Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 1698: To ask the Minister for Enterprise, Trade and Innovation the reason Ireland is the only country in the EU that has separate sectorial agreements governing rates of pay in addition to national minimum wage legislation; if the existence of the REA/JLC/ERO framework is compatible with EU legislation; if it is anti-competitive and confers an unfair advantage on businesses operating north of the border; and if he will make a statement on the matter. [32060/10]

Dara Calleary (Mayo, Fianna Fail)
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Ireland is one of the 20 EU member states that has national minimum wage legislation. Cross-industry and sectoral collective agreements also apply in quite a number of these member states, as well as in the others that do not have a national minimum wage. In many cases, these agreements stipulate minimum wage levels, above those set in the national minimum wage, that are generally enforceable either through legislation or other administrative measures. While there are differences in how collective bargaining and wage-setting mechanisms are styled and operate across different member states, legally enforceable instruments such as Registered Employment Agreements and Employment Regulation Orders are not unique to Ireland.

Collective bargaining arrangements of this kind do not fall within the competence of the EU. Issues of employment and remuneration remain the competence of the member states and the social partners. Moreover European Union law does not preclude member states from applying their national legislation, or collective agreements entered into by employers and labour, to any person who is employed, even temporarily, within their territory, although that person's employer may be established in another member state.

Ireland's comprehensive body of employment rights legislation, including the terms and conditions set out in Registered Employment Agreements and Employment Regulation Orders, apply to all workers, including posted workers, employed in the State. In this context, a posted worker is defined in EU Directive 96/71/EC as "a worker who, for a limited period, carries out his work in the territory of a Member State other than the State in which he normally works." For the avoidance of doubt, section 20 of the Protection of Employee's (Part-Time) Work Act, 2001 provides that all employee protection legislation applies to a person, irrespective of his or her nationality or place of residence, who has entered into a contract of employment that provides for his or her being employed in the State or who works in the State under a contract of employment.