Seanad debates

Wednesday, 20 February 2019

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

 

10:30 am

Photo of Rónán MullenRónán Mullen (Independent) | Oireachtas source

I am mindful of the fact that this is Committee Stage. I hope the Leas-Chathaoirleach will allow me the opportunity to commend Senators Gavan and Warfield and former Senator Ó Clochartaigh on this Bill. It can be summed up in three words: transparency, trust and fairness. The priority is not merely justice for service sector employees, but also confidence for the customer that his or her tips go directly to the server and perhaps their extended team, not elsewhere. Many of us have recently heard stories about what can go wrong when trust between employer and employees breaks down. I refer to an article inThe Irish Timesabout the Ivy restaurant in Dawson Street. Perceived injustice weakens morale, reduces productivity and leads to high staff turnover. This ultimately harms the employer, the employee and the customer.

In regard to these amendments, service sectors employees are right in seeking to safeguard their tips. Tips are an earned reward for work well done, often under pressure, and not a privilege as some more questionable employers often make out. We should remind ourselves, however, that tipping exists to supplement an employee's income, not to replace it. The obligation to pay staff always remains with the employer. We should keep in mind that upholding the human dignity of the employee need not come at the expense of the freedom of the employer. We should seek clarity and transparency in how tips are collected and distributed, but the State should not cross the line into dictating to companies exactly how they should structure and divide tips between employees. Every private sector enterprise is different, and a one-size-fits-all solution is not possible. I am glad that this Bill shows an awareness of that and makes special provision for employers to share in tips if they themselves directly participated in the work , as is the case in many smaller companies.

How a business deals with tips should be communicated to employees before they accept job offers. If this was the case, we could allow the market to decide what works and what does not. We need to create a level playing field and mandate total transparency. Managing how tips are distributed between staff is a delicate process. It can justifiably differ from one workplace to another. Redistribution recognises the work done by non-front of house staff, which is often unseen but nonetheless vital to the customer's experience. Tips encourage meritocracy and teamwork and they ought to be protected. This Bill is as modest as it is impactful. I have no doubt that it will be appreciated by service sector workers across the country, and I look forward to the continuation of the legislation.

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