Seanad debates

Wednesday, 20 February 2019

National Minimum Wage (Protection of Employee Tips) Bill 2017: Committee Stage

 

10:30 am

Photo of Fintan WarfieldFintan Warfield (Sinn Fein) | Oireachtas source

I welcome the guests to the Public Gallery and those watching elsewhere. I commend Senator Gavan on his work on this Bill. I did not get to speak on Second Stage. It is excellent legislation and is at the core of the issue of how we treat workers with dignity and respect. Employment conditions in the hospitality sector leave many workers in the sector vulnerable. A former colleague, Trevor Ó Clochartaigh, highlighted this in the Chamber many times. Senator Gavan is doing remarkable work in ensuring this aspect of workers’ rights and fairness in the sector is secure. I commend him on it.

Amendment No. 3 allows for a tronc scheme to be established by employees rather than employers. A tronc scheme is usually managed by one designated member of staff who pools and distributes the money fairly. The employee is independent of the employer. A well-considered scheme gives staff up to 100% ownership of tips that are shared out in a way that is fair, transparent, free of bias and free of greed.

The section allows for regulation that can aid businesses in establishing such a scheme. The British Government is much further down the line on this issue. In Britain, there is a wealth of public advice on how to establish tax-compliant tronc schemes. The benefit of leaving this issue to regulation is that it allows the Department to work with the Department of Finance to establish this.It would also allow employees to reach collective agreements on how staff initiatives such as pension schemes are paid for. This would be done with the consent of employees only. The regulations only apply in the context of offering guidance to these schemes. Their purpose is not to give rise to such schemes being imposed on businesses and staff who have not agreed to them.

This is a reasonable amendment. I urge all Senators to also support amendment No. 3.

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