Tom Sheahan (Kerry South, Fine Gael)
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Question 10: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will amend the Industrial Relations Act 1976 to preclude the inclusion in an employment regulation order or registered employment agreements an obligation that employers pay double the minimum rate on Sundays; and if she will make a statement on the matter. [41259/08]

Ulick Burke (Galway East, Fine Gael)
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Question 27: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will amend the Industrial Relations Act 1976 to allow employers covered by employment regulation orders and registered employment agreements to plead inability to pay; and if she will make a statement on the matter. [41244/08]

Billy Kelleher (Cork North Central, Fianna Fail)
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I propose to answer Questions Nos. 10 and 27 together.

I presume the Deputies are referring to the Industrial Relations Act 1946. Under the provisions of that Act, employer and worker representatives voluntarily enter into collective bargaining negotiations with a view to concluding an employment regulation order or registered employment agreement. The State is not party to such negotiations and, accordingly, I have no plans to amend the Industrial Relations Act as proposed by the Deputies.

Minimum rates of pay and other conditions of employment for workers in certain sectors are set down in employment regulation orders, EROs, made by the Labour Court. These orders are legally binding and are determined on the basis of proposals drawn up by the employer and employee representatives on the relevant joint labour committees, JLCs. The latter are independent bodies and are composed of equal numbers of representatives of employers and workers in a particular sector, with an independent chairman.

An employment agreement is an agreement made either between a trade union and an employer or employer organisation or at a meeting of a registered joint industrial council, which relates to the pay or conditions of employment of any class, type or group of workers. Employment agreements may be presented to the Labour Court for registration. Where the Labour Court is satisfied that an agreement presented satisfies the statutory requirements, it will register that agreement. The effect of this is to make the provisions of the agreement legally enforceable in respect of every worker of the class, type or group to which it is expressed to apply and to his or her employer, even if such workers or employers are not party to the agreement.

In the context of our voluntarist approach to collective bargaining, JLCs covering certain sectors, including the catering and hotel sectors, have agreed terms and conditions, which include the payment of premia for Sunday work, to apply to the workers covered by their respective remits. These terms make no provision for an inability to pay clause because they are essentially agreements on the going rate for the job reached by employers and workers themselves. It is not a Government imposed rate.

I am aware of concerns that have been raised by some employers regarding the impact of Sunday premia payments. Deputies on all sides have raised this matter with me on numerous occasions. I am conscious of the pressures on and concerns of employers and employees in the hotel and catering sectors. Any adjustment or variation in the rates applying to Sunday work in these sectors or any provisions that would allow for an inability to pay plea by an employer remain matters for agreement by the parties represented on the JLCs or those who are party to an REA, as appropriate.

The operation of the joint labour committee system was recently considered by the social partners in the course of their negotiation of the Towards 2016 review and transitional agreement. We have initiated the process to amalgamate the two joint labour committees in the catering sector. Advertisements relating to this matter were placed in national newspapers in the past week.

Leo Varadkar (Dublin West, Fine Gael)
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Even if one is an 18 year old student who works on Sundays, the minimum rate of pay is over €20 per hour. It is difficult for many small businesses in the catering and hotel sector to meet such rates of pay and, as a result, they are obliged to close. Many businesses no longer trade or serve food on Sundays. I hope the new joint labour committee will address this matter. Is the Minister of State satisfied with regard to the legality of the current EROs? Is it constitutionally correct for the Oireachtas to give the Labour Court power to set minimum terms and conditions?

Willie Penrose (Longford-Westmeath, Labour)
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Is the Minister of State satisfied that all those involved are acutely aware of the importance of competitiveness in the economy at this point?

Billy Kelleher (Cork North Central, Fianna Fail)
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I urge Deputies to use their influence in order to ensure that people are aware of the pressures that exist, particularly in the hotel and catering sectors. There is a commitment in Towards 2016 to strengthen the JLCs. Some members representing hotels recently launched a court challenge but as yet there has not been any outcome in that regard.

We are aware that major pressures exist. I urge the representatives of the workers and employers on the JLCs to meet and discuss this matter. I have received representations from Members on all sides, from employers and employees in respect of this matter. If Deputies have any influence in such matters, they should urge the JLCs to convene and strike a rate that reflects the existing reality. Many people are losing their jobs, businesses are experiencing major difficulties in attempting to trade on Sundays and restaurants are closing. There are several restaurants in my constituency that no longer open on Sundays. I again urge Deputies to use their influence.

Charlie O'Connor (Dublin South West, Fianna Fail)
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The Chair wishes to acknowledge the co-operation it has received from all Members during Question Time.

Willie Penrose (Longford-Westmeath, Labour)
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As usual, we acknowledge the efforts of the Acting Chairman.

Mary Coughlan (Donegal South West, Fianna Fail)
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The Acting Chairman never mentioned Tallaght.