SIPTU has said it is deeply concerned that proposed Government reforms to sectoral wage agreements will create two-tier workplaces with workers on different pay and conditions.
Minister for Jobs, Enterprise and Innovation Richard Bruton has said that new workers will be most affected by the changes to hotel, restaurant and retailing wage agreements while existing workers would be protected by employment contracts.
But the SIPTU trade union, which represents large numbers of these workers, says an existing employment contract is not always a guarantee of pay and conditions as employers can replace older, more expensive workers, with new employees on lower wages.
SIPTU is concerned that two-tier workplaces would develop and that the workers with the original and more expensive contract would eventually be phased out.
The trade union has cited the example of the recent cut in the minimum wage which was supposed to apply only to new employees but saw some companies replace existing workforces with new ones on the lower wage rate.
Although the Government has restored the minimum wage rate, the trade union is concerned that employers will seek to do the same thing if a reformed sectoral wage agreement applies only to new employees.
SIPTU's National Organiser Patricia King was part of the trade union delegation which met Minister Bruton during the week to discuss his proposals, and she said the issue of the proposed reforms applying only to new workers was never raised.
Speaking in Dublin last night, Richard Bruton said new workers would be most affected by the reforms while existing workers would have the protection of their employement contracts, but he did acknowledge that over time, even existing workers could see their pay and conditions altered.
He said that he wanted to remove restrictions in these sectors which would allow businesses to agree pay and conditions individually and not be bound by sectoral contracts.
Mr Bruton said he wanted businesses to be able to adapt to their environment and that his reforms would mean companies and existing workers could negotiate new terms locally.
Tánaiste Eamon Gilmore has said the reform of sectoral wage agreements does not go against his party's ethos of not cutting wages.
Speaking in Galway today, Mr Gilmore said there was a necessity to reform the Employment Regulation Order system to take account of the changes in the economy and in society.
He said it would not be a cut in wages but a reform in how wages are determined.
He said it made sense that there should be reform of this sector because some of the agreements had been in place for 40 or 50 years.
He said once discussions between Mr Bruton and the social partners had concluded, the issue would come back to Government for a final decision.
