Ollie Crowe (Fianna Fail) | Oireachtas source

I welcome the Minister, Deputy O'Gorman, to the Chamber. The Remuneration Information and Pay Transparency Bill will level the playing field for jobseekers. As my colleague Senator Ardagh outlined, it can make a significant difference in helping to close the gender pay gap. Even more broadly, however, it will level the playing field for all employees, regardless of gender.

The Bill puts the responsibility on companies to set a pay mark, rather than the current system where it is prospective employees who often have to mention pay expectations first. That can be uncomfortable and unsettling for many people, both young and not so young. They are already nervous about the interview and preparing for it. They dread hearing a question about pay posed close to the end of the interview, as they do not wish to appear greedy, but they also want to receive a fair and balanced salary.

The Bill is relevant. Another significant point is that companies will no longer be allowed to inquire about the current or previous pay level of applicants. This is something that currently causes distress for jobseekers, as they feel it may significantly weaken their bargaining position. I believe it can also result in people receiving lower offers. If, for example, a company intends to offer a salary of €60,000 per year but hears the applicant is currently earning €45,000 per year, it may feel it can reduce what it intended to offer.

I have spoken to people, including family and friends, who have told me about applying for positions to move forward in their careers. They spend a few hours on their CV and covering letter and take a half day's annual leave to do an interview only to find out the salary for the new position is lower than what they currently earn. In that regard, the Bill will also be positive for companies, which will get a more suitable number of applicants. Senator Ardagh outlined that. Companies will no longer spend time on applicants who are ultimately not interested in the position. The applications they receive will be from those who are interested who will have a far greater knowledge of the position.

The Bill will also make a very positive impact on employees who do not wish to leave their current employer. When companies advertise a new position, those employees will be able to see how the new position measures up to their current salary, and if it does not, they will be in a much stronger position to speak up and to negotiate fairer balanced pay for themselves.

Similar legislation is currently in place in certain states in the United States, such as New York, Maryland and California, to name a few. Research there has shown that pay transparency has made a considerable impact in reducing pay inequality across genders and ethnicities. Many companies in the United States have adopted this practice despite being located in a state where it is not required. They do so because they recognise it is better both for jobseekers and for the company. It is a win-win situation. Pay transparency creates a culture of trust, which is important. It also enhances morale within the company and ensures staff are happier and more productive. Companies benefit from that in the long term.

This will also be a positive measure for all in the Irish economy - businesses and workers alike. Ireland can and should lead the way by being one of the first European countries to introduce pay transparency legislation. I am proud to have introduced the Bill this afternoon with my colleague Senator Ardagh.