Oireachtas Joint and Select Committees

Tuesday, 7 October 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Forthcoming EPSCO Council: Minister of State

2:45 pm

Photo of Gerald NashGerald Nash (Louth, Labour)
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The insolvency piece is increasingly becoming familiar to us. Politicians were engaged in seeking a resolution of the dispute at the Paris Bakery, for example, which was very undignified for the workers caught up in that dreadful situation. Strictly, insolvency in that context is a matter for the Department of Social Protection. This is a very messy set of circumstances when it occurs; as it is happening more frequently, we need to be more vigilant. I agree that the issue merits further exploration and discussion.

The Deputy referred to the construction sector. The Government has acknowledged the difficulties associated with the collapse of the registered employment agreement, REA, system which has infected the construction industry, in particular, in which its implications have been evident. That is the reason we are reconstituting a registered employment agreement system which is of particular importance to the construction industry. We are working on legislation to reintroduce the system. I will be before the committee on 11 November to discuss the draft heads of the Bill in more detail. This issue is common ground for the trade union movement and the Construction Industry Federation. For very obvious reasons, the trade unions want to see a situation where skilled workers are adequately and appropriately rewarded for the jobs they do. That is my wish, too.

One of the key issues for the construction industry in terms of tendering is labour costs. The industry wants certainty on labour costs. Firms want to ensure that they are competing on a level playing pitch. Nobody wants to see firms undercut by rogue employers who are perhaps registered outside Ireland and coming in trying to undercut employers who are governed by very high standards and are subject to Irish law, as is any company operating here. The reconstitution of the registered employment agreements, REA, system is going to be critically important for construction workers to ensure they get the wages they are entitled to and that the wages and remuneration are commensurate with their skills.