Bruton's Report Calls For 'Radical Overhaul'

The Minister for Jobs, Enterprise and Innovation has published a report of the Independent Review of Employment Regulation Orders (EROs) and Registered Employment Agreement Wage Setting Mechanisms.

The report sets out a time-limited programme for a Government decision to be taken and announced on an action plan before the end of June 2011.

As part of this programme, Minister Richard Bruton will be setting out proposals arising from the recommendations and other issues raised by the report, which will then be the subject of time-limited discussions with relevant stakeholders. Minister Bruton has been asked to bring an action plan to the Government in time to be finalised by the end of June 2011.

The Minister said that the report’s overall finding that the basic framework of the current JLC/REA regulatory system requires “radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions” is consistent with the commitment in the Programme for Government.

He said: “There is no adjustment as traumatic for any worker as the loss of a job, and the retail, hotel and catering sectors – the major sectors affected by these wage-setting mechanisms – have suffered a 20% loss in employment in the past three years. Furthermore, in many cases businesses are competing directly with the UK market where wages are 25-30% lower in these sectors; while rates of pay in the sectors covered by the JLCs have increased much faster than the National Minimum Wage, in some cases by more than 20%.

“That is why it is important to formally begin a time-limited process of agreeing a series of urgent reforms to these mechanisms.”

He continued: “As part of the process of finalising a comprehensive action plan, as required by the revised MOU, I will immediately begin discussions with relevant social partners and also with the European Commission Services. To this end I will make copies of the report available and set out a series of proposals for discussion based on the recommendations in the report and other issues raised in the report.

“It is my intention to complete discussions with relevant parties by Friday 10th June ahead of submitting a final action plan to Cabinet before the end of the month.”

Minister Bruton concluded by saying: “I would like to express my appreciation to Mr Kevin Duffy and Dr Frank Walsh for undertaking and completing the review on this very complex area within a very short timeframe and to all the parties who assisted the Review Team’s work through making submissions and direct consultation”.

(BMcN/GK)