Three creche operators have initiated judicial review proceedings which could undermine the system established to set minimum pay levels across the entire sector.
The case taken by the owners of Mary Geary’s Childcare in Cork; Kidology, which runs three facilities – Dunboyne, Mulhuddart and Castleknock; and Faylinn, in Gorey, is listed for a preliminary hearing on February 23rd.
Before that, the group is holding three “town hall” meetings in Dublin, Galway and Cork next week with the hope of attracting support from other operators.
In a social-media message announcing the proceedings and meetings, the group claims “Irish childcare is at a crossroads” and asks others in the sector whether they are “going to stand by and allow your business and lifetime of work be taken from you?”
They say the meetings will provide operators with “a clear understanding of how Government policy is being delivered in plain sight – and what it means for your service now and into the future”.
“Challenging policy is costly,” they say, before adding: “doing nothing will cost far more”.
“This is about fairness, transparency, accountability and protecting the commercial reality for the whole sector.”
The group says it is seeking two judicial reviews of the 2025 Employment Regulation Order (ERO).
This came into effect in mid-October after a protracted process involving representatives of both employers and the more than 30,000 staff in the sector.
It set the minimum rate of pay for entry-grade staff aged 20 or over at €15 per hour, with higher minimum rates set for more qualified staff and managers.
If the group is successful, it would mean the increases to the minimum rates would not be binding on operators.
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A portion of Government funding is currently contingent on the agreement of the rates in the EROs which are agreed on an annual basis.
Talks on the 2026 ERO are scheduled to start this month with €45 million in public money earmarked to help employers fund any increases once they are agreed.
One of the owners behind the legal action, Conor Ryan of Faylinn, had previously been a member of the Ibec delegation during the ERO process.
None of the owners involved responded to attempts by The Irish Times to contact them.
In response to questions, the Department of Children said it had been made aware of the providers’ intention to seek the judicial review but had not had any confirmation that formal proceedings had been lodged.
“The Joint Labour Committee [which formulated the ERO] is independent in its functions, and neither the Minister nor the department have a statutory role in its processes.
“In any event, the department does not and would not comment on legal proceedings within the department or external to it.”
It confirmed all of the services operated by the firms involved in the judicial review had been part of the core funding scheme previously and had received a little over €1 million between them in 2022-2023. Most of the services had since left the scheme and the two remaining are set to receive about €325,000 this year.
Other prominent figures in the sector said they were aware of the move but had little or no detail of the specifics involved. There was some uncertainty expressed regarding how minimum wages might be set in the absence of an annual ERO along with concern regarding the €45 million if this year’s ERO is not agreed.
One operator suggested that while public funding is regarded as vital to the sector, there is frustration over the way in which it is administered and the administrative burden it places on managements, especially at smaller, independent services.
Darragh O’Connor of Siptu said, however, the pay deal “underpins €480 million of State funding intended to reduce fees for parents and improve pay for educators. A successful challenge could pull this system with devastating consequences for educators, parents and providers.”
There is widespread agreement that wages are a major issue in the sector which continues to experience huge staff shortages.
Government funding has helped provide for pay increases in recent years and many operators say they pay significantly above the minimum rates.
The entry-level pay for an early educator aged at least 20, however, is just 85 cent above the national minimum wage of €14.15 despite the qualifications required and high level of responsibility involved in the work.