Eoghan Murphy (Dublin South East, Fine Gael)
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Question 109: To ask the Minister for Jobs; Enterprise and Innovation if his attention has been drawn to the issues of the catering industry in respect of the employment regulation orders and joint labour committee review (details supplied). [18033/11]

Richard Bruton (Dublin North Central, Fine Gael)
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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 ERO/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 does not recommend, nor have I proposed, specific adjustments in wage rates and other conditions of employment for employees covered by EROs/REAs, including in the catering sector.

Workers are protected by contracts of employment and proposed reform of the wage setting mechanisms would not if implemented, change the terms of those individual contracts. What is proposed would have the effect of changing how pay and conditions are set in order to make the operation of the machinery more flexible and prevent businesses being left behind by changing economic circumstances. Existing employees would not have their current entitlement affected by future changes to EROs unless (a) it is already stipulated in their contract of employment that they be paid at the prevailing rate of pay and conditions set by the relevant ERO or (b) the application of alternative provisions to those specified in the ERO is agreed between the employer and the employee or the employee's representatives.

The Government is determined to proceed with urgency to a substantial reform of the current JLC / REA regulatory system in order to protect existing jobs in these vulnerable sectors of the economy and to increase the likelihood of employment in these sectors being increased. This will restore competitiveness in key sectors of the economy, including the hospitality sector which is crucial to our tourism product offering, and complement the restoration of the recent cut to the National Minimum Wage thereby providing an adequate floor for lower paid workers.

The National Employment Rights Authority (NERA) is responsible for enforcing minimum statutory employment rights entitlements in the State. In undertaking its role, NERA carries out a range of functions, including inspections of places of employment and employment related records. NERA plays a central role in ensuring, on the one hand, that individual employees get their minimum employment rights entitlements, which are provided for in legislation and, on the other hand, in ensuring that there is a level playing for all employers in relation to compliance with statutory employment rights provision. The primary objective of NERA is to work with employers to seek compliance with the legislation and rectification of breaches where these are identified, including redress for employees concerned and payment of any wages underpaid to employees.

In 2010, the last full year for which figures are available, NERA carried out 415 inspections on employers covered by one of the two EROs applicable in the catering sector. Breaches were detected in 255 instances. Unpaid wages secured as a result of NERA's intervention amounted to €176,600.

The figures for inspections carried out in this sector during 2011 up until the end of May show 183 inspections undertaken, with breaches detected in 137 instances and unpaid wages secured of €139,858.