Norma Foley (Kerry, Fianna Fail)

As the State is not the employer of staff in this sector, neither I nor the Department can set pay or determine working conditions. The joint labour committee is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in employment regulation orders. I absolutely acknowledge the joint labour committee is independent in its functions and I do not have a role in its statutory negotiation process.

However, outcomes from the joint labour committee process are supported by Government through core funding, which in the programme year 2025-26 will increase to €350 million. An additional €45 million, as the Deputy referenced, has been ring-fenced to support employers to meet the costs of further increases to the minimum rates of pay and is contingent on updated employment regulation orders. Core funding forms part of a significant State investment of €1.37 billion in funding under budget 2025 for early learning and childcare.

I recently met with joint labour committee representatives to acknowledge the committee's important role, to outline the Government’s continued support for the sector as a whole and, as outlined in the programme for Government, for the joint labour committee process. I outlined to representatives that Government expects the funding secured - the €45 million - will support the costs of increased minimum pay rates and will be used for the purpose for which it is given in any new employment regulation orders, and that the full amount will be utilised.

Data available to the Department shows previous employment regulation orders do not absorb the available core funding signalled for staff pay and graduate leaders. The level of pay for staff in the sector does not reflect the value of their work for children, families, society and the economy. Therefore, it is vitally important that the committee engages in productive negotiations about ensuring the high level of investment being made through core funding for improved pay is maximised. I look forward to the joint labour committee negotiated outcomes.

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