Written answers

Tuesday, 7 February 2006

Department of Enterprise, Trade and Employment

Competition Law

9:00 pm

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 174: To ask the Minister for Enterprise, Trade and Employment his view on the decision of the Competition Authority to interpret the Competition Act 2002 as prohibiting self-employed individuals from having a trade union negotiate employment terms and conditions for them. [4100/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Competition Authority is an independent statutory body responsible for the enforcement of competition law in the State. Accordingly, I have no role in relation to its day-to-day activities.

I presume, however, that this question relates to the decision of the authority regarding Irish Actors' Equity SIPTU and the Institute of Advertising Practitioners in Ireland concerning the terms and conditions under which advertising agencies hire actors. The authority's decision, which is published on its website, tca.ie, states that while it is perfectly legal for Equity to represent employed actors in collective bargaining with their employers, its trade union mantle cannot exempt its conduct when it acts as a trade association for self-employed contractors. In this particular case the authority determined that the actors in question were self-employed contractors and not employees.

Section 4 of the Competition Act prohibits anti-competitive practices, such as price fixing, by undertakings. An undertaking is defined in the Act as "a person being an individual, a body corporate or an unincorporated body of persons engaged for gain in the production, supply, or distribution of goods or the provision of a service". This definition has been in use in Irish competition law for some time and is supported by EU case law.

I understand that the view expressed by the Competition Authority concerned this particular case only and it should not be taken as a definitive interpretation of the law. It is only the courts which can interpret the law. However, the parties to the investigation appear to have accepted the authority's view as they entered into undertakings in settlement of the case, thereby avoiding the necessity of going to court.

In considering the question of whether self employed individuals should be permitted to have a trade union negotiate on their behalf, we need to bear in mind that almost any group of self employed contractors, such as barristers, publicans, doctors or pharmacists, could, by coming together, adding union to their name and getting a negotiating licence, attempt to circumvent the protections afforded to consumers by the Oireachtas in the Competition Act.

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