Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

I welcome the establishment of the Low Pay Commission and the focus on zero hour and low hour contracts. I also welcome the initiatives taken by the Government to date to protect workers rights by restoring the cut to the national minimum wage and enacting legislation to protect temporary workers. The establishment of the Low Pay Commission as an independent body which can make recommendations to the Government is an important step in ensuring that we focus on people and families on low pay and examine the repercussions changes to the minimum wage will have on the families concerned and the wider economy. The issue of low and zero hour contracts is currently in the news but it is only through the creation of this independent body that we will ensure it remains a priority in the medium and long-term. This is an issue which determines the economic viability of a great number of families.

The establishment of the Low Pay Commission, as an interim measure, is important, but so, too, is other legislation being pursued by the Government, including legislation dealing with a replacement of registered employment agreements and reform of the Industrial Relations Act. A study of the prevalence of zero hour contracts, to be undertaken by the University of Limerick, is welcome. Not only will it examine the prevalence of these contracts, it will also look at their impact on employees and their families. It will cover a range of public and private sectors and focus on the retail, hospitality, health and education sectors. Until we fully understand the prevalence of these contracts and their implications for employees, we cannot fully determine the proper legislative course to pursue. For that reason, obtaining increased knowledge and proper evidence must be our first goal.

It must be acknowledged that this debate has been prompted by the ongoing dispute in Dunnes Stores. I note that the matter was referred to the Labour Court, but Dunnes Stores management did not attend the court hearing, which is regrettable as the expertise available in the Labour Court has helped to resolve many thorny industrial relations issues in recent years. People on zero hour contracts are not in a good position when it comes to making a stand against an employer and I sincerely hope the might of a retail giant such as Dunnes Stores is not pitted against an individual employee taking part in the current dispute. The dispute raises a much wider issue, namely, our awareness of the conditions under which various employees work and the knock-on effect our everyday choices have on our fellow citizens. The retail sector has at its base the decisions made by ordinary householders every day on how to spend their hard earned money. Supporting commercial giants that employ people on zero hour contracts may not be in the long-term interests of Irish families whose children must grow up and find employment in an ever changing landscape.

The commitment of the Government to low wage workers deserves a greater focus. We have, rightly, placed a focus on job creation, reflected in An Action Plan for Jobs, of which the wider public is aware. However, we also need to communicate our commitment to low wage workers. The restoration of the cut to the minimum wage was an important step in this regard and made a significant difference to the lives of many low paid workers. Legislation enacted in 2012 to protect temporary workers was another significant step. Next month we will consider the Workplace Relations Bill which, when enacted, should create a more streamlined workplace relations service and strengthen the hand of the Workplace Relations Commission in terms of compliance and fixed charge notices.

I welcome the focus placed on zero hour contracts in recent weeks and months. Put simply, it is almost impossible to have a proper family life while working on such a contract. We have heard of families that cannot apply for a car loan because they have no security of income, workers whose hours have been cut dramatically and drastically without explanation, people working part time who do not qualify for jobseeker's allowance on a casual basis because they have to be available for work and are contracted to their employer to work for six days, although that contract may not result in any work or pay. Life is unimaginable in such circumstances. For that reason, we need to obtain evidence on the prevalence and impact of these contracts and take action. I believe the Government does have the will to take such action, but it needs to do so based on proper evidence. I look forward to publication of the work of the University of Limerick on the prevalence and impact of zero hour contracts.

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