Minister criticised for 'solo run' on wage agreements

A LABOUR backbencher has criticised the “solo run” and “personal initiative” by Coalition colleague Minister for Enterprise and Jobs Richard Bruton on reforming wage agreements in the hospitality and retail sectors.

Galway East TD Colm Keaveney warned the move could further deflate the economy, take money out of circulation and reduce consumers’ spending power. He said “we need to tread carefully in this area and avoid solo runs” like that by Mr Bruton “regarding personal initiatives and attacking premiums associated with working on Sundays”.

Mr Bruton has declared his intention to introduce legislation to overhaul the system for the payment of more than 200,000 workers, which could result in them losing Sunday working premiums.

Fine Gael Dublin South TD Olivia Mitchell welcomed the proposals, saying the wage agreements were damaging to the economy and it was almost impossible to get a meal outside cities on a Sunday because of wage rates. People were being paid €20 an hour, more than double the minimum wage to wash dishes on Sundays, she said.

Earlier Minister for Reform Brendan Howlin insisted “there is no predetermined outcome” to forthcoming discussions with the social partners on the wage-setting mechanisms for workers in hotels, restaurants, retailing and other sectors and he stressed that it would have to be a “whole of Government” decision.

He was responding to angry protest by TDs about Mr Bruton’s proposals based on a report commissioned by the previous government on the joint labour committee wage-setting mechanisms, which determine premium rates for the sectors.

Fianna Fáil spokesman on communications Eamon Ó Cuív said Mr Bruton had promised legislation in relation to employment orders “that will have a very serious detrimental effect on employees’ rights and I wonder has he consulted the Labour Party on this”. He called as a “matter of urgency” for a debate next week on the issue because Mr Bruton planned to have completed his proposals to overhaul the agreements by June 10th.

Sinn Féin spokesman on finance Pearse Doherty said “there is now a very public controversy that is going deep into the hearts and households of many, many thousands of families”.

He said there was a “real fear” the Minister “is about to cut the incomes of the lowest paid, hundreds of thousands of people who are depending on the types of unsociable hours and the pay rate that is in place and legally binding”.

He said the Dáil should debate the report because it stated “very clearly” that the cutting of rates on the joint labour committee [JLCs] would not lead to any increase in employment.

Mr Howlin told the Opposition “there is a commitment in the programme for government to review the JLC structure”. The Minister added that the report “will be the basis for the discussions that will take place between the department and the social partners and the Minister will have his own views. Whatever emerges from that will come back to Government and at that stage I think it will be appropriate to have a full debate in this House on what is proposed rather than speculative debate on what might or might not be involved”.

Mr Keaveney said those working under the JLC rates in the retail and tourism sector “are the backbone of the economy”. They were the lowest paid workers of any sector, with average weekly pay of €351, half the national average of €698, he said.