Minister for Jobs, Enterprise and Innovation Richard Bruton has announced a reduction in the number of Joint Labour Committees, which set pay and conditions for thousands of lower-paid workers.
Joint Labour Committees are legally binding wage-setting mechanisms negotiated between employers and unions in individual sectors of the economy.
However, their constitutionality was successfully challenged in the courts by employers, prompting a restructuring to make the system legally sound.
Minister Bruton announced this evening that under that restructuring, he will be abolishing the JLCs for Dublin hotels and law clerks.
He will be narrowing the scope of JLCs governing sectors including agriculture, hairdressing, retail grocery, hotels (outside Dublin), contract cleaning and security staff.
Mr Bruton will also amend the administration of the two catering JLCs.
He said this restructuring would improve Ireland's competitiveness by enhancing wage flexibility, while also ensuring the protection of vulnerable workers.
Mr Bruton also published the Report of the Labour Court's Review of the Joint Labour Committee system, which recommends that the overall number of JLCs be reduced.
It also recommends the scope of others be amended to factor in the changing circumstances of sectors where they apply.
SIPTU Vice President Patricia King welcomed the announcement.
She said that while unions might take issue with some points, she urged the minister to immediately make the necessary establishment orders to get the JLCS up and running as soon as possible.
However, the JLC proposals were strongly criticised by the Restaurants Association of Ireland.
Chief Executive Adrian Cummins said the JLCs were being brought back at a time when the industry was still trying to recover from the recession and when the 9% VAT rate was at risk in the Budget.
He said JLCs increased the cost base and his association had not ruled out taking another legal challenge to the new legislation.
