High court rules in favour of businesses setting own pay rates
Published 07/07/2011 | 11:36
The High Court has ruled that it is unconstitutional for joint labour committees to set pay rates for the fast food sector.
JLCs allow for wages to be set above the legal minimums and the case against them was taken by case was taken by fast food operators, including John Grace Fried Chicken.
The case will be welcomed by many businesses but also has implications for workers whose minimum pay and conditions are set under employment regulation orders.
It was argued the JLC system is Edwardian and unconstitutional as it allows committees rather than the Oireachtas to set rates in certain industries.
The system has also caused controversy between the coalition partners as Labour TDs rebelled against plans by Fine Gael’s enterprise ministers Richard Bruton to reform the way the committees set premium payments