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200,000 working under JLCs facing pay cuts

Pay cuts - 200,000 people working under JLCs could see overtime restricted
Pay cuts - 200,000 people working under JLCs could see overtime restricted

Proposals being considered by the Government could lead to pay cuts for some 200,000 people working in hotels, restaurants, retailing and other sectors.

Under the proposals, overtime would be restricted and they would lose their legal entitlement to special Sunday premium payments.

Enterprise Minister Richard Bruton has promised a decision by the end of June on an overhaul of the system of setting minimum terms and conditions in these sectors.

The Duffy Walsh report advocated retention of JLC wage setting mechanisms to protect vulnerable workers - and found that no significant job creation would result from their abolition. Instead the authors advocated reforming the system.

However, Richard Bruton's proposals would restrict the scope and protections of JLCs far beyond what Duffy Walsh recommend - and will cause fury among unions.

The proposals include plans to restrict overtime and Sunday premium payments resulting in an effective pay cut for many of the 200,000 plus workers covered by JLCs in sectors like retail grocery, security and hairdressing.

In addition, there are proposals to change the scope of a JLC with or without the consent of all the parties, and provision for inability to pay procedures for employers.

The Minister has allowed until June 10 for discussions with employers, unions and the EU IMF troika. It intends to bring proposals for an action plan to Cabinet around June 21.

The Minister for Enterprise, Jobs and Innovation, Richard Bruton, has said he does not believe his proposals to reform the system of setting wages and conditions for lower paid workers will create a rift between Fine Gael and Labour.

Mr Bruton said his proposals for reform were aimed at protecting employment in sectors - such as retail and hospitality - that had lost more than 25% of their workforce.

He said he had outlined a timetable for discussions adding that if there were any unforeseen consequences in his proposals, he would sit down with the social partners and take them into account.

Meanwhile, the Minister for Public Expenditure and Reform, Brendan Howlin, has told the Dáil that there are 'no pre-determined outcomes' to discussions with the social partners on changes to such pay agreements.

Taking the Order of Business for the Government, Mr Howlin described proposals by Minister Richard Bruton as ‘his own proposals’ and said the issue would come back to Government for decision.