Hoteliers Call for Abolition of Hotels Wage Setting System


·         Sectoral wage-setting mechanisms inherently anti-business and anti-competitiveness

·         JLCs are out of touch with the realities confronting tourism businesses

·         All employment law should be created solely by legislation introduced by the Oireachtas


Thursday 9th May 2013: The Irish Hotels Federation (IHF) welcomes today’s judgment by the Supreme Court declaring Registered Employment Agreements as unconstitutional – a ruling which the IHF states is in line with a 2011 decision the High Court declaring the Joint Labour Committee (JLC) system to be unconstitutional.


Michael Vaughan, President of the IHF states: “Today’s Supreme Court judgment recognises the fundamentally unconstitutional nature of allowing employment law to be created by organisations such as the JLC or the Labour Court. The Government must now ensure that all employment law is created solely by legislation introduced by the Oireachtas and is applicable to all employments.”


Mr Vaughan rejects recent attempts by the Government to reintroduce JLCs as out of touch with the realities confronting tourism businesses across the country. He states that the Government’s overriding objective must be job creation, getting people started in work and giving them an opportunity to develop their skills base and careers: “We need an environment that safeguards the 54,000 employees in hotels and guesthouses but most importantly allows for further growth in employment.” 


“JLCs are not appropriate in a modern, competitive economy. They have lost all relevance with the introduction of the National Minimum Wage Act and over 40 other separate pieces of extensive employment legislation including the Working Time Directive,” states Mr Vaughan. “It’s now time for the Government to act decisively and abolish the JLC mechanism, which is fundamentally anti-business and anti-competitiveness. It imposes a serious barrier to job creation at a time when Ireland has one of the highest levels of unemployment in Europe, particularly for those under thirty years of age.”





Eoin Quinn/Siobhan Molloy                         Tel: 01 6760168

Weber Shandwick PR                                     Mob: 087 233 2191/ 086 817 5066



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