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Minister for Jobs, Richard Bruton (file photo) Laura Hutton/Photocall Ireland

Clarity sought after 'Registered Employment Agreements' deemed unconstitutional

Government has been called on to outline the impact that today’s Supreme Court decision will have on both employees and employers.

AGREEMENTS THAT SET pay rates for several Irish sectors have been deemed unconstitutional in the Supreme Court.

Put in place under the 1946 Industrial Relations Act, Registered Employment Agreements (REAs) essentially sought to make minimum pay and conditions within a given sector legally-binding.

These would then apply to every worker of the particular class, type or group that was outlined in the agreement, regardless of whether any such worker or employer was party to the agreement or not.

Responding to today’s judgement, a statement by the Minister for Jobs, Enterprise and Innovation Richard Bruton said that government would study the decision and take legal advice on it before commenting in detail.

The statement did say, however, that the existing contractual rights of workers in the affected sectors would not be impacted by today’s ruling, saying that these could only be altered if the two parties reached agreement.

Decision

While a High Court challenge that was brought by a number of electrical contractors in 2010 – related to an employment agreement that was registered in 1990 – was dismissed, the Supreme Court today found that these agreements essentially allowed parties to make any law they wished in relation to employment which, once in place, sought to bind all to whom it applied.

Reaction

The Unite trade union said that today’s decision had heralded a new age in industrial relations.

Unite construction official Tom Fitzgerald said that “while today’s news will understandably come as a shock to thousands of construction workers who fear their conditions of work may be under threat, the fact is that current terms and conditions continue to apply until re-negotiated.”

In that context, today’s judgement releases not only employers but also the trade union movement from certain constraints which have co-existed with the benefits of Registered Employment Agreements. Employers would be very ill-advised to greet today’s decision with complacency.
On the contrary, today’s ruling heralds a new age in industrial relations, and Unite will now consider itself free to lodge pay claims following consultation with our members.

IBEC described today’s ruling as a “devastating blow to all REAs made prior to 2012″, saying that it left “major question marks” over the legal status of REAs agreed after the Industrial Relations (Amendment) Act 2012

Unsure as to whether new REAs could be agreed under the 2012 legislation, the business and employer association called on the government to provide legal clarity for employers in light of the judgement.

Despite the uncertainty that now existed, the organisation said that they were broadly supportive of the government’s efforts to reform the REA system.

Sinn Féin Deputy Peadar Tóibín said that the rights of low paid workers had to be protected as a result of the judgement. “This government has not hidden its disregard of low paid workers or its support of high earners,” he said.

The Minister needs to respond to today’s judgement and the proposals of the labour court. It is imperative that he moves quickly to provide clarity and safeguard the rights of low paid workers.

Similarly, Fianna Fáil’s Dara Calleary said that government needed to provide clarity on the pay and conditions of workers currently covered by Registered Employment Agreements.

I welcome a move beyond outdated employment agreements that were set decades ago, in the absence of other protections for workers. However, we cannot allow a free-for-all for employers as a result of this ruling.
I am seeking confirmation from the Government that there will not be a surge in employers suddenly moving to unilaterally slash the wages of workers who have been covered by REAs until now.

Read: Bus Éireann workers to strike from Sunday >

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20 Comments
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    Mute Shayno ZO
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    May 9th 2013, 6:42 PM

    This ruling translates to;
    new workers will be screwed to working for peanuts.
    Existing workers will be forced out to make way for new peanut wage workers.
    Result being even more in mortgage distress, banks possibly needing more money to cover defaults/bankruptcy and even less money available to be spent in the local economy.

    BANG! the race to the bottom has officially started.

    71
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    Mute mammy
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    May 9th 2013, 6:50 PM

    @shayno. You hit the nail on the head (no pun intended) . This fan of shit will have serious implications for our family as my husband will most likely be forced out of a job by his employers who will say they can’t pay the existing rates and will employ pedro from South America on €8.65 per hour .

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    Mute dowthebow
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    May 10th 2013, 1:28 AM

    The worry with this is it may not stop at €8.65, my understanding of it is that given the free trade in the eu, a company in, lets say Romania, could tender for a contract, win it, then pay the minimum wage in Romania to Romanian workers working in Ireland.

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    Mute Stephen Downey
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    May 9th 2013, 8:33 PM

    Cuts to public sector pay, the end of Employment Regulation Orders, now the REA’s, cuts to Bus Eireann workers, sit-ins at HMV and elsewhere, Priory Hall residents still no closer to going home, ‘bankrupt’ millionaires on $22,000 a month, NAMA developers on €200,000 pa, property taxes, bankers pay breaching the €500,000 limit, USC charges, increases in healthcare, bank charges for those with less than €3,000 in their account, increases in variable mortgage rates, 14% unemployed, 50,000 pa emigrating, cuts to child benefit, increased taxes on fuel and heating, cuts to careers allowances, and on and on and on…..

    53
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    Mute Mc Namara Joe
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    May 9th 2013, 7:09 PM

    The REA served no one except the mad career trade unionist in their quest for even more power. Today is a good day!

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    Mute Biggins31
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    May 9th 2013, 6:37 PM

    Its one disaster after another for this government.

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    Mute Alan Bolger
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    May 9th 2013, 8:27 PM

    That’ll be the end of taking on an apprentice as it will be cheaper to take on a fully qualified yellow pack tradesman for the same if not lower wages. Unfortunately a lot of young lads and girls will never be academics and after this ruling will never get a chance of serving their time at a trade either. It’s definitely a sprint to the bottom with more and more bills on the way up. What a country!

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    Mute Johnny Barrett
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    May 9th 2013, 8:17 PM

    The private sector workers are after walking into pay cut followed by more pay cuts.this was on the cards wheres the public/private debate now….a victory for the big employer to screw the worker even more. Whos next?

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    Mute Gregory Fitzsimons
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    May 9th 2013, 6:47 PM

    We’re on a ship of fools , pay peanuts and you get monkeys !!!

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    Mute Kerry Blake
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    May 9th 2013, 6:19 PM

    Poor old Enda the brown stuff really beginning to hit the fan.

    Could Bruton’s comments come back to bite him. His claim current contracts are fine would seem to fly in the face of the supreme courts judgement.

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    Mute John Porter
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    May 9th 2013, 7:12 PM

    That much shit that has hit the fan it’s a wonder its still working.

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    Mute Kerry Blake
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    May 9th 2013, 7:17 PM

    Not such a good day for someone who has a large mortgage though Joe…

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    Mute Dave Byrne
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    May 9th 2013, 9:00 PM

    I say the likes of Tom Parlon head of the CIF(Ex PD TD&minister) who is getting pensions from his time in government, Is rubbing his hands together thinking how they will implement the court findings.
    As for protection of current employees and their T&C don’t be surprised if people start getting fired over small things, And if these employers cut the rate of pay of the employees wil the customer see it with the quotes/bills from builder’s I don’t think so.
    There is a well known UK multiple operating here who out sourced the transport to a company,Who pay their staff just over the min wage yet the products in their stores don’t reflect the cost of employing the staff on less wages.

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    Mute Ras Smith
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    May 12th 2013, 5:49 PM

    red n green ?

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    Mute Dave Byrne
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    May 13th 2013, 5:49 PM

    Yes + yellow with red writing

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    Mute Kevin Doyle
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    May 9th 2013, 10:55 PM

    gov. is as crooked as a ram,s horn union leaders are all employers /politicians gangsters the lot of them
    cant understand why union members dont get rid of the likes of jack o,connor and his ilk

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    Mute Ken Ken
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    May 9th 2013, 8:08 PM

    There needs to be legal clarity on this ASAP by government. I can see some building contractors losing the run of themselves after this ruling and stoking the fires of trade union bodies. Militant enough trade unions will be holding tough in the meantime

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    Mute Eoin Tighe
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    May 9th 2013, 8:53 PM

    Why irregardless? Regardless would’ve sufficed

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    Mute dowthebow
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    May 10th 2013, 1:25 AM

    Would be very short sighted of any employer to drive down wages using this. When you think about it, let’s say they’re building a block of apartments, they pay minimum wage or less to agency employees, the same is repeated in every sector, what then happens to the price of said apartments? Who can afford to buy them?

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    Mute Angela Flynn
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    May 9th 2013, 11:58 PM

    ‘irregardless’?? *face-palm*

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