Written answers

Thursday, 7 June 2012

Department of Enterprise, Trade and Innovation

Legislative Programme

8:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 15: To ask the Minister for Jobs, Enterprise and Innovation if he is considering amendments to the Industrial Relations (Amendment) (NO3) Bill; and if so, the scope of these amendments. [27310/12]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 24: To ask the Minister for Jobs, Enterprise and Innovation the reason for the delay in the processing of the Industrial Relations (Amendment) (NO3) Bill. [27309/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 15 and 24 together.

On 8 May last, the Government approved a number of amendments to the Industrial Relations (Amendment) (No. 3) Bill 2011. It should be remembered that the main purpose of the Bill is to implement reform proposals in line with the commitment in the Government's Programme for National Recovery to reform the JLC system to make them more flexible and responsive to the needs of the economy and to provide for the more comprehensive measures required to strengthen the legal framework for the Employment Regulation Order and Registered Employment Agreement sectoral wage mechanisms.

These reforms, and this Bill, is all the more important in the light of deficiencies in the original legislation identified in the judgment of the High Court in John Grace Fried Chicken Limited & Others -v- The Catering Joint Labour Committee & Others delivered on 7 July 2011 which struck down the whole ERO/REA system of wage settlements. So, this Bill is not just reforming the ERO/REA system it is actually rebuilding them and replacing a system that wasn't legally robust with a system that is better designed to meet the challenges of the Irish economy in the 21st century.

The legal and technical challenges to bring forward this legislation, on foot of that High Court ruling, were many and varied but I am satisfied that the Bill as presented, with the amendments that improve it arising from engagement at political, legal and Troika level, strikes a good balance between the dual ambitions of providing protection for a particular group of workers and having a system of wage settlements that is reflective of the modern, dynamic and changing economy we operate in today.

The amendments I shall be presenting cover a number of issues including:

· The timeframe for the variation of REAs,

· The provisions regarding the granting of temporary exemptions from the obligation to pay the terms prescribed under EROs and REAs.

· The basis on which comparisons would be made with wage rates elsewhere

· The basis on which up to two higher hourly wage rates might be set to include standards and skills as well as length of service

· The principles and policies that need to be considered in setting orders

· The role of the LRC in preparing a code of practice on Sunday working

· The issues to be considered in setting orders in an inability to pay situation and

· Measures required to strengthen the legal framework for the EROs and REAs.

The precise wording of the amendments is currently being finalised by the Office of the Parliamentary Counsel and will be forwarded to the Bill's Office for publication in advance of the Committee Stage in Dáil Eireann which is scheduled for 19 June.

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