Paul Gavan (Sinn Fein) | Oireachtas source

I welcome the Minister of State and congratulate him on his appointment.

My focus as a congress nominee will be on low pay. There is a scandal in terms of low pay in this country on which a light needs to be shone, and I am conscious that the debate is on sustainable employment because much of what passes for employment today is simply not sustainable.

I want to focus in particular on the hospitality industry, which we have heard a good deal about, particularly from this side of the House. It is an industry that for some time has enjoyed a generous tax break in terms of a reduced VAT rate of 9%, costing taxpayers €650 million a year. We know that the hotels industry is booming, with record levels of room occupancy, but that stands in stark contrast to the terms of conditions of workers in that sector. We know that of the 137,000 workers employed in accommodation and food services, more than 50% earn less than €400. Some 17% of all employees in the sector only earned the national minimum hourly wage, while 41% of workers are part-time and 59% are full-time. The weekly average wage is €697, while in the hospitality sector the average wage is €324.86, which is less than half that amount.

Recent research from TASC described the sector as characterised by what are effectively zero hour contracts. I have examples of these contracts which I will read into the record of the House. The first is from one of the most prominent hotels in Limerick. It states: "Given the nature of the hotel business, the hotel cannot be specific on the number of hours each member of staff will be required to work each week."Another states:

Your hours will be assigned on a roster basis and will normally include working weekends. It is your responsibility to check the roster to ascertain when you will be required to work.

A contract from McDonalds in Limerick states:

Your hours of work cannot be permanently guaranteed, because the number of staff we can employ depends on how busy the restaurant is. However, you have indicated that your availability for work is as follows.

They get the employee to fill in boxes as to when they are available. It is taking a contract of employment and turning it on its head. It is outrageous. None of these contracts, which are the new norm for the hospitality sector, gives any guarantees on hours of work, no matter how long one is working there which leaves tens of thousands of workers each week in a state of complete financial insecurity not knowing from one week to another what hours they will get. Would the Minister of State be happy working with a clause such as that in his contract? Would he like his son or daughter to work under those conditions with no guarantee of hours or income from one week to the next? Does the Minister of State think it is acceptable or that these people are lucky to have a job? Will he recognise that this is a modern day throwback to the hiring fairs of old where the employer got to pick and choose each week who would work and for how long?

Is the Minister of State happy that the Irish Hotels Federation refuses to engage with industrial relations statutory bodies, such as the Workplace Relations Commission and Labour Court, on establishing a new joint labour committee for the sector? What message is the Department sending to the Irish Hotels Federation by continuing the €650 million subsidy in the face of this disgraceful stance by employers in this sector? The message from the Department is "You're grand lads, work away." What is doubly frustrating is that there has been a report sitting in the Department for eight months telling it that these problems exist and giving clear guidelines on the legislative changes that are needed. I pay tribute to my colleague, Senator Nash, for the very good work he did on this issue. When will the Department implement the recommendations of the University of Limerick report on the prevalence of zero-hour contracts?

Another key point all members in the Irish Congress of Trade Unions are concerned about is when the Department will introduce a statutory instrument to provide for a fair transposition of the EU public procurement directives in line with the provisions of Article 18.2. Will the Department ensure there are proper social clause provisions in place requiring companies that tender to recognise trade unions and pay a living wage?

I raise the issue of TTIP and last month's European Commission study on the agreement, which only confirms my party's worst fears. TTIP will cause significant competition between Ireland and the US, a country which compared to the EU has much lower labour standards and trade union rights. It is, therefore, expected that the Irish economy will see a severe decline in food standards, workers' rights and the agricultural sector. Considering there is such a potential for TTIP to reduce workers' rights in Ireland, Sinn Féin will oppose TTIP under its current mandate. Very few people really understand the dangers of TTIP. I appeal to everyone in the Chamber to address this issue, particularly those of us on the left. It is time for us all to speak out because if we do not, this will be imposed on us. It is an example of the very worst aspects of the EU which probably explains why people are now feeling so alienated by the European project. It is totally in contrast to the ideals of the 1980s.