Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Ireland (Ratification: 1930)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2019, published 109th ILC session (2021)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Article 1 of the Convention. Minimum wage fixing. Further to its previous comment, the Committee notes the Government’s indications concerning the decision of the Supreme Court of 9 May 2013 by which employment agreements (REAs) previously registered under the Industrial Relations Act, 1946, were declared unconstitutional and were invalidated. The Committee also notes that the Government intends to bring forward as soon as possible legislation to address the Supreme Court ruling that struck down REAs and that the ten existing Joint Labour Committees (JLCs) are currently under review in accordance with section 11 of the Industrial Relations (Amendment) Act, 2012. The Committee requests the Government to keep the Office informed of any further developments concerning the review of the framework for REAs and the review of the existing JLCs. The Committee also requests the Government to provide in its next report full particulars on the impact of the labour market reforms – introduced pursuant to the Memorandum of Understanding between Ireland, the International Monetary Fund, the European Central Bank and the European Commission – to sectoral wage-setting mechanisms.

Article 3(2). Binding nature of the minimum wage. Further to its previous comment with regard to section 41 of the National Minimum Wage Act, 2000, and sections 9 and 14 of the Industrial Relations (Amendment) Act, 2012, providing for possible exemptions from the obligation to pay the statutory minimum wage in case of financial difficulties, the Committee notes the Government’s indication that no requests for temporary exemption from the obligation to pay the statutory minimum remuneration have been submitted under the Industrial Relations Act or the National Minimum Wage Act. The Committee wishes to recall, however, the importance it attaches to the principle of the binding nature of the minimum wage once it has been fixed, and also the need to genuinely consult representatives of employers and workers prior to any decision regarding the adjustment of the minimum wage. The Committee therefore again draws attention to sections 9 and 14 of the Industrial Relations (Amendment) Act, 2012, which allow for exemptions despite opposition from the majority of the workers, their representatives or the trade unions concerned. The Committee invites the Government to re-examine, in the context of the current reform process of wage-setting mechanisms, and in full consultation with employers’ and workers’ organizations, the scope and conditions of these exemption clauses.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Article 1 of the Convention. Minimum wage fixing. The Committee notes that, further to the major financial difficulties encountered by Ireland in the context of the current economic crisis, the Government requested assistance from the European Financial Stabilization Mechanism (EFSM). It notes that the Memorandum of Understanding signed on 16 December 2010 by the European Commission and the Government defines the economic policy conditions which accompany the granting of the financial aid, including amendments to the legislation on minimum wages in order to promote job creation, particularly for the categories of workers most at risk in terms of unemployment, and to avoid distortions in wages between economic sectors. The Committee notes that, as part of the implementation of this Memorandum of Understanding, the Government reduced the amount of the national minimum wage in December 2010, decreasing the hourly minimum wage from €8.65 to €7.65. However, it notes that the Government renegotiated the Memorandum of Understanding in 2011 with the competent European authorities and that the hourly minimum wage was subsequently restored to €8.65.

The Committee further notes that, in a decision of 7 July 2011, the High Court declared that a number of provisions of the 1946 and 1990 Industrial Relations Acts concerning the fixing of minimum wages, for certain sectors of the economy, by employment regulation orders (EROs) and registered employment agreements (REAs) are unconstitutional. It notes that, further to this decision, the Parliament adopted the Industrial Relations (Amendment) Act 2012 (hereinafter “Act of 2012”), which came into force on 1 August 2012. One of the novel aspects of this Act is the introduction of precise factors which must be taken into account by the Joint Labour Committees (JLCs) and the labour courts for determining applicable minimum wage rates (new section 27(3B) and section 42A(10) of the Industrial Relations Act 1946 (hereinafter “Act of 1946”), introduced by sections 5 and 12 of the Act of 2012).

The Committee notes that these factors include, in particular, the legitimate financial and commercial interests of the employers; the desirability of having fair and sustainable minimum rates of remuneration; the desirability of maintaining harmonious industrial relations in the sector in question and of maintaining that sector’s competitiveness; the levels of employment and unemployment; and, where enterprises in the sector in question are in competition with enterprises in another Member State of the European Union, the general level of wages in that State, taking into account the cost of living in the State concerned. Recalling that the fixing of minimum wages enabling workers to meet their needs and those of their families is a key element for decent work, particularly in periods of economic crisis, the Committee requests the Government to supply information in its next report on the impact of the measures taken as part of the implementation of the Memorandum of Understanding concluded with the European Commission in the area of minimum wages, and on the application in practice of the provisions of the Act of 2012, which call for pre-established criteria to be taken into account in the fixing of minimum wages through EROs or REAs.

Differentiated minimum wage rates based on age. Further to its previous comment, the Committee notes the explanations provided by the Government to justify the application of lower minimum wage rates for workers under 18 years of age or having less than two years’ experience. However, it again draws the Government’s attention to the importance of the principle of equal pay for work of equal value and therefore considers that it would be desirable to reduce the scope of the provisions fixing lower minimum wage rates, for example by limiting the application of a differentiated rate of this sort to the first year of employment and by taking account of periods of employment before the age of 18 years. The Committee hopes that the Government will re-examine this question, in consultation with the social partners, in the light of the preceding observations and requests it to keep the Office informed of any further developments on this point.

Article 3(2). Binding nature of minimum wage rates. Further to its previous comment, the Committee notes the Government’s indication that no valid request for a temporary exemption from the obligation to pay the minimum wage has been submitted to date under section 41 of the National Minimum Wage Act, 2000 (hereinafter “Act of 2000”). It notes that sections 9 and 14 of the Act of 2012 introduced possibilities for exemptions similar to those established by the Act of 2000, for the parties to an REA (new section 33A of the Act of 1946 and for employers to whom an ERO applies (new section 48A of the Act of 1946), respectively. However, the Committee notes that, contrary to the requirements laid down by the Act of 2000, these new provisions state that, under certain conditions, the exemptions requested because of economic difficulties faced by the enterprise may be granted even if the majority of the workers concerned or their representatives, or a trade union representing the majority of the workers, are opposed to those exemptions. Furthermore, whereas an exemption may be granted only once under the Act of 2000, the abovementioned provisions of the Act of 2012 state that an exemption may be granted once every five years. The Committee further notes that, under new section 28(10) of the Act of 1946, introduced by section 6 of the Act of 2012, an employer to whom an REA applies who is not a party to the agreement may apply to the labour court to vary the agreement in its application if the applicant demonstrates that there has been a substantial adverse change in the economic circumstances of the sector to which it relates.

While being fully aware of the constraints that the economic crisis imposes on employment and the difficulties faced in this context by numerous enterprises, the Committee draws attention to the risks posed by the extension of “inability to pay” clauses in the national legislation, especially as exemptions may now be granted despite opposition from the majority of the workers, their representatives or the trade unions concerned. Recalling the need for minimum wage rates to be binding once they have been fixed, as prescribed by Article 3(2) of the Convention, and the fundamental nature of the principle of participation on an equal footing of representatives of employers and workers in the application of minimum wage fixing machinery, the Committee hopes that the Government will take steps as soon as possible to restrict the scope of “inability to pay” clauses, and requests it to keep the Office informed of any decisions taken in this matter. The Committee also requests the Government to attach to its next report a copy of the information contained in the register of exemptions granted pursuant to the new section 33A of the Industrial Relations Act, 1946, the keeping of which register is compulsory under section 33A(15).

Article 4 and Part V of the report form. Implementing measures. The Committee notes that, under new section 45A of the Act of 1946, introduced by section 13 of the Act of 2012, a worker may present a complaint to a rights commissioner in the event of an alleged contravention by the worker’s employer of an ERO in relation to the worker. An appeal may be made to the labour court against the decision of the rights commissioner. It also notes the information supplied by the Government concerning the number of inspections conducted, infringements recorded and prosecutions instituted by the labour inspectorate. The Committee requests the Government to continue to supply information on the results of the activities of the labour inspectorate regarding the application of the provisions relating to the fixing of minimum wages, and to send any available information on the implementation of the new procedure for bringing a complaint before the rights commissioner as established by the Act of 2012.

Finally, the Committee wishes to take this opportunity to recall that, on the basis of the recommendations of the Working Party on Policy regarding the Revision of Standards, the ILO Governing Body considered that Convention No. 26 and the Minimum Wage Fixing Machinery (Agriculture) Convention, 1951 (No. 99) were among the instruments which were no longer up to date, even though they were still relevant in certain respects (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Committee therefore suggests that the Government contemplate the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which introduces certain improvements in comparison with Conventions Nos 26 and 99 ratified by Ireland, for example by providing for a wider scope, the setting up of a minimum wage system and the adoption of certain criteria for determining minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken in this regard.

[The Government is asked to reply in detail to the present comments in 2013.]

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Repetition

Article 1(1) of the Convention. Differentiated minimum wage rates based on age. The Committee notes the explanation provided by the Government concerning the sub-minimum hourly rate of pay for employees under 18 years of age, as provided for under sections 14 and 15 of the National Minimum Wage Act, 2000 (hereinafter “the Act”). According to the Government, these provisions are based on recommendations of the National Minimum Wage Commission, also endorsed by the Inter-Departmental Group on the Implementation of a National Minimum Wage, made with a view to preventing students from leaving full-time education. The Committee also notes the Government’s indication that the reason for the subminimum rate applicable to workers over the age of 18 during the first two years of employment is the lack of experience of persons entering the workforce for the first time. The Committee considers that in matters of wage policy, the principle of equal pay for work of equal value should be of primary importance. It would therefore be grateful if the Government would clarify whether it intends to review the policy of lower minimum pay rates on account of age or professional experience in light of the results obtained so far. In this connection, the Committee notes also that section 15(2) of the Act provides that any period of employment during which the worker had not attained the age of 18 would be ignored in calculating a period of employment for the purpose of section 15(1). Recalling once again that the calculation of the wage should be based on objective criteria such as the quantity and quality of the work carried out, the Committee would appreciate receiving explanations as to what is the rationale for completely ignoring part of the worker’s past experience.

Article 3(2)(2). Consultations of social partners. The Committee notes the Government’s indications concerning the process of consultations leading to a labour court recommendation for the increase of the national minimum wage in case there is no national economic agreement to this effect between the social partners (the Irish Congress of Trade Unions (ICTU) and the Irish Business and Employers’ Confederation (IBEC)). It also notes the latest developments concerning the new social partnership agreement “Towards 2016” which provides for the readjustment of the statutory minimum pay as from 1 January 2007 based on a joint recommendation of the ICTU and the IBEC.

Article 3(2)(3). Binding nature of minimum wage rates. The Committee notes that, according to the information provided by the Government, no exemptions by virtue of section 41 of the Act have so far been requested or granted. The Committee would be interested, however, in receiving the Government’s explanations as to how the temporary exemption possibility referred to in section 41 of the Act may be taken to be in conformity with the principle set out in this Article of the Convention, according to which minimum wage rates once fixed have the force of law and may not be subject to abatement.

Article 4(1). System of supervision. The Committee notes that according to the information provided by the Government, no provision is made in the minimum wage legislation for the posting of notices, but workers are informed of the minimum pay rates in force through extensive information campaigns including media advertisements and the distribution of leaflets and booklets.

Article 5 and Part V of the report form. Practical application. The Committee notes the information supplied by the Government on the evolution in the last five years of the minimum wage, labour inspections results, the distribution of workers paid at the minimum wage rate in different sectors, and the Employment Regulation Orders (EROs) issued on the basis of proposals of the Joint Labour Committees (JLCs). It encourages the Government to continue to supply up to date information on the practical application of the Convention.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee takes due note of the detailed information contained in the Government’s report.

Article 1, paragraph 1, of the Convention. The Committee notes the explanation provided by the Government concerning the sub-minimum hourly rate of pay for employees under 18 years of age, as provided for under sections 14 and 15 of the National Minimum Wage Act, 2000 (hereinafter “the Act”). According to the Government, these provisions are based on recommendations of the National Minimum Wage Commission, also endorsed by the Inter-Departmental Group on the Implementation of a National Minimum Wage, made with a view to preventing students from leaving full-time education. The Committee also notes the Government’s indication that the reason for the subminimum rate applicable to workers over the age of 18 during the first two years of employment is the lack of experience of persons entering the workforce for the first time. The Committee considers that in matters of wage policy, the principle of equal pay for work of equal value should be of primary importance. It would therefore be grateful if the Government would clarify whether it intends to review the policy of lower minimum pay rates on account of age or professional experience in light of the results obtained so far. In this connection, the Committee notes also that section 15(2) of the Act provides that any period of employment during which the worker had not attained the age of 18 would be ignored in calculating a period of employment for the purpose of section 15(1). Recalling once again that the calculation of the wage should be based on objective criteria such as the quantity and quality of the work carried out, the Committee would appreciate receiving explanations as to what is the rationale for completely ignoring part of the worker’s past experience.

Article 3, paragraph 2(2). The Committee notes the Government’s indications concerning the process of consultations leading to a labour court recommendation for the increase of the national minimum wage in case there is no national economic agreement to this effect between the social partners (the Irish Congress of Trade Unions (ICTU) and the Irish Business and Employers’ Confederation (IBEC)). It also notes the latest developments concerning the new social partnership agreement “Towards 2016” which provides for the readjustment of the statutory minimum pay as from 1 January 2007 based on a joint recommendation of the ICTU and the IBEC.

Article 3, paragraph 2(3). The Committee notes that, according to the information provided by the Government, no exemptions by virtue of section 41 of the Act have so far been requested or granted. The Committee would be interested, however, in receiving the Government’s explanations as to how the temporary exemption possibility referred to in section 41 of the Act may be taken to be in conformity with the principle set out in this Article of the Convention, according to which minimum wage rates once fixed have the force of law and may not be subject to abatement.

Article 4, paragraph 1. The Committee notes that according to the information provided by the Government, no provision is made in the minimum wage legislation for the posting of notices, but workers are informed of the minimum pay rates in force through extensive information campaigns including media advertisements and the distribution of leaflets and booklets.

Article 5 and Part V of the report form. The Committee notes the information supplied by the Government on the evolution in the last five years of the minimum wage, labour inspections results, the distribution of workers paid at the minimum wage rate in different sectors, and the Employment Regulation Orders (EROs) issued on the basis of proposals of the Joint Labour Committees (JLCs). It encourages the Government to continue to supply up to date information on the practical application of the Convention.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes with interest the Government’s report together with its annexes and in particular the information concerning the adoption of the National Minimum Wage Act, 2000. It wishes to draw attention to the following points.

Article 1, paragraph 1, of the Convention. The Committee notes that, under sections 14 and 15 of the new legislation, sub-minimum hourly rates of pay are provided for employees under the age of 18 (not less than 70 per cent of the national minimum hourly rate of pay) and older employees in their first two years after the date of first employment (not less than 80 per cent of the national minimum hourly rate of pay for the employees in their first year and 90 per cent for those in their second year). In this connection, the Committee recalls paragraph 176 of its General Survey of 1992 on minimum wages in which it stated that the reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age or for other reasons should be regularly re-examined in the light of the principle of equal remuneration for work of equal value and also that the quantity and quality of work carried out should be the decisive factor in determining the wage paid. The Committee would therefore appreciate receiving additional information on this point, including for instance any recent studies and surveys addressing these issues and examining the advisability of continuing to pursue a policy of minimum wage differentials on account of workers’ characteristics such as age.

Article 3, paragraph 2(2). The Committee takes due note of the method of declaring and reviewing the national minimum hourly rate of pay, as laid down in sections 11 to 13 of the National Minimum Wage Act, 2000. It notes in particular that employers’ and workers’ organizations do not appear to be associated in this method but only when, in the opinion of the Minister for Enterprise, Trade and Employment, there exists a "national economic agreement", that is to say an agreement among economic and social interests in the country, which includes a recommendation in relation to the national minimum hourly rate of pay of employees. Furthermore, the Committee notes that, in the absence of such an agreement, or when employers’ or workers’ organizations seek the revision of the national minimum hourly rate of pay in force, they may, not earlier than 12 months after the Minister has last declared a national minimum hourly rate of pay, request the Labour Court to examine that rate and make a recommendation to the Minister. The Committee wishes to stress in this regard that, in so far as the participation of the employers and workers concerned in the operation of the minimum wage fixing machinery is concerned, the Convention requires that: (i) the employers’ and workers’ organizations be directly associated in equal numbers and on equal terms in the application of the established wage-fixing machinery; and (ii) preliminary consultation of those organizations be undertaken which signifies that consultation must take place before decisions are taken and must be effective as offering the social partners the opportunity to have some real influence on the decisions made. The Government is therefore requested to clarify the situation, in law and practice, with regard to the principle of full consultation and direct participation of employers’ and workers’ organizations, as set out in this Article of the Convention.

Article 3, paragraph 2(3). The Committee notes that, under section 41 of the National Minimum Wage Act, 2000, the Labour Court may exempt an employer in financial difficulty from the obligation to pay an employee at a rate that is not less than the national minimum hourly rate, and that such exemption may not be for less than three months or exceed one year. The Committee would be grateful if the Government could supply information on the practical application of this provision specifying the number of applications received and exemptions granted, if any, by the Labour Court since the National Minimum Wage Act entered into force and the approximate number of workers concerned.

Article 4, paragraph 1. The Committee requests the Government to indicate whether the National Minimum Wage Act, 2000 provides for any measures, similar for instance to the posting of notices which is required under section 49(2) of the Industrial Relations Act, 1946, in respect of employment regulation orders, with a view to keeping employees informed of the national minimum hourly rates of pay in force.

Article 5 and Part V of the report form. The Committee notes the statistical information supplied by the Government regarding the number of inspections carried out, violations recorded and the amount of fines imposed in relation to observance or otherwise of minimum wage legislation from April 2000 to July 2002. It also notes the statutory minimum wages set by the most recent employment regulation orders (EROs) which were made by the Labour Court upon the recommendations of joint labour committees (JLCs) for 17 different areas of employment. The Committee requests the Government to continue supplying general information on the manner in which the Convention is applied in practice, indicating in particular: (i) the evolution of the current national minimum hourly rate of pay; (ii) the finalization of proposals for fixing minimum rates of pay in the hotel and catering sectors in the Dublin area; (iii) statistical data on the number and different categories of workers remunerated at the minimum rate of pay; and (iv) the results of enforcement measures (for example inspection visits, infringements observed, sanctions applied etc.).

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report.

Article 5 of the Convention and point V of the report form. The Committee notes the information concerning the legal minimum rates of pay. It requests the Government to provide information on any developments in this respect.

The Committee also asks the Government to continue to supply, in accordance with these provisions, general information on the application of the Convention in practice, including: (i) the minimum wage rates in force; (ii) the number and different categories of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (e.g. the number of violations of minimum wage provisions revealed, the penalties imposed, etc.).

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes the information supplied by the Government in its report concerning, inter alia, new minimum wages rates. It also notes the statistical data sent with the report.

As regards the previous comments made by the Federated Union of Employers (FUE), the Committee notes that the Minister for Labour has held discussions with the FUE and the Irish Congress of Trade Unions on industrial relations reform, and that a Bill which will include certain changes in the operation of the Joint Labour Committee system, is at an advanced stage of preparation. The Committee requests the Government to keep it informed of any developments in this connection.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee notes the information supplied by the Government in its report (received in June 1989) concerning the new minimum wage rates and it also notes the statistical data concerning inspection visits and the number of workers to whom these wages apply. The Committee hopes that the Government will continue to supply such information.

2. As regards its previous direct requests, the Committee notes the new comments made by the Federated Union of Employers (FUE), which were transmitted with the Government's report, concerning the need to make changes in the structure and operation of the minimum wage-fixing machinery and the role that should be attributed to the Labour Court in cases where a Joint Labour Committee is unable to approve a draft Employment Regulation Order. The Committee also notes the Government's reply and the comments made on this subject by the Irish Congress of Trade Unions. The Government indicates, in this connection, that the comments made by the above two organisations will be taken into account in a more general reform of the industrial relations system, that the Minister for Labour has undertaken appropriate discussions with the two organisations concerning the proposed reforms and that he hopes to put forward proposals on the reform of the industrial relations system in the near future which also include certain changes in the operation of the system of Joint Labour Committees.

The Committee requests the Government to keep it informed of any development in this respect.