Thursday, 5th February 2015: The Irish Hotels Federation (IHF) today criticised the Joint Labour Committee (JLC) system as an outdated mechanism that introduces counterproductive inefficiencies and rigidities into the Irish labour market. It stated that its reintroduction would jeopardise job creation by imposing additional costs on the sector at a time when payroll is already the largest element of costs for hotels, accounting for over 40% of turnover (one of the highest levels in Europe).

 

IHF President Stephen McNally states that JLCs imposed additional, needless layers of bureaucracy at the expense of employment creation. They have lost all relevance since the introduction of the National Minimum Wage Act, which has provided Ireland with one of the highest gross minimum wage rates in Europe and goes hand in hand with over 40 other separate pieces of extensive employment legislation including the Working Time Directive. 

 

“JLCs were found to be unconstitutional in 2011 for good reason and should have been consigned to history at that stage,” says Mr McNally. “Since 2011, tourism businesses have seen a significant reduction in red-tape and bureaucracy – and this has enabled our members to take on new staff with over 23,000 new jobs being created in food and accommodation businesses.”

 

-ENDS-

 

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