Fiona O'Loughlin (Fianna Fail)
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I thank the Leas-Chathaoirleach for accepting this Commencement matter on the terms and conditions of employment for childcare workers. I thank the Minister of State for coming to the House to reply to this Commencement matter. I appreciate that it is within his brief and I hope he will have something substantial to tell us on the matter.

Many of us who work in these Houses would not be here without having childcare workers looking after our children. Schools, hospitals, local authority offices and the Garda could not function without having effective childcare. The conditions for the professionals in the childcare sector must be improved. I use the word "professional" very intentionally. These people are educated, many to degree level. They are experienced and are operating in a much more regulated and professional environment than ever before. It is about time this reality was recognised and pay and conditions were improved. We all know the pivotal service that childcare professionals provide to parents, families and our wider society. Without their hard work and dedication, our economy and society simply would not function.

The latest childcare study from SIPTU has concluded that low pay is driving workers out of the industry. The annual early years professionals survey for 2021-22 found that 41% of personnel were seeking roles outside the sector, a factor which SIPTU has said is “undermining the sustainability and quality of services for children”. According to the same report, 94% of managers found it difficult or very difficult to recruit staff in the past 12 months. There is a clear and distinct issue here. The majority of early childhood professionals I speak to in south Kildare see no future for themselves in the industry. They fear for their long-term financial security. Most of them who love their job and want to remain in the industry simply cannot afford to do so.Something must be done to retain the talent and experience in the childcare industry.

I acknowledge and commend the significant funding provided in budget 2022 to tackle these issues. That is most welcome, but it is my strong view that the rate of pay must reflect the value of these staff to society. The most recent available data indicate that the average wage in the sector in 2021 was just €12.60 per hour, which is below the living wage. I appreciate that this is a somewhat complex issue to tackle, because the State is not the direct employer. The joint labour committee, JLC, has been ongoing since December 2021, and I understand it is examining a wide array of issues facing the sector, with the ultimate aim of providing an employment regulation order, ERO, to improve standards, pay and conditions within the industry.

In December 2021, Nurturing Skills, the workforce plan for early learning and care and school-age childcare was launched. It included commitments to deliver career pathways, promote careers in the sector, and strengthen supports for continuing professional development. We need to see real and meaningful progress on these goals. Staff, managers and many parents simply cannot wait. Will the Minister of State please provide an update and an overview of the progress made by the Government on the working conditions in the sector? When can staff and operators expect to get certainty about the future of the sector? When can we expect to see workers being paid the wage they and their families deserve?

Damien English (Meath West, Fine Gael)
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I thank Senator O'Loughlin for raising this Commencement matter on this very important area. She has outlined very clearly the importance of the Government focusing its work on this space, in conjunction with the private sector. I am pleased she indicated that in the most recent budget, and preceding ones, funding was increased to the sector, which was very important. The focus was on quality, policy and so on but, as the Senator correctly stated, we need to address career paths and terms and conditions and also give certainty to the many highly-qualified staff who work in the sector and provide significant assistance and service to all of us. Childcare is a very important area and I am pleased we have such professional people working in the sector.

On the process, I am pleased that a commitment was made in the programme for Government to support the establishment of a joint labour committee in the childcare sector and the drawing up of an employment regulation order, which will determine minimum rates of pay for childcare workers, as well as terms and conditions of employment. The reason it was set up was to address the issues Senator O'Loughlin raises, but also to recognise that it is a complex area because the sector receives a combination of public and private funding. The JLC model has worked extremely well in other areas such as agriculture, catering, contract cleaning, hairdressing, security and so on. It is a good way of doing business in other sectors, including hotels, among others, to bring the parties together to have a conversation around a table and get everybody's agreement.

The Minister of State, Deputy Troy, updated the House in February on the process. Since then I understand the joint labour committee for the early learning and care and school-age childcare sector, which is independently chaired, has met a number of times and is progressing its work. I can confirm that the JLC has published its draft proposals and issued an invitation to any interested persons to submit written submissions to it by not later than the close of business on 31 May 2022. These proposals are available on the Labour Court's website. I encourage all interested parties to have a read the proposals and to make their submissions in the next two weeks.

Proposals for an employment regulation order are formulated in the first instance by a JLC where it is satisfied that such proposals would promote harmonious relations between workers and employers. The Labour Court then considers whether to adopt the proposals. In doing so, it will also need to invite submissions from the public. If the Labour Court, having complied with its statutory functions, is satisfied that the proposals are in a suitable form for adoption, it will adopt and submit them to me as the Minister of State with responsibility for this area. My role is to consider the recommendations against the statutory process. If I am satisfied that the process has been complied with and it is appropriate to make an order, I will give effect to an employment regulation order, which would bring a solution to the sector. The timeline for this is approximately six to seven weeks. I see no reason that this cannot be dealt with in the next two months. That is where the process is at currently.

Fiona O'Loughlin (Fianna Fail)
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I thank the Minister of State for his comprehensive response. It is good to hear the progress that has been made. We need to emphasise that it is important for members of the public to get involved in the public consultation process. There is still an opportunity to submit proposals by 31 May. I understand from the Minister of State's response that there is to be a second opportunity to invite submissions from the Labour Court. Those two elements of the consultation are very important.

In terms of the proposals that may be adopted, I welcome the statement that we may have this done within two months. We are now nearing the end of May, so we are looking at an order being ready for the end of July. If that is the case, there could be extra supports and funding available in time for the budget for 2023. I would welcome clarification in that regard from the Minister of State. I appreciate that the process is ongoing.

Damien English (Meath West, Fine Gael)
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The Senator raised a couple of issues. I will address the funding. Public funding has increased significantly in the past seven or eight years, and rightly so. There is also significant private funding in this area as well as funding from families. It is not all Government funding, but it is certainly Government assisted. As I said, I think it is possible for the process to be completed in the next couple of months in time for budget negotiations and completion of the budget. However, I am not convinced it will be July. I do not want to pre-empt the work the Labour Court has to do, but a key part of this is that the JLC's public submissions will be finished by the end of May and it will bring its work to the Labour Court. It is possible that this process will be completed in July and I see no reason for it not to be completed in time to feed into the budget negotiations. That would be useful because an agreement on the employment regulations would be very beneficial to the sector as it would mean employees and employers are in agreement on bringing this matter forward and all the relevant stakeholders are at one. That would certainly help to drive on the development of the sector as one with career choice and a roadmap for career development.

The establishment of the JLC for the sector, following a programme for Government commitment, is a significant and welcome development. I am pleased that it was in the programme for Government and also that there is a commitment from the three parties in government to continue funding in this sector and increase benefits. I am very pleased that bodies representing employers and employees have engaged with the JLC process, as there can be significant positive benefits for both parties. An agreement on a new set of terms and conditions of employment will help maintain and grow the talented pool of people working in the sector, as well as providing security and opportunity for career development in the early learning and care and school-age childcare sector.