Irish court decision a blow to low paid

The Irish high court has ruled that the country’s system for setting minimum pay levels in a number of low-paying industries is unconstitutional. The decision threatens the earnings of some 200,000 low-paid workers.

Since 1946, minimum pay levels, as well as key conditions in some industries, have been set by Joint Labour Committees (JLCs), made up of representatives of the employers and the unions with an independent chair.

However, the pay and conditions set by the catering JLC have been challenged by a fried-chicken chain in Cork and the body representing the fast food industry. They argued that the JLCs have been given excessive freedom in reaching their conclusions and have therefore been acting unconstitutionally.

Last month the high court accepted this argument and ruled that the legislation was invalid. This means employees can no longer rely on the courts to enforce the rates set by JLCs

Employers have welcomed the decision but unions are deeply concerned. Patricia King, vice-president of Ireland’s largest union, SIPTU, said the court judgment was “absolutely devastating news”.

The unions have called on the government to introduce emergency regulation to provide a constitutionally secure basis for JLC rates. However, the government has said that nothing can be done before the autumn.