Dara Calleary (Mayo, Fianna Fail)
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4. To ask the Minister for Jobs, Enterprise and Innovation his plans to raise the take-home pay and working conditions of low-income workers; if this will include changes to the existing protection for persons on zero hours contracts; and if he will make a statement on the matter. [6271/15]

Dara Calleary (Mayo, Fianna Fail)
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Could the Minister of State confirm the time line for the low pay commission? I know he has asked the Oireachtas Committee on Jobs, Enterprise and Innovation to begin pre-legislative scrutiny on the minimum wage Bill. I want to focus our discussion zero-hours contracts. Will they be the subject of separate action on the part of the Minister of State and will they come under the remit of the low pay commission? In particular, I want to see what work is under way at European level around zero-hours contracts, which are becoming a very unfortunate phenomenon of the economic recovery.

Gerald Nash (Louth, Labour)
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The Government is taking a number of initiatives to ensure that the economic recovery that is under way is benefiting all citizens and that the jobs we are helping to create are decent jobs with decent pay. The setting up of a low pay commission is one of the key commitments in the statement of Government priorities agreed last July.

The principal function of the low pay commission will be to examine and make recommendations each year to the Minister on the national minimum wage with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels.

Alongside examining the national minimum wage, the low pay commission will also be tasked with examining matters related generally to the functions of the commission under the Act. This work programme will be agreed by Government and presented to the commission in February of each year. In addition, in the discharging of its function, the commission will be required to make recommendations that are evidence-based using a suite of agreed data sets or, where required, based on bespoke research undertaken at the behest of the commission. It is intended that the interim membership will constitute the commission when it is established on a statutory basis. A particular function of the commission will be to ensure that any advice or recommendations it makes to Government is evidence-based utilising agreed data; carrying out research and consultations with employers, workers and their representatives; and taking written and oral evidence from a wide range of organisations.

With a view to ensuring that the low pay commission is in a position to carry out its functions as soon as possible, the commission, in the first instance, will be established on an interim basis in the next few weeks. Legislation to provide for the establishment of the low pay commission on a statutory basis will be published as soon as possible thereafter with a view to its enactment as soon as possible in 2015.

Another key commitment of Government provided for in the statement of Government priorities is the commissioning of a study into the prevalence of zero-hours and low-hours contracts and the impact of such contracts on employees. Earlier this week, I announced the appointment of the University of Limerick to carry out the study. The appointment of UL follows a competitive tendering process. The key objectives of the study are to fill the gap that currently exists in terms of the hard data in that area, to assess the impact of zero-hours and low-hours contracts on employees and to enable me to make any evidence-based policy recommendations I can to Government on foot of the study. I have asked the group to come back to me with specific recommendations pertaining to the three pieces of legislation in particular that govern this area.

Additional information not given on the floor of the House.

All sectors of the economy, both public and private, will come within the scope of the study, including the retail, hospitality, education and health sectors in particular. The study will examine how zero-hours and low-hours contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular.

It is expected that a wide range of stakeholders will be canvassed to contribute to the study, including employers, trade unions, relevant Departments and relevant State bodies. I expect the study to be completed within six months of commencement. While I do not want to anticipate the outcome of the study or the Government's consideration of the study's findings, I have made it clear that if the study finds such work contracts have a serious and detrimental impact on citizens then the Government will act.

Dara Calleary (Mayo, Fianna Fail)
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In respect of the UL group, will there be public consultation or will it focus primarily on research and data? Will the group have the chance to speak to workers? Zero-hours contracts are not completely bad if there are some companies that need them, but some companies are abusing them and treating workers like the navvies in England - wait on a corner and see whether a man comes along and picks you up. We cannot allow that to happen. We must have some respect and dignity for workers. It is important that whatever solution we come up with does not throw everything out. It is also important that it is pursued at European level because there is no sense in us having one set of protections while there are completely different rules in another part of the jurisdiction that are used as a competitive advantage and workers' conditions are used by companies to gain competitive advantage in what is an increasingly cruel global market.

Gerald Nash (Louth, Labour)
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We know from the Office for National Statistics in the UK and work carried out annually by the Chartered Institute of Personnel and Development that there are about 32,000 zero-hours contracts in Northern Ireland. Those figures are very worrying. We have a different system here where the protections of the Organisation of Working Time Act are applied to people in certain circumstances. There has been huge debate nationally and internationally on this.

The Deputy will agree there is hard data evidence to indicate to us the extent and prevalence of this problem. We have widened the study out to include low-hour contracts, contracts of eight hours or under, which are possibly more common than zero-hour contracts. There is a significant debate about this issue both nationally and internationally. People in Ireland will be familiar with the debate in the UK where it is believed there are approximately 1.4 million such contracts in operation. We want to ensure the jobs we are creating are decent, sustainable and pay well. We want to ensure work pays and that it conforms to my dignity of work and dignity at work agenda, an agenda to which the Taoiseach and the Tánaiste and the Minister for Social Protection are committed.

Dara Calleary (Mayo, Fianna Fail)
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One area where zero-hour contracts are used is retail. Will the Minister of State express his views, if he wishes to, on the position of the largest retail company in the country writing to all of its workers, distancing itself from a Labour Court recommendation? The Labour Court has been the foundation of our industrial relations policy since its establishment. While its recommendations are not binding, the notion that its recommendations can be treated with such disdain by one of the largest retail employers is wrong. I accept the Minister of State may not be in a position to express his views on this. However, the fact the company has written to every one of its employees advising them of adverse consequences if they pursue proper industrial relations avenues is a sad day for Irish business.

Gerald Nash (Louth, Labour)
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We always need to be very conscious of areas such as this. I am aware of developments in the particular firm in question and its engagement, or lack thereof, with the trade union representing its workers. It would be unwise of me to comment any further as the situation is evolving.

From the Government’s perspective, we would always encourage Labour Court recommendations to be respected. The Labour Court is a very key piece of our industrial relations machinery and is very important for harmonious industrial relations between employers and employees. It is an important institution of the State that has served us well and is respected by everyone. It should never be undermined in any way. Developments in the company in question are concerning. Suffice to say, the Government always encourages, hopes and expects that all parties involved in the industrial relations machinery of the State will respect its recommendations and proposals.