Nicky McFadden (Longford-Westmeath, Fine Gael)

I welcome the opportunity to speak on the Bill. In publishing the Bill, the Minister, Deputy Bruton, has recognised the urgent need for a fully reformed and modernised joint labour committee structure. Reform is needed to ensure that the system is constitutionally robust and representative of Ireland's economic situation. This need was made even more evident in the recent High Court judgment which struck down the employment regulation orders as invalid. The decision meant that the EROs made under that system could no longer be enforced and cases against employers for breaches would have to be dropped completely. This would leave employees in a very serious predicament as basic rights could not be protected under the Constitution. Constitutionality is a fundamental issue that had to be addressed urgently.

Registered employment agreements are supposed to provide protection for local contractors as well as for employees whose wages and conditions are set by the agreements. Minimum rates of pay and other conditions of employment for workers in sectors such as hotels and catering are laid down in employment regulation orders made by the Labour Court. These orders are determined by the proposals of the relevant JLCs. Employers are bound to pay rates and provide conditions of employment not less favourable than those prescribed in employment regulation orders.

In dealing with what is undoubtedly a complex and multifaceted issue, important aspects that must be tackled by the Minister include overtime, premium Sunday payments, the number of JLCs and the general function of the system as a whole. The main problem with the previous system was that there was no principle of guidance for JLCs in making wage-setting decisions. This Bill will allow joint labour committees to set a basic adult rate of pay and two higher rates. However, in rate-setting decisions important factors such as unemployment rates and competitiveness must be taken into account. Sunday premium rates will no longer be set by JLCs but will be governed by a statutory code of practice, to be prepared by a labour relations committee. These rates will be recognised, mainly through options set out in the Organisation of Working Time Act. Provisions of time in lieu are not included in these options.

Reformation of the current system is based on two primary objectives. The first is to help businesses survive in what are turbulent times; the second is to protect existing jobs and help create new ones. The commitment to reform the system was outlined in the programme for Government. The economic situation had a significant impact on the labour market, particularly in areas such as retail, hospitality and construction. The reality for employers is that labour costs account for a large part of costs. In the current environment it is vital to ensure that structures are flexible enough to adapt to changing conditions and reflect economic realities.

According to the latest statistics available from the Central Statistics Office there are approximately 33,000 people in the midlands on the live register. This Bill will open an opportunity for employers to create more positions within their companies, which will go some way towards reducing live register numbers. This Bill is an example of a forward-looking reform that is part of an overall commitment to reduce the number of unemployed and get as many people as possible off the dole queues and back to work.

It is the intention of this Government that through this Bill barriers to job creation should be removed in so far as possible while at the same time protecting workers' basic rights. A balance has to be found between improving employer competitiveness and protecting the rights of thousands of low paid workers. It is important to point out that existing workers will not be affected by the changes as they are covered by their current contracts of employment.

I welcome the publication of this Bill and commend the Minister, Deputy Richard Bruton, in all his works thus far.

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