Written answers

Wednesday, 4 July 2007

Department of Enterprise, Trade and Employment

Employment Rights

9:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 29: To ask the Minister for Enterprise, Trade and Employment if he will report on progress made in the establishment of the National Employment Rights Authority; and if he will make a statement on the matter. [18595/07]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The National Employment Rights Authority (NERA) has been established on an interim basis with Department of Finance sanction for 141 staff, including an increased complement of 90 Labour Inspectors, and an allocation of €8.553 million provided for under Vote 34 for the year 2007.

The Director of NERA was appointed and took up duty on 12 February 2007. The management team and the administrative staff are now substantially in place. Three units which were formally part of the Department of Enterprise, Trade and Employment, have been subsumed into NERA–the Employment Rights Information Unit, the Labour Inspectorate and the Prosecution/Enforcement Unit. All NERA staff are currently located in Dublin but as part of the Government decentralisation programme, NERA will have its headquarters in Carlow and work on the Carlow premises is at an advanced stage and will be completed and ready for occupation by the end of July 2007.

The Social Partnership Agreement "Towards 2016" provided that the Labour Inspectorate, now part of NERA, would be established on a regional basis and that the number of Labour Inspectors would be progressively increased from 31 to 90 by end-2007. In this regard, the new regional structure of Labour Inspectorate has been announced and in addition to Inspectors located in NERA headquarters in Carlow, regional offices of the Labour Inspectorate will be located in Dublin, Cork, Shannon and Sligo. In consultation with OPW, considerable progress has been made in identifying suitable properties for these regional locations.

Recruitment of the additional Labour Inspectors is also progressing. The number of Labour Inspectors has increased from 31 to 37 and advertisements have been placed in national newspapers since 10 June to recruit a further 10 labour inspectors with language skills. The selection processes for recruitment of the remaining 43 have been agreed and the necessary arrangements are being finalised with a view to all assignments being made by end of 2007.

Joint investigations and an ongoing exchange of information has commenced with Inspectors from the Revenue Commissioners and the Department of Social and Family Affairs. This was also foreshadowed in Towards 2016. An information provision and public awareness campaign is being actively planned and a series of meetings with stakeholders have been undertaken to initiate structured dialogue between NERA and stakeholders. The necessary legislation to give effect to the comprehensive package of measures concerning employment rights is being progressed and preparation of the Employment Law Compliance Bill, due to be published this year, is in progress.

NERA's key objective is to achieve compliance with employment rights legislation through information provision, carrying out inspections and enforcement and prosecutions when necessary. Since 1 January 2007, the Employment Rights Information Unit has responded to 47,000 queries, the Labour Inspectorate has carried out in excess over 4,500 calls/visits/inspections as part of their normal day to day operations including two sectoral campaigns focused on specific employment sectors.In addition, 33 cases have been referred to the Chief State Solicitors Office with a view to initiating proceeding for breaches of employment rights by the employers concerned.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 30: To ask the Minister for Enterprise, Trade and Employment the position of the investigation into 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 that have been 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. [18604/07]

Photo of Billy KelleherBilly Kelleher (Cork North Central, 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. Contract 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 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.

You 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 on new employment rights legislation is proceeding. 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 has strongly signalled, in the context of the National Partnership talks, that the issue of better compliance with employment law is a high priority. This has 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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