Speaking at the Dáil Select Subcommittee on Jobs, Enterprise and Innovation, IBEC, the group that represents Irish business, today said government moves to reintroduce the unconstitutional JLC system will hamper job creation. The group said moves such as these will undermine the progress of the Action Plan for Jobs plan launched yesterday by undermining competitiveness and increasing labour costs. At the subcommittee IBEC outlined a range of suggested amendments to the legislation to minimise the detrimental effect it would have on employment (see below summary and attached pdf of IBEC submission).
IBEC Director Brendan McGinty said: “If Government is serious about tackling the unemployment crisis, it should not re-introduce a system which was ruled unconstitutional last year and which will increase already high costs in crucial domestic sectors, affecting businesses such as hotels, restaurants and retailers. Compulsory minimum wage rates in these sectors were significantly greater than the national minimum wage and up to 32% greater than comparable rates in Northern Ireland. This is a totally unsustainable level, based on a system established in 1909.
"Ireland has the second highest national minimum wage in the EU, and all employees are protected by over 40 pieces of employment legislation. The move to bring in new legislation that places higher costs on employers will not help job creation. Put simply, we need to to get our wage levels back in line with our competitors, so we can protect existing jobs and create new ones.
"Government should focus on tangible actions to aid employers. We need an unrelenting focus on regaining competitiveness and job creation. Resuscitating unnecessary legislation such as the JLC system will not help create a single job and will only hit the already hard-pressed domestic services sector," concluded Mr McGinty.