Rabbitte denies attack on Bruton over wage reform

Labour minister Pat Rabbitte has strenuously denied there has been a co-ordinated attack on the Minister for Enterprise Richard…

Labour minister Pat Rabbitte has strenuously denied there has been a co-ordinated attack on the Minister for Enterprise Richard Bruton over plans to reform the wage-setting mechanisms of the Joint Labour Committee.

Speaking on RTÉ Radio this morning, Mr Rabbitte said he did not “think there is any question of an attack either co-ordinated or otherwise' on Mr Bruton and described as “utter nonsense” suggestions that Labour backbenchers had been told by party leadership to criticise proposals to cut the pay of low earners.

The Labour leader Eamon Gilmore said backbenchers were entitled to their opinions on the issue of wages but said the Government was committed to carrying out “significant reform”.

Meanwhile, Mr Bruton said he had the Taoiseach Enda Kenny’s full support and remained committed to the refrom plans.

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Mr Bruton said the radical reforms were needed in how wages are set and said the Government had charged him with developing proposals.

But a number of Labour backbenchers have expressed concern at the plans to reduce overtime and Sunday premiums, which would affect 200,000 workers in service areas like hotels, catering, hairdressing and security.

Mr Kenny played down his description of the move as a "personal agenda" for Mr Bruton, which had sparked speculation of Cabinet tension and a solo-run by the senior minister.

"People shouldn't be reading things into it. This is not what some people want it to be," Mr Kenny said. "Obviously the programme for government is very clear, there has to be reforms. The conditions attached to the troika IMF deal also say there have to be reforms so this is a matter for the Cabinet to decide.

"Richard Bruton will get to talk to all of those involved and he will come back and we will make decisions at cabinet level."

Mr Bruton said the Government has charged him with developing proposals in the wage-setting area. "They have charged me also with the consultations which I want and I am entirely committed to do," he said.

"I think the Government will take a decision in due course. There is a tight time frame and we will move to make decisions in this area."

Asked if he supported the Taoiseach and enjoyed Mr Kenny's faith in return, Mr Bruton said: "Of course."

Communications Minister and Labour TD Pat Rabbitte said all ministers would have their chance to air their views around the Cabinet table.

Mr Bruton plans to discuss the findings of an independent review with unions and employers by June 10th. An action plan will be brought before Cabinet in the second half of next month.

Retailers have welcomed proposals to phase out Sunday premium payments but urged government to go further and abolish the Retail Joint Labour Committee (JLC).

A number of Labour TDs have urged caution on the plan in the first signs of dissent within the coalition, with Galway East TD Colm Keaveny saying it was essential to debate the issue.

Mr Keaveny said it should not be the intention of the process to reduce the pay of those on the margin of society.

"Taking money from people who are drivers of the local economy and of the domestic economy is farcical in my point of view," he said.

The Construction Industry Federation said focusing on low-paid sectors would leave construction stranded with high costs.

It claimed the entry rate for somebody with no prior experience in the industry is €32,000 euro.

"What is currently set out is insufficient and ultimately unacceptable," a spokesman said.