Dáil debates

Tuesday, 27 January 2015

Other Questions

Schools Building Contractors

3:50 pm

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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125. To ask the Minister for Education and Skills the measures taken by her Department to ensure that subcontractors used on school construction programmes are compliant with legislation and agreements in place covering pay and conditions in the sector, and that RCT1 contracts are not abused to undermine workers' pay and conditions; her views on the strike taking place at a college among workers employed by a company (details supplied); and if she will make a statement on the matter. [3373/15]

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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I apologise for missing my slot. I wish to ask the Minister about the measures taken by her Department to ensure that subcontractors used on school construction sites are in compliance with the law and agreements concerning pay and conditions, in particular the use of so-called bogus subcontracting to enable minimum wage and other legislation to be subverted, and that RCT1 contracts are not being abused to undermine wages and conditions. In particular, I ask for her view on the strike in Lucan involving the JJ Rhatigan company.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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All school building projects which are funded from public moneys, are required to use the forms of contract provided under the capital works management framework which includes a suite of public works contracts, standard conditions of engagement, model forms, suitability assessment questionnaires and guidance notes published by the Office of Government Procurement, OGP.

As the Deputy is aware, my Department appointed Contractors Administration Services, CAS, to conduct random audits on school building projects. CAS has been requested to carry out a full monitoring service for the duration of the contract at the school in question. Should irregularities be uncovered in terms of non-compliance with relevant employment law, enforcement and prosecution falls under the remit of the National Employment Rights Authority, to which my Department will report any discrepancies found. If the audit uncovers any other matters of concern regarding tax compliance or social welfare fraud, such matters will be referred to either the Revenue Commissioners and-or the Department of Social Protection, as appropriate.

I met all unions representing construction workers involved in the delivery of my Department's school building programme, including officials from Unite, late last year.

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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How long will this investigation take? The strike has been going on for almost four and a half months. The JJ Rhatigan company is not a minor company. It won about half of all the school building projects awarded in the previous phase. It is one of the top 100 companies in Ireland and one of the top builders in the country. We have evidence to suggest that workers on that site are being paid €5 an hour and they have been on strike for four and a half months. Is a Labour Party Minister going to stand over that situation? Is it not her responsibility to ensure that where State contracts are involved, at the very minimum the minimum wage legislation is enforced?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I have engaged in discussions with Unite on that specific issue of the workers' rate of pay. The Deputy has provided a slightly simplistic way of describing it. In respect of the ongoing dispute at the site referred to by the Deputy, I understand that both parties have attended a Labour Court hearing, a construction industry disputes tribunal hearing and also a Labour Relations Commission hearing. I have written to both parties and I urge them to engage meaningfully in talks with a view to reaching a resolution. The parties are using the State apparatus for disputes resolution and that is the appropriate way to address the issue.

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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How long will the investigation take? On the point about the rate of pay, it is a simple matter of adding up the hours they have worked and the rate of pay and working it out in a simple mathematical equation, which gives the answer of €5 an hour. This is massive exploitation. Fourteen workers have been on strike for four and a half months in very difficult circumstances. This company is not paying its taxes as a result of this kind of fraud. When the next round of building projects come up, will the company be eligible to apply again? Will we see the same circumstances again? Can we expect the Minister's Department to have rigorous enforcement to ensure that anyone working on school construction sites or any State building projects is properly paid according to the law?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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That is absolutely the determination of my Department and the reason we report anything untoward to the various relevant authorities. On a point of clarification, the CAS audit is being continued. It is a full monitoring service for the duration of the contract. On the question of the pay rate of €5 an hour, I wish to clarify that this is not straightforward, direct employment, whereby people are paid by the hour.