Dáil debates

Tuesday, 5 July 2016

Banded Hours Contract Bill 2016: Second Stage [Private Members]

 

9:55 pm

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail) | Oireachtas source

I move amendment No. 1:

To delete all words after “That” and substitute the following:“Dáil Éireann resolves that the Bill be deemed to be read a second time this day twelvemonths, to allow for scrutiny by the Select Committee on Jobs, Enterprise and Innovation and for the Committee to consider submissions and hold hearings that have regard in particular to ensure that:

(a) the proposed Bill examines proposals to ban zero hour contracts and the problems caused by the increased casualisation of work that prevents workers in low hour and zero hour type contract arrangements from being able to save or have any job security;

(b) the Bill has sufficient flexibility in its application for small businesses and provides a simple approach in this regard, while lessening the administrative burden;

(c) the Committee review section 18 of the Organisation of Working Time Act 1997 relating to the provision of zero hour contracts to allow workers on low and zero hour contracts a minimum set of hours and the right to request more hours;

(d) the Committee take on board the Study on the “Prevalence of Zero Hours Contracts among Irish Employers and their Impact on Employees”, as carried out by the University of Limerick;

(e) the proposed Bill examines changing the remit of the Low Pay Commission to review proposals on banded hour contracts for those on low pay; and

(f) social partners brief the Committee and make presentations to address the concerns of both sides of industry in order to provide a fair and workable system that works for both employers and workers in a fair and proportionate manner; and

to fully discuss and explore other practical issues and consequences that may arise as a result of the proposals.”

I am sharing time with Deputy Butler. We in Fianna Fáil absolutely support the principles set out in the Bill and are committed to working to improve this Bill to make a real difference. I also thank Deputy Cullinane for consulting with me in advance of this debate and reiterate that I am happy to be involved with him and others in this House in leading to effect real change in this area. I have discussed our amendment and the Fianna Fáil approach to this with the leadership of the Irish Congress of Trade Unions, ICTU, and it fully supports our approach to it.

Before continuing I extend my best wishes and those of my party to Kevin Foley on his appointment as chairman of the Labour Court and to Oonagh Buckley on her selection for the position of director general of the Workplace Relations Commission.

We in Fianna Fáil have consistently stood on a platform that workers deserve a fair reward for the work performed. Too many workers of which most are women are in unstable work as they are offered only part-time, temporary employment or zero-hour contracts. Workers in such precarious positions face uncertainty every week, never knowing in time the hours they are required to do and this leads to a lack of security in relation to how much they are actually going to earn. On a broader level, the uncertainty around zero-hour contracts prevents people from getting mortgages, entering rental agreements and being able to make financial commitments. In our recent general election manifesto, Fianna Fáil supported banning zero-hour contracts that are abusive towards workers and changing the remit of the Low Pay Commission to put forward proposals on banded-hour contracts for those on low pay.

The Commission is an independent body that comprises worker and employer representatives and that works in an evidence-based manner. Banded hours are one means to give workers on low and zero-hour contracts in certain sectors more certainty in their weekly work hours by providing a minimum set of hours. Any proposals in this area must carefully marry enhancing certainty in work hours for employees, while balanced by the flexibility to facilitate changes in this area seamlessly for small businesses.

While we support the general principles of this Bill, there are too many gaps and weaknesses present as currently worded to achieve the intended outcome that most Deputies want to achieve. We are therefore tabling a standing amendment to facilitate the passage of the Bill to the cross-party Oireachtas Select Committee on Jobs, Enterprise and Innovation for further scrutiny before it passes to Second Stage. This is to permit considerable amendments to be made to the Bill, while enabling worker and employer representatives to have an input into the process.

The select committee must examine proposals to ban zero-hour contracts and the problems caused by the increased casualisation of work that prevents workers in low-hour and zero-hour type contract arrangements from being able to save or have any job security. Fundamentally, this Bill, as currently constituted, has a major failing in making no reference or proposed changes to the primary section of legislation that relates to zero-hour contracts, such as section 18 of the Organisation of Working Time Act 1997.

Sinn Féin failed to ban zero-hour contracts last year in the Northern Ireland Executive and has failed to bring forward similar proposals in the Bill laid before the House this evening. Jointly administering rule in government with the Democratic Unionist Party, DUP, in Stormont, Sinn Féin reigns over an employment landscape where up to 28,000 workers may be on zero-hour contracts.

While I welcome the report carried out by the Kemmy school of business from the University of Limerick into the prevalence of zero-hour and low hour contracts in Ireland, the study concluded that while zero-hour contracts were not extensive, if-and-when contracts do exist.

While both involve non-guaranteed hours of work, the main difference is that workers on zero-hour contracts are obliged to make themselves available for work while those on if-and-when contracts are not contractually required to make themselves available for work.

The University of Limerick report needs to be carefully examined by the select committee with social partner contributions in this area. It is vital that robust safeguards are in place to police the exploitation of employees in terms of hours and conditions. My party supports permitting workers on low-hour contractual arrangements to request additional hours and not suffer victimisation in the future regarding rostering and conditions as a consequence.

A balanced approach, encompassing flexibility and security for employees on low-hour contracts and for employers, is vital for sound and robust workplace legislation. The Bill brought before the House does not provide sufficient flexibility for small businesses in its application. Generally, the Bill would have a very broad impact compared with what is envisaged. For example, it would apply to every private sector workplace regardless of the sector or pay type in operation. The Bill would also include sectors where employers and workers have negotiated pre-existing banded hour type arrangements. The six-month continuous employment period provision in section 3 as the measure of a person's average weekly working hours is too rigid when one considers seasonal work in sectors such as retail and hospitality.

The Bill proposes that all employees in circumstances other than severe financial difficulties are given extra hours on request. If employers do not agree to this, they will have to appear before the Workplace Relations Commission and the Labour Court. This places increased costs and a large administrative burden on employers to demonstrate whether the condition has been met.

In its current guise, the Bill is not fit for purpose and will not achieve its intended outcome. What is needed is a balanced approach, encompassing flexibility for employers and security for employees on low-hour contracts. It is vital for sound and robust employment legislation.

I want to reiterate that we support ending zero-hour type arrangements that are abusive towards workers. The Bill fails to address that outcome. We must ensure the Bill has sufficient flexibility in its application for small businesses and provides a simple approach in this regard while lessening the administrative burden. In this manner, further intensive legislative scrutiny is required along with contributions by social partners at committee to address the concerns of both sides to provide a provide a fair and workable system for workers and employers in a proportionate manner.

I received an e-mail today from the assistant general secretary of the Mandate trade union, Mr. Gerry Light. He said the union intends communicating with all its members tomorrow, 6 July, and letting them know the position of each political party in the House. I am glad to say for a second time that Fianna Fáil fully supports the principles of the Bill. We want to make it better. We are happy to work with all the stakeholders on it because it has good intent. I also reiterate that we consulted the leadership of the Irish Congress of Trade Unions regarding the Bill and it was happy to support our approach.

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