Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

Gabhaim buíochas le Páirtí an Lucht Oibre agus leis an Seanadóir Sherlock as ucht an Bhille seo. Gabhaim buíochas freisin leis na Seanadóirí uilig as ucht a gcuid ráiteas úsáideacha inniu. The Bill, as introduced by Senator Sherlock, whose work on this issue I acknowledge, seeks to ensure that apprentices are included within the application of the national minimum wage Acts and that the entitlement of remuneration of the National Minimum Wage Act extends to apprentices. This Government, above all previous Governments, recognises the vital importance of apprenticeships to the economy and employers, and especially to those who avail of this career track. We have set very ambitious targets for the recruitment of apprentices. We have placed the responsibility for apprenticeships within a new stand-alone Department. There are currently 66 national apprenticeship programmes available with up to ten more coming on stream later this year. Senator Sherlock and the Acting Chair referred to the drop in the 2022 figures but, as Senator Ahearn said, this should be looked at in the much broader context of the figures and our commitment, through working with a fantastic range of ETBs throughout the country, to expand the range and accessibility of those apprenticeships. I will definitely follow up on the issue raised by Senator Hoey regarding chef apprenticeships.

It is important to set out the context and reasons apprentices are currently exempted from the right to receive the national minimum wage. When the national minimum wage was introduced in 2000, it was determined that apprentices would be excluded from the Act in recognition of the unique nature of such apprenticeships and the fact that a long-established practice for determining rates, which adequately protected apprentices, already existed. It was recognised that apprenticeships offered a unique combination of education and work experience, and that exempting apprentices from the national minimum wage would promote and encourage employers to focus on training apprentices, and offering opportunities to them, while at the same time recognising the cost to employers in terms of time invested and productivity forgone.

Apprentices are employees and all of the 66 apprenticeship programmes are undertaken under a contract of employment. For the majority of apprenticeships, the rate of pay is agreed between the apprentice and the employer, with the employer paying the apprentice during both on-the-job and off-the-job training elements of the apprenticeship. For the 25 craft apprenticeship programmes that Senator Sherlock referred to, the minimum rates of pay applying under the employment contract are either agreed within the relevant sector, or are set out in the legally binding sectoral employment orders recommended by the Labour Court. A sectoral employment order is a statutory minimum wage-setting mechanism in a given economic sector. An amended sectoral employment order was very recently signed for the construction sector that will come into effect on 18 September this year. It applies to craftspeople, construction operatives and apprentices. The order will provide for increased rates of hourly pay for workers in the construction sector.

The Department of Further and Higher Education, Research, Innovation and Science has responsibility for apprenticeship policy as it relates to education and training. The relevant policy framework is the Action Plan for Apprenticeship 2021-2025, referred to by Senators Crowe and Ahearn, which sets out actions to deliver a single unified apprenticeship system that is seen as a valued option by potential apprentices and employers. While any review of apprentice rates is a matter for the appropriate industrial relations structures, as I mentioned, we all recognise, this Government very especially, the increasing pressure on workers, including apprentices, as a result of inflation and other cost-of-living factors. Therefore, the Department of Further and Higher Education, Research, Innovation and Science is engaging with partners to assess how these structures could be best informed of those considerations, as discussed this evening. This is an ongoing process and the Department is committed to concluding the process as soon as possible. I will ensure that the Minister for Further and Higher Education, Research, Innovation and Science, Deputy Harris, and the Minister of State at that Department, Deputy Niall Collins, receive the transcripts of this debate to encourage them to bring it to a very speedy conclusion.

Work is also ongoing on the issue of sub-minimum, or youth, rates of the national minimum wage. Some of the points raised by Senator Keogan will be covered by that. Currently, the minimum wage for those aged under 20 is less than the minimum wage for those aged 20 and over. The Low Pay Commission has been asked to make recommendations on these youth rates and that report is expected later this year. Given the age profile of Irish apprentices, the Low Pay Commission’s findings and recommendations will be of relevance to any considerations on the remuneration of apprentices.

We currently have 66 different apprenticeship programmes across several different crafts, trades and sectors and, as I said, that is expanding. In that context, I do not think it is advisable to make such a significant change to all apprenticeship programmes without further consideration. There are existing industrial relations structures for the negotiation of apprenticeship rates that work with the co-operation of bodies such as ICTU that have been referred to during this debate. The Government has ongoing engagement with all stakeholders, including the unions referred to, on this issue. As I said, we are waiting for the Low Pay Commission’s recommendation on youth rates of the national minimum wage. Given the current structures that are in place, the ongoing engagement, the work that the Department of Further and Higher Education, Research, Innovation and Science has under way - as I said, I will add this debate to it - and the fact that we are waiting for the Low Pay Commission's recommendation, we are seeking a timed amendment to the Second Reading of this Bill. I assure Senator Gavan that we are not binning the Bill. Considerable and urgent work is under way on addressing these issues, to reference Senator Hoey, in a way that is a strategically managed, cross-departmental method. I assure Senators that the urgency of this debate will be reflected in my report to colleagues on it.