Minister Announces Reintroduction of the JLC Process

In a move which will have a definitive impact on a number of employers in key industries, the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, signed orders yesterday, giving effect to recommendations contained in the Labour Court Review of the Joint Labour Committees (JLC) which the Minister had published on October 2^nd 2013.

We have spoken about this on the blog and the Minister has stressed that the move is part of an overall process that will reduce the number of JLCs by half and make further changes to improve Ireland's competitiveness by enhancing wage flexibility while also ensuring protection for vulnerable workers.

Ministerial Review

The Minister ordered that a review be carried out by the Labour Court’s to determine whether any JLC should be abolished, maintained in its current form, amalgamated with another JLC or its establishment order amended. The Labour Court’s report was published by the Minister on October 2^nd 2013 along with detail of the measures he would take to give effect to its recommendations.

The Orders signed by Minister Bruton provide for:

1)     The abolition of two Joint Labour Committees

1. Dublin Hotels
2. Law Clerks

2)     Amendments to the existing Establishment Orders in respect of

1. Contract Cleaning
2. Hairdressing
3. Hotels (non-Dublin and Cork)
4. Security

3)     The following will stay the same - for now*

1. Agricultural Workers;
2. Catering;
3. Retail Grocery

Key Recommendations to Individual JLCs

Amongst some of the key amendments to the individual JLCs based on the review carried out by the Labour Court in October 2013;

• The Hotel JLC may be amended to include those who “work in leisure facilities and employees of the establishment or a related business, engaged in the provision or personal services such as health, and beautician services provided on the premises to customers of the hotel”
• The review of the Security JLC recommended that the meaning of “security firm” is now “an employer who employs persons, hereinafter referred to as security operatives, to provide a security service for contract clients of their employer, and performing one or more functions of; Prevention or detection of theft, loss, embezzlement, misappropriation or concealment of merchandise, money, bonds, stocks, notes or other valuables; The prevention or detection of intrusion, unauthorised entry or activity, vandalism or trespass, on private property either by physical, electronic or mechanical means; The enforcement of rules, regulations and policies related to crime reduction; The protection of individuals from bodily harm; Security service is a service of a security or surveillance nature, the purpose of which is to protect persons and property.”
• The review of the Hairdressing JLC recommended that it should be amended to define hairdressers employed in any undertaking  where hairdressers are employed.
• The Catering JLC is recommended to remove the distinction as to those premises that provide seating and those that do not, so all premises who serve food will be covered, as well as off licenses and Catering companies.
• The Retail JLC is recommended to cover employees employed by an employer in an establishment on the same premises as an establishment covered by the JLC, but who is employed by an unrelated employer and who is providing a service other than the sale of groceries will be bound by the terms of that sector

The Future of JLCs

Minister Bruton said: “From the start of this process I have said that reform in this area is necessary in order to make the system fairer and more responsive to changing economic circumstances and support job-creation. The Orders I have signed will provide the framework within which employee representatives can come together voluntarily to negotiate terms and conditions for workers in their respective sectors. For vulnerable workers, the advantage of JLCs is that they see fair terms and conditions such as wage rates, sick pay etc. agreed and given effect by Employment Regulation Orders. For employers, the advantage of the JLC system, based on the principle of self-governance, means that they can agree and set minimum pay and conditions, agree on work practices which are custom-made to their industry – a flexibility which cannot be achieved by primary legislation. Where both parties to a JLC see commonality of purpose and outcome then an agreement may emerge”.

The Ministers announcement establishes JLCs – Employment Regulation Orders will not come into effect unless agreed by the parties. It must be emphasised that, as of now, the JLCs have not been re-introduced. However the seven that are to be retained are now open to re-negotiation within each sector.

* The Minister indicated that, as the Agricultural Workers JLC was established under primary legislation, effecting the recommendation of the Labour Court Review will require an amendment to primary legislation. In this regard his officials are engaged with the Department of Agriculture, Food and Marine to see how this can be implemented as early as possible. The Minister also indicated that it is not his intention to alter the current scope of the two catering JLCs or the Retail Grocery JLC.

Further Reading 

Review of JLC Recommendations Part 1 & Part 2