Minister to review findings of wage mechanisms report

MINISTER FOR Enterprise Richard Brutonsaid he had received the report on statutory wage-setting mechanisms.

It would be published following consideration by the Government and himself, he added.

“It is proposed to have early discussions with the European Commission services on the main findings of the review, in line with the provisions in the EU-IMF programme,’’ said Mr Bruton.

He said that arising from those discussions, he would present a time-bound comprehensive action plan to follow up on the report’s recommendations, setting out proposals for any legislative action that might be necessary to give effect to reform measures. There would be consultation with the relevant stakeholders.

Fianna Fáil spokesman Willie O'Deasaid the programme for government had stated that the examination of the various agreements would include the rate of pay for atypical hours.

That could only mean one of two things, that the Government would abolish special arrangements for those with atypical hours or reduce the rate of pay.

People in that category were, by and large, poorly paid, including those in the hospitality and tourism industry, Mr O’Dea added.

Mr Bruton said the inconsistent approach to atypical hours had been raised as an issue.

The terms of reference were set by the previous government and explicitly referred to anomalies, obsolete provisions and inflexibilities.

He added that changes to joint labour committees and registered employment agreements would apply generally rather than only to new entrants.

Those tools, he said, set employment orders for an entire sector.

Richard Boyd Barrett(ULA) said the committees and the agreements were the main mechanism through which the lowest-paid workers were protected.

“This affects 400,000 of the lowest-paid workers in the State, who have already been hammered by child benefit cuts and the universal social charge,’’ he added.

“They are really struggling.’’ Mr Bruton said the Government’s first act would be to restore the national minimum wage.

“The most vulnerable workers on the lowest rate of pay will be protected by the action we propose,’’ he added.

“That is a significant reversal of the position.’’ Wage-setting mechanisms, said Mr Bruton, must be fit for purpose and sensitive to the conditions of those sectors.

The main sectors affected were retail, catering, hotels and construction.

In the past three years, said Mr Bruton, there had been a 60 per cent loss of employment in construction, 15 per cent in retail and wholesale and more than twice that in the lower-paid occupations.