Dáil debates

Thursday, 23 March 2006

Priority Questions.

National Minimum Wage.

3:00 pm

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 2: To ask the Minister for Enterprise, Trade and Employment the investigation which is planned into the disclosure that Polish workers employed by a contractor at the ESB power station in Moneypoint were being paid well below the national minimum wage; the sanctions or penalties available against companies in such situations; the measures which have been taken by his Department to date to ensure full compliance with all labour standards by all contractors, especially those working for State companies; and if he will make a statement on the matter. [11499/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The labour inspectorate of the Department is responsible for monitoring certain employment conditions for all categories of workers in Ireland, including immigrant workers. The inspectorate operates without any differentiation with regard to worker nationality as statutory employment rights and protections apply to immigrant workers in exactly the same manner as they do to other workers.

The labour inspectorate contacted the principal parties on this issue on Tuesday, 13 March and subsequently met with senior representatives of the ESB and its agents, and these contacts have been ongoing since.

In the meantime, inspectors have commenced inquiries with the contractor concerned in this case and have visited both the head office and the site in Moneypoint. Those inquiries are continuing and a further visit is planned. The inspectorate is examining documentation already obtained from the contractor, who has been fully co-operating with the investigation. Additional documentation has been sought and the contractor has undertaken to provide this material without delay. The investigation is continuing.

It should be noted also that in many cases current employment rights legislation has provisions whereby workers who believe they have been denied their entitlements, or otherwise unfairly treated, can, as an alternative to dealing with the labour inspectorate, take the matter before a commissioner in the rights commissioner service of the Labour Relations Commission.

Furthermore, the Deputy may wish to note that there are plans, albeit only in the early stages of preparation, for a major investment in a programme of information dissemination on obligations and entitlements arising under current employment rights legislation. The programme will be targeted at both employers and employees and will focus on particular audiences such as those engaged in sectors now generally populated by immigrant workers.

Section 37 of the National Minimum Wage Act 2000 states that a person guilty of an offence under this Act for which no penalty, other than under this section, is provided shall be liable (a) on summary conviction, to a fine not exceeding £1,500 —€1,904 — or, at the discretion of the court, to imprisonment for a term not exceeding six months, or to both the fine and the imprisonment, or (b) on conviction on indictment, to a fine not exceeding £10,000 —€12,697 — or, at the discretion of the court, to imprisonment for a term not exceeding three years, or to both the fine and the imprisonment.

With regard to the issue of compliance with labour standards the remit of the labour inspectorate is to pursue compliance with the statutory entitlements provided for in employment rights legislation. The inspectorate has no role in the implementation of rates of pay or conditions of employment that would generally be referred to as industry norms. In the pursuit of its remit the inspectorate would engage in targeted campaigns, announced and unannounced inspection calls and the follow-up of specific complaints.

The current talks on a new national partnership arrangement include a focus on the applicability of employment rights entitlements in the context of public procurement.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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I thank the Minister of State for his reply. He supplied figures on the rate of inspection on 7 February. In 2002, there were 8,323 inspections and 25 prosecutions; in 2003, there were 7,168 inspections and 20 prosecutions; and, in 2004, there were 5,160 inspections and 14 prosecutions. The reason given for the lower number in 2004 was the EU Presidency. Last year, 5,699 inspections were carried out, 55% of the number carried out in 2002. What happened?

The Minister of State stated in April 2005 that 11 additional labour inspectors would be appointed bringing the total number to 31. Following the Gama fiasco, only four of the additional inspectors had been appointed. Have all 11 been appointed at this stage? How long more must we wait before sufficient inspectors are appointed? We thought the Government would be sufficiently embarrassed by the Gama incident to appoint a reasonable cohort of inspectors to ensure a similar incident would not happen. However, the case of Polish workers at the ESB plant in Moneypoint, County Clare, came to light recently. That came about because ESB management discovered it and brought it to the Minister of State's attention and not as a result of a departmental inspection.

Fines of between €1,500 and €10,000 are provided for in legislation to penalise unscrupulous employers. It is estimated the 70 workers at the Moneypoint plant were underpaid by €817 per week before overtime. What is the incentive for employers to comply? If I am fined between €1,500 and €10,000 following conviction, I will still make a huge profit. When will legislation be introduced to ensure the main contractor does not walk away Scot-free from a contract because he has subcontracted the work, given that he can say it was not his problem because he asked the subcontractor to comply?

How are foreign nationals who move to Ireland to work informed about their rights and rates of pay?

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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I assure the Deputy that 31 labour inspectors have been appointed. Issues arose regarding their recruitment and training and it took three separate recruitment campaigns to achieve the full complement. This is a complex area and the inspectors cannot operate unless they know the rules.

The number of inspections is interesting. I am not sure whether the same method of calculation is used now compared with 2002. However, a number of inspections, including that referred to by the Deputy, involves considerable manpower over several weeks. It has not been brought to a successful conclusion from the perspective of many of the participants. It can be misleading to compare the numbers of inspections. I expect the number of inspectors will increase in the context of social partnership. The review of the mandate and resources of the labour inspectorate raises many issues, other than the staffing level, such as the measures that need to be taken to enable the inspectorate to carry out its duties and a statutory requirement on employers. I take the Deputy's point regarding the need to review the penalties. That will happen in the context of the review of resources and mandate.

The Minister launched a campaign, Know Before You Go, last year aimed at workers in EU accession states. It advises people before they travel to Ireland to be aware of the challenges they will have to deal with following disturbing stories about non-nationals who came to Ireland expecting to be employed but who had difficulty sourcing employment when they arrived. In the majority of instances, a subcontractor was involved but the subcontractor was from the same country as the workers and they were paid less than the minimum wage.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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How are the foreign workers informed about their rights?

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The Know Before You Go campaign was run in the accession states. We received a great deal of co-operation from the various embassies and we have tried to ensure the information is available in those countries. It is expensive to engage in a public information campaign and, therefore, additional resources will be required.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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The Department's website provides information in various languages but it was so incorrect that it was withdrawn last week and it is still not available. The website gave the incorrect information in every language, except English. Even the Irish version was incorrect. How does the Minister of State expect people to obtain the correct information if the Department is giving out incorrect information? The website still has not been updated.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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It was assumed in error that the information had been cleared in all languages.

James Breen (Clare, Independent)
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Question 3: To ask the Minister for Enterprise, Trade and Employment the measures he is taking to stop the exploitation of 70 Polish workers employed by a company (details supplied) working at the ESB power plant in Moneypoint, County Clare, who are being paid €5.20 per hour when the minimum wage payable is €7.65 per hour; and if he will make a statement on the matter. [11391/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The labour inspectorate contacted the principal parties on this issue on Tuesday, 13 March, and, subsequently, met senior representatives of the ESB and their agents and these contacts have been ongoing since. In the meantime, labour inspectors have commenced inquiries with the contractor concerned in this case and have visited both the head office and the site in Moneypoint. Those inquiries are continuing and a further visit is planned. The inspectorate is examining documentation obtained from the contractor, who has fully co-operated with the investigation. Additional documentation has been sought and the contractor has undertaken to provide this material without delay.

The inspectorate is aware that the ESB, its main contractor for the project and the subcontractor are working to identify the details of any underpayments that may have occurred and it is understood these will be rectified. A further audit on behalf of the ESB is to take place at month end to ensure all matters have been corrected. The labour inspectorate will, however, pursue its own checks independently of that process.

James Breen (Clare, Independent)
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How many labour inspectors are employed per county? What are their powers of inspection? When they visit a company, do they inspects its books and wage sheets? Has anyone been brought before the courts as a result of the under-payment of workers at Gama or as a result of what happened at Moneypoint? Has anyone been prosecuted? Recently, a small business in Lisdoonvarna was prosecuted but multinationals can do as they please and get away it. Will Gama officials or representatives of the company in Moneypoint be taken to court?

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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A total of 31 inspectors are in place and arrangements are made to enable them to visit workplaces throughout the State. With regard to their mandate, a number of difficulties have arisen about what must be provided in wage slips. These are some of the issues that must be addressed under the new mandate that will, undoubtedly, be provided for the labour inspectorate.

With regard to Gama, the matter has been in the courts on at least two occasions. We await a Supreme Court determination on the most recent High Court determination. The number of prosecutions was approximately 25 last year. The initial mandate of the inspectorate is to seek redress for workers who have lost out because of exploitation by their employers. I understand this has been done successfully for the majority of the workers in the case of Gama. Subsequently the inspectors examine whether it is possible to pursue a case in the courts, something they have done successfully on many occasions.

One of the recommendations of the report on the mandate of the inspectorate is that it would be more appropriate if the cases were taken to one of the employment rights bodies — the Labour Court or the Employment Appeals Tribunal — rather than the civil courts, because of the standard of proof, the speciality involved and the level of documentation required in them. This is something that will be examined in the context of the new mandate.

James Breen (Clare, Independent)
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Do the inspectors have the power to inspect the wage slips? What provision will be put in place to stop victimisation of workers who come forward to complain and will the Department protect them?

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The labour inspectors have the power to examine wage slips. One of the difficulties is that the level of information required to be provided on the wage slips is not of a standard that is useful in terms of pursuing a successful prosecution or of establishing whether the appropriate rates for the employment have been paid. There is a requirement to retain records and wage slips but, unfortunately, their format has not been sufficiently outlined in the regulation or the legislation.

Deputy James Breen raised the important issue of victimisation. Recent legislation introduced in this area included a section to ensure that people who bring information to the attention of the labour inspectorate or anybody in authority are protected. In the event we introduce additional legislation, I will try to ensure it contains that provision.