Dáil debates

Wednesday, 20 July 2011

 

Industrial Relations (Amendment) Bill 2011: Second Stage (Resumed)

8:00 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)

I commend Deputy O'Dea on his prompt response to the decision by the High Court to rule joint labour committee agreements as unconstitutional by bringing forward this Bill. It is particularly unfortunate, as we come into the last week of this Dáil session, that this decision has come upon us and it has made for a difficult scenario. I am disappointed that the Minister for Jobs, Enterprise and Innovation, in spite of his commitment to deal with this urgently following the ruling, has delayed it until the autumn.

The JLCs and employment agreements go back a long time, while it is more than 100 years since the minimum wage was first introduced in Britain and Ireland. The JLC structure came into place in 1946. It served a real purpose by offering protection to employees and ensuring those who have demands on them due to the nature of their work have fair and equitable employment conditions for the job they carry out. However, it has also served many employers well. We want to achieve a situation whereby the industrial relations structure of the State allows for employers to operate in a way which ensures they provide an efficient service to their customers, but which also ensures employees have good terms and conditions in order that they can have the quality of life that all citizens wish to achieve.

It is not surprising that a study published in the Industrial Relations News found that there was much less support for JLC agreements among employers than among employees, but it also found that there was significant support for those agreements among employers, with over one third of employers expressing a need for them. This is an acknowledgment of the fact that well-treated employees are important for any business. In the absence of such agreements, these employers want to ensure that in providing a business and a service to their customers, they are also providing a good standard of employment to their employees and are not undercut by other people who may be less scrupulous. This can lead to a race to the bottom.

A rational understanding of the merit of JLCs shows that we need to continue with this kind of system. However, we must also ensure the system is responsive and there have been issues with it over recent years. JLCs were in place in the building industry which led to inflated prices and costs for construction. As the squeeze came on that industry, many employers and employees found it difficult to come to new agreements which reflected the times in which we were living, even though many wanted to do so.

We have an opportunity to bring in a framework which ensures that employees are protected but which also works well for employers who have at heart the concern for employees. Unfortunately, the Minister's reluctance to move on this quickly will mean that over the next few months, new employees will be employed under conditions very different to those with existing conditions. Employees could be working side by side under very different terms. I urge the Minister of State to give this urgent consideration and I commend Deputy O'Dea on bringing the Bill before the House.

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