Written answers

Thursday, 26 April 2007

Department of Enterprise, Trade and Employment

National Minimum Wage

5:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 34: To ask the Minister for Enterprise, Trade and Employment the position of the investigation on the disclosure that Polish workers employed by a contractor at the ESB power station in Moneypoint were being paid well below the national minimum wage; the sanctions or penalties available against companies in such situations; the measures taken by his Department to date to ensure full compliance with all labour standards by all contractors particularly those working for State companies; and if he will make a statement on the matter. [15471/07]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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Following the identification, in early 2006, of anomalies in the employment contracts of some sub-contracted staff at the Moneypoint Environmental Retrofit Project (MERP) site, both the ESB and the Labour Inspectorate conducted investigations into the matter. As a result of these investigations a Memorandum of Understanding between the ESB, the contractor and sub-contractor was agreed in March, 2006 providing, among other matters, for the payment of the appropriate industry rates, and the associated arrears, to the workers concerned. Contractors Administration Services (CAS), who are retained by the ESB to monitor payment and employment conditions at the Moneypoint site, have confirmed that these rates continue to be applied to the relevant workers.

The ESB is satisfied that the monitoring of the conditions of employment for contracted and sub-contracted staff at the Moneypoint site is working effectively in terms of ensuring that workers are remunerated in accordance with the agreed industry standards and bringing immediate attention to, and taking prompt action to address, any discrepancies that arise.

The Labour Inspectorate's role has been to ensure that statutory minimum rates of pay and other conditions of employment for the workers involved are adhered to, that any breaches of the legislation that arise are rectified and any arrears paid. Ultimately the Labour Inspectorate may initiate proceedings against employers in relation to such breaches. Employees also have access to the Rights Commissioner Service or the Labour Court in this regard.

I share the Deputy's concern to ensure that that Irish employment rights legislation is applied in full insofar as employees engaged on Public contracts are concerned. In this regard, assurances were sought in March last year from all State Agencies that the statutory terms applicable to all workers in Ireland, regardless of nationality, were being adhered to in relation to all public contracts involving the supply of labour.

The Deputy will also be aware that the National Partnership Agreement, Towards 2016, provides for a number of measures designed to enhance employment rights compliance. The new National Employment Rights Authority has been established on an interim basis while work is progressing on new employment rights legislation. A reconfiguration of the Labour Inspectorate is planned which will see its resources almost treble together with a process of regionalisation being implemented. In tandem with these activities a major programme of 'Education and Awareness' in respect of employment rights entitlements and obligations is to be researched and delivered.

The Government also signalled, in the context of the National Partnership talks, that the issue of better compliance with employment law was a high priority. This led, among other matters, to an agreement among the Social Partners on the importance of public procurement policy as a mechanism for contributing to the maintenance of employment standards and norms, including in respect of wage levels, while also ensuring competitive tendering and value for money in public expenditure. A number of specific measures were agreed in Towards 2016 insofar as supporting employment rights through public procurement is concerned.

I would urge those who may have information in relation to possible breaches of employment rights legislation to contact the Labour Inspectorate of the new National Employment Rights Authority.

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