Dáil debates

Thursday, 8 December 2016

Ceisteanna - Questions - Priority Questions

Employment Rights

3:20 pm

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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4. To ask the Minister for Jobs, Enterprise and Innovation if her Department has noted the landmark ruling in the United Kingdom courts in favour of taxi drivers (details supplied) represented by the GMB union against the company confirming the drivers' status as employees as opposed to contractors; and if she will make a statement on the matter. [39125/16]

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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Has the Department of Jobs, Enterprise and Innovation noted the landmark ruling in the UK courts in favour of two taxi drivers represented by the GMB trade union against the Uber taxi company which confirmed the drivers' status as employees as opposed to contractors and will the Minister make a statement on the matter?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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My Department is aware of the particular case referred to by the Deputy in which a division of the Employment Tribunal in the United Kingdom found that the drivers who did not hold a taxi licence were employees of the enterprise in question. I understand this decision is under appeal to the superior courts in the United Kingdom.

In Ireland there is a mechanism for the determination of the employment status of individuals or groups. Where an issue arises in relation to the employment status of an individual, cases are forwarded to the Revenue Commissioners and-or the scope section of the Department of Social Protection for investigation, either solely by the recipient or jointly with the labour inspectorate of the Workplace Relations Commission, WRC. In most cases it will be clear whether an individual is employed or self-employed. Where there is doubt about the employment status of an individual, the relevant Departments and agencies will have regard to the code of practice for determining employment or self-employment status of individuals which was drawn up and agreed to in 2007 by the relevant Departments with the ICTU and IBEC. An individual who believes he or she is being deprived of employment rights applicable to employees may refer a complaint to the WRC where the matter can be dealt with by way of mediation or adjudication, leading to a decision that will be enforceable through the District Court. WRC inspectors can also be asked to investigate certain breaches. Complaints can be made on a single complaint form available on the WRC's website. The WRC's customer service section also provides information for employers and employees on employment, equality and industrial relations rights and obligations.

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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The Minister's reply sounds wonderful, but it is in sharp contrast with the reality in Ireland. The reality is that action on the part of the authorities to which the Minister referred is more the exception than the rule. Half of all the people working in construction in the State, often on publicly funded projects, are employed on the basis of bogus self-employment contracts. One particular recruitment firm, CLS Recruitment, is blatantly promoting these arrangements as a means of avoiding payment of the national minimum wage and holiday pay to and social insurance contributions for subcontractors in the construction sector. Earlier this year the fast food company, Deliveroo, sought to change its relationship with its employees in Ireland who were already on low wages. These employees were presented with new contracts, to the effect that they would in the future be self-employed and paid per delivery, the net effect of which was that their pay would be reduced to half the national minimum wage. How does the Minister account for this if the authorities within her remit are being so proactive?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Deputy should inform those who are suffering such injustices to take up the matter with the labour inspectorate of the Workplace Relations Commission. As I said, details of how they can do this are available on the relevant website. We have increased staff numbers in the WRC such that waiting times in having cases heard have been shortened. The Deputy should encourage those suffering such injustices to report to the WRC which will work through their cases.

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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The new buzz term "the gig economy" is used to described this phenomenon which is increasingly prevalent. In reality, it is nothing new. It is a revival of 19th century-style piecework. The Minister's response that those concerned should report these injustices to the labour inspectorate does not take account of what is happening in Deliveroo in which the majority of workers are migrants. Some may even be in the country illegally. Going to the authorities to sort out this blatant exploitation would be very difficult for them. The Uber ruling and the victory of Deliveroo staff in Britain who recently fought for their rights should give encouragement to workers here to organise and fight for direct employment. However, this does not let the Department of Jobs, Enterprise and Innovation off the hook. What proactive steps does the Minister intend to take to combat this form of worker exploitation which is increasingly prevalent?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Deputy mentioned the gig economy. Uber uses what is termed the gig economy business model. It operates a technology platform to link with customers looking for a taxi. As I said, the ruling in the case mentioned by the Deputy is being appealed to the superior courts in the United Kingdom. In Ireland if individuals working in the gig economy were to take a similar case and achieve a similar outcome, they would be entitled to the national minimum wage and holiday pay. In addition, the company concerned would have to pay taxes on behalf of the individuals working for it. On the gig economy, the only cases of which I am aware are the one taken against Uber in the United Kingdom and another in Spain.