Oireachtas Joint and Select Committees
Wednesday, 29 June 2022
Joint Committee on Tourism, Culture, Arts, Sport And Media
Working Conditions and Skills Shortages in Tourism and Hospitality Sector: Discussion (Resumed)
Ms Fiona Dunne:
In regard to the right to join a union we would welcome any legislation which would give employers encouragement to ensure they recognise trade unions and that people can join trade unions. Collective bargaining and JLCs would help to change the culture. Union recognition is very important.
In terms of staff shortages and the increase in wages, it would be imagined, given the neoliberal view of economics and ideas of equilibrium, supply and demand, that wages would go up. That is not the case. We have seen in the first quarter that wage increases have not happened. They are still trailing the living wage and will continue to trail that because the living wage is going up in July, so there will be a bigger gap between what they are earning and the living wage, plus there is 8% inflation. They are just going to fall further into debt and further away from a proper wage. It is important that, in terms of what the Government is doing about the living wage next year, we would expect it to do something quicker. We would expect the Government to do it over a shorter period of time and look at 66% of the median wage rather than 60%, which what it is at the moment. Those are my points regarding wages.
On knowledge of unions, I agree with what Mr. Kelly said about a campaign. Also, if we are targeting students and targeting people to go into the sector for proper careers, when people go in on apprenticeships, why is the union not allowed to talk to the students about their rights as part of their college course? Dr. Curran mentioned this in terms of subjects that could be included. We do not do employment rights per se in school, and we do not necessarily do it in college either. There is a place for that because we see increasingly across different sectors that workers are not getting their rights because they are unaware of them. That would be useful.
On the specific question asked about removing the lower VAT rate and everything else, the most important thing is that, if the Government gives money to a company or support to an organisation or a sector, it comes with conditions that workers should be properly paid, should have decent terms and conditions, and should have a proper career progression. It should not just be handed to the sector to do with it what it wants. There should be conditions. We see it not just in this sector around VAT but also in public procurement constantly where contracts are given to all kinds of contractors in all areas of work who do not treat their staff correctly, even though they are public contracts and public works. That could easily be tightened up. There should be very strong conditions attached to any public money we give to contractors.
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