Written answers

Tuesday, 28 June 2011

Department of Enterprise, Trade and Innovation

Industrial Relations

8:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 222: To ask the Minister for Jobs; Enterprise and Innovation the dialogue he has had with the trade union movement in relation to the proposed changes to the joint labour committees. [16160/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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On 24 May last, the Government decided to publish the Report of the Independent Review of Employment Regulation Orders and Registered Employment Agreement Wage Setting Mechanisms.

The Report's overall finding is that the basic framework of the current JLC/REA regulatory system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions.

To coincide with the publication of the report, I immediately requested a meeting with the Irish Congress of Trade Unions to hear that organisation's views on the Report and to outline my proposals to address the report's recommendations and other issues raised in the report. That meeting took place on 1st June. It afforded me an opportunity to hear the views of the Congress regarding the particular circumstances of workers in the sectors affected by the current regulatory framework and the practical issues affecting the implementation of reform in these wage-setting mechanisms.

I also held discussions with the Construction Industry Federation, IBEC and other employer interests in the sectors covered by statutory wage fixing mechanisms. In accordance with the terms of the EU/IMF programme, discussions have also taken place with representatives of the troika.

These discussions afforded me the opportunity to hear at first hand the views of the main representative bodies of trade unions and employers on how a meaningful and overdue reform might be implemented in these wage-setting mechanisms, which affect key sectors of our economy, in order to protect existing jobs and encourage employment growth.

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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Question 223: To ask the Minister for Jobs; Enterprise and Innovation if he will confirm that any changes contemplated in relation to the joint labour committee system which has served this country since 1946 will in no way detrimentally effect the pay and conditions of employment of the circa 200,000 employees currently covered by the employment regulation order. [17358/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The overall finding of the Report of the Review of Employment Regulations Orders and Registered Employment Agreement Wage Setting Mechanisms was that the basic framework of the current ERO/REA regulatory system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions.

The Report does not recommend, nor have I proposed, specific adjustments in wage rates and other conditions of employment for employees covered by EROs/REAs.

Workers are protected by contracts of employment and proposed reform of the wage setting mechanisms would not if implemented, change the terms of those individual contracts. What is proposed would have the effect of changing how pay and conditions are set in order to make the operation of the machinery more flexible and prevent businesses being left behind by changing economic circumstances. Existing employees would not have their current entitlement affected by future changes to EROs unless (a) it is already stipulated in their contract of employment that they be paid at the prevailing rate of pay and conditions set by the relevant ERO or (b) the application of alternative provisions to those specified in the ERO is agreed between the employer and the employee or the employee's representatives.

The Government is determined to proceed with urgency to a substantial reform of the current JLC / REA regulatory system in order to protect existing jobs in these vulnerable sectors of the economy and to increase the likelihood of employment in these sectors being increased. This will restore competitiveness in key sectors of the economy, including the hospitality sector which is crucial to our tourism product offering, and complement the restoration of the recent cut to the National Minimum Wage thereby providing an adequate floor for lower paid workers.

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