather than the parties making this agreement under the previous system and registering it with the Labour Court.

Recommendation
The proposals say that any organisation which the Labour Court believes to be substantially representative of employees or employers of a particular class, type or group of workers may separately or jointly request it to examine the pay terms as well as the pensions and sick pay provisions and to make a recommendation to the Minister for an order.

Under the proposals, the Labour Court recommendation may provide for minimum rates of pay for a class, group or type of workers greater than the national minimum wage and for putting in place not more than two higher hourly rates for those with longer service or with recognised higher standards or skills.

Satisfied
The proposals say that the Labour Court shall not make a recommendation to the Minister unless it is satisfied that to do so would promote harmonious relations between workers and employers.

In making a recommendation to the Minister, the Government proposals provide that the Labour Court should take account of a number of factors including the potential impact on employment, unemployment and competitiveness in the specific sector.

The proposals also state that the Labour Court should, in cases where enterprises in the sector are in competition with those in another EU state, also consider the general level of wages and cost of living applying there. They also provide for the Labour Court to exempt a particular employer from the obligation to pay the rate of remuneration applying under the ministerial order in certain circumstances.