Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

Cuirim fáilte roimh Chathaoirleach Maher agus na daoine as Meiriceá. I am delighted to welcome my old friend Moegie and his guests from the US to the Gallery. There is much to be discussed about Irish-US relations.

I am pleased to present to the Seanad a draft sectoral employment order, SEO, for the construction sector. The draft order that was before the Joint Committee on Enterprise, Trade and Employment yesterday, attended by Senators Crowe and Ahearn, amends the previous SEO made in 2021, which in turn amended the SEO made in 2019 by confirming new minimum rates of pay, pension and sick pay entitlements for workers in the construction sector. This order, approved by the committee yesterday, is the fourth of its kind to be made.

A sectoral employment order is a statutory minimum wage-setting mechanism in a given economic sector. Essentially, an SEO is a collective bargaining mechanism which, once the statutory thresholds have been met, gives the Labour Court as a neutral decision maker the power to examine an application for a SEO in any given economic sector. As part of this examination, the Labour Court must explore all the policy considerations set out in the Industrial Relations Act 2015 by affording all interested parties an opportunity to engage with the proposals and have an opportunity to be heard. Once the Labour Court has complied with this statutory process set out in the 2015 Act, it has the power to make a recommendation for an SEO to me. The recommendations must be accompanied by a report which sets out the process and matters that the Labour Court considered in reaching its recommendation. The purpose of this report is to assist the Minister in satisfying himself or herself that the Labour Court has complied with its statutory functions as required by the Act.

The role of the Minister in this process is limited. Pursuant to the 2015 Act, the Minister has the power to either accept or reject the recommendation as presented. In this regard, the Minister is compelled to accept the recommendation if he or she agrees, based on the statutory report that the Labour Court has prepared, that the court has complied with the statutory process. If the Minister is not satisfied that the Labour Court has complied with its duties as set out in the Act, he or she must return the proposals to the court setting out his or her reasons for not accepting the recommendations. The Minister does not have any power to engage with the substantive recommendation on the SEO itself. Accordingly, I can confirm to the Seanad that I have considered this draft recommendation in line with the terms of the 2015 Act, relying on the statutory report outlining the Labour Court's deliberative process. Having done so, I am satisfied that the Labour Court has complied with its statutory role. Accordingly, my Department notified the Labour Court on 17 April 2023 that I have accepted the recommendation and that I would be referring the matter to the Houses of Oireachtas as required by the Act for their consideration.Furthermore, as required, a draft order was laid before the Houses on 5 April 2023. The 2015 Act also sets out that the Houses of the Oireachtas may only accept or reject the draft order as it is; it does not permit any alterations or amendments to it. Once the resolution approving the draft order has passed, I will sign a statutory instrument giving effect to this decision. Should the Houses reject or fail to approve the draft order, the proposal for the SEO falls.