Gerald Nash (Louth, Labour) | Oireachtas source

I thank Deputy Costello for raising this important matter and articulating very clearly the experiences of some of the employees, which he outlined earlier. A presentation was made to Oireachtas colleagues today by members of the Mandate trade union, many of whom are working in Dunnes Stores. I also want to acknowledge the Deputy's recognition of the work I have carried out with Government colleagues in terms of the dignity at work and dignity of work agenda, enhancing employment rights and making sure that work always pays.

I understand that the current dispute revolves around a range of issues, including the introduction of banded hours contracts, individual and collective representational rights and a review of the use of temporary contracts. Mandate trade union is seeking to engage with the company on these issues and the matter was referred by the union to the Labour Court under section 20(1) of the Industrial Relations Act 1969 in October of last year.

The company was not represented at the Labour Court hearing. In this regard, the court found it regrettable that the company declined to participate in the investigation of the dispute or to put forward its position on the union's claims. In its recommendations of 14 November 2014, the Labour Court reaffirmed earlier recommendations it had made by noting that the company and the union were parties to a collective agreement signed in 1996 which provides a procedural framework within which industrial relations disputes and differences arising between the parties can be resolved by negotiation and dialogue. The Labour Court pointed out that the dictates of good industrial relations practice requires parties to honour their collective agreements in both spirit and intent.

I am disappointed that the company decided against attending the Labour Court hearing, contrary to good industrial relations practice. In my view, the experience and expertise of the Labour Court offers the most appropriate and effective avenue for resolving such issues. I urge both parties to avail of the services of the State's industrial relations machinery, which remains available to assist the parties if requested. It is my opinion that engagement with the State's industrial relations machinery offers the best way whereby the parties involved in this dispute can hope to resolve their differences. As the Deputy knows, neither the Labour Court nor the Minister can compel a company to comply with such recommendations. Ultimately, responsibility for the settlement of a trade dispute rests with the parties to the dispute. However, I would like to see an early and fair settlement to this dispute.

As regards zero hour contracts, in accordance with the statement of Government priorities, the Deputy will be aware and has acknowledged that I recently commissioned the University of Limerick, UL, to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. The appointment of UL follows a competitive tendering process. This is the first time that any Government has taken such a keen interest in this area. Without pre-empting the outcomes of the report, if there is a need to legislate to address issues raised, we will do so.

The key objectives of the study are to fill the gap in knowledge that currently exists in terms of the data and information that is available concerning the prevalence of zero hour and low hour contracts, to assess the impact of zero hour and low hour contracts on employees and to enable me as Minister of State to make any evidence-based policy recommendations to Government considered necessary on foot of the study. The study will have a broad scope, covering both public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. The study will also consider recent developments in other jurisdictions, including the UK in particular. The study will also identify how the information gap might be addressed in future.

Unlike the position in the UK, section 18 of the Organisation of Working Time Act 1997 provides that where employees on zero hour contracts suffer a loss by not being given the hours they were requested to work or be available for work, they can be compensated for 25% of the time or 15 hours, whichever is less. There is no equivalent provision in the UK, where employees on zero hour contracts are only paid for time spent working and if they are not given any hours by their employer they receive no compensation.

It is worth noting that while the proportion of Irish workers who are on temporary contracts rose slightly during the recession, reaching 10.5% in 2011, it has since fallen back to the pre-recession level of 9.5% and remains significantly below the EU average of 14.4%. The Central Statistics Office data for February 2015 indicates that the share of casual and part-time workers on the live register was down by over 11% when compared to February 2014, equivalent of over 9,000 workers. The cumulative decrease is 17,625 workers since February 2013. Of the jobs that were created last year, 94% were full-time jobs.

The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government's consideration of the study's findings.

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