Paul Kehoe (Wexford, Fine Gael)
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Question 395: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that Glanbia has increased the cost of its products due to increased labour costs and so on but is not increasing the wages of people contracted to work for it; the options open to contractors to pursue an increase in wages; and if he will make a statement on the matter. [31764/06]

Tony Killeen (Clare, Fianna Fail)
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I am not aware of any issues relating to increases in production costs, including labour costs, affecting Glanbia in particular.

Terms and conditions of employment are determined in the main by a process of voluntary collective bargaining between the employers and employees or their representatives. Within this system parties are free to negotiate or not to negotiate. To support the process and ensure a level of fair play, a floor of statutory rights (e.g. minimum wages, holiday entitlements etc.) are in place that can be improved upon by negotiation but which cannot be taken away.

The State facilitates the bargaining process by providing a framework and institutions through which good industrial relations can prosper. Institutions have been established that can assist in the resolution of disputes between employers and workers such as the Labour Relations Commission, including its Rights Commissioner Service, and the Labour Court.