Dáil debates

Thursday, 9 June 2011

5:00 pm

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

I propose to take Questions Nos. 9, 15 to 18, inclusive, 23, 24, 31, 34, 35 and 40 together.

I have already dealt comprehensively with the issues raised in this series of questions in my earlier reply to the Priority Questions on the issue of the review of employment regulations orders and registered employment agreement wage setting mechanisms. However, I would like to reiterate the main issues. The report's overall finding is that the basic framework of the current JLC-REA regulatory system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions.

The report of the independent review does not recommend, nor have I proposed, specific adjustments in wage rates for the sectors covered by JLCs and REAs. Together with the decision to restore the national minimum wage to €8.65 per hour, the decision to reform the joint labour committee structure represents a significant commitment by the Government to the lowest paid and most vulnerable workers in the economy. However, we need to ensure that statutory wage fixing mechanisms work effectively and efficiently and that they do not have a negative impact on economic performance and employment levels.

Radical reform is required in order to protect existing jobs in these vulnerable sectors of the economy and to increase the likelihood of employment in these sectors and to restore competitiveness in key sectors of the economy, including the hospitality sector which is crucial to our tourism offering. I am anxious to pursue the agenda for radical overhaul of the ERO-REA system as a matter of urgency, including proposals dealt with in the report and other issues raised by the report. In this context, it is my intention to complete discussion with relevant stakeholders in the coming days with a view to submitting a final action plan for consideration by Government before the end of the month.

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