THE GOVERNMENT has signalled that it wants to see major reforms to payments for Sunday work and overtime arrangements in a number of sectors of the economy.
Minister for Enterprise, Jobs and Innovation Richard Bruton indicated that the current system under which pay rates and conditions are set down for various sectors by bodies known as joint labour committees is to be radically overhauled. He is to bring a report on reforming the system to Cabinet next week, along with proposals for how they could be implemented.
The changes signalled in relation to Sunday payments could mean that thousands of workers in areas such as catering and hospitality could lose their automatic entitlement to special sectoral-level premium payments.
Instead they would have to rely on general legislation governing Sunday work and case-by-case negotiations with their employers.
In a speech to the Border, Midland and Western regional assembly in Athlone yesterday, the Minister also indicated that reforms could involve streamlining overtime arrangements as currently set down by the joint labour committees.
The number of joint labour committees is also likely to be reduced, and those remaining given greater provision to respond more flexibly to changing market circumstances.
Under current arrangements, joint labour committees – which comprise union and employer representatives as well as an independent chairman appointed by the Minister for Enterprise – submit proposals covering pay and conditions to the Labour Court. If approved, the court makes a legally binding order known as an employment regulation order, setting out the minimum terms to apply across the sector concerned.
The High Court was told in March that about 190,000 workers in various sectors across the economy are covered by wage levels set by such a process.
The former government appointed a review group to examine this area, as set out in its agreement with the EU and the International Monetary Fund. This is the report to be brought to Cabinet next week.
In his speech, Mr Bruton said the report maintains that the joint labour committee system requires radical overhaul “so as to make it fairer and more responsive to changing economic circumstances and labour market conditions”.
He said that many of the sectors regulated by this system had gone through catastrophic experiences in recent times, with employment falling by 20 per cent.
He said many of the sectors regulated in this way were under pressure from competitors across the Border where pay rates were 25 per cent to 30 per cent cheaper.
“If we are to become more flexible as an economy and begin to win back market share, we need a joint labour committee system that is up to the task.”
The Minister said that, as a matter of urgency, areas such as the role of the committees in setting rates of pay in respect of Sunday working needed to be addressed.
He said that, in many areas, Sunday was a normal working day and there was a need to ensure that the system was responsive to the business environment.
Speaking after his address, the Minister told reporters that, under existing legislation, there was already provision for premium payments for working on Sunday.
“The question is whether JLCs should independently be dealing with something that is dealt with in existing law. That is an area where we are looking for change.”
He also indicated that he wanted to see a streamlining of arrangements for setting overtime rates.
He said there were different overtime rates being applied in different circumstances across different joint labour committees.
The Minister also said that the extent to which joint labour committees addressed whole structures of wages rather than setting just the basics needed to be looked at.