Labour seeks talks with Bruton on pay reform

MINISTER FOR Enterprise, Jobs and Innovation Richard Bruton is being invited to meet the parliamentary Labour Party for a discussion…

MINISTER FOR Enterprise, Jobs and Innovation Richard Bruton is being invited to meet the parliamentary Labour Party for a discussion on his plans to reform the joint labour committees and other wage-setting mechanisms.

The decision to issue a letter of invitation was taken at yesterday’s meeting of the parliamentary party in Leinster House with the unanimous agreement of all those present.

Labour sources stressed that the invitation was being issued in a spirit of “constructive dialogue” and reflected communications from constituents who were extremely anxious over the prospect of a further cut in their modest incomes.

The joint labour committee mechanism sets pay rates for workers in retail, security, hotel and other sectors and includes controversial overtime payments and premium rates for Sunday working.

READ MORE

A spokesman for the Minister said no correspondence had been received as yet, but any such letter would be given due consideration.

Mr Bruton is in the US on official business and will return on Saturday.

There was some initial discussion among Labour backbenchers on the possibility of inviting the Minister to meet them as a separate group.

This was intended to avoid any suggestion that the party leadership was orchestrating discontent on the wage setting issue.

However, it was eventually decided to go through the formal structure of the Parliamentary Party and Tánaiste and party leader Eamon Gilmore was also consulted on the matter.

The Minister is due to bring his final proposals to Cabinet in the next week or two.

Meanwhile, the employers group Ibec told officials from the European Commission at a meeting in Brussels yesterday that the Minister’s proposals on reforming the wage-setting mechanisms did not go far enough.

Ibec Director of Industrial Relations Brendan McGinty said thousands of jobs could be created if the joint labour committee system was abolished.

He said 37 per cent of restaurants remained closed on Sundays because of Sunday premiums and 4,000 jobs could be created in the sector if the system was scrapped.

“In the retail sector, 50,000 jobs have been lost since the start of the recession and many more are at risk. Seven out of 10 hotels have reduced staff numbers and/or hours in 2010, but 21,000 jobs could be created if we restore competitiveness in that sector.”