Congress Delegation to Warn Minister of Job Losses from Dismantling JLC/REA System
1 Jun 2011
Congress warned today (June 1) that dismantling the JLC/ REA regulatory system could lead to job losses and damage growth prospects.
Speaking ahead of a meeting with Enterprise Minister Richard Bruton, Congress General Secretary David Begg said they wanted to know if the Minister intended to depart from the recommendations made in a recent independent review of the JLC/REA system.
The independent review concluded that the system should be retained and warned that cutting the wages of low paid workers could have negative economic consequences.
"This is extremely pertinent in light of today's figures showing that unemployment is at a new high of 14.8%," Mr Begg said.
"It was claimed that dismantling the JLC/ REA system would open the floodgates to job creation. The independent review found otherwise. It was claimed that lowering pay would create jobs - again the review concluded otherwise.
"But the review did warn that cutting the wages of low paid workers could have negative consequences for the economy. With demand already down 25% in the last three years that is a path we cannot afford to go down."
The Congress delegation - to be headed by General Secretary David Begg - is to meet with Minister Bruton as part of a negotiations' process agreed following publication of the independent review.
"The review body received some 360 submissions and over 90% of those came from business lobby groups or the business community. So they made their case and that case was found to be wanting," Mr Begg said.
"In that context, if recent comments are to be believed, it would seem strange that the Minister would overlook the evidence and take action that could cost jobs. Given the latest rise in unemployment it would seem obvious that Government attention should be on securing jobs, not driving people onto the dole," he concluded.
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