Union urges approval of deal to give 16,000 security guards pay rise

A deal providing a pay rise for some 16,000 security guards who have not had one in four years should be quickly signed into force by the Government now an injunction that was blocking it has been lifted, the main union in the sector has said.

Siptu has welcomed the news that the High Court action taken by three companies by the sector was no longer a barrier to the Employment Regulation Order (ERO) but says the Government must now act to ensure workers whose base rate has slipped to just 35 cent above the minimum wage recover lost ground.

The Department of Enterprise says it is “awaiting the finalised order from the court”.

EROs are agreements reached by industry wide groups that include representatives of both employers and employees and which are then endorsed by the Labour Court and sent forward to the Department of Enterprise for approval. They do not become effective until signed the by the relevant Minister.

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When then Minister of State for Business, Employment and Retail Damien English announced he was to sign the security industry ERO formulated last year, the three firms - Top Security, Morbury and Las - sought to challenge the system claiming it favoured the bigger companies and set wages at levels that encouraged clients to move away from the use of onsite personnel towards cameras and technology based systems.

On Friday, however, the High Court was told that an agreement had been reached and the Minister is free to sign the agreement.

The situation is complicated, however, by a move since the legal action was initiated last August to agree a new ERO to replace the one in dispute. Both would have the effect of immediately raising basic hourly rates from €11.65 at present to €12.90, but the newer agreement also contains provisions for future increases linked to rises in the minimum wage.

If, under the terms the more recent ERO, the Government approved the recent recommendation of the Low Pay commission to raise the minimum wage to €12.70 on January 1st, the base rate for security guards would increase to more than €14.

The new ERO has not, however, been finalised by the Labour Court and so is still not ready to be implemented. If the one that was the subject of the injunction was adopted immediately then it cannot not be replaced with a new one for at least six months.

“We want to see action because it’s not fair that these workers have been made to wait four years for a pay rise,” said Siptu’s Ed Kenny.

“The newer agreement is a better ERO because it provides a mechanism for future rises which is a good thing, we don’t want delays like this to happen again, but my feeling is that it will be the one that was injuncted that the Minister will sign.

“If that’s the case then at least the new one will be ready to go when the required time is up.”

Labour’s Ged Nash, a former Minister of State at the department, welcomed the resolution of the court action which, he said, indicated that ERO system is “legally and constitutionally robust” and works for all sides.

“The Minister,” he added, “cannot allow the first anniversary of the injunction to pass without giving effect to the Order. The way has now been cleared and decisive action is required.”

The department said there are " several issues which need to be taken into consideration by the Minister for the ERO to be signed. These are now being addressed.”