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Bruton publishes report of ERO/REA review and outlines time-limited programme for finalising action plan in June

Report calls for “… radical overhaul to make system fairer and more

responsive to changing economic circumstances…”

Minister for Jobs, Enterprise and Innovation Richard Bruton TD today,

following a decision of Government, published the Report of the Independent

Review of Employment Regulation Orders (EROs) and Registered Employment

Agreement Wage Setting Mechanisms and set out a time-limited programme for

a Government decision to be taken and announced on an action plan before

the end of June 2011.

As part of this programme, Minister Bruton will be setting out proposals

arising from the recommendations and other issues raised by the report,

which will then be the subject of time-limited discussions with relevant

stakeholders. Minister Bruton has been asked to bring an action plan to the

Government in time to be finalised by the end of June 2011.

The Minister said that the report’s overall finding that the basic

framework of the current JLC/REA regulatory system requires “radical

overhaul so as to make it fairer and more responsive to changing economic

circumstances and labour market conditions” is consistent with the

commitment in the Programme for Government.

“There is no adjustment as traumatic for any worker as the loss of a job,

and the retail, hotel and catering sectors – the major sectors affected by

these wage-setting mechanisms – have suffered a 20% loss in employment in

the past three years. Furthermore, in many cases businesses are competing

directly with the UK market where wages are 25-30% lower in these sectors;

while rates of pay in the sectors covered by the JLCs have increased much

faster than the National Minimum Wage, in some cases by more than 20%.

“That is why it is important to formally begin a time-limited process of

agreeing a series of urgent reforms to these mechanisms.

“As part of the process of finalising a comprehensive action plan, as

required by the revised MOU, I will immediately begin discussions with

relevant social partners and also with the European Commission Services.

To this end I will make copies of the report available and set out a series

of proposals for discussion based on the recommendations in the report and

other issues raised in the report.

“It is my intention to complete discussions with relevant parties by Friday

10th June ahead of submitting a final action plan to Cabinet before the end

of the month.”

Minister Bruton concluded by saying:

“I would like to express my appreciation to Mr Kevin Duffy and Dr Frank

Walsh for undertaking and completing the review on this very complex area

within a very short timeframe and to all the parties who assisted the

Review Team’s work through making submissions and direct consultation”.

Link to Report:

http://www.deti.ie/publications/employment/2011/Report_ERO_REA.pdf