John Carty (Fianna Fail)

I too welcome the Minister of State, Deputy Calleary, as he presents this important legislation to the House. The issue of workers' rights has been extensively debated in the last year. The combination of the most challenging economic crisis we have ever faced and the forthcoming Lisbon treaty referendum has succeeded in placing it centre stage. In addition, several legal challenges have put the existing legislation under the spotlight. The purpose of the Bill is to strengthen the existing scheme for making both employment regulation orders and registered employment agreements. It has come about because of High Court challenges to the operation of EROs and REAs.

Both REAs and EROs represent minimum pay systems for certain categories of workers. Following several legal challenges, this legislation is being introduced to deal with the flaws in the system. New measures introduced by the Bill will see clear and transparent policies taken into account by joint labour committees when setting out proposals for EROs. The legislation enables joint labour committees to take account of the economic and commercial circumstances of employers when setting out proposals for EROs. This is extremely important given the financial pressures facing all small businesses at present. The legislation also sets out a series of principles that must be taken into consideration by a joint labour committee when submitting its proposals to the Labour Court. This includes the legitimate interests of the workers and employers as well as the economic circumstances of the employers and the workers. At present, there are 67 REAs maintained by the Labour Court - only four of these have wage rates that have been updated in the last four years.

One of the reasons this legislation is being introduced is that both EROs and REAs have their own limitations. They can be complex and in many instances can be obsolete as they often set wage rates similar to the national minimum wage. A recent industrial relations journal found that 80% of joint labour committees' rates, which govern EROs, were only 10% above the national minimum wage, which is currently €8.65 per hour. Also, these agreements can be complex and time consuming to negotiate. Another anomaly is that joint labour committees predate the introduction of the minimum wage in 2000. In the past, JLCs have been criticised for being selective and not covering many areas of low paid work. In a recent survey, the overall majority of trade unions and independent members still believe JLCs are necessary.

Given the extent and the scale of the economic problems we are now facing, small and medium sized businesses are finding it very difficult to survive. Business people face huge pressures. Competitiveness is key to our economic recovery. Some people have used the current financial climate to suggest it will result in a race to the bottom for employers. I do not believe that is correct. The issue of workers' rights has been grossly misrepresented by some people in the debate on the Lisbon treaty. Nobody who cares about workers' rights can honestly call for a "No" vote in the referendum. If anything, the Lisbon treaty realigns the Union's fundamental law in favour of workers. In my view, there are two big winners if the treaty is implemented - national parliaments, whose powers are greatly increased, and workers, whose interests get robust treaty protection. I urge people not to believe the statement on posters displayed throughout the country claiming the minimum wage will be €1.84 per hour. That will not and cannot happen. The Members of this Parliament cannot allow it to happen.

The Charter of Fundamental Rights contains a host of other new protections for workers' rights, which will be given treaty status for the first time if the treaty is ratified. They include a right to information and consultation with the employer, Article 27, a right of collective bargaining and action, Article 28, protection in the event of unjustified dismissal, Article 30, the right to fair and just working conditions, Article 31, and rights surrounding parental leave, among others, in Article 33. In terms of increased protection of workers' rights, consider, for example, the Lisbon treaty's "horizontal social" clause. For the first time, the Union would be obliged to consider the social consequences of decisions in making its policies. This is entirely new in the Union's basic law. Economic or free trade considerations will have to be weighed against workers' rights considerations if the treaty is implemented. How can the "No" campaign oppose that?

In addition to the treaty's advances in this area, our European partners have all endorsed, at the Government's request, a solemn declaration on the importance the EU attaches to workers' rights. This sets out in a single place the importance the European Union attaches to a social Europe. Growth and competition are not ends in themselves but are the means to achieving the social market economy which we, as Europeans and Irish citizens, support. The claim that the EU could introduce a minimum wage of €1.84 is simply false. The national minimum wage and the sectoral pay rates agreed through REAs and EROs are the key assets in our national legislation which ensure there can be no race to the bottom.

I welcome many sections of the Minister's speech, particularly the reference to the shared capacity for co-operation which has been demonstrated by the representatives who comprise the membership of particular JLCs. This is an important part of the legislation. Under section 10, the Government may, by order, amend the definition of "worker" in section 23(1). It can effect those amendments through ministerial order. I also welcome the provisions relating to workers in VECs. The Bill proposes to introduce an inability to pay mechanism. The Government has decided to bring forward a mechanism to enable employers to seek a temporary exemption from the strict application of the EROs and REAs under certain conditions. There were many meetings with the Minister's predecessor at parliamentary level dealing with the difficulty employers had employing people on Sundays and so forth.