Friday, A HIGH Court decision upholding a challenge by fast food operators to an order setting minimum pay and conditions for catering workers outside Dublin has serious implications for the pay and conditions of about 200,000 low-paid workers.

Mr Justice Kevin Feeney yesterday declared unconstitutional laws under which minimum pay and conditions are set under Employment Regulation Orders (ERO) proposed by Joint Labour Committee’s (JLCs) for approval by the Labour Court.

Mr Justice Feeney granted declarations that the relevant provisions of the 1946 and 1990 Industrial Relations Acts were unconstitutional, after finding they delegate “excessive” law-making powers concerning pay and conditions to JLCs and the Labour Court without stating any policies or principles to guide those powers.

This delegation of power amounted to an unconstitutional transfer of power as the acts allowed the Labour Court to be “at large” in making laws which can be enforced by criminal sanction, he ruled.

Given his findings, he declared an ERO made by the Labour Court in May 2008 fixing minimum pay and conditions for catering workers outside Dublin and Dun Laoghaire was an unlawful interference with the property rights of John Grace Fried Chicken Ltd, Cook Street, Cork, and its operator, John Grace.

The judge also ruled that the property rights of the Grace plaintiffs had been unlawfully breached because the ERO required them to pay wage rates and conditions that had been determined in an arbitrary and unfair manner.

The May 2008 ERO allowed for different rates of pay and conditions to apply to fast food operators outside Dublin and Dun Laoghaire, and also allowed pay and conditions in excess of the National Minimum Wage Act, he said.

That ERO was made in an arbitrary manner as different rates were set out for adjoining geographical areas with no identifiable basis for such discrimination.

He adjourned to July 26 the issue of damages for the Grace plaintiffs related to the May 2008 ERO, which was rescinded in 2009 and replaced by another ERO which was not challenged.

A number of prosecutions of fast food operators over alleged failure to implement the 2008 ERO — which increased the previous minimum wage rates for catering workers and also dealt with holidays, Sunday work and overtime — have been stayed pending the outcome of the case.

John Grace Fried Chicken Ltd; John Grace and the Quick Service Food Alliance (QSFA) Ltd, also of Cook Street, Cork — which represents the interests of owners of fast food restaurants including Subway, Abrakebabra, Supermac’s and Burger King — had brought the proceedings against the Catering JLC, the Labour Court and the state.

The operators complained that the JLC system allowed for the setting of wage rates higher than the national minimum wage, Sunday pay rates higher than those set under the Organisation of Working Time Act and more favourable working conditions.

While the action related to catering workers, its outcome has implications for all workers whose minimum pay and conditions are set under the JLC system.

This appeared in the printed version of the Irish Examiner Friday, July 08, 2011 By Vivion Kilfeather