Three childcare operators behind a proposed legal challenge to the minimum-wage-setting mechanism in the sector have told other such firms they want to raise €250,000 to fund their judicial review.
But Together for Early Years, an alliance of stakeholders in the sector, has expressed “serious concerns” regarding the proposed court action.
The owners of Mary Geary’s Childcare in Cork; Kidology, which runs three facilities in Dunboyne, Mulhuddart and Castleknock; and Faylinn, in Gorey, Co Wexford, addressed a “town hall” meeting of about 50 other owners at a Dublin hotel on Tuesday evening. Further meetings in Galway and Cork are to be held this week.
They said they hoped individual business owners in the sector might provide donations of €500 to €20,000 to provide a fund to cover the legal costs involved in the challenge.
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If the court challenge is successful, it would have the effect of undermining the Labour Court-backed process of setting an Employment Regulation Order (ERO), a mechanism for establishing and improving minimum wages for a sector in which pay has generally been low.
The group behind the court action did not outline the legal basis on which the challenge was to be taken, but suggested it was rooted in what they believed were flaws in the process involved.
Many owners and sector organisations publicly support the goal of increased pay. The Government has provided substantial funds to support increases. This includes €45 million to be made available from September 1st. That money is dependent on the 2026 ERO process, due to start this month, producing a deal.
The process brings representatives of owners and employees together in the hope they can agree on terms. Last year’s ERO process resulted in increases of about 10 per cent, although the starting rate in the sector is €15 an hour, 85 cent higher than the national minimum wage.
Higher rates apply to those with degrees or other qualifications and to managers and higher grades.
Tuesday’s meeting was told the intention would not be to cut existing rates if the judicial review were successful, but that the ERO-set rates would not apply to new entrants to the sector.
A number of prominent owners in the sector have said they are unclear about how wages would be set if the ERO process were abolished.
There are about 35,000 people, mainly women, working in the sector, which suffers from high rates of staff shortages due to turnover and retention issues.
The move for a judicial review of the process by which the ERO is set is listed for an initial court hearing on February 23rd.
In a statement on Tuesday, Together for Early Years, an alliance of stakeholders in the sector, including Siptu, academics, community services and a number of NGOs, expressed “serious concerns” regarding the proposed court action.
“It has been long recognised by all stakeholders that, due to historic under funding, the pay and conditions of early years professionals do not reflect their qualifications, experience or their essential role in society,” the group said.
“Low levels of pay are the key driver of the ongoing recruitment and retention crisis that is impacting the sustainability of services and quality for children due to high levels of staff turnover.
“We call on all providers, educators and stakeholders to reject the request for support, including funding, of a judicial review.
“In our view, any action which undermines the ERO places state investment at risk, and is contrary to the interests of providers, educators, children, parents and families.”
The group of owners behind the proposed action was approached for comment.
