The owners of world-renowned stud farms Coolmore and Ballydoyle have launched a constitutional challenge to the legally-binding Joint Labour Committee system of setting wages in the agricultural sector.
The move comes as Linley Investments, which owns Coolmore and Ballydoyle, faced prosecution by the Minister for Enterprise Jobs and Innovation Richard Bruton at Clonmel District Court today for alleged breaches of employment law.
No one from Coolmore or Ballydoyle was available for comment.
The alleged breaches included refusing to provide records to a National Employment Rights Authority inspector, and failure to pay wage rates and Sunday premiums in accordance with the Employment Regulation Order governing agricultural employees.
The District Court proceedings were adjourned until November.
Earlier, the Director of the National Employment Rights Authority Ger Deering told a conference that following over 5,000 inspections in 2010, NERA had prosecuted 143 employers and secured 32 convictions so far.
The Department of Enterprise Jobs and Innovation said that as the court proceedings involving the stud farms are in being, it would not be appropriate for Mr Bruton to comment.
However, it said the minister has publicly committed to a radical reform of sectoral wage-setting mechanisms, and will be announcing a detailed time-limited action plan in this regard in the coming weeks.
The minister has not yet published a review of the JLC system prepared by Labour Court chairman and UCD Economics Professor Frank Walsh.
Meanwhile, a High Court ruling is expected later this month in relation to another challenge to the JLC system by the Quick Service Food Alliance representing fast food restaurants - who say the system contravene their property rights and set unaffordable terms and conditions in the current economic climate.
The system has also been challenged by representatives of hoteliers and electrical contractors - but neither proceedings resulted in changes to the wage setting mechanisms.
The District Court prosecution was taken by NERA on behalf of the Minister for Enterprise Jobs and Innovation because NERA itself has not yet been placed on a statutory footing.
