John Perry (Sligo-North Leitrim, Fine Gael)

I thank all the Deputies who have contributed to this debate. A number of important issues were raised, arising from the report of the independent review of our statutory wage setting mechanism. An agenda for a radical overhaul of the ERO and REA systems from my colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, includes proposals dealt with in the report and other issues raised by it. I am convinced that the implementation of the range of reforms the Minister set out in his outline proposals would mean that employers would benefit from having a stable, less restrictive and clear regulatory framework in this area. This is not an agenda for scrapping any protective measures, rather it is about bringing simplification and clarity to our statutory wage setting mechanism. The burden of compliance with detailed requirements established under the statutory instrument will be eased and this will apply in particular to the record-keeping requirements currently placed upon employers covered by EROs and REAs. We must ensure there are more jobs, that it pays to work and that we have a stable and proportionate regulatory framework which makes complying with the law simple.

I wish to address a number of points that arose during the course of this debate. Deputies Daly, Collins, Healy, McGrath, Ferris, Tóibín, Pringle, Higgins, Fleming, Sullivan and Flanagan claimed that the proposals constitute an attack on the low paid and most vulnerable workers in our society by reducing their wages. The report of the implementation review does not recommend specific adjustments in wage rates for the sectors covered by JLCs and REAs, nor are the actions outlined by the Minister designed to reduce the current rate of pay for anyone covered by a JLC, rather they are designed to ensure the labour market is working efficiently. Workers are protected by contracts of employment and, if these proposals are implemented, they would not change the terms of contracts. What is proposed would have the effect of changing the way pay and conditions are set in order to make the system more flexible and, more importantly, prevent businesses being left behind by the changing economic circumstances. There are 250,000 companies employing 700,000 people in the domestic economy. The changes do not propose to eliminate the Sunday premium. Instead, the provisions of the Organisation of Working Time Act would apply, which is essentially the law of the land that applies to all workers. Existing employees will continue to be entitled to enjoy the terms set down in the ERO and any variation is a matter between the employer and the worker concerned in the context of his or her contract of employment.

NERA inspectors will continue to have the power to ensure appropriate records are in place to prove employers compliance with the Organisation of Working Time Act. A number of Deputies also suggested that the proposed reform will open the floodgates for the exploitation of vulnerable workers. Let us be clear; Ireland's existing corpus of employment rights legislation provides a comprehensive and strong body of rights. The State supports the strong legislative foundation through the industrial relations and employment rights institutions that assist in the vindication of workers' rights and the resolution of disputes. Workers covered by JLCs and REAs will continue to enjoy the protection provided under this Bill and support is available through the dispute settling and adjudication and mechanism of the state. The role of NERA is to foster and enforce a national culture of employment rights compliance in the State. To this end, NERA undertakes a range of functions including information, inspection, prosecution and enforcement, and its primary objective where breaches of self-employment rates legislation are detected is to seek compliance and rectification of any breaches identified, including redress for the individuals concerned.

The Bill will protect existing jobs in the most vulnerable sectors of the economy and increase the likelihood of employment in those sectors. It will restore competitiveness, which is critical, in key sectors of the economy, including the hospitality sector which is crucial for our tourism product offering. This Government restored the minimum wage to €8.65. We have a relatively high national minimum wage which provides an adequate floor for lower paid workers. I commend the amendment to the motion to the House.

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