Dáil debates

Tuesday, 15 April 2014

Other Questions

Employment Rights Issues

3:45 pm

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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108. To ask the Minister for Jobs, Enterprise and Innovation when stakeholder discussions on collective bargaining are expected to conclude; if he will reform the current law on employees' right to engage in collective bargaining in 2014; and if he will make a statement on the matter. [17417/14]

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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The question refers to a programme for Government commitment which has still not been implemented after three years. Does the Minister plan to reform the law on collective bargaining before the end of 2014?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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It has been the consistent policy of successive Irish Governments to promote collective bargaining through the laws of this country and through the development of an institutional framework supportive of a voluntary system of industrial relations that is premised upon freedom of contract and freedom of association. An extensive range of statutory provisions have been put in place designed to provide the legislative support for such a framework. By its nature, such a framework evolves in response to changing social, economic and legal circumstances.

The programme for Government contained a commitment to "reform the current law on employees' rights to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001, so as to ensure compliance by the State with recent judgments of the European Court of Human Rights". Both the Industrial Relations Act 2001 and its associated Act of 2004 were enacted to provide a mechanism by which the fairness of the employment conditions of workers in their totality could be assessed and to provide protection for employees initiating action in this regard. However, the 2007 decision of the Supreme Court in Ryanair v. the Labour Court cast doubt on the functionality of the Acts and had a chilling effect on their usage.

In addition, following the publication of the programme, the ILO Committee on Freedom of Association issued its report in response to a complaint referred to it by ICTU and IMPACT, arising from the Ryanair Supreme Court judgment. As part of my response to the ILO, I indicated that these matters would be addressed in the context of a review of the operation of the Acts. Acting on the commitment in the programme has required consultation with stakeholders, including employer and worker representatives in the context of their experience of the operation of the existing legislative framework. In late 2012, I requested key stakeholders to make submissions on the matter. Over the course of the last year several comprehensive submissions and presentations have been received from a range of interested parties, ranging from trade union representatives, employer representatives, State bodies and others. These submissions contained a range of often conflicting but rationally espoused positions submitted constructively in response to my invitation.

Further engagement between my officials and stakeholders is currently underway, with a view to developing proposals to bring to the Cabinet shortly. I hope to be in a position to bring forward legislative proposals in the very near future.

3:55 pm

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Ireland is probably the dearest little country in which to live and survive. Given that there has been a huge increase in what can only be described as precarious work, the great majority of the new jobs created in the last couple of years have been low paid and many of them are temporary as well, with very poor working conditions in many cases. It has reached a stage where the worker does not have as many protections as he used to have. Given the fact that the unions sold out a while ago, there is nobody to represent the workers now. It would be good if the Government would take the side of the workers and introduce extra protections for them when they are in difficult circumstances with their employers.

The bargaining position of the worker has never been as weak with the employer, due to the scarcity of work. Does the Minister not think that the State itself should be taking more proactive measures to protect the workers?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I agree with the Deputy. We have done a number of things to try to protect workers. We increased the minimum wage, which was one of the first steps taken when we returned to office. The courts struck down the Joint Labour Committees and Registered Employment Agreements, but we have already passed legislation on JLCs and we will be reinstating the REAs. We also introduced agency worker legislation based on EU provisions.

It is not true that most of the jobs are precarious and low paid. The reality is that the recovery is now broad based. The Deputy's colleague, Deputy Finian McGrath, complained earlier that all the jobs were for high flyers and that there were no jobs at modest levels.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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He is a high flyer himself.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The truth is that there is a spread of employment opportunities.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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I will look after the unemployed of Dublin Bay North.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Please.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Employment has expanded across all occupations at skilled, unskilled and highly skilled levels. There is a balanced recovery underway.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Perhaps I do not have well-off friends like Deputy McGrath but for a large number of workers in the low-paid sector it has reached a point where people with jobs are suffering deprivation. The Minister states that the Government increased the minimum wage, and it was good that this happened, but the minimum wage is too low for people to have a decent standard of living in this dear country. Some interesting research carried out in America showed that the low wages paid by the likes of McDonalds and Walmart have led to the taxpayer subsidising their wages indirectly in order for them to survive. If we carried out the same research here, would we find that the State is supplementing low wages that the private sector to some of these workers?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As I have already indicated, we did restore the minimum wage. People employed on a full-time basis on the minimum wage have substantially more than they get on the live register. As I said to Deputy Broughan, 90% of those obtaining employment now are in full-time positions. We are seeking to ensure that vulnerable workers will be protected by the restoration of REAs and JLCs, which were the traditional mechanisms for protecting workers. We will be reinstating those legislative provisions with a view to protecting those who would be vulnerable.

The payment of family income supplement has long been recognised as a justifiable intervention because it recognises that large families need additional support. Such payments are a good and progressive measure.