James Lawless (Kildare North, Fianna Fail)

I hear that, but neither my Department nor SOLAS is involved in the setting of apprenticeship wages. There are two types of apprentices. Under apprenticeship programmes developed before 2016, which are referred to as craft apprenticeships and are largely but not exclusively traditional construction-type apprenticeships, there are long-standing industrial relations mechanisms that determine pay. Collective bargaining between industry and employee representatives determines the rates. That is a well-established industrial relations system. Three quarters of the overall apprenticeship population falls under those arrangements. For the newer apprenticeships, some of which I mentioned in my initial response, wages are set between the employer and the apprentice directly. A contract is entered into and terms and conditions are set out, including pay, in the employment contract. On those programmes, the apprentice is paid by the employer throughout the programme.

Wages for apprentices are covered under the Industrial Training Act, which differentiates between an employee and an apprentice for the purposes of pay legislation. There are a number of reasons for this, including that employers must be able to balance the investment costs of training an apprentice. Ultimately, they are taking on a trainee, not a fully formed employee. As apprentices progress through the system, they will be paid more. By the time they are in years 3 and 4, their pay increases significantly.

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