THE POSSIBILITY of special legal entitlements to Sunday premium payments being dropped for workers covered by joint labour committees was first raised by the Department of Enterprise under the previous government last February.
The department’s submission to the review of wage-setting mechanisms carried out by the chairman of the Labour Court Kevin Duffy and UCD economist Frank Walsh points to significant differences between employment regulation order rates (made following the deliberations of joint labour committees) in some areas and the national minimum wage then in place.
The submission says the greatest differences between the pay rates for sectors covered by employment regulation orders and those where the national minimum wage applied arose largely as a result of “add-ons” such as payments for Sunday working, overtime, unsocial hours etc on top of basic rates.
“The addition of premium pay for Sunday and the application of overtime rates, unsocial hour rates in addition to the entitlement of paid breaks and other conditions add substantially to costs.”
The national minimum wage had been reduced by €1 at the time of the submission last February. It has subsequently been restored to the original rate.
The submission, which is set out largely in the form of questions, raises the issue of whether there should be any provision made in employment regulation orders in respect of Sunday premiums, leave (holidays) and rest breaks.
The submission also asks whether instead they should refer to the Organisation of Working Time Act on these issues.
It also asks whether an inability to pay provision should be put in place.
Under the Organisation of Working Time Act, employers have a choice of ways by which to recognise work carried out on a Sunday. This includes the provision of time off in lieu.
The submission sets out examples of difference in pay received by staff covered by employment regulation orders in various areas and those covered by the (reduced) national minimum wage then in force. The examples are based on a 48-hour week including several hours at rates for overtime, Sundays and unsocial hours.
It says that under these examples, a worker in the security sector would receive 60 per cent more than the minimum wage, a sales assistant 44 per cent more than the minimum wage and hairdressers in Dublin 41 per cent more than the national minimum wage.
Last week the Government decided that joint labour committees will no longer set Sunday premium rates – workers will have to rely on the Organisation of Working Time Act – while companies will be able to derogate from the official rates in cases of financial difficulty.
The submission was released by the Department of Enterprise and Jobs last Friday following the Government’s final decision on the issue of reforming wage-setting mechanisms.
