Oireachtas Joint and Select Committees

Tuesday, 18 November 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

General Scheme of Industrial Relations (Amendment) Bill 2014: Discussion (Resumed)

2:15 pm

Ms Maeve McElwee:

Regarding the question of representation posed on head 18, the matter of "substantially representative of any particular group" is always considerable. Looking at it from the point of view of how it could be defined, rather than what would actually constitute substantial representation, is one of the issues. We suggest there should be a standard mechanism by which "substantially representative" can be measured and verified. Defining "substantially representative" comes first, being conscious that we are looking across all sectors and industries where a registered employment order in particular, or a registered employment agreement, might be in place. It does not necessarily need to define what exactly "substantially representative" is within each sector and industry. The Labour Court, having received a standardised set of information, could probably take a view as to the representativeness of any particular party to an application for an registered employment order. There will always be fluctuations and differences in the level of representation in any individual sector and it might be impossible to capture one way or the other. A very low number might actually be representative in some circumstances.

The other question posed was on labour costs. I do not have a specific model that should be in place and that we could necessarily use, but at a very basic level we should be cognisant of the wages that are being paid in our nearest competitor markets, as should the Labour Court in its principles and policies.

When contracting in and out of Ireland and Northern Ireland, for instance, those contracting rates will necessarily apply. Other sectors and industries will have a problem with labour costs potentially rising where in some instances there is a business across the road that will not be subject to the same inflation in labour costs because it will not be subject to a registered employment order. The court needs to have taken into account where the sector is operating and its direct competitor market. It may be a case in retail or in the hospitality industry, in pubs, restaurants and clubs.

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