Dominic Hannigan (Meath East, Labour)

In the programme for Government the Labour Party and its coalition partners agreed to reform the JLCs. We are committed to pushing forward with such reform, which is an agreed part of the original and revised memorandum of understanding. However, we do not believe it should go hand and hand with a loosening of workers' rights. Some 150,000 workers across the economy, predominantly in vulnerable sectors which are traditionally characterised by low pay and poor terms and conditions, are covered by JLCs and registered employment agreements.

Since the publication of the Duffy-Walsh report, the issue of the reform of these agreements has been raised on many doorsteps in my constituency when I have called to canvass opinions. No other issue of reform has been raised so often with me since the formation of the Government. It seems to be the key issue about which people are concerned. I have spoken to many people about this matter, including a bus driver in Ashbourne who is concerned about the impact the removal of Sunday working premiums would have on his ability to pay his mortgage. I have met retail workers who are worried about the impact of such cuts on their ability to put food on their families' tables. People like them can tell the real story when it comes to employment wage setting agreements.

When we talk about reforms, we have to make sure they are balanced and fair. We have to examine the facts. The Duffy-Walsh report concluded that reductions in basic JLC rates would have very little impact on employment. It also concluded that the effect would be "insignificant". In 2010 the World Economic Forum stated labour costs were not an issue as regards the competitiveness of the economy. From the perspective of competitiveness, people are much more concerned about the country's basic infrastructure and its macroeconomic stability. It is not because of Sunday premiums that we are uncompetitive. Sunday premiums do not have an effect. We have seen no compelling evidence from any sector of society that suggests the removal of Sunday pay structures would benefit the economy.

The JLCs were first put in place in the 1940s, when there was less regulation and legislation in place to protect employees. They have played a good and a necessary part in employment law since. However, times change. It is important that we continue to review and update our legislation to ensure it is fit for purpose and reflects the needs of today rather than those of the past. In that respect, none of us has a problem with reforming JLCs or updating legislation to ensure it is fair and equitable. The Government is actively pursuing the rates of pay in this and other areas.

I would like to return to something Deputy Tóibín mentioned. The Minister for Public Expenditure and Reform, Deputy Howlin, announced earlier today that the amount of money paid to top public servants and semi-State executives was to be reformed. The Government announced recently that it intended to hold a referendum to seek to reduce judges' pay by €50,000. Rather than targeting one sector, we need to ensure fair cuts are made across society. As I said, there is no compelling evidence to suggest cuts in the Sunday premiums provided for by the JLCs would benefit anybody. I urge the Minister to bear this in mind when he reviews the JLCs.

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