IBEC Welcomes High Court Ruling on Wages

The Irish Business and Employers Confederation (IBEC) welcomed the recent ruling by the High Court that the Joint Labour Committee (JLC) wage setting system is unconstitutional.

The Irish Business and Employers Confederation (IBEC), a group representing Irish business, welcomed the recent ruling by the High Court in the Quick Service Food Alliance case that the Joint Labour Committee (JLC) wage setting system is unconstitutional. IBEC urged the Government to accept the court’s decision and not attempt to resurrect the mechanism in some other form.

IBEC is carefully considering the implications of the decision for existing employees who, until today, had their pay and conditions set by the JLC mechanism. A statement from IBEC said it will advise its members over the coming days as to how to address this issue.

IBEC Director Brendan McGinty said: “Ireland has the second highest minimum wage in the EU and more than 40 employment protection statutes; there is no need for this clumsy and bureaucratic wage-setting system. The JLC system was set up more than half a century ago and has long since outlived its relevance. To get people back to work we need a flexible and competitive labour market.

“Rates of pay and weekend premium payments should be set by free and voluntary agreements at a sectoral and workplace level, not through the arbitrary mechanisms of the JLC system, which the courts have rightly ruled against,” said Mr McGinty.

“The JLC system is at odds with the economic needs of the country. Many of Ireland’s regulated wage rates are too high by international standards and are a major stumbling block to regaining competitiveness and creating jobs. Getting rid of outdated and unnecessary employment regulation is not only essential in getting people back to work, it is part of the reform programme agreed with the EU and IMF,” he said.