Kathryn Reilly (Sinn Fein)

I welcome the Minister of State. In considering this legislation Senators would do well to examine the reasons the joint labour committee system was introduced in the 1940s. Employment regulation orders and registered employment agreements remain necessary as they play a vital role in protecting the most basic and essential rights of workers in the regulated sectors, including basic wage levels and conditions relating to overtime, anti-social hours and sick pay entitlements. The purpose of the JLCs is to provide legal protection for workers in sectors which are prone to exploitation. Workers in the hospitality and retail trades, for example, tend to be non-unionised and low-paid and are frequently part-time, female or migrant workers. Without the JLC system, unscrupulous employers could, in the current climate, reduce pay to the bare minimum legal limits. For the benefit of the House and in case anyone is labouring under any delusions that workers who come within the terms of EROs and REAs are on the pig's back, under the previous dispensation the top rate of pay for workers covered by the retail JLC was €9.66 per hour. An employee working a 35-hour week on this rate would have an annual income of €17,500.

I note that the European Union labour costs survey for 2008 shows that Irish labour costs in the retail sector and in hotels and restaurants were below the European Union average, while the operating costs to labour costs ratio was on a par with the EU average. According to a National Employment Rights Agency report from last year, more than 7% of employers in the largest three sectors covered by JLC agreements were in breach of their obligations. It found that 53% of workers in these areas were earning less than the minimum wage, 51% were not in receipt of wage slips, 83% did not receive a contract or terms of employment, 85% were not paid premiums for Sunday work or overtime and many others did not have rest breaks. These issues affect large swathes of the workforce. Forfás estimates that between 170,000 and 300,000 people are covered by JLC agreements, while the Irish Congress of Trade Unions puts the figure at 550,000.

It should be noted that it was not the Government but Sinn Féin which was first to react to the case taken by the Quick Service Food Alliance that resulted in the current system being struck down as being in part unconstitutional. The Industrial Relations (Amendment) (No. 2) Bill, which was introduced by my party many months ago, remains stalled on Committee Stage. The lack of urgency shown by the Government when we discussed the Bill was disappointing. Since then, Sinn Féin has worked with the trade unions to ensure watertight legislation is introduced on this issue. While the Bill before us has many positive attributes, we will not support the negation of the Sunday premium because it will reduce the wages of the working poor.

I have some concerns that an agenda other than the protection of workers is at work in this Bill. Even before the court case on the JLC system was heard, the Minister indicated that he was seeking reform of this area and spoke in stark terms. His initial proposals included the abolition of half the JLCs, a review of the remaining committees, the drafting of criteria for JLCs, the submission of new EROs for all areas covered by the remaining JLCs, the introduction of provisions enabling amendment of REAs without the consent of both parties, and easier cancellation of REAs. Thankfully, he stepped back from the position he adopted initially, on which I commend him and all those involved in persuading him to change his mind.

Significant problems remain with the Bill. When it was first published the Minister stated: "I have been determined to strike a balance between protecting vulnerable workers and providing reforms that will make the systems more competitive and more flexible so as to allow the creation of jobs in these sectors." I highlight a false dichotomy in the Minister's words. Workers' rights and job creation are not in conflict. The Government's own review, the Duffy Walsh report, found no evidence of a connection between employment levels and the protections and pay rates afforded by JLCs. I ask Senators to bear in mind this important point during the debate.

While I do not deny some of the positive aspects of the Bill, it is also something of a Trojan horse to the extent that it seeks to remove Sunday premiums from the lowest-paid workers. Sinn Féin will not support this provision and will table amendments to it on Committee Stage.