Congress Slams Wage Cut Calls from 'non-Compliant' Restaurant Sector

13 Apr 2010

Congress today (April 13) said restaurant employer calls for wage cuts were hypocritical, given the sector has the worst record on labour law compliance.

"Repeated investigations by the National Employment Rights Authority (NERA) have found workers in the sector receiving as little €3 and €5 per hour," said Congress official Peter Rigney.

"In 2009, NERA recovered €737,000 in unpaid wages from almost 450 employers. The sector as a whole has a compliance rate of just 21 percent - the lowest in the entire economy. And these wholesale breaches were uncovered after an intensive awareness campaign was conducted across the sector.

"The Restaurant Association of Ireland (RAI) would be better served addressing the sector's problems with compliance than trying to cut peoples' wages. And they should be aware of the legal maxim: 'he who comes to equity must come with clean hands'." Mr Rigney said.

"The sector's problems do not stem from excessive wage costs, but from the fact that Government is sucking money and demand out of the economy through a policy of deflation. When peoples' incomes are cut, discretionary spending - such as eating out - is hit first.

"By supporting the income cutting agenda, the RAI is actually supporting a policy that will just worsen the situation for its members," Mr Rigney concluded.

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