Richard Bruton (Dublin North Central, Fine Gael)

Existing employees are protected by their existing contracts of employment which would have to be renegotiated if there were to be any change. The changes would provide that a different regime could apply to new recruits. This offers flexibility. The report does not recommend - nor does the Government advocate - cutting JLC rates across the board or reducing them from their current levels to €8.65, the level to which the minimum wage is to be restored. That is the context within which they examined the impact, but that is not what is being proposed. They found that people working in JLC sectors, even with the same mix of education and experience, are not earning much more than in other sectors. Equally, however, they found that the systems in these sectors are hampering the ability to compete in areas where we need to create employment. We did not need a report like this to tell us that temporary retail workers, such as younger people and students who may have high qualifications, are not highly paid compared to where many of them may end up later. That finding is valid, but it does not invalidate the finding that these systems are undermining competitiveness and need to be reformed.

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