Research carried out by SIPTU has discredited claims by employers’ organisations that the abolition of the Joint Labour Committee (JLC) wage-setting mechanism has resulted in the creation of extra jobs.
Addressing the Oireachtas Committee on Jobs, Social Protection and Education on Tuesday (14th February) SIPTU Vice President, Patricia King, said that research carried out by the SIPTU established that no extra catering and hotel jobs have been created since a July 2011 High Court decision suspended the operation of the JLC system. The research was carried out over a three month period following the High Court ruling.
She said it was a "myth" to suggest that new staff were taken on and this was evident from employment statistics. Staff hours had instead been cut since the ruling and the workload had been distributed across a broader number of workers, many of whom had been taken on part time.
Patricia King added that there was evidence that conditions and pay rates had deteriorated since the JLC system was ruled unconstitutional last summer.
Unite economist, Michael Taft, explained to the committee that rates of employment were more influenced by the amount of work a business required to be carried out rather than the wage level of employees. He explained to the committee that by reducing the wages of low paid workers their spending power was being reduced which directly led to further job losses due to less money being spent in retailers.
The trade union representatives were responding to claims by the Local Jobs Alliance, a newly created employers’ lobby group, that thousands of jobs have been created since the suspension of the JLC system.
The Local Jobs Alliance claims would seem to be based on a survey carried out by the Restaurant Association of Ireland last summer. It has since emerged that this survey was based on a tiny self selected sample of restaurateurs and as such provided no scientific basis for its findings.
Patricia King and Michael Taft addressed the Oireachtas Committee as part of a Congress delegation presenting a submission on the Industrial Relations (Amendment) Bill. The Bill is intended to give a firm, legal underpinning to Registered Employment Agreements (REAs) and Employment Regulation Orders(EROs).
Patricia King said that a proposal in the Bill to allow wage comparisons with ‘other states’ when setting pay rates in certain sectors here was “too simplistic, too loose and wide open to abuse. Theoretically, with this proposal, you could compare wage rates here with countries in the Developing World.
“No economist of substance would accept such an imprecise definition. Instead, the key is purchasing power – what your wages will buy you every week. In addition, factors such as taxation levels and public service provision need to be taken into account. For example, many EU countries provide free GP visits while Ireland does not.
”Concern was also expressed about the provisions in the Bill relating to an employer’s ‘inability to pay’ and the fear that changes urged by the Troika would see good employers disadvantaged by bad employers who use the provisions to gain competitive advantage when bidding for contracts.
To view a full copy of the Congress submission to the Oireachtas Committee on Jobs, Social Protection and Education click here
