Dáil debates

Wednesday, 18 January 2012

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

 

6:00 pm

Photo of Derek KeatingDerek Keating (Dublin Mid West, Fine Gael)

I welcome the opportunity to speak on this legislation. The Minister, Deputy Richard Bruton, has introduced this Bill as a result of the High Court judgment, to protect workers who were previously covered by JLCs. I welcome this reform of the Industrial Relations Act. I congratulate the unions who have involved themselves in making constructive submissions, unlike People Before Profit, who see employers and entrepreneurs as tyrants who act like "Fagin" from Dickens's time.

The purpose of this new legislation is to allow the Minister and this House to protect both workers and employers. Companies will be able to get derogations from agreements in cases of financial difficulty, but for this to occur the Labour Court must be satisfied that specific criteria have been met. I welcome that it will only be granted for a limited period in cases of proven economic difficulty and following consultation with employees. We need a strong partnership between employers and their workers. Many people are aware of this. I have always supported the view that a respected employee is a productive employee and should be rewarded as such.

We are living in difficult times. Our country is trying to recover from the disgraceful and disastrous management of our economy by the previous administration of Fianna Fáil and the Green Party. Fine Gael and Labour Party Ministers are struggling to protect jobs while seeking to regain our financial independence from the troika. The ordinary citizen knows this and, unlike some other countries, we do not have riots or lightning strikes - the type of activity I sometimes believe Deputy Boyd Barrett is seeking.

Last week, I had an opportunity to speak in the Dáil on the manner in which the La Senza workers in my constituency were treated by their employers, who are based in London. I did not consider myself a lefty or a radical because I set out to support these workers. More than 100 women were affected by the manner in which this company closed shop without notice and left their staff high and dry without salary, overtime and, indeed, their entitlement to redundancy.

I welcome the Minister, Deputy Bruton's, comments that from the beginning of this process, following the court case which found against the State, he was determined to strike a balance between protecting vulnerable workers and providing reforms that will make the system more competitive and flexible to allow for the creation of jobs, our economic recovery and the restoration of our fiscal independence.

It should be put on record again that this country was at risk of total collapse. This Government is pro-worker and pro-union. It is the worker who will bring about our national recovery. Having mentioned the La Senza workers, I welcome the Minister's intervention in requesting the Labour Relations Commission to prepare a code of practice that will be given formal status by means of a ministerial order. This code will give guidance to all employers and employees in the sector that is covered by employment regulation orders, EROs, and will include such additional amounts as are reasonable for Sunday working. I also welcome the Minister's view that this code of practice will substantially reform the work employers must carry out with regard to record keeping and compliance.

We need strong industrial relations legislation to protect both the employee and the employer. In cases where employees consider that their wages have been improperly reduced, they have a right to go to a rights commissioner under the Payment of Wages Act or they can go to the civil courts under breach of contract legislation. However, everybody knows how costly it is to go to the civil courts and how long it takes to get through those courts. We also know that the employers, backed in many cases by the Irish Business and Employers Confederation, IBEC, can mount a very powerful and costly challenge to an employee, which the employee generally cannot withstand. It is regrettable that IBEC has disputed this legislation and said it is unnecessary. Again, if one recalls how people are treated by some employers, it is interesting to note that low paid workers who are covered by the provisions in the Bill will be able to achieve premium rates through a code of practice to be developed by the Labour Court. I welcome this.

However, I am concerned about when a dispute arises and there are difficulties relating to an employer pleading inability to pay.

It will take weeks, if not months, to resolve the dispute and the meantime the worker will often be left waiting in the sidelines. For this reason, I ask the Minister to ensure that when the legislation is passed mechanisms will be made available to address employee concerns immediately in order that workers are not required to take action on their own and outside the law.

I welcome the introduction of a new code of practice which employers will be required to take into consideration by providing for overtime rates, pensions and sick pay, matters that were not covered by joint labour committees in the past. It is heartening that the major trade unions in the Irish Congress of Trade Unions, namely, SIPTU and Mandate, have welcomed the legislation. Following the High Court decision to overturn the JLC system for regulating wages and terms and conditions for low paid workers, the Government, in coalition with trade unions, has shown through this legislation that we can still protect vulnerable workers and their conditions of employment.

Many of those who are expressing an interest in the Bill, notably employees, trade unions and employers, have differed in their views on Sunday premiums. The Minister, Deputy Bruton, and Minister of State, Deputy Sherlock, are working hard to ensure employees are protected while at the same time allowing the Government to proceed with its plan to create an economic environment which improves our chances of recovering from the disaster we inherited.

Although I am in favour of the Bill, I do not support jobs at all costs. Last week, I noted that we do not want employers dragging employees back to the conditions in which people worked in the 18th and 19th centuries. The Minister, through this legislation, has made an effort to protect vulnerable businesses while creating an environment in which this issue can be addressed once and for all in a manner that meets the needs of society in 2012. Our economy is in crisis. We hear on a weekly basis of the difficulties companies are experiencing as they try to maintain commercial viability.

The rules governing pay for Sunday working, which will affect many people employed in tourism, hotels, restaurants, shops and sport, constitute a fair and just approach to the circumstances in which we find ourselves. The evidence shows that the Minister has listened to the trade unions. He is a man of his word who has shown that the Government is committed to protecting employers and employees.

Following the reduction in the VAT rate for the tourism sector, hotels and restaurants, this legislation marks a further step towards the recovery of the State's finances. It is estimated that well in excess of 150,000 workers are working in the catering, hotel, hairdressing, cleaning, security, sporting and commercial areas. Their terms and conditions, as set down in employment regulation orders, are legally binding.

I believe this legislation will be constitutionally sound and acceptable to all workers as the alternative is unacceptable. The purpose of the Bill is to enable people to have and hold a job. It recognises and accommodates the sacrifice made by those who work on Sundays. I am concerned, however, that the Labour Relations Commission will be inundated with requests and low paid workers will be denied their rights because of the waiting list to access the commission's service. Perhaps the Minister will examine this issue. I wholeheartedly support the Bill.

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