On the 06th September 2011, a meeting of over 50 members of the Security Institute took place in Naas, Co. Kildare. This meeting, held in conjunction with Peninsula Business Services who act as the Institute’s Industrial Relations Advisory Group, was convened in order to discuss recent developments in the area of JLCs/EROs and how this may impact on the security industry as a whole. As you are no doubt aware, the Catering JLC was challenged before the High Court in the case of John Grace Fried Chicken Limited and Ors -v- The Catering Joint Labour Committee & Ors [2008 No. 10663 P] and in a landmark decision Mr. Justice Kevin Feeney ruled that the JLC system of setting minimum pay and conditions for through Employment Regulation Orders (“EROs”) is unconstitutional as of the 08th July 2011. However, at the Security Institute it became obvious that a majority of the members present were in favour of the JLC/ERO system and were of the belief that it should be retained. Interestingly, the majority of members echoed sentiments similar to the Labour Court themselves with the latter stating that “[JLCs] offer many advantages to some employers. It absolves them from needing to consult workers directly. It creates a level playing field for reputable employers.” The Security Institute were of the belief that while the JLC/ERO was in desperate need of modernisation it did provide a great deal of certainty and made the coordination of working terms and conditions extremely straight-forward. Accordingly, it was agreed that while the Government sorts out the JLC/ERO amendments and seeks to reintroduce them, the Security Institute would propose and arrange the introduction of a temporary Registered Employment Agreement (REA) to reinstate that sense of security and assuredness until the JLC system makes its return.
Why Introduce an REA?
As stated above, the introduction of the new REA is deemed desirable in order to maintain the status quo and to ensure a level of security and transparency going forward until the EROs make their return. However, there is also an important commercial implication. Established security companies in Ireland will have had employees working for them for a number of years. As these employees were in receipt of ERO terms pre-July 2011 then their employers must still continue to pay them, notwithstanding the High Court decision. This essentially means that if no sectoral ERO or REA agreement was in place that new companies could enter the market and significantly undercut the prices being tendered by existing companies as these new companies can take on new employees on the basis of an €8.65 per hour contract.
REA Terms and Conditions
The proposed REA contains effectively the same terms as the old security ERO. This means that employers can expect to pay their employees a basic rate of pay of €10.01 per hour, increasing to €10.75 following three verifiable years of service in the industry.
Overtime remains at time and a half after 39 hours worked (double time if overtime falls on a Sunday) and employees can still expect a Sunday premium of €3.44 per hour. The proposed REA also retains the unsocial hours premium of where the employee has to work at least three hours between 9pm and 7am.
Additionally, the sick pay scheme, death-in-service benefit and the personal attack benefit have all been retained.
Another key element of the REA which is a new addition is the introduction of a Joint Industrial council, made up of 7 employee and 7 employer representatives, to listen to any dispute on the interpretation of the REA with matters being escalated to the Labour Court itself if needs be.
Security REA: A Divisive Idea?
Peninsula Business Services, however, is aware that at least 23 security companies have objected to the REA after reviewing its published contents. These individuals are completely against the introduction of a temporary REA and will likely view the July 2011 High Court decision as an opportunity to reduce costs and overheads rather than an incentive to retain the status quo through an REA. It is understood that a significant number of these objectors have been in contact with the same solicitor firm which mounted the successful High Court challenge of the Catering ERO with the position being that these objectors will mount a similar High Court challenge to the REA if the Labour Court seeks to ratify that agreement. Indeed, the objectors have served notice of same to both the Labour Court and the Chief State Solicitor’s Office as positions become entrenched and matters intensify. Accordingly there appears to be deep division within the Security Institute with both sides making some really valid points as to the pros and cons of its introduction.
It is unlikely that an injunction will be sought by the objectors until such time as the Labour Court conducts its public hearing on the adoption of the new REA. The date of this hearing has not yet been released but no doubt the matter may become quite heated given proceedings to date. The likelihood of a successful injunction is somewhat in doubt though given that the majority of the security industry and its governing body appear to be in favour of a temporary REA with the negotiating unions no doubt adopting a similar stance. Thus, the objectors will find it difficult to argue that they are representative of the industry and that the balance of convenience favours the granting of an injunction. In the meantime, 10,000 employees will no doubt keep a close eye on proceedings through the watchful eye of their union representatives.
Sectoral Wage Agreements: Dáil Debates and Legal Challenges
It is worth noting that the ongoing debate within the security industry is not the only debate ongoing around the whole ERO/REA issue at present. An appeal has been lodged to the Supreme Court on the contents of the Electrical REA with those involved looking to strike it down as unconstitutional. In addition, the new legislation being introduced to amend the ERO/REA system, the Industrial Relations (Amendment) (No.3) Bill, has already progressed to the Second Stage of debate in the Dáil.
Conclusion
There is a significant degree of movement in the area of sectoral wage agreements over the last year with matters intensifying significantly over the last month. It is extremely surprising that all of these comings and goings have not attracted more media attention given that the July 2011 High Court decision attracted significant media attention at that time. The security industry debate impacts upon 10,000 employees alone and if you then factor in the electrical dispute and the Dáil debate you will be factoring in excess of 15 of this entire country’s workforce.
Peninsula Business Services will endeavour to keep all of its clients up to date as this matter progresses. If you have any questions on Employment Regulation orders or Registered Employment Agreements then please contact the Peninsula Business Services 24 Hour Advice Line on 01 855 5050 and speak to one of our dedicated Employment Law Advisors.
