Dáil debates

Thursday, 28 February 2008

Priority Questions.

Employment Rights.

3:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 2: To ask the Minister for Enterprise, Trade and Employment the main provisions of the primary legislation aimed at enhanced compliance and enforcement of employment rights generally, including legislation to regulate the operation of employment agencies and a statutory code of practice for employment agencies, promised in the Government amendment to a motion passed on 20 February 2008; when it is expected that this legislation will be published; and if he will make a statement on the matter. [8349/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Employment Law Compliance Bill currently being drafted by the Parliamentary Counsel is designed to secure better compliance with employment law in accordance with the provisions of part 2, sections 11 to 16 of Towards 2016, the ten-year framework social partnership agreement. Drafting of the Bill is proceeding for Government consideration as soon as possible.

The main provisions of the Bill include the establishment of a new statutory office of Director of the National Employment Rights Authority, dedicated to employment rights compliance, with a tripartite advisory board. The Bill will also include provisions to secure better compliance with the Employment Permits Acts 2003 and 2006 providing for the involvement, for the first time, in the enforcement of provisions of those Acts by the director of the National Employment Rights Authority.

The Bill will also strengthen inspection and enforcement powers of labour inspectors and make other necessary provisions to secure compliance with employment law as well as fostering increased co-operation at workplace level so as to safeguard employment rights generally.

In addition, the Bill does the following: specifies the statutory employment records to be kept by employers for all employees and the high penalties for failure to do so or for other breaches of employment law, fosters increased co-operation at workplace level so as to safeguard employment rights, supports current monitoring and inspection activity for compliance with the registered employment agreement in the electrical contracting sector, provides for exchanges of information between statutory enforcement authorities so as to facilitate joint investigations of employment suspected of contravening the law and strengthens the powers of the Minister for Enterprise, Trade and Employment to initiate investigations and publish the outcome in cases of public interest.

In addition, proposals for an employment agency regulation Bill to update and strengthen the regulation of the employment agency sector have now been finalised. I intend to submit a memorandum to the Government as soon as possible seeking approval for the drafting of the Bill by the Parliamentary Counsel to the Government. Publication of the proposed employment agency regulation Bill continues to be a priority for Government. The Bill will provide for the licensing of employment agencies, which will maximise the agreed objectives in Towards 2016 while at the same time remaining consistent with EC treaty provisions as interpreted by European Court of Justice rulings in the case of posted and agency workers.

In addition, adherence to a statutory code of practice will be a condition for the granting of a licence in Ireland under the Bill. As a statutory code, overseas employment agencies will also be subject to compliance with its terms. The Bill will also provide for the setting up of a monitoring and advisory committee to advise me on the sector and assist me in the drawing up of the code of practice.

Overall, the new Bill will repeal and replace the Employment Agency Act 1971 and regulations made under it which currently regulate the employment agency sector.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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The Minister is probably aware that the Labour Party published a protection of employees and agency workers Bill yesterday. We are ready to debate it in the Dáil next week to help the Minister. In this context, did the genie get out of the bottle recently when Davy published its report? It lauded the findings of the OECD based on 2003 data that Ireland is one of the top ten least protected labour markets. It trumpets our poor position in international league tables for worker protection. It was particularly satisfied that, in 2003, we were joint best for allowing temporary worker agencies to operate. All of this is viewed as important by Davy because labour market flexibility is an important factor in boosting productivity growth and increasing the incentive for companies to raise employment. Labour market flexibility is important to maintain high employment, up to a point, but constantly undermining the terms and conditions of employees is not the route to productivity growth. It encourages firms to use temporary agency workers and positively discourages the training set out in the Minister's skills programme.

Tomorrow, under the Slovenian Presidency, the employment, social policy, health and consumer affairs meeting will take place. Will Ireland lift its objection to the EU directive on temporary agency workers at that meeting? If not, is it because of the underlying agenda, which permeated the report by Davy? Why are we failing to ensure equality of treatment of workers that is applicable in every other country? If the Slovenian Presidency pushes the agency directive to a vote, will the opposition of Ireland and Britain and any other government unwilling to accept a reasonable compromise be overcome by a qualified majority vote? Does the Minister agree that this is essential if we are to stop the race to the bottom in pay and working conditions in Ireland and elsewhere and create a level playing field for workers and employers?

There is no good reason the Government should hold back, adopting a veto position, by continuing opposition. The Government is putting social partnership at risk and undermining worker support for the European project. Would this measure not protect responsible employment agencies from unfair competition from operators who are not so responsible? I appeal to the Minister to lift the veto and get the legislation in place. If he does not, the Labour Party is prepared to help. We have the Bill ready. Let us protect people from exploitation. We owe them that.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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There has been appalling spinning of this story from the beginning. We agreed with the social partners to introduce legislation pertaining to agency workers. As soon as the ink was dry on the agreement the trade union movement stated that it was not enough and sought more. It is entitled to do so. We had the legislative template ready to introduce an agency Bill after the last agreement. However, the terms of the agreement were not sufficient for the trade union movement, which sought additional terms of pay parity. Now, it has moved onto equality across all issues.

Ireland has no veto powers in the European Council of Ministers because it is not strong enough. However, Ireland is capable of contributing to a solution that does not put Ireland at a competitive disadvantage and that allows Ireland similar rights to other countries in terms of collective agreements, exemptions and opt-outs. A memorandum will be sent to the Government and we are available to discuss with the trade unions and employers the basis of an agreed resolution.

I welcome Deputy Penrose's belated acceptance of the importance of labour market flexibility, something that was absent from the debate two weeks ago during Private Members' business. I hope Deputy Penrose cites the rest of the Davy report, which gives a positive picture of the future of the Irish economy and refers to the successful policies we have pursued in employment and education. We are anxious for balance, allowing us to protect the rights of workers, which we are keen to do, while maintaining the impetus for job creation. We will not tolerate exploitation.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 3: To ask the Minister for Enterprise, Trade and Employment the steps he is taking to address the exploitation of migrant workers; and if he will make a statement on the matter. [8562/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I assume the Deputy is referring to breaches of employment law or of employment-related legislation. I reiterate, as indicated during the recent Private Members' motion of last week on agency workers, that this Government is deeply committed to decent standards of employment. Significant and substantial measures to underpin our employment standards apply to all workers, including migrant workers.

A large body of employment rights legislation, covering areas as diverse as the application of the national minimum wage, terms of employment, organisation of working time, payment of wages, protection of fixed-term and part-time workers, maternity leave, etc., is now in place. The transposition into Irish law of the EU posting of workers directive, by virtue of enactment of section 20 of the Part-Time Work Act 2001, provides that employee protection applies to migrant workers in Ireland who have entered into a contract of employment that provides for those employed in the State or who work in the State under a contract of employment. This means that irrespective of nationality or place of residence, migrant workers have the same rights under employment rights legislation as Irish employees.

Our legislative framework is backed up with effective and strong new supports where all workers, including migrant workers, can vindicate their rights through the dispute resolution machinery of the State. Under the Towards 2016 partnership agreement, the Government has committed to, and delivered on, key additions to enforcement capacity including a major upgrading of resources with the establishment of the National Employment Rights Authority, NERA, and substantial investment in additional resources in the labour inspectorate. NERA is participating in an active information awareness campaign on employment rights and specifically in the case of migrant workers is publishing material to promote employment rights in up to 11 languages. Additionally, ten of the 90 officers that form the labour inspectorate will have specialist foreign language skills.

Combating exploitation or abuse of employment rights is not just a matter for Government and its agencies, it demands the engagement of wider civil society. When setting up NERA the Government, through the Oireachtas, made a very significant additional investment in the areas of promoting compliance with employment law and in ensuring that, in the event of non-compliance, there are effective mechanisms for redress and, where appropriate, prosecution. I would urge anyone who has specific complaints to contact NERA immediately to enable these to be investigated. Alternatively, and where appropriate, employees should refer their complaints directly to the dispute resolution agencies for redress.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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I thank the Minister for listing the provisions in law. I do not dispute the reply, except in respect of agency workers. We have plenty of legislation in the country, the difficulty is the lack of enforcement of the law. Has the Minister seen the NERA documentation in 11 languages? It is not very detailed in respect of employment law. It is fundamentally important that it is reviewed. When will the foreign language inspectors be employed, deployed and carrying out inspections? It was promised that 90 labour inspectors would be in place by 31 December 2007. When will that number be employed and carrying out investigations? Everybody wants to ensure this country does not have a migrant under class. What discussions, if any, have taken place between the Minister and the Minister for Justice, Equality and Law Reform to deal with an ongoing anomaly in the system, where people who go to the Labour Court or other employment tribunals find that their work or residency permits expire during the delay in processing their applications? They are then left illegally resident in the country.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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There has been much debate on this issue in recent times. If people are aware of cases, I urge them to refer them to the National Employment Rights Authority, NERA. That is the key advice I offer Deputies and the public. We have significantly enhanced the number of labour inspectors in the past 12 months. We have also regionalised the inspectorate significantly. Approximately 76 inspectors are already working.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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When will the 90 be in place?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Four or five have left. There are some in training and the ten language inspectors are in place. We are well advanced. The only issue we had to resolve was through the industrial relations process and social partnership. We worked with the unions in the public sector to devise methods of recruitment and so forth. There has been a dramatic transformation not only in the number of labour inspectors but in the legal capacity the authority has and the financial advice available to it. There is a strong management tier in the inspectorate. We have merged several units from the old system into the new authority. We are already beginning to see the impact of NERA, particularly in terms of its construction campaign, which is the subject of a later question, the number of site visits and the number of companies into which it inquired. I am positive about the prospects for the impact it will have.

We are working with the Minister for Justice, Equality and Law Reform towards a one-stop-shop or single office approach to synergise the visa and work permit issues. We take a reasonable and flexible approach to people who fall between stools in such cases, particularly people who might have been subject to abuse by unscrupulous employers. We try to regularise their employment status where it is clear that has occurred.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The Minister says matters have improved. If that is the case, why were there 1,500 fewer inspections carried out in 2007 than in the previous year? Will the Minister give a date for when the 90 inspectors will work on the ground and not in training?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The vast majority are on the ground already.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The Minister cannot give a date.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Deputy should relax. They are out working.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The date of 31 December 2007 was the target and the Minister has missed that.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Deputy is welcome to consult the public service union.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The Minister does not have a date to have the 90 staff in place.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We have worked extremely hard and the problem is not on our side.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The Minister is contradicting the commitment he made.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 4: To ask the Minister for Enterprise, Trade and Employment when cross-departmental joint labour investigation teams will be operational; and if he will make a statement on the matter. [8565/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The social partnership agreement, Towards 2016, provides for greater co-ordination between organisations concerned with employment rights compliance, with a view to realising the considerable potential for synergy that exists in this area. In particular, the agreement provides that authorised officers of the new National Employment Rights Authority, NERA, will join officers of the Department of Social and Family Affairs and the Revenue Commissioners to work together in joint investigation units. The role of these units is to address areas where evidence suggests that non-compliance with employment rights legislation exists.

The Social Welfare and Pensions Act 2007, which came into operation on 30 March 2007, provides for the disclosure of relevant employment data between the Office of the Revenue Commissioners, the Minister for Social and Family Affairs, the Minister for Enterprise, Trade and Employment and NERA. This legislation effectively enables NERA to join the Department of Social and Family Affairs and the Office of the Revenue Commissioners to work together in joint investigation units. Since the enactment of the Social Welfare and Pensions Act 2007, exchange of information activity has already taken place between the bodies in several specific cases. In addition, joint investigation unit activity, involving the three bodies, has also taken place, particularly in the context of the NERA construction industry campaign in May to July 2007. A working group has been established comprising the Department of Social and Family Affairs, the Office of the Revenue Commissioners and NERA to further enhance procedures for improved cross-departmental co-operation, the sharing of information by the respective Departments and offices and to plan future joint investigation activities and strategies.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Earlier this month the Minister's officials said the discussions were ongoing between the different Departments and agencies. When will we see some of these investigation units carrying out investigations? In an earlier reply the Minister spoke about the legal capacity of NERA. Why is there no provision for NERA imposing fines on rogue employers?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Deputy is wrong on that point. I have seen the press release issued by the Deputy's colleague in that regard. The press release referred to the national minimum wage legislation, in which there is no provision for fines. The NERA legislation is not yet in place. We are preparing legislation to bring to Government. That legislation will provide, as has already been agreed in the context of Towards 2016 with the social partners, for significant additional fines for breaches of any aspect of employment legislation. There will be significant increases as set down in the Towards 2016 document. I can refer the Deputy to the relevant sections on social partnership which we will reflect fully in the legislation.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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It is not in the legislation.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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It is in the proposed legislation. There is no issue. I respectfully suggest the Deputy should be properly briefed. Otherwise, he was deliberately mis-spinning in the press release that was issued yesterday.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The Minister gave a commitment that the labour inspectors would be in place on 31 December and that has gone out the window.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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It has not.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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It has. The Minister cannot give a date.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The NERA legislation is not yet published so how the Deputy can ask a question as to why something is not in a Bill that is not published is beyond me.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The agency is in place.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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In any event, I assure the House that there will be significant penalties in the new national employment rights legislation. There are now 76 inspectors employed in the National Employment Rights Authority. A further five are due to commence on 3 March and the appointment of inspectors to fill the four remaining posts is progressing. Five more vacancies arose with people retiring and so forth. We had to go through certain processes with the trade union movement on these issues. We did that faithfully and in the context of social partnership. It represents substantial and significant progress in building a strong national body to enforce employment rights. Over the past two years we have worked strongly on this issue and have delivered significantly with regard to social partnership.

With regard to the specific issue in the Deputy's question, significant progress has been made by the three Departments. A campaign was conducted last year for the construction sector and a total of 173 employers were identified. Contact by the joint investigation units was made with approximately 19 and there were eight joint site investigations. The units are up and running. Obviously, more work must be done on procedural issues and so forth between the three Departments. However, the combination of the three Departments will act as a significant deterrent to people who endeavour to abuse employees. The prospect of the Revenue Commissioners, labour inspectors and Department of Social and Family Affairs officials arriving at their door will be a spur to better behaviour by the more unscrupulous employers.

4:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The plan is to set up joint investigation units to engage in enforcement. When will they be established? Either the Minister is misleading me in the House or his official misled me a fortnight ago. In his earlier reply the Minister said the legal capacity had been enhanced through the establishment of NERA. The Minister is criticising me for not having done my research, yet he is contradicting himself from one question to the next. What provision is available to NERA at the moment to impose fines on employers? When will NERA have the power to impose fines, as we discussed earlier?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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One joint campaign has already been initiated by the three agencies, which I detailed earlier, concerning the construction sector. In terms of NERA, it is a non-statutory body. The legislation underpinning NERA is currently being drafted and a memorandum will go the Government shortly on it. I have already outlined that to the Deputy. Under the existing body of legislation to which I referred in an earlier answer, there are penalty provisions pertaining to any breaches of that legislation. However, we will take the opportunity, in the context of the National Employment Rights Agency Bill, to increase fines and penalties.