Billy Kelleher (Cork North Central, Fianna Fail)

Employment regulation orders are made by the Labour Court on foot of proposals from joint labour committees. JLCs are statutory bodies, established by the Labour Court under the Industrial Relations Acts 1946 to 2004, to provide machinery for the fixing of statutory minimum rates of pay and conditions of employment in particular sectors. JLCs operate in sectors where collective bargaining is not well established and wages tend to be low.

A joint labour committee is composed of equal numbers of representatives of employers and workers in the sector and they meet regularly, under an independent chairman, to discuss and agree terms and conditions to apply to specified grades or categories of workers in the sector. When it reaches agreement on terms and conditions, the JLC publishes details and invites submissions. Following consideration of any submissions, the committee may make proposals to the Labour Court for making an ERO. The making of an ERO has the effect of making the pay rates and conditions contained in it legally enforceable. The terms and conditions set down in the EROs are a matter for agreement by the joint labour committees and I do not propose to amend the legislation to change this.

In the context of the recent review and transitional agreement 2008-09, the social partners agreed to a series of further measures to support the JLC system. These will include the introduction of legislation to strengthen the existing system for the making of both employment regulation orders and registered employment agreements to provide for their continued effective operation; and measures to provide for improved operational procedures to include the nomination of chairmen for JLCs, following consultation with the social partners, for a fixed term of office and the continued enhancement of expertise and competencies through the practice of nominating chairmen on the basis of their experience and qualifications for the role.

I am conscious of the difficulties that many firms operating in sectors covered by EROs are experiencing at the moment. In recent months I have met representatives of employer organisations and heard at first hand of the difficulties with regard to wage costs. I have consistently advised employers to make their concerns known through their representatives at the social partnership table and to pursue the issues actively through the established mechanism of the relevant joint labour committee. In my view, the parties represented on the JLC are best placed to address the impact of the economic crisis on employment levels and the viability of services in the relevant sector.

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