The appellants (A) were electrical contractors who brought proceedings on the basis that wage rates for electricians in the industry were being enforced by the Labour Court, without prior negotiations between the parties.

The Irish Supreme Court ruled that the system for governing terms and conditions of employment in the electrical industry and other industries is unconstitutional. Industrywide collective agreements are much more recognized practice in Ireland in comparison to the UK. There are two primary systems in operation in Ireland at present- the Joint Labour Committee system, ruled unconstitutional by the High Court in 2011 and the Registered Employment Agreements, ruled unconstitutional in the Supreme Court.

The Irish Supreme Court ruled that the REAs, formed under Part III of the Industrial Relations Act 1946, are unconstitutional as only the Oireachtas (Irish Parliament) can make legislation. The Oireachtas does not have the authority to delegate such power to the Labour Court. Under the 1946 Act two instruments can be utilised to make a general sectorial agreement regarding the terms and conditions of employment in a specified industry /part of an industry. Such agreements may become legally enforceable both in civil and criminal law.

The Irish Supreme Court held in this instance that the powers given to parties within the industry were disproportionate and unconstitutional. The Court held Part III enables parties who are subject to an employment agreement to pass laws regarded by the Labour Court to be representative of employees in that sector and not excessively restrictive of employment. The said laws should not provide for costly methods of work and should adhere to the conditions stipulated by section 27. No guidance has been issued to direct the Labour Court as to how the matters of representativity or restriction on employment or inefficiency or costly methods of work should be assessed. An agreement which becomes binding on non-parties under section 30 of the Act may be deemed legislation. Pursuant to Article 15, matters of legislation are solely and exclusively reserved for the Oireachtas. The Court ruled that the restrictions enforced by section 27(3)(d) were insufficient to bring the powers within the constitution. http://www.supremecourt.ie/Judgments.nsf/1b0757edc371032e802572ea0061450e/9e87bb45cbae60 3380257b660046de2e?OpenDocument