Tony Killeen (Clare, Fianna Fail)

I wish to speak in support of the amendment to the motion proposed by Senator Leyden. In so doing, I am sure the House will agree that no Government has been more committed to the social partnership process than this one and the previous one, led by the Taoiseach, Deputy Bertie Ahern. No other Government has been prepared to utilise social partnership to the maximum in seeking to advance the social and economic objectives to which we all aspire.

I want to show to this House how the Government and the social partners can work together to propose, negotiate and develop practical and achievable improvements in our workplaces, as well as the attainment of a fair and inclusive society. These are challenges which the Government set for itself in its programme for Government. The Government is proud of its achievements and can point to commitments delivered and progress made in the social partnership process.

This commitment by the Government is well understood and acknowledged by the people, who in recent surveys have shown strong confidence in the capacity of the Government to maintain high employment and to deliver the conditions necessary to maintain the strong economic growth which underpins our social success. This Government is not about reducing the high employment standards we have attained. It is committed to working with the social partners not only to maintain but also to build upon and improve the conditions of those at work.

The social partnership process is accepted by all in this House, and by many countries and commentators overseas, as being a major contributor to the attainment of our societal goals. This is how it should be as it is an inclusive process which gives a voice and role to many constituencies, none more so than the unions and employers, together with the farming sector and the community and the voluntary groups.

Both employers and unions, through the National Implementation Body, have been clear in strongly recommending that negotiations on a new partnership agreement be commenced urgently, with a view to early agreement. This call has been heard by all parties and the process is under way which I hope will enable negotiations to get under way in the near future.

In issuing its call to the parties, the National Implementation Body made the following recommendations to the social partners and the Government. First, there is a need to review, improve where necessary and promulgate the range of employment protection measures which apply to workers in the Irish economy on the lines of the terms of the Taoiseach's letter to the ICTU and related issues subsequently raised. Second, the process outlined above should comprehend in particular the incentives and disincentives within public policy which might influence decisions to substitute lower paid workers for those currently employed in existing positions. Third, there is a need to ensure that inspection and enforcement systems in respect of mandatory employment standards are effective in providing assurance both to employees and to responsible employers who meet fully their obligations. Fourth, the position of vulnerable workers who have re-located to Ireland from abroad should be the subject of a particular focus in these enforcement issues. Finally, the arrangements which the NIB envisages should arise from the foregoing recommendations to secure an appropriate balance between employment protection and labour market flexibility are best reflected in the terms of an agreement between the social partners and the Government, since such agreement provides the strongest assurance of the widest support and implementation of these measures.

The scene has been set, as the Taoiseach has already made clear. The Government will not be found wanting in contributing to the negotiations and the attainment of an agreement. As stated in the amendment to the motion, a meaningful package in the area of employment rights, standards, education, promotion, compliance and enforcement is appropriate to support the network of trust and the associated stability which has been developed over successive agreements. It is entirely appropriate that the social partners play an important role in the evolution and development of employment rights. It has been the practice of this Government to deal with legislative proposals, the transposition of EU directives and reviews of legislation or processes against a background of consultation with the social partners.

The development of employment and workplace entitlements always feature in the social partnership discussions and agreements and have, over recent times, led to legislation, increased entitlements and additional resources towards enforcement. I expect this will be the case in the event that the negotiations get under way in the near future. It is in the capacity of social partnership to deliver.

The Government has been alert to the necessity of adapting employment rights, compliance and enforcement guidelines to changing circumstances. Following on commitments in the programme for Government and in Sustaining Progress, the Government has taken decisions to address the complexity of legislation in the employment rights area to improve understanding and compliance. It has established the employment rights group, in which the social partners and employment rights bodies participate, to oversee the development of proposals for Government for a simplified body of employment rights legislation. The group also guides and drives the implementation of the Government's decision on the role and functions of the employment rights bodies themselves to ensure user-friendly and simplified compliance, appeal and enforcement procedures are put in place, with all cases being dealt with initially by rights commissioners and only by the Employment Appeals Tribunal on appeal.

The rights of workers from overseas are established by legislation as being equal to those of Irish workers. The vast majority of overseas workers have an entirely satisfactory interaction with the Irish labour market, which interaction is beneficial to all sides and the economy in general. However, there are instances in which overseas workers have not been getting their entitlements in certain sectors and particularly in cases where they may have been relatively isolated. It was for this reason that the Government increased the number of labour inspectors last March to an all-time high of 31. These inspectors are in place, have completed their initial training and are now conducting inspections.

Conscious of the position on employment rights compliance, and in accordance with the commitment in Sustaining Progress, the Government completed a review of the mandate and resourcing of the labour inspectorate. The review, which was not prescriptive, presented the arguments for and against an extensive range of issues impacting on the inspectorate. Having obtained the views of the social partners, the Government established the employment rights compliance group, on which the social partners were represented, to identify a compliance model which was both effective and efficient in enabling people to establish their entitlements and to ensure compliance. Much has been agreed during the course of the review. Final comments from the social partners will be reflected in the report and the remaining issues relating to the compliance model, and the organisational aspects, have been clearly signalled as being matters for consideration in any forthcoming social partnership discussions. The Government has every confidence that agreement will be reached.

More needs to be done in regard to the promotion of employment rights entitlements to employers, employees and migrant workers in particular. For approximately five years employment rights literature has been available in nine different languages and is distributed not only through the work permit system but also through embassies in Ireland, as well as through citizen information centres. This has been followed by a pilot scheme currently under way, whereby classes in basic employment rights are given to migrant workers in their own language. In this I must commend ICTU for its initiative and signal that I would endorse this greater support for the social partners for educational and promotional purposes.

Many workers from overseas work in sectors which are covered by the joint labour committee, JLC, system, where their terms and conditions are negotiated and agreed by the social partners within the framework of that system. The resulting agreements become employment regulation orders once cleared by the Labour Court and are enforceable through the labour inspectorate or directly with the employment rights bodies themselves. This is a robust approach which has worked well for many years. As part of Sustaining Progress, the Government undertook a review of the JLC system by outside consultants, following which the Government entered into consultations with the social partners with a view to developing proposals to further refine the system. These proposals will contribute to any forthcoming social partnership negotiations.

The Government delivers on its commitments and, in making preparations for a further social partnership agreement, has developed strong and deliverable proposals across a range of areas to meet the issues which Government wishes to address and also to meet the concerns identified by the National Implementation Body. The resulting package for consideration within the social partnership negotiations will cover employment standards, employment rights education and promotion and employment compliance and enforcement, together with a range of issues which are appropriate to the social partnership negotiation process.

I propose to address a number of discrete issues which are relevant to the motion and the amendment before the House. I will begin with employment rights. The existing very formidable corpus of legislation and associated rights and protection must be borne in mind in a debate of this kind as we are sometimes asked to react as if there were no social and employment protection framework in place in this State. The challenge in a rapidly growing economy is to ensure that there is adequate, timely and effective enforcement of compliance with the statutory and other provisions now in place. I have already referred to recent developments in this regard and I am quite sure that these will be the subject of further consideration in any forthcoming negotiations with the social partners.

The Minister for Enterprise, Trade and Employment, Deputy Martin, explained to the House in his opening address on Second Stage of the Employment Permits Bill 2005, on 12 October last, the reasons the Government decided that work permits and green cards for certain highly-skilled and highly-paid employees would be predicated on the offer of a job. Such a system would certainly be more flexible and responsive to the needs of the economy than the green card system being advocated by the Labour Party, which it describes but does not define. International experience has shown that alternative systems such as points or quotas create an undesirable and unnecessary level of bureaucracy, a mismatch between available skills and labour requirements, and entail forecasting future needs, which is difficult to achieve.

The Employment Permits Bill also provides a great degree of mobility for holders of work permits or green cards. There will be an automatic right to change employer after 12 months and a right which may be exercised with the agreement of the Minister during the first 12 months of employment. Additionally, in future the permit or green card will be granted to the employee and this document will contain valuable information for the protection of the employee, including the right to be paid at least the national minimum wage, which is the second highest in the EU, the prohibition on the deduction of recruitment expenses and the retention of personal documents by employers.

Ireland's position as regards the International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families is no different from that of any of our EU partners, none of which is party to or has signed the convention. An examination of the EU convention by the Departments of Enterprise, Trade and Employment and Foreign Affairs has shown that ratification would require significant and far-reaching changes across a wide range of existing legislation, including legislation addressing the authorisation to stay and to work, education and training, health and medical care and electoral matters. These changes would also have implications for our relations with our EU partners and possibly for the operation of the common travel area between Ireland and the UK.

With regard to employment and displacement, since EU enlargement in May 2004, the domestic labour market is effectively the 25 member states of the EU. Irish employers are free to hire anybody from any of these member states and Irish workers are free to work in any of these states, either temporarily or permanently. I am aware of concerns expressed that Irish employers are replacing Irish workers with workers from overseas at lower rates of pay or on poorer conditions. However, we have full employment and a very buoyant labour market situation, with low unemployment and with many workers from overseas successfully finding employment.

To date, it appears that any degree of displacement is not being reflected in higher unemployment. Nevertheless, the Government will, of course, listen carefully and respond in the course of any social partnership negotiations. The Government is committed to avoiding a race to the bottom and the Taoiseach has made it very clear that the Government does not want to see people building competitive advantage based on poor wages, casualisation of labour, low health and safety standards or other poor compliance standards. This is not a race to the bottom but rather a race to the top as we upskill to strengthen our employment capacity and growth potential.

In a modern, competitive economy, where goods and services are freely traded, the concept of job security is changing. The days when an employee might expect to stay with the same employer for a lifetime are largely gone, as are the days when defensive action by a combination of the State and other domestic interests could shelter sectors of the economy from international competition. The benefits of the newly-integrated international economy can be seen in full employment, healthy public finances and improved public services in Ireland. The ready supply of relatively cheap consumer goods has contributed to the rise in living standards of the great mass of Irish people, including those on low incomes. Ireland and the Irish workforce have been major beneficiaries of the growing global economy and part of the public policy challenge is to ensure that we continue to benefit.

The experience of Ireland in recent years may be unique in our history but it is by no means unique in terms of international experience. Other societies have adapted well to new challenges and there is no reason this society cannot forge its own way to a new equilibrium. Part of this process of adaptation involves the identification and promotion of those factors that can contribute to quality work and greater employment security in the circumstances of the new economy. International experience in recent years suggests that, instead of job security being guaranteed by traditional economic structures and State regulation, individual employees can find greater economic security through greater flexibility, underpinned by continuous training and development. This calls not only for a supportive environment being provided by employers and the State but also for a positive and personal commitment from individual workers.

As an indication of the forward-looking stance being adopted by the Government in regard to the changing workplace, the Taoiseach last March launched the report of the forum on the workplace of the future, Working to our Advantage: A National Workplace Strategy. If we are to meet the challenges presented by the globalised 21st century market, our workplaces must be geared for constant change and innovation. All involved — employers, employees, policy makers and social partners — need a shared understanding of what needs to be done, particularly at the level of the workplace. This is the basis upon which the national workplace strategy has been developed. This is the first time the workplace is the focus of a national report, and deservedly so. The workplace can be seen as the hub of the Irish economy. It is where employers and employees interact, where productivity happens and where competitiveness is forged. It provides employers, shareholders and employees with the resources to live their lives, and provides the national economy with the factors that make it thrive.

The report presents a vision of the workplace of the future as being agile, customer-centred, knowledge-intensive, responsive to employee needs, networked, highly-productive, involved, participatory, continually learning and increasingly diverse. In identifying the gaps in Irish workplaces, the report focuses on five strategic priorities: commitment to workplace innovation; capacity for change; developing future skills; access to opportunities; and quality of working life. I chair the high-level implementation group which is overseeing the national workplace strategy which will provide a comprehensive framework to assist and support workplaces to meet the challenge of enhancing Ireland's economic competitiveness and performance. The national workplace strategy underlines the need to move forward with an increased emphasis on adaptability, high performance, employee involvement, innovation, learning and skill development.

Change has become a constant feature of economic life. In Ireland and the EU, and across the world, all sectors are affected by change and restructuring. The structure of employment is moving ever further away from traditional sectors to new, rapidly expanding service activities, many of which require different forms of work organisation. There is an increased need for flexibility in the workplace and both business and employees have to be able to adapt to new ways of working. The national workplace strategy highlights the various steps that are required to ensure improved adaptability in Irish workplaces. The State has a significant role in providing a responsive regulatory framework, which ensures that a flexible workforce does not suffer from a lack of social protection. This approach, however, requires a balanced contribution from all players. It cannot work if all the flexibility is demanded from employees.

In recent years the Government has sought to link and promote the related concepts of flexibility and security through labour market initiatives involving tax and secondary benefits which have made it easier for unemployed or otherwise economically inactive persons to enter or re-enter the workforce. These have proceeded with significant development in the areas of training and lifelong learning. "Flexicurity" was the theme of last week's Council of Minister's meeting chaired by the Austrian Presidency.

The draft directive on services has recently aroused much comment and controversy. The Government considers that a single market in services would be in Ireland's interest in terms of employment prospects, trade opportunities, consumer choice and welfare enhancement. Since the draft directive was tabled over two years ago it has been subject to a largely technical examination in the Council of Ministers. The technical experts have been clarifying the various elements of the proposal ahead of the consideration by the competitiveness council of the main policy issues, including the country of origin principle on which the Council of Ministers has not yet reached any decision.

Some stakeholders have expressed concerns that the country of origin principle might circumvent our employment law. The Government shared these concerns and successfully sought changes to the text of the original Commission proposal to clarify this issue. The most recent draft of the proposal includes significant improvements in the area of labour law. While this is not a formal new proposal it is a good indication of what the member states can and cannot agree. As a result of the changes, our employment law would apply to all workers posted to this country and to all workers who obtain employment here. I made Ireland's position in this regard very clear in Austria last Friday.

Workers posted to work in Ireland from other EU member states have the protection of all Irish employment legislation in the same way as employees who have an Irish contract of employment. This is covered by section 20 of the Protection of Employees (Part-Time Work) Act 2001 which states that all employment legislation which confers rights or entitlements on an employee applies to a posted worker in the same way that it applies to any other employee. As the Industrial Relations Act 1946 applies to posted workers, all collective agreements registered under that Act also apply to posted workers.

There are approximately 60 binding registered employment agreements to protect employment standards, many of which cover the services sector. They cover statutory minimum rates of pay and other conditions of work and would continue in force if the services directive were adopted.

Much work remains to be done on the draft directive before it is agreed by the Council of Ministers. The Commission will come forward with new proposals in the next few months, especially on the country of origin aspect. Let us wait and see what it proposes, then we will continue to avail of every opportunity to protect our interests under the directive. We will go through a consultative process with the stakeholders, including the social partners. This process has been totally open and transparent, and has been open for all to follow on my Department's website. In light of those consultations we will formulate a position which is in the best interests of Ireland and Europe.

The Commission's amended proposal for the draft directive on temporary agency workers of November 2002 was the subject of detailed consideration by the Employment, Social Policy, Health and Consumer Affairs Council on many occasions between 2002 and the end of 2004. No agreement, however, could be reached on compromise proposals tabled by presidencies over that period. The differences between member states have, if anything, widened as the new member states adopted positions.

The directive is stalled. Should the Austrian Presidency re-open discussions on the proposal Ireland will be willing to participate in a compromise that meets its requirement of ensuring that temporary work can continue to provide a firm path to full-time employment.

It is anticipated that some of the issues under consideration here today will also be addressed in the context of the Green Paper on the evolution of labour law, in preparation in the Commission. This will consider the implications for maintaining standards as workers become increasingly mobile. Ireland will take a close interest in this work this year.

Turning closer to home, the question of employees being classified as sub-contractors, particularly in the construction sector, is a matter of concern. There has been a substantial increase in the level of Revenue activities around the construction industry in 2005, enhanced by several new special compliance initiatives. The chairman of the Revenue Commissioners recently informed the Committee of Public Accounts that for 2006, Revenue would devote 25% of its audit resource to policing building-related sectors. As part of this national project, the issue of misclassification of building operatives as self-employed will be addressed.

In the context of so-called bogus self-employment in the construction industry, the Labour Court recently made a significant decision on the registered employment agreement, REA, in this area. In this case, the employer maintained that two workers were employed as self-employed sub-contractors and accordingly not covered by the construction industry REA. The court concluded, however, that the workers were covered by the REA. The Labour Court was guided by a 2005 High Court case which found that the definition of a "worker" in the 1990 Industrial Relations Act is wide enough to include an individual sub-contractor.

Thus, a worker in one of the designated occupations covered by the REA who is engaged by a building or civil engineering firm is entitled to all the benefits of the agreement and an employer may not avoid liability under the agreement by seeking to designate the worker as an independent contractor. This decision of the Labour Court will inform discussions at any social partnership negotiations.

Under the current conditions of contract for Departments and local authorities there is a requirement that contractors pay rates of wages and observe hours of labour and conditions of employment in public procurement not less favourable than those laid down by the national joint industrial council for the construction industry. I hope this contract-based approach to compliance can be extended.

On the issue of a joint labour committee for domestic workers, the Employment Equality Acts 1998 and 2004 cover all employees in domestic service regardless of race or gender. The scope of the Acts is comprehensive and covers discrimination in respect of access to employment, conditions of employment, equal pay for work of equal value, training, promotion and work experience.

While not specifically relevant to the issue of amending equality legislation, the suggestion of establishing a joint labour committee for domestic workers has recently been raised. I have asked the Department to consult with the Labour Court and the Labour Relations Commission on the practicalities of establishing a new joint labour committee for domestic workers. The critical issue here is that under the Industrial Relations Act 1946, a joint labour committee can be established only on the basis of an approach made to the Labour Court by a trade union or any organisation or group of persons claiming to be representative of relevant workers or of relevant employers. I also have a role but the issue revolves around representation.

The range of issues I have mentioned is not comprehensive but it gives this House a sense of the capacity of social partnership to engage and contribute. It is a valuable process and the outcomes achieved reflect the commitment of all parties to the common good.

The Government delivers on its commitments in social partnership, be they pay increases, improvements in redundancy payments, development and enactment of legislation or improvements across the whole range of employment rights and entitlements. Many issues need to be addressed in any forthcoming social partnership negotiation in which all parties will have to contribute and compromise. I am confident, however, on the basis of the trust and proven commitment of all parties, that the outcome will contribute to our shared vision of a successful society. The Government is committed to, has delivered on and will contribute to, and continue to deliver on, social partnership.

Do I have time to address some of the points made by Members?