Written answers

Thursday, 17 July 2014

Department of Jobs, Enterprise and Innovation

Pension Provisions

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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318. To ask the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the requirement on a construction employer who employs a person for part of a week to pay a pension contribution to the CWPS for a full week; if his attention has been drawn to the fact that this is acting as a disincentive to employers to employ new part time staff; his plans to seek a review of the requirement; and if he will make a statement on the matter. [32564/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Construction Industry (Pension Assurance and Sick Pay) Registered Employment Agreement (REA) required employers in the construction sector to become and remain a party to a contributory pension scheme approved by the Revenue Commissioners and set out the conditions upon which pension and mortality payments were payable and the associated minimum amounts and benefits.

In the judgment delivered on 9 May 2013 in McGowan and others v The Labour Court, Ireland and the Attorney General, the Supreme Court held that Part III of the Industrial Relations Act 1946 was invalid having regard to Article 15.2.1 of the Constitution.

The effect of this decision was to invalidate the registration of employment agreements previously registered under Part III of the 1946 Act. As a result, all such agreements no longer have any application beyond the subscribing parties and are not enforceable in law.

However, existing individual contractual rights of workers in sectors previously covered by REAs are unaffected by the ruling. Contractual rights can be altered only by agreement between the parties involved.

The Supreme Court judgment was clearly an important issue for many employers and their employees, particularly in relation to rates of pay and tendering for contracts, as well as issues surrounding pension and related matters.

Having considered legal advice from the Attorney General on the implications of the ruling, I intend to bring forward legislation to address the ruling as soon as possible. Such legislation will be fully informed by the Court’s judgment and will provide for a revised framework to deal with those matters.

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