Hoteliers - Regressive Step to Reintroduce JLCs

22 December 2011

The Irish Hotels Federation (IHF) today expressed sharp disappointment the Government has announced its intention to re-introduce Joint Labour Committee (JLC) system.  The IHF states that JLCs are an outdated and regressive employment framework which is neither appropriate nor fit for purpose in a modern competitive economy. 

Mr Tim Fenn, Chief Executive, IHF stated that the Government should have seen fit to abolish JLCs  which place unfair and inequitable wages costs on tourism businesses already facing severe costs pressures.   The constitutionality of the new legislation will be open to challenge as the industry is adamant that this revised JLC is an unwarranted imposition on a vulnerable sector of the economy.

“The JLC system is an impediment to job creation and is incompatible with the current economic situation. It makes no sense for our country,” states Mr Fenn. “Hotels and guesthouses, many of which are operating at a loss, have in the past been forced by the JLC system to pay a premium over and above the national minimum wage,” says Mr Fenn.  “Businesses should not be shackled with an obsolete inflexible system that imposes excessive wage demands and complex compliance requirements.”  He concluded by stating that Ireland already has robust primary employment legislation in place to protect all employees. “The statutory minimum wage rates and conditions of employment should apply equally to all sectors of the economy.  The JLC system is out dated and imposes anticompetitive wage demands and excessive red tape on businesses  We must use all tools at our disposal, including driving down domestic costs,  to restructure the Irish economy.”

The IHF represents over 900 hotels and guesthouses employing over 50,000 people.

ENDS

FOR INFORMATION:

Siobhan Molloy                                  Tel: 01 6760168
Weber Shandwick PR                        Mob: 086 817 50 66