93% of Restaurants surveyed have passed on the VAT reduction

This week the Restaurants Association of Ireland, the representative body for Restaurants in Ireland conducted a member’s survey regarding the effect of the abolishment of the Joint Labour Committees on July 7^th this year. The survey of 148 Restaurants nationally also focused on the % of Restaurants who have passed on the VAT reduction.
Results from survey prove that Catering Employment Regulation Orders imposed by Joint Labour Committees were creating a barrier to employment.

• 61.5% of members surveyed have taken on more staff in the last 2 months since the Abolishing of the Joint Labour Committee Employment Regulation Order on the 7th July this year.
• The total number of jobs created 490. (270 jobs in individual restaurants and 150 jobs in McDonalds plus 70 in Eddie Rockets).
• 60.9% said that the Abolishing of the Joint Labour Committee Employment Regulation Order was factor in hiring new staff.
• 92.5% said that  Government proposals to re-establish the Joint Labour Committees in the Autumn would affect the employment potential of their business
• 93.9% have passed on the VAT reduction.
• 55.2% of restaurants surveyed saw a decrease of 6.7% in turnover in the last 8 months compared to 2010.
• 44.8% have seen their business increase in turnover in the last 8 months compared to 2010.
• The  top two issues effecting  restaurants were wages costs (81.8%) and local authority charges (60.1%)

Job Budget

Adrian Cummins, Chief Executive of the Restaurants Association of Ireland said the “positive measures in the jobs initiative and the decisive way in which the government has moved to support the tourism sector, boost confidence is getting people back to work.”

Re-establishment of Joint Labour Committee Employment Regulation Order is anti – job creation.

Adrian Cummins also said “The major factor in the last 2 months for job creation is the abolishing of the Joint Labour Committees Employment Regulation Order. Any attempts to re-establish these anti-business , anti-employer and anti-job creation mechanisms with grind the recovery to the Hospitality Sector.

The High Court ruling on July 7th effectively scrapped the  Employment Regulation Orders set by the Joint Labour Committees.

The JLC system makes absolutely no sense for our country as we try to work our way out of the depths of an economic crisis. The economic situation in Ireland has changed dramatically but the JLC system has not taken this into account in any way.  It forced restaurants, which are struggling to survive and in many cases operating at loss, to pay a premium over and above the national minimum wage.

Ireland has the 3^rd Highest Minimum wage rate in Europe and any attempt to resurrect the Joint Labour Committees will bring us to top of the class in the most expensive countries in the EU to create a job.

The JLC system has contributed to jobs being lost in the Restaurant Sector over the past 3 years and a reduction in hours worked by those who have held their jobs. The system should be abolished in its entirety.”

The Irish Restaurant industry employs 64,000 people (1 in 4 tourism jobs) and contributes €2 billion to the Irish economy each year.

• Irish restaurateurs pay the  highest catering wage rate in Europe
• Ireland has the highest excise duty on wines in Europe
• Irish food cost inputs are 24% above the European average.
  (source ‘Cost Of Food Preparation Report’, commissioned by Fáilte Ireland)

The Joint Labour Committee system was established under the Industrial Relations Act 1946, but has its origins in the Trade Board Act 1909.  On the 7^th July