The Government announced the publication of the Industrial Relations (Amendment) Bill 2015 on 08 May 2015 and plan to have it enacted into law by July/August. So what will this mean for employers?Registered Employment Agreements (REAs)
The Bill will reintroduce REAs allowing employers and unions to once again negotiate agreed terms and conditions for a company or for an entire sector;
Once finalised, the REA will be binding and enforceable. However, unlike the old system, REAs will only be binding on parties to the agreement;
Importantly, all the old REAs that were deemed unconstitutional will not return automatically; all REAs will need to be renegotiated.
Therefore, employers should not fret at the above but should keep a close on eye developments, particularly employers in the old REA industries of Construction, Printing, Overhead Powerline Contractors, and Drapery, Footwear and Allied Trades.
Collective Bargaining
The Bill will extend the protections afforded to employees in terms of collective bargaining;
However, it is important to note that employerswill not be obliged to recognise trade unions (a referendum would likely be required to oblige employers to do so);
The Bill will allow an employer to negotiate terms and conditions with internal employee bodies (called “excepted bodies”) and that this would amount to collective bargaining in itself (i.e. the input of a trade union is not required for “collective bargaining” to exist.)
However, where an employer does not engage in collective bargaining with a union or internal body, employees can still bring a trade dispute before the Labour Court, through their trade union. Any Labour Court decision will be legally enforceable at the Circuit Court;
Any employee who is victimised for invoking a trade dispute can seek interim relief at the Circuit Court.
Importantly, the voluntary system of collective bargaining has been retained in Ireland. However, employees will be able to pursue legally enforceable industrial relations claims where an employer refuses to engage in collective bargaining. Therefore, Peninsula recommends that employers ensure that they fully informed on their obligations in respect of collective bargaining.
National Minimum Wage
The Bill will place the Low Pay Commission on a statutory footing. The Commission can recommend changes to the NMW but only where they have consulted with employers and employee.
Any decision to increase / decrease the NMW must be implemented on an incremental basis.
As the Commission are obliged to consult with employers, Peninsula recommends that all employers to monitor any Commission developments and ensure to have their say on the impact that any increase or decrease will have on your business.
