Union prepared to strike over cut to minimum wage

PRIVATE sector trade unions are prepared to strike, if the Government introduces legislation allowing companies to claim inability to pay their staff the minimum wage applicable in their sector.

In a number of sectors, such as the construction and hotel industries, employers and unions agree a minimum wage which is set through a registered employment agreement (REA) or employment regulation order (ERO). The figures in the industries are often well above the national minimum wage of €8.65.

Over the weekend Tánaiste and Employment Minister Mary Coughlan and her department confirmed that the clause allowing the opt-out from the REA or ERO rate wasunder discussion with the Attorney General. If those talks proceed as expected the legislation could be introduced in matter of weeks.

Ms Coughlan said the need for the legislation had arisen because, where people had decided to take a reduction in their salary in order to keep their job, they were prohibited from doing so by existing laws. Under those laws the employer is prohibited from paying staff less than the minimum rate set by the ERO or REA and so are open to prosecution.

"It is important to assure people there will be checks and balances," said the minister. "This will not be a situation where employees will unwillingly take a reduction in their salaries, but it will be a safeguard most particularly to keep people in employment rather than losing their jobs."

A department spokes-woman said the new legislation would act only as a mechanism which would be "silent" on the detail of how much staff salaries would be reduced.

She said in each case the inability to pay claim would be sent to the Labour Court which would then decide, hopefully with the backing of the employees and their unions, if the wage should be temporarily reduced in that specific employment and, if so, by how much.

"The employers would have to open their books and prove they are not in a position to maintain the rate at the present time," she said.

Jack O’Connor, president of the country’s largest trade union SIPTU, said the introduction of the legislation now appeared to be a fait accompli. "This is designed to facilitate the race to the bottom on employment rights and the rates of pay of the most vulnerable workers in the country. These REAs and EROs extend beyond pay. They include various minimum standards of conditions of employment. Undoubtedly they would be looking for an exemption from the REAs and EROs.

"It is a licence for exploitation and the only way to combat it is by committing more resources to helping those workers organise to resist exploitation."

This story appeared in the printed version of the Irish Examiner Monday, January 25, 2010

Read more: http://www.irishexaminer.com/ireland/unions-prepared-to-strike-over-cuts-to-minimum-wage-110470.html#ixzz0daxgQxG4