Dáil debates

Wednesday, 18 January 2012

Industrial Relations (Amendment) (No.3) Bill 2011: Second Stage (Resumed)

 

12:00 pm

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)

I welcome the publication and introduction of this important legislation. It continues the Government's agenda of both helping job retention and establishing the foundations for economic recovery while supporting the most vulnerable workers in our society. It follows on from the restoration of the minimum wage, clearly aimed at assisting lower paid workers, and the jobs initiative, aimed at incentivising small businesses and schemes.

It is welcome to see issues of working conditions discussed in this Chamber once more. For too long, particularly during the boom years, decisions about pay and conditions were taken behind closed doors and never scrutinised or discussed by we, the people's representatives. It is important more discussions on the labour market such as this take place in the House. While I have no difficulty with the Government engaging with vested interests, be they trade unions or business interests, this is the primary forum for such discussions.

An overhaul of the statutory wage-setting mechanisms has long been overdue. The Government was also left with no choice in light of a recent High Court ruling on them. This Bill sets out to fulfil an important commitment in the programme for Government to overhaul inherited wage-setting mechanisms which were farcical, impractical and very much outdated. A balance is to be found in reforming the joint labour committee, JLC, system to ensure a robust system of protection for workers is reinstated but one which gives flexibility to allow businesses to respond to changing economic circumstances.

As we seek to create jobs and to support small and medium-sized businesses, we must also protect the jobs we already have. Job retention is a key consideration for every business and employee. We are faced with the challenge of creating legislation which both protects the position of the worker and ensures employers and employees alike are not trapped in bureaucratic systems which are not suitably responsive to their needs in these difficult economic times. This legislation strikes this balance.

What we are seeking is a move to reinstate the robust protection that workers deserve but in a manner which reflects the operation of a modern economy. When the Minister is criticised by both sides of the debate - business representatives on the one hand, trade union officials on the other hand - for not going far enough, it means he must be doing something right. The Government, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, and the Minister of State, Deputy Perry, are not beholden to either side of that vested interest struggle. The political temptation is always to flock too far to one side. This Bill has resisted that temptation and taken the responsible course, standing by the economy while protecting vulnerable workers, a difficult task in itself.

Several of the Bill's specific measures should be widely welcomed. The first is the introduction of clear principles and policies that JLCs must refer to in setting minimum pay and conditions. This common sense approach will require JLCs to make specific reference to the best interest of employers and workers and the need for competitiveness and wages in comparable sectors. While JLCs may have taken these factors into account in setting wages in the past, it is important this arrangement is formalised and reflected in legislation.

Section 13 provides for a mechanism to allow employers a temporary derogation from the scope of employment regulation orders, EROs, on the grounds of financial difficulty. While the Government is striving to create the right conditions to create additional jobs, it must be recognised many businesses are doing everything they possibly can to retain the staff they already have. It is important any actions this House takes sets out to support businesses in that task.

The idea business is out to reduce the workforce and its labour costs is not reflected in many of the small and medium-sized businesses we public representatives encounter. Since my election, I have had the pleasure of meeting with many local business owners across County Wicklow. In our towns and villages, there is a sense of community and these businesses want to retain and create employment.

Given the current economic circumstances, the mechanism for this derogation is important which will restore confidence to both employers and their employees who look at it rationally. I also welcome the safeguard the Minister included in this provision to prevent worker exploitation by unscrupulous employers. It is clear this will be a one-off exemption of a set maximum duration.

I agree with Deputy Connaughton on the need for consultation and recognition of the different factors in the removal of the traditional Sunday premium from the scope of EROs. However, we must also acknowledge the economy is not nine to five, Monday to Friday. Many sectors involved in EROs may see their busiest days on weekends. Restoring that flexibility to Sunday working arrangements is not just about benefiting employers but about creating conditions in which workers are able to work hours that suit their lifestyles and skills sets. I understand the Minister proposes to complement the removal of the Sunday premium by having the Labour Relations Commission devise a code of practice on Sunday working. I welcome this consultation process, which should be wide as possible.

Just as we are seeing new and additional reforms of the working practices in the private sector, there is scope for further reform in the public sector. Many private sector workers listening to this debate are only too aware of the difficult circumstances facing many businesses. Many of them will also be galled by the anomaly of salary increments being paid to individuals in the public sector earning above €70,000. This is not an attack on the public sector. Pitting of private against public is ridiculous and a legacy of the previous Government. It is helpful to no one. We need to protect all those on modest incomes and vulnerable workers, be they public or private. As many families and businesses struggle in these challenging economic times, we must work to protect the wages and conditions of all low-paid workers while ensuring flexibility and responsiveness in all sectors in which this has not always been the case.

I welcome this legislation and commend it to the House.

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