Martin Ferris (Kerry North-West Limerick, Sinn Fein)

I welcome this Bill and the Government indication of support in so far as it represents at least some attempt to address the issues arising from the High Court judgment. That contrasts with the response of the Taoiseach last week when he said there would be no appeal by the State to the judgment. As things stand, the way is open for employers to disregard wage agreements and orders that have been put in place and to commence hiring people at the minimum wage. Action is needed to protect the wages and conditions of the tens of thousands of mainly low-paid workers affected by the judgment. The best way to do that is through legislation and in that regard the Bill that was put forward by my party to amend the Industrial Relations Acts represents the best means to ensure existing protections are given statutory affect.

The Bill we propose was put forward by the last Government and had the support of the trade union movement and the Labour Party. Given cross-party support, it would serve as an immediate response in the interim to address the situation created by the High Court judgment. What we are proposing has the support of the union that represents many of the workers affected by the High Court judgment. It is simple; the Bill should be brought forward, debated and measures introduced to address the issues that have arisen from the court judgments. The Fianna Fáil proposals offer a similar opportunity but this needs to be acted upon immediately. Given the House will not sit after Thursday that will not happen unless other less urgent business is set aside and legislation is passed before then to address the legal issues arising from the High Court judgment.

It is interesting to look back on the circumstances in which the Industrial Relations (Amendment) Bill 2009 was let fall by the wayside by the Fianna Fáil Government, especially in the context of the Bill proposed by the party tonight. The initial text of the Bill had trade union support but there were indications that the then Minister of State who was responsible for this area, Deputy Dara Calleary, intended to amend it to allow employers a derogation from wage agreements on the basis of the inability to pay. I drew attention to that during the debate on the Bill, pointing out that such a clause would undermine the system as it stood. Since then we have seen an attack on the JLCs and the established wages and conditions. That undermining of the JLCs, now underwritten by the High Court, had the support of the Fianna Fáil-Green Government and was subsequently backed by the EU-IMF memorandum of understanding, which called for a review of the system. It appears now that it is part of the Minister for Jobs, Enterprise and Innovation's plans.

There is considerable fear among low paid workers that the Minister's response will go beyond the Duffy report and will copperfasten the demands of the employers to take the ground from under the JLCs. It is important, therefore, if this Bill is acted upon, a similar opt out clause is not included. The onslaught on low paid workers is being excused as part of the measures designed to address the financial crisis that led to the EU-IMF intervention. How taking money from the pockets and purses of those who can least afford it will help to pay back an unsustainable debt has never been explained. Indeed, common sense would suggest that further depressing the wages of tens of thousands of workers will have a negative impact on the State revenues accrued through taxation and will destroy further jobs by reducing spending power, particularly among those who spend most of their income locally and which is directly responsible for the employment of large numbers of people in retail and other sectors.

It is also clear that some employers are using the current economic and financial crisis to undermine workers' wages and conditions across the board. The myth has been created that the mess we are in was in some way caused by low paid workers and workers in general. One example of the way in which some workers are being treated at present is the situation of former employees of Jane Norman, which operates over 20 stores and concessions in this country. On 27 June, Jane Norman Limited went into administration. The administrators, Zolfo Cooper, have kept some of the shops open but have failed to pay staff, who are owed money dating back to early May. Staff have been told they will have to retain money due to them, including holiday money, from the Government, when they are finally made redundant. The workers involved are in an impossible situation. They want to remain working as long as they can, but are being retained under unacceptable conditions to earn money through sales that will go to paying off creditors and from which they might get nothing. They cannot voluntarily leave their jobs because that would create difficulties with social welfare payments and would destroy their changes of redundancy.

That situation must be addressed legally to ensure any company that continues to trade under administration is obliged to pay first what is owed to the workforce. I met the workers in Tralee two weeks ago; some of them are from Deputy Griffin's constituency. They have worked since May for no pay. They were told by the company to pay themselves from the tills but if they do that they are guilty of fraud or a similar offences and could be brought before the courts. If they leave their jobs and try to get benefits, they will lose any chance of redundancy. They are in an impossible situation and they want to keep their jobs. The company, however, has said when the administrator has finished his work, they can claim their money from the administrator, as well as the statutory redundancy pay from the Government. That situation is untenable.

The Minister must intervene immediately to ensure former Jane Norman workers are paid what they are due prior to the administrator closing up shop for good and decamping with the proceeds made while the shops continued to operate. Government TDs must get the Minister to intervene in this issue immediately.

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