Dáil debates

Wednesday, 29 June 2005

10:00 pm

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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I wish to raise the need for protection under the social welfare scheme of workers, particularly migrant workers, such as those affected by the abandonment of a public contract for the refurbishment of Eyre Square in Galway for Galway City Council and earlier the workers who are at risk following the collapse of a firm in Portumna; the increasing vulnerability of migrant workers affected by sudden closures in the construction industry, often on public contracts, without notice; breaches of statutory regulations and general absence of protection; the need for a hardship fund to address their immediate needs and such statutory changes as will meet their basic rights. In the service industry foreign workers are being exploited, particularly in terms of accommodation. They are charged for anything they consume on the employers' premises, even for glasses of water. Will the Minister of State inform the House what is the situation with regard to the number of hours foreign workers work each week? Who is on the inspectorate? How many reports has it carried out and have any of them been published?

Migrant workers are among the most vulnerable in society. Events this week bear this out. The group of workers laid off as a result of the actions undertaken by Kingston Construction Limited are now in a most invidious position. These workers were employed by a company engaged by Galway City Council. It has now moved to secure the site, it having been abandoned by the company. However, it is beyond comprehension that public money could be spent in this fashion. The city council engaged a company that did not comply with a registered agreement as it relates to pension rights as well as rates of pay. It is incumbent on State bodies to ensure that tenders for work which are accepted are compliant with the relevant registered agreement. A proper system of checks and balances must be implemented to ensure workers are protected. In the event of the kind of incidents that occurred in Galway city and county recently, it is worth noting that many workers, particularly migrant workers such as those affected by the abandonment of a public contract, are increasingly vulnerable. Such workers affected by sudden closures without notice in the construction industry are suffering breaches of statutory regulations and a general absence of protection.

When what happened in Galway arises, what immediate provisions are there for such workers, especially non-Irish workers, made redundant in this manner? What recourse do these people have? What arrangements are in place for those workers from within the EU, those from outside the EU and those from the new member states of the EU but who are in a minority in their state and do not enjoy full citizenship rights? There have been reports of people from some Baltic states not receiving the full benefits and protection of EU membership. Beyond these questions, there is a clear and urgent need for a hardship fund to address the immediate needs of workers, such as those in Galway who lost their jobs. There is now a pressing requirement for statutory changes that will meet their basic rights. Where accommodation has been booked and organised by the putative employers, in the event of the contract being broken, as in this case, in what position do such employees find themselves? Is it possible for them to apply for rent allowance?

The Government must act to protect the least powerful in society. Migrant workers are some of those with the least clout in Ireland. This has been seen as a result of Kingston Construction Limited's action and the previous company to which I referred. I call on the Minister of State to answer the questions I have raised and to indicate such actions he proposes to take in this regard.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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I welcome this opportunity to address the House on the day when the Minister for Enterprise, Trade and Employment, Deputy Martin, published the Employment Permits Bill 2005. The Bill contains a variety of provisions designed to deal with concerns expressed about the protections available to immigrant workers from outside the European Union employed in Ireland.

Protections set out for workers under the provisions of all employment rights legislation are equally applicable to all workers, whether a person be Irish or a foreign national. For the avoidance of doubt, section 20 of the Protection of Employees (Part-Time) Work Act 2001 provides that all employee protection legislation on the Statute Book applies to workers posted to work in Ireland.

The employment rights information unit in the Department of Enterprise, Trade and Employment is active in supplying information on employment rights to employees. Last year, 150,000 inquiries were dealt with by this unit. Officials have given several talks on employment rights to a range of migrant worker groups. Information on employment rights is available in leaflet form from the Department and is also available on the Department's website.

In matters of investigation and enforcement the labour inspectorate of the Department makes no distinction between Irish and migrant workers whether they are from inside or outside the European Union as regards the provision of information and enforcement activity. With regard to the labour inspectorate, it is appropriate that since January of this year steps have been taken which mean the complement of Inspectors will have almost doubled from 17 officers to 31 once current recruitment activities are completed. I expect this to happen soon.

Apart from the increases in resources there is further significant activity on the employment rights front. Arising out of Sustaining Progress, work is under way to address issues identified in the report of the review group on the employment rights bodies and in the discussion document which focused on the mandate and resourcing of the labour inspectorate. A restatement or consolidation of employment rights legislation forms part of this agenda. This work will lead to the establishment of better streamlined procedures for complaint resolution for employees together with more effective investigation and enforcement to deal with the detection and, where appropriate, the prosecution of breaches found. All workers, including migrant workers, will benefit from these improvements.

These are the positive initiatives that are under way to improve the legislative environment in the context of employment rights and to address breaches of statutory regulations. While I understand this is not the situation in the case in question, there is provision for the protection of workers' entitlements where their employer has gone into liquidation or receivership. The insolvency payments scheme, which is administered by the Department of Enterprise, Trade and Employment, enables employees to claim, either through the liquidator or receiver, arrears of pay, holiday pay, pay in lieu of statutory notice and various other pay related entitlements that may be owed to them by their employer. The scheme operates under the Protection of Employees (Employers' Insolvency) Act 1984, and payments are made from the social insurance fund. Where a payment has been made to an employee under the scheme, the Minister for Enterprise and Employment becomes a creditor against the employer in place of the employee.

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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What do they do in the short term?

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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Where workers are dismissed by reason of redundancy, the Redundancy Payments Acts require, subject to certain conditions, that employers make statutory payments to these workers amounting to two weeks' pay for each year of service up to a ceiling of €600 per week, plus a bonus week. Any person who is laid off by his or her employer is entitled to unemployment benefit or assistance provided he or she satisfies the normal qualifying conditions for receipt of payment. In the case of unemployment assistance, these conditions include the requirement to be habitually resident in the State.

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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That includes all the Poles——

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Allow the Minister of State speak without interruption.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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In the case of a non-EEA national who becomes unemployed but who has been granted permission to remain in the State until a particular date by a Garda registration officer on foot of a work permit, he or she is considered to be legally resident in the State up to the expiry date on the visa, even if he or she has lost his or her employment prior to that date. Subject to satisfying all the statutory conditions for entitlement to payment, a non-EEA national who is legally resident in the State under these circumstances may receive payment of unemployment benefit or assistance up to but not beyond the expiry date on the visa. The supplementary welfare allowance scheme is the safety net within the overall social welfare system in that, subject to qualifying conditions, it provides assistance to any person in the State whose means are insufficient to meet their needs and those of their dependants.

The Employment Permits Bill clearly sets out in legislation the procedures relating to the application, grant and refusal of work permits. It allows for the introduction of a green card type system for highly skilled migrant workers, and for the means to establish the number of employment permits in total and by sector and to identify the skills and employment categories in respect of which employment permits may be granted. It will grant the work permit to the employee rather than the employer. However, for reasons of traceability and the enforcement of employees' rights, the practice of the employer applying for the permit will continue. The employment permit will contain a statement of the rights and entitlements of the migrant worker, including that the employee may change employment through the application for another work permit by a new employer. This will provide migrant workers with greater freedom and flexibility.

The Bill prohibits employers from deducting recruitment expenses from remuneration and from retaining workers' personal documents. It introduces significant penalties for breaches of the legislation, comprising fines to a maximum of €50,000 or terms of imprisonment not exceeding five years. These provisions give additional protections to migrant workers beyond those already in existing employment rights legislation.