Dáil debates

Thursday, 5 May 2011

2:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)

I propose to take Questions Nos. 1 and 3 together. The programme for Government contains commitments to reverse the cut in the national minimum wage and to reform the joint labour committees and registered employment agreements. We need to ensure statutory wage fixing mechanisms work effectively and efficiently and that they do not have a negative impact on economic performance and employment levels. Any such mechanism in a modern economy must be responsive and fit for purpose in the context of the challenges being faced by employer and employee alike.

An independent review of the statutory wage setting mechanisms was initiated on 8 February last and was undertaken jointly by Kevin Duffy, chairman of the Labour Court, acting in an ad hoc capacity, and Dr. Frank Walsh of the School of Economics, UCD, under specific terms of reference. The review is a commitment under the EU-IMF programme, which provided not only for agreement with the European Commission services on the terms of reference but also for follow-up discussions on the programme of actions arising.

The report of the independent review team has been completed and was received by me last Thursday, 28 April. I am currently examining the report and it will be published and made available to Members of the Oireachtas, following consideration by the Government. It is proposed to have early discussions with the European Commission services on the main findings of the review, in line with the provisions in the EU-IMF programme. Arising from these discussions, I will present a time-bound comprehensive action plan to follow up on the report's recommendations, setting out proposals for any legislative action that may be necessary to give effect to reform measures. Consultation with, and the co-operation of, relevant stakeholders will also be sought to ensure the required reforms can be progressed as a matter of urgency.

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