Minister Bruton puts REAs on the Legislative Agenda

In a statement today from the Minister for Jobs, Enterprise and Innovation, Richard Bruton T.D. it was revealed that the Minster intends to bring forward legislation to address the recent Supreme Court ruling that struck down Registered Employment Agreements.

The Minister said "Last month, the Supreme Court struck down as unconstitutional the framework for Registered Employment Agreements as provided for in the 1946 Industrial Relations Act. This is an important issue for many employers and their employees particularly in relation to rates of pay and tendering for contracts. I intend as soon as possible to put in place legislation that will be fully informed by the Supreme Court judgment, but will introduce a revised framework to deal with these matters”.

This news comes on foot of the recent case of McGowan and others v The Labour Court in which the Supreme Court ruled that the mechanism for setting Registered Employment Agreements was Unconstitutional and as such those created under the 1946 Act would be struck down.
This judgement was welcomed by employers as the REAs had set minimum wage levels for staff, which were seen by some as being far too high and unfeasible for an employer.

 

Minister Bruton's statement will come as little comfort for Employers, given the current climate, and the changes that they have seen over the past 12 months, such as the disappearance of the employer rebate for redundancies, the proposed moves for statutory sick pay, the increase in industrial action, recent calls for an increase in minimum wage, and the recent Waterford Crystal pensions issue which could yet impact have a serious impact. Employers will be hoping that any legislation will be reflective of the current economic situation and take account of an employers own circumstances in terms of an REAs application to their business or Industry. 

 

We will await the legislation, along with the other pieces that are still due to come before the Dail as promised earlier in the year.