Dara Calleary (Mayo, Fianna Fail)

I thank the Senators who spoke on this issue today and on the previous occasion for their contributions. We are all agreed that the emphasis of the Bill is to protect workers, in particular the most vulnerable workers, and in doing so to ensure the existing mechanisms for making employment regulation orders and registered employment agreements operate effectively and that they are fit for purpose, especially in the current climate. I acknowledge recognition that the Bill is only part of a suite of measures which the Government will introduce. We were criticised for it at the conference to which Senator Alex White referred. However, this is just a part of the large number of legislative employment rights progressing through the Houses at present.

I will comment on a number of the issues raised during the debate. A number of Senators referred to the very severe competitive pressures operating in certain sectors and in sectors covered by JLCs. I welcome and endorse the comments of Senators on the work that went into every part of the JLCs from employers, trade unions and my predecessor in the role, Deputy Billy Kelleher, in particular with regard to the Sunday premium and the premium in the hospitality sector.

One of the issues to which Senator Alex White referred was the inability to pay. The strong case - in which I genuinely believe - in favour of the inability to pay mechanism is to maintain employment because many employers find the rates agreed at JLCs prohibitive and they are in a temporary position of not being able to pay. By introducing this mechanism, which will be protected and not open to false claims, we may maintain employment. This is the strategy and wish driving my proposals in this area. I look forward to engaging with Senator Alex While on this issue.

The inability to pay mechanism is what gets the most headlines but the Bill contains many other measures. The general definition of the worker has been welcomed across the House. We are very conscious of vulnerable workers and we have established the National Employment Rights Agency, NERA. The Government receives much flak for the work of NERA but it inspects workplaces, particularly workplaces covered by JLCs and registered employment agreements, and in doing so it finds and highlights cases of vulnerable workers. If any Senator knows of any employer mistreating workers, be it in pay, conditions or anything to do with legislation, he or she has the right to contact NERA and engage with it. I ask all Members of both Houses to engage with NERA officials in their day to day work. They will find them to be a superb help.

Senator John Paul Phelan was concerned that we missed an opportunity to address the day-to-day machinations and workings of a JLC. In particular he was concerned about the existence of regionally differentiated JLCs. The key issue on uniform rates is the will of the parties involved in the JLCs. There were two separate JLCs in the catering sector: one for the greater Dublin area and one for the rest of the country. The parties involved in those two agreements have reached agreement to merge them. However, in advance of that amalgamation the parties involved in the two committees decided they would first ensure the implementation of a uniform set of terms and conditions throughout the country before agreeing to the amalgamation. Those rates, including pay rates and the Sunday premium, are now applied in the catering sector throughout the country and it is envisaged the amalgamation of the two committees in the sector will follow. I do not see any need for the Department to interfere in the process. It is under way and is being guided.

I also noted Senator John Paul Phelan's remarks, and remarks made by other Senators, on the chair of the JLC and we are examining the matter. However, I am not convinced that removing the casting vote of the chair will improve prospects for reaching agreement around the table. I am aware of concerns about chairs and we have met many interest groups in recent weeks. We will take those concerns on board on Committee Stage. We must be careful because much of the disagreement on chairs comes from one particular side of the argument and there is a danger that if we move to diminish the role and scope of the chair, the entire process and the JLC system might fail to work and we might be back at square one.

Senator Quinn questioned the objective of the Bill and the system for setting a national minimum wage in addition to the mechanisms for fixing rates. He was concerned that these mechanisms, which as Senator Alex White stated date back to the time when Seán Lemass was Taoiseach, are no longer relevant to today's labour market. While I agree with Senators Quinn, Callely, John Paul Phelan and others who made the point that we must contain employment costs and make ourselves more competitive, we also have to remember the words of Senator Alex White and strike a balance on workers' rights. We are doing much work on competitiveness which will be painful as there will be a reduction in unit labour costs, but with this Bill we are trying to provide a mechanism whereby the reduction can be achieved in an agreed fashion through the JLC system.

We must have measures that protect vulnerable workers in situations where they may be unable to protect themselves or avail of their full entitlements. Workers are most at risk where they work in an environment where the risk of being denied employment rights is high and where workers may not have the capacity or means to protect themselves from that abuse. There are good and poor employers in every sector. The data provided by NERA suggests problems seem to occur more frequently in some sectors covered by the joint labour committees, JLCs. Retail, hotels, restaurants, construction, security and cleaning are particular problem areas. We must keep these mechanisms in place, keeping them under review to ensure vulnerable workers in these areas are protected and poor employers have a fear of sanction if they decide to mess with workers' rights. It is especially important with regard to the timing and frequency of adjustments made to minimum wages and conditions. It is also necessary, as will be achieved in this legislation, to review the way economic and social considerations are calibrated when adjusting minimum wage rates.

Senator Feargal Quinn failed to take account, unlike many of his colleagues, of the adjustments made to statutory minimum wage rates by the relevant JLCs in recent months. Agreements have been reached in the hotel, catering, retail and agricultural JLCs recently. I agree with the majority of Senators who considered the Bill's provisions will help sustain the spirit of realism which has informed efforts at the JLCs.

I welcome the general endorsement of the inability-to-pay mechanism. The Department is having consultations with employer and trade union parties on the best way to facilitate a form of temporary relief when an employer is facing a short-term financial difficulty. The mechanism is a once-off and time limited to allow everyone share the burden in getting a company over the profitability line. It is not a carte blanche and I give Senator Alex White my assurance on that. The mechanism will go some way to balancing the current demands of employers and trade unions in this area.

I thank the Leas-Chathaoirleach, Senator John Carty and other Members for their input. I look forward to Committee Stage when various provisions, particularly the inability-to-pay mechanism, can be examined in finer detail.