Martin Ferris (Kerry North-West Limerick, Sinn Fein)
Link to this: Individually | In context

Question 7: To ask the Minister for Enterprise; Trade and Innovation if he has received the report of the review of Employment Regulatory Orders and REA systems; when he expects to receive and publish this report; and if he will make a statement on the matter. [10017/11]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

An independent review of the statutory wage setting mechanisms was initiated on 8 February last and was undertaken jointly by Kevin Duffy, chairman of the Labour Court acting in an ad hoc capacity, and Dr. Frank Walsh, School of Economics, UCD, under specific terms of reference. The report of the independent review team has been completed and was received by me last Thursday, 28 April. I am currently examining the report and it will be published and made available to Members following consideration by the Government.

It is proposed to have early discussions with the European Commission services on the main findings of the review, in line with the provisions in the EU-IMF programme. Arising from these discussions, I will present a time-bound comprehensive action plan to follow up on the report's recommendations, setting out proposals for any legislative action that may be necessary to give effect to reform measures. Consultation with, and the co-operation of, relevant stakeholders will also be sought to ensure that the required reforms can be progressed as a matter of urgency.

Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context

One of the major problems people have with the review is they feel that a number of the terms used in it are euphemisms. For example, there is a reference to wage rigidity which others would look on as the safeguarding of wages and standards of living. There is also a reference to flexibility, which some people believe is a euphemism for downward pressure on wage rates. Given organisations such as the Society of St. Vincent de Paul have made submissions, which indicate that the standard of living of 250,000 people could be lowered through this review, will the Minister do his best to safeguard the standards of living of the individuals governed by these agreements?

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

As the terms of reference have made clear, the role of statutory wage setting mechanisms is to strike a balance between the need to protect employment and the need to protect working standards. There are two sides to this and, as I pointed out to Deputy Boyd Barrett, there have been significant job losses in these sectors on a truly dramatic scale. For example, 37% of low income jobs in retail and wholesale have been lost while more than 60% have been lost in construction. A number of sectors have been acutely affected by the recession. Other sectors face acute competition, particularly cross-Border competition. We must be mindful that our wage levels are substantially higher than in the North.

Some measures in these agreements have been inflexible in the way that have been applied and many have found that it is not just the pay levels but some of the conditions and the specific nature of requirements to be recorded, policed and honoured that need to be addressed. We must consider whether this is a suitable, modern mechanism to respond to sectors in deep crisis. That is the backdrop to this examination and that is why radical reform will be proposed in the review.

Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context

The Minister has said on a number of occasions that he will protect those at the lower end of the scale by increasing the national minimum wage. He, therefore, regards the two issues as inextricably linked. The programme for Government states independent chairpersons will be appointed to these committees. Does the Minister not regard the current chairpersons to be acting independently?

With regard to his promise, which I welcome, to publish the Duffy report, will he undertake to do so before he refers to it to EU and IMF officials?

Joan Collins (Dublin South Central, People Before Profit Alliance)
Link to this: Individually | In context

Does the Minister agree that the austerity programme his Government is pursuing will continue to have a negative impact on jobs and industry? Will the Minister be straight with the House and the people that the reversal in policy on the national minimum wage is not a concession by the Government but it is linked integrally to the 250,000 people on the EROs? Will he make clear that it is part of the EU-IMF programme and the Government is being directed by the EU to do this? There should be a review to protect workers such as those who worked in Connolly Shoes, Dún Laoghaire, who were indiscriminately sacked after 38 years. This is an area in which regulations and protection of workers should be tightened up.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

The change in the policy on the national minimum wage is a decision of the Government and it reverses the position adopted by the previous Government under the EU-IMF agreement. This decision reverses the policy in place before the Government took office. Legislation will have to be introduced to implement this because I cannot do this by order. A Bill will have to be debated and voted on in the House.

Deputy O'Dea asked whether the two Bills would be taken together. That remains to be seen. It depends on timing issues and the complexity of reforms whether they will be addressed in one Bill or separate Bills. However, they are separate issues.

I hope to publish this report soon but I will also convey its contents to the EU Commission, as was undertaken. It played a role in commissioning the report and, therefore, there is no reason to hold it back. I will make it available to the EU as well. I am anxious to publish it, indicate the direction of change to avoid a long period of uncertainty, as Members have highlighted, and make the decisions that are appropriate.

Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context

What about the question on the independent chairperson?

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

The indication in the programme for Government is that the independent chairperson is not to question the independence of those who are already in place but to indicate that the basic structure of the JLCs with independent chairpersons would remain. Clearly, there will be radical reform. There was no reflection on any individual.