minimum wages & fast food employers
TRANSCRIPT
Fast Food Employers & Minimum Wage Regulation in Ireland
BUIRA Conference 2009
Michelle O’Sullivan, University of Limerick
Tony Royle, NUI Galway
Regulation in fast food
• Joint Labour Committee system – equivalent to Wages Councils
• Catering has 2 JLCs – Dublin & rest of country– Minimum wages through Employment
Regulation Orders (EROs), overtime, minimum conditions
• JLC rates 7-10% higher than National Minimum Wage
Challenge to Catering JLC
• Formation of Quick Service Food Alliance (QSFA)
• Constitutional challenge to Catering JLC December 2008– setting of EROs is invalid – law making
powers vested in Parliament – setting of EROs breaches European
Convention of Human Rights
Research questions
• Why has a new body representing fast food employers been formed?
• Why has this body challenged minimum wage regulation?
• What are implications of the constitutional challenge?
Methodology
• Data collection phase
• 5 interviews:– QSFA, Irish Business & Employers
Confederation, Vintners Federation of Ireland, McDonalds Ireland & Ireland’s largest trade union, SIPTU
Factors
1. Desire for better representation
2. Enforcement of JLC regulations
3. Effects of JLC regulations on business
4. A ‘manageable’ cost
5. Existence of NMW & legislation
6. Frustration at operational issues
Implications of Challenge
• This is second constitutional challenge
• First by Irish Hotels Federation against Hotels JLC– Settled out of court
• Current challenge unlikely to be settled– New body; wants JLC abolition
Implications of Successful Challenge
• If unsuccessful, employers want reform
• If successful, union push for correcting legislation & employer lobbying of political parties
Conclusion
• Union success in improving enforcement– Timed with rising costs, economic downturn,
frustration with operation
• Backlash by fast food employers
• If challenge successful, public policy response may depend on:– Social partnership– Government in power