IBEC welcomes High Court ruling that JLC system is unconstitutional

Bredan McGinty, IBEC director thinks that JLCs should be abolished outright

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IBEC has welcomed the ruling by the High Court in the Quick Service Food Alliance case that the JLC wage setting system is unconstitutional.

IBEC is said to be carefully considering the implications of the decision for existing employees who, up until now, had their pay and conditions set by this mechanism.

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.

“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 Getting rid of outdated and unnecessary employment regulation is not only essential in getting people back to work, it is part of the reform programme agreed with the EU and IMF.”

However SIPTU has described the outcome as “devastating news” and has said it will help members and non-members who are affected by any changes implemented as a result of this decision. For more on this issue, see page 22

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