MINSTER FOR Enterprise and Jobs Richard Bruton has said his controversial proposals for reform of wage-setting mechanisms would create opportunities for employment in sectors badly hit by the recession.
Speaking yesterday he again signalled his proposed changes could see lower pay rates for new staff. However, he said existing personnel would be protected by their current contracts. “Over time, rates and patterns may change. If we are to create jobs we have to adapt and change patterns.”
Mr Bruton said in some areas where terms and conditions were covered by joint labour committees, more than 25 per cent of jobs had been wiped out. There were huge opportunities for sectors such as tourism or retail if reforms allowed them to win new business.
He said such sectors were restricted by rules governing overtime rates, Sunday working and detailed regulations on different pay levels and grades. It was important businesses were allowed to be sufficiently flexible to seize opportunities provided by the Government through initiatives such as cutting the VAT rate in the tourism sector, reducing PRSI and scaling back the travel tax.
Mr Bruton told RTÉ’s This Week programme he was not proposing cutting the joint labour committee rates back to the level of the national minimum wage. Rather, he was seeking to reform structures for setting these minimum terms and conditions.
He argued that if the existing legally binding joint labour committee rates were reformed, existing staff would still have their own contractual relationship with their employers. However, lower rates could be applied for new staff.
The Minister also said he was not proposing there be no recognition for staff who work on Sunday. However, he indicated this did not have to mean a premium rate.
Existing legislation, which applied to 85 per cent of the economy, already provided protection in relation to Sunday working. However, there were options: “It does not have to be a premium, it can be a day off in lieu or a higher hourly rate throughout the week.”