Minimum Wage War begins

Wednesday 23 February 2011

SIPTU have mounted pickets on The Davenport Hotel and the Mont Clare Hotel, off Dublin’s Merrion Square, as the worst predictions for the recently enacted Minimum Wage legislation have come to pass. When the legislation was being debated, the Minister for Finance, Brian Lenihan TD, gave assurances that existing employees on €8.65 an hour could not have their wages reduced without their consent. However, in Dublin’s city centre, the O’Callaghan Hotels Group has been trying to force its workers to agree to a reduction in their wages from the previous Minimum Wage of €8.65 per hour to a paltry €7.79 per hour – the alternative for these workers was to lose their jobs.

However, five brave workers have resisted this attack by the O’Callaghan Hotels Group – aided and abetted by the previous Fianna Fáil/Green Government. The five women, who work in the accommodation section, were approached by management to sign contracts which unilaterally reduced their rates of pay. When they refused they were taken off the roster and payroll and were issued with a letter giving them seven days to agree to the wage cut or be considered as having resigned.

SIPTU served strike notice on the hotel on 9 February over the hotel’s decision which it regards as an effective lockout and strike action commenced last Friday, 18 February. There have been further developments since, with O’Callaghan Hotels – owned by millionaire developer Noel O’Callaghan – getting an order from the High Court to make sure that only six picketers at a time, including the workers concerned and their trade union officials, can man the picket. This move is a clear attempt to break the strong public support for the workers.

While the Davenport Hotel dispute involves only five people it has implications for over 300,000 workers affected by the new National Minimum Wage legislation. It will be closely watched by employers up and down the country as a measure of how far they can go in cutting the wages of their workers, so what happens here will have an enormous effect on workers all over the country.