Dáil debates
Thursday, 23 February 2023
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Pensions Reform
10:30 am
Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source
I understand the Deputy has already engaged quite a bit with the Department in relation to this Bill, which is very welcome and I encourage that going forward.
As the Deputy is aware, the Joint Committee on Enterprise, Trade and Employment met in public session on 25 January to discuss detailed scrutiny of the Industrial Relations (Provisions in Respect of Pension Entitlements of Retired Workers) Bill 2021. Following this meeting, my Department was asked by the joint committee to provide a briefing in response to the issues raised, in order to assist the joint committee with its detailed scrutiny.
This detailed brief has been prepared and has issued to the joint committee. On Second Stage, my predecessor as Minister of State outlined the Department's concerns in respect of the proposed Bill. These concerns remain. The Bill, as introduced by the Deputy, seeks to create a third category in industrial relations, contrary to international practice, which recognises industrial relations as the management of work-related obligations and entitlements between employers and workers and their representatives. The introduction of a third party to collective bargaining procedures has the potential to create significant disharmony in the industrial relations system. Departmental officials have been unable to find another jurisdiction where such a third category has been introduced in industrial relations legislation.
Added to this concern, this third category would be unregulated and would not require a negotiating licence. This could cause a proliferation of representative groups, sometimes with competing demands. It would make it impossible for employers to identify whom they should be negotiating with. Moreover, the interests of a small group of retired workers would, for the first time, be put against those of current workers in the industrial relations sphere, potentially creating significant disharmony. A position could arise where certain retired workers' representatives were at odds with trade unions representing deferred members. If a person is in receipt of an occupational pension, he or she is no longer considered a worker and does not have an employment relationship with his or her former employer. Rather, the person's relationship lies with the trustees of the pension fund. Trustees have statutory and fiduciary duties to act in the best interests of all members of a fund and must always be consulted if a collective agreement refers to a pension matter.
In order to ensure that the views of all stakeholders were considered in respect of this issue, the Department of Enterprise, Trade and Employment ran a consultation process in March 2022 and all submissions received have been published on the Department's website. While some were supportive, many showed significant concern about the proposal. In any event, it is up to the Deputy to progress the Bill to Committee Stage.
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