Seán Kyne (Galway West, Fine Gael)

I am pleased to say a few words about this Bill. One element of politics I particularly dislike is the clear attempt to define politicians as being on the left or the right. It assumes that to be concerned about the lowest paid and most vulnerable in society one is left wing, and that if one is right wing it is all about big business and profits. I do not subscribe to that type of politics. While business start-ups are a vital requirement for economic recovery, particularly in the tourism, service and manufacturing sectors, workers in these areas need basic protection and rights.

In the Jobs Initiative the Government took a decision to reverse the minimum wage cut enacted by the previous Government. In addition it is introducing initiatives to help job creation and improve labour cost competitiveness by easing the cost to employers of taking on new employees. This was done by halving the lower rate of PRSI until the end of 2013 on jobs that pay up to €356 per week. We have helped employers to take on such workers in these instances.

The programme for Government gave a commitment to introduce legislation to reform the joint labour committee and registered employment agreement systems. This was also committed to in the EU-IMF deal. The plan is to reduce the possible negative impacts on job creation and competitiveness of existing arrangements. Historically, the purpose of the joint labour committees was to regulate employment conditions and set minimum pay rates for employees in certain sectors. The JLCs were established by a statutory order of the Labour Court under the Industrial Relations Act 1946, with an independent body made up equally of employer and worker representatives appointed by the Labour Court, with the chair appointed by the Minister for Jobs, Enterprise and Innovation.

This Bill includes a number of provisions. The JLCs will have the power to set a basic adult rate and two additional higher rates. Companies may seek exemption from paying the ERO and REA rates due to financial difficulties. JLCs will no longer set Sunday premium rates. When setting rates, JLCs will have to take into account factors such as competitiveness, as well as employment and unemployment rates. Other reforms which do not need legislative change include reducing the number of JLCs from 16 to 13 and standardising benefits such as overtime through a nationally agreed protocol or code of practice.

The issues raised in section 5 determine what policies and principles must be taken into account by the Labour Court when considering whether to register an agreement. The principles of promoting harmonious relations and the desirability of avoiding industrial unrest are vital to the smooth running of our economy, and avoiding a perception by those considering inward investment that Ireland is a difficult place to do business. The last things we need are television pictures of industrial disharmony.

No one needs to be reminded about the crisis that exists in this country as regards joblessness. While the Government has a strong record on job creation, unfortunately job losses have also been too high. The protection of jobs is crucial to economic recovery. The sectors covered by JLCs have been particularly prone to job losses in recent years.

As the Minister, Deputy Bruton has highlighted, flexibility, competitiveness and productivity are key to getting our country working. In this respect, the Labour Court will be required to take into account the desirability of agreeing fair and sustainable rates of remuneration, taking cognisance of employment and unemployment levels in the sector, while maintaining competitiveness at the same time. This means that any settlement should not impact negatively on the basic premise of keeping this country open for business and being competitive.

Central to this is the provision that employers facing financial difficulty may apply to the Labour Court seeking temporary exemptions from their requirements to pay rates of remuneration in the agreement. That should give some comfort to employers, especially as the exemption can continue for 24 months. The fact that the exemption cannot be sought by the same employer for the same workers, as sought in the previous five years, is a comfort to employees in that they will not be exploited. Such an exemption may have a knock-on effect on other companies within the same sector where competitive advantage may be accrued. The Labour Court will have to take this into account in its decision.

While accepting that the national wage agreement has reduced the significance of the JLCs there is, however, a need to have a method of setting pay and conditions for up to 250,000 of the most vulnerable people affected by JLCs. The proposed reform of the JLC and REA systems will reinstate protection for workers employed in the sectors concerned subsequent to the judgment of the High Court in July 2011. At the same time, compliance requirements will be simplified in a number of ways, including through reduced numbers of JLCs, reduced book-keeping requirements for employers, and the non-setting of Sunday premium rates.

This legislation is comprehensive and affects a large number of vulnerable workers. It is right and proper that all workers are protected and, equally, that as a country we retain our competitiveness and jobs. I am confident that the Bill will achieve this.

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