Republic of Ireland: Registered Employment Agreement for the Electrical Contracting Industry - Labour Court rejects applications to vary or cancel the Agreement

Written by Ian Congreave - Filed under: Labour Court on March 23rd, 2009

Between 12 January and 4 February, the Labour Court heard evidence in connection with two applications that would affect the operation of the Registered Employment Agreement (REA) for the Electrical Contracting Industry.

Employers and workers in any sector or enterprise can agree minimum rates of pay and conditions of employment and can then have that agreement registered with the Labour Court. When registered with the Court, these agreements are legally binding, not only on the parties to the agreement but also on others who are in the class, type or group to which the agreements are expressed to apply.

The current REA for the Electrical Contracting Industry was last varied from 1 April 2007 and, as well as requiring electricians to be paid at least €20.74 per hour, sets out provisions relating, among others, to standard working hours, payments for country work (where travel to the job exceeds a certain distance) and travelling time, annual leave, sick pay, and the provision of pension and death benefits.

The application to vary the REA came from the Technical Engineering and Electrical Union, one of the parties to the current agreement, but it was opposed by the other parties. The Labour Court dismissed the application without discussion as it did not have the support of the employer bodies that are party to the Agreement.

The application to cancel the REA altogether was made by the National Electrical Contractors of Ireland and by an unaligned body of over 500 electrical contractors, neither of which are party to the REA but are nevertheless subject to it. They provided extensive evidence that the payments and benefits required by the current REA made it impossible for small electrical contractors to compete and should, therefore, be cancelled. The Industrial Relations Act 1946 allows for an REA to be cancelled if the Labour Court is satisfied that “there has been such substantial change in the circumstances of the trade or business to which it relates since the registration of the agreement that it is undesirable to maintain registration”.

Having heard evidence from the bodies applying for cancellation, from the parties to the agreement that opposed it, and from expert witnesses, the Labour Court concluded that,

while accepting that “small firms operating in the domestic and related segments of the sector have particular difficulties in meeting the terms of the REA, the cancellation of the registration of the agreement on that account alone would be a disproportionate response” and
“having regard to all the circumstances of this case, the Court has come to the view that the changes in the electrical contracting industry since the registration of the REA have not made it undesirable to maintain its registration.

Accordingly, the Court declined to cancel the registration of the Agreement. However, it made a number of recommendations, including

the resumption of negotiations on rates of pay
an urgent review of the terms of the REA, with disagreements referred to the Court for investigation and recommendation
clarification of the precise circumstances in which travel and subsistence payments fall due
the affording of representational rights to any body that is not party to the agreement but which is representative of employer interest in the sector
clarifying the obligation to provide pension, life assurance and sick pay cover at a defined level but leaving employers free to obtain that cover from any source of their choosing.

Further information:
Electrical Contracting Industry Employment Agreement
Labour Court Determination REP091

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Written by Ian Congreave -

Filed under: Labour Court on March 23rd, 2009