Deirdre Clune (Fine Gael)

The reforms in the Industrial Relations (Amendment) (No. 3) Bill which I welcome are far reaching. The complete overhaul of the JLC and registered employment agreement structure is appropriate at a time of economic difficulties. If the Bill had been introduced ten years ago, it would not have received the same reception. We must ensure we are competitive, that employers can survive and that employers and employees can thrash out the issues involved and move forward. That was the idea behind the JLCs originally. Senator Mary White referred to Mr. Seán Lemass. I had not realised that the committees had dated from his time.

Senator Mary White also mentioned that Deputy Willie O'Dea had brought forward a Bill in the name of Fianna Fáil following the High Court's recommendations of July 2011 which I think was a rehash of the lapsed Industrial Relations (Amendment) Bill 2009 that had been introduced in the 30th Dail by the then Minister of State, Deputy Dara Calleary, under the direction of the then Minister for Enterprise, Trade and Employment, former Deputy Mary Coughlan, but had not reached Committee Stage. That Bill introduced just one of the 19 recommendations made in the Duffy-Walsh report. The Bill introduced by Deputy Willie O'Dea also failed to reflect the High Court's recommendations.

The Duffy-Walsh report recommended a complete overhaul of the system and the Bill before the House implements its recommendations.

We have heard a good deal about it in recent years, especially in the hospitality sector, to which Senator Mary White alluded. There was a ludicrous situation where in some cases employers were obliged to pay three times the rate to those working in the hospitality sector outside Dublin. As a result one could not have a meal in Cork city on a given Saturday and restaurants and bars in hotels and stand-alone restaurants simply did not open because they could not afford to do so. This legislation will rectify this ludicrous situation and allow it to be changed. The High Court recommendation of last year in the case of John Grace Fried Chicken Limited challenged the catering sector, especially outside Dublin. The High Court stated the catering arrangement was unlawful and represented a disproportionate interference with the property rights of the plaintiff. It also stated the joint labour committees, JLCs, gave powers to the Labour Court with no policy guidelines. As a result of that judgment, the National Employment Rights Authority, NERA, was no longer investigating or implementing the provisions of registered employment agreements or JLCs. As a result of the High Court case, too many employees were left in a vulnerable position. We are introducing this legislation to ensure this situation can be rectified and in order that employers will be given protection and an opportunity to negotiate rates and conditions of pay and develop an agreement that can then be registered with the Labour Relations Commission or the Labour Court.

There have been issues with registered employment agreements. There was an outrageous situation where electricians and electrical contractors could not afford to take on jobs because they had to pay electricians between €15 and €18 per hour in some cases.