Jim Daly (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 225: To ask the Minister for Enterprise, Trade and Innovation his views on the National Employment Rights Authority regulations that the struggling service industries are bound by in relation to the higher minimum wage that is stipulated; and if he will make a statement on the matter. [11641/11]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

I presume the Deputy is referring to the statutory minimum rates of pay that are provided for in Employment Regulation Orders under the Joint Labour Committee (JLC) system.

Minimum rates of pay, and other conditions of work, for workers in certain sectors are determined by JLCs. Each JLC is composed of representatives of workers and employers in the sector concerned. JLCs operate in areas where collective bargaining is not well established and wages tend to be comparatively low, for example in the Hotels, Catering and Retail Grocery sectors. While JLCs are established by means of a statutory order made by the Labour Court, they are independent bodies - with representatives of employers and workers - which determine minimum rates of pay and conditions of employment for workers in their respective sectors. The pay and conditions agreed by the JLCs are given the force of law in Employment Regulation Orders made by the Labour Court on foot of proposals made to the Court by the JLCs. NERA has no function with regard to the making of the EROs, but rather is the body responsible for their enforcement.

We need to ensure that statutory wage fixing mechanisms work effectively and efficiently and that they do not have a negative impact on economic performance and employment levels. Any such mechanism in a modern economy must be responsive and fit for purpose in the context of the challenges being faced by employer and employee alike.

In this context, an independent review of the statutory wage setting mechanisms was initiated on 8 February last and was undertaken jointly by Kevin Duffy, Chairman of the Labour Court acting in an ad hoc capacity, and Dr Frank Walsh, School of Economics, UCD, under specific terms of reference.

The review is a commitment under the EU/IMF programme, which provided not only for agreement with the European Commission Services on the terms of reference but also for follow up discussions on the programme of actions arising.

The report of the independent review team has been completed and was received by me on 28th April. I am currently examining the Report and it will be published and made available to Members of the Oireachtas, following consideration by the Government.

It is proposed to have early discussions with the European Commission Services on the main findings of the review, in line with the provisions in the EU/IMF Programme. Arising from these discussions, I will present a time-bound comprehensive action plan to follow up on the report's recommendations, setting out proposals for any legislative action that may be necessary to give effect to reform measures. Consultation with, and the co-operation of, relevant stakeholders will also be sought to ensure that the required reforms can be progressed as a matter of urgency.