Dáil debates

Thursday, 19 January 2012

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

 

1:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)

Every JLC rate is set higher than the minimum wage which was increased by €1, as per the jobs initiative last year. Anyone employed under the terms of a JLC or a registered employment agreement is in receipt of a payment in excess of the minimum wage, so he or she is not the lowest paid.

Sunday working time is recognised as having a special position. Under the Organisation of Working Time Act 1997, a special code of practice is to be devised. Already, it must be recognised by extra payment, time off in lieu or a special rate of overtime. There is already legislation in place to protect the Sunday premium.

This is about trying to maintain employment and protect workers. It is meant to be fair. Generally speaking, if one tries to be fair to everybody, one will probably please nobody. That is a general rule of thumb. That this legislation has not exactly enthused everybody is significant and shows it is being fair to everybody.

We had 13 JLCs which reflected a different time and a different employment structure. Some of the positions and sectors covered no longer exist. There are new sectors which were not even considered when JLCs, REAs and EROs were devised. A minimum wage was not in place nor were other employment and employee protection rights. The High Court ruling was that they were no longer constitutionally valid. In 1976 or 1977 when a constitutional challenge was about to be taken in regard to poor law valuation rates, we know what happened. A pre-emptive decision was taken to abolish rates because poor law valuations reflected a different era when canals and railways were more important than roads and other sorts of infrastructure. If it was to apply today, it would probably include access to broadband, etc. Things move on and it is necessary that legislation reflects that.

The number of JLCs will be reduced from 13 to six and those that remain will have to be confirmed by the Labour Court which will monitor them. It will also have the ability to review them from time to time. This is very important in the context of trying to ensure JLCs reflect the time in which they function.

Deputy Seamus Healy said NERA had increased its inspectorate by 15. We have been told, with some justification, that regulation has a stranglehold on many businesses. One will know from talking to those in the hotel business that there are probably in excess of 30 different pieces of employment law to which they must adhere, especially if dealing with food. Between employment law and compliance, it is almost a full-time administrative job for one person in a modest sized business. None of us wants to add to that. We want to make it easier to create a job and to take a job, and for both sides to be incentivised.

This is not about trying to reduce the disposable income of low paid workers but about trying to be fair to them. It will be a little while before the effect of these measures, which are all incremental, becomes tangible.

If we get more people working, we will get more people spending, more businesses paying commercial rates and more PAYE income. Each time we transfer one person from jobseeker's benefit to employment, the State gains at least €20,000. Conversely, anyone who goes on the live register probably costs the State that amount. That is the financial aspect. The social aspect is for another discussion.

This legislation is being introduced to provide a fair system for employers and employees and to protect their rights using existing legislation. It will ensure the JLCs, REAs and EROs which follow are not too cumbersome and bureaucratic. That is the key and is what the Government is setting out to achieve. I commend the Minister on bringing in this legislation so swiftly, as he promised.

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