Michael Healy-Rae (Kerry South, Independent)
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Question 265: To ask the Minister for Jobs, Enterprise and Innovation if he will ensure any review that occurs through the correct channels and works will protect the wage rates and terms and conditions of low paid workers right across the country; and if he will make a statement on the matter. [15021/11]

Catherine Byrne (Dublin South Central, Fine Gael)
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Question 273: To ask the Minister for Jobs, Enterprise and Innovation the steps he is taking to protect low paid workers; the way he proposes to reform the joint labour committees system which sets minimum pay and conditions; and if he will make a statement on the matter. [15442/11]

Terence Flanagan (Dublin North East, Fine Gael)
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Question 275: To ask the Minister for Jobs, Enterprise and Innovation his views on a matter (details supplied) regarding the joint labour committee; and if he will make a statement on the matter. [15523/11]

Finian McGrath (Dublin North Central, Independent)
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Question 276: To ask the Minister for Jobs, Enterprise and Innovation if he will protect low paid workers rights under the joint labour committee system. [15662/11]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 265, 273, 275 and 276 together.

The overall finding of the Report of the Review of Employment Regulations Orders and Registered Employment Agreement Wage Setting Mechanisms was that the basic framework of the current JLC/REA regulatory system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions.

The report of the Independent Review does not recommend, nor have I proposed, specific adjustments in wage rates for the sectors covered by JLCs / REAs.

Together with the decision to restore the National Minimum Wage to €8.65 per hour, the decision to reform the Joint Labour Committee structure represents a significant commitment by the Government to the lowest paid and most vulnerable workers in the economy.

However, 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.

The sectors and occupations where the greatest job losses have occurred in the economy generally coincide with the sectors where the minimum wage/sectoral agreements are most prevalent. In the past three years, there has been a 60 per cent loss of employment in construction and 15 per cent in the retail and wholesale sectors. While demand in these sectors is clearly a key factor, labour costs represent a relatively high proportion of total output costs in these locally traded sectors.

I am convinced, however, that the JLC system must be made more responsive and become fit for purpose in the context of a modern economy. The benefits of retaining these sectoral wage-setting mechanisms cannot be outweighed by economic and competitiveness penalties incurred as a consequence of a lack of responsiveness, coherence and precision in both EROs and REAs. The report of the Independent Review, which was undertaken in line with the EU/ECB/IMF programme of support for Ireland, highlights the deficiencies in these mechanisms. It is now time to signal that decisive action will be taken to remove them.

The available evidence suggests that rates of pay in key sectors of the economy covered by JLCs have increased at a faster pace when compared to, for example, the National Minimum Wage. In many cases, JLCs cover the very sectors that are experiencing some of the greatest competitive pressures, including in the hospitality sector, which is central to our ambitions to regain Ireland's position as a top tourist destination. Comparable wage rates in the UK and Northern Ireland add further weight to the compelling case for reform.

I am anxious to pursue the agenda for radical overhaul of the ERO/ REA system as a matter of urgency, including proposals dealt with in the report and other issues raised by the report. To this end, I have set out an outline of my proposals for that agenda to the Social Partners, and these have already been the subject of discussion with the Construction Industry Federation, IBEC and ICTU. I have also heard the views of other stakeholder bodies whose members are covered by our statutory wage setting mechanisms.

In accordance with the terms of the EU/IMF programme, discussions have also taken place with the Commission Services in this regard.

These discussions afforded me the opportunity to hear at first hand the views of the main representative bodies of employers and trade unions on how a meaningful and overdue reform might be implemented in these wage-setting mechanisms, which affect key sectors of our economy, in order to protect existing jobs and encourage employment growth.

Discussions with relevant parties have concluded and I will be submitting a final action plan for consideration by Government before the end of the month.

The detailed plan will implement far-reaching reforms of the current system including making any legislative changes that may be necessary.

Clare Daly (Dublin North, Socialist Party)
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Question 266: To ask the Minister for Jobs, Enterprise and Innovation the steps that National Employment Rights Authority is taking to address the issue of exploitation of workers who are employed as au pairs and live-in childminders, many of whom are here on student visas and are more vulnerable to being exploited. [15070/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The commonly accepted position regarding "au pairs" is that of a young person who chooses to help look after the children of a host family and carry out light housekeeping duties. The au pair is given room and board and is typically paid weekly "pocket-money" and gains experience of a new culture while also improving his or her foreign language skills.

There is no specific regulatory framework covering "au pairs" in place in Ireland. Therefore, their legal status will depend on the circumstances of each individual Au Pair/Sponsor relationship. Au Pairs may or may not be considered as employees within the provisions of Irish employment law depending on the terms and conditions, which apply to the relationship with the sponsor family. The relationship could also be construed to be in the form of a house/family guest receiving out of pocket expenses, an internship or a work experience programme.

Any complaints received by NERA regarding "au pairs" will initially be examined using the provisions of the 'Code of Practice Determining the Employment or Self-Employment Status of Individuals' in order to determine the employment status of the relationship. Where the employment status of such individuals cannot be clarified or is disputed, the employer or employee in dispute may be directed to make a request in writing for a ruling to Scope Section of the Dept. of Social Protection or this may be done by NERA.

Ireland's body of employment rights legislation protects all workers employed on an employer-employee basis in Ireland. The Protection of Employees (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. Therefore, once it is clear that a person is working under a contract of employment in another person's home, on a full-time or part-time basis, that person has the same protection under law as all other workers.

There is a Code of Practice for Protecting Persons Employed in Other People's Homes. The code:

· Sets out certain employment rights and protections for persons employed in other people's homes; and

· Encourages good practice and compliance with the law concerning the employment of persons in other people's homes; and

· Increases awareness of the application of relevant legislation and Codes of Practice with regard to the sector to which this Code applies.

NERA seeks to secure compliance with employment law in relation to domestic workers through the provision of education and awareness, inspection of employers and enforcement where necessary. NERA also investigates complaints received.

NERA is currently undertaking a focussed pilot programme examining the level of compliance in the domestic worker sector. A key element of this programme is the provision of information to both employers and employees and where breaches of employment legislation are detected, NERA assists the employer in question to become complaint. If employers refuse or fail to become compliant, the necessary enforcement activity, including prosecution will be initiated.

Where people have concerns that workers may be exploited or receiving less than their statutory entitlement the matter should be reported to NERA for investigation.