Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

14. To ask the Minister for Jobs, Enterprise and Innovation in view of industrial action looming at a company (details supplied), the measures he plans to take to address the issues of zero hour contracts and excessive use of temporary contracts; and if he will make a statement on the matter. [11958/15]

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

I understand that the current dispute concerns a range of issues, including the introduction of banded hours contracts, individual and collective representational rights and a review of the use of temporary contracts. The union is seeking to engage with the company on these issues and the matter was referred by the union to the Labour Court under section 20(1) of the Industrial Relations Act, 1969 in October of last year.

The company was not represented at the Labour Court hearing. The Court found it regrettable that the company declined to participate in the investigation of the dispute or to put forward its position on the union's claims.

In its recommendation of 14th November 2014, the Court reaffirmed earlier recommendations it had made by noting that the Company and the union were party to a collective agreement signed in 1996 which provides a procedural framework within which industrial relations disputes and differences arising between the parties can be resolved by negotiation and dialogue. The Court pointed out that the dictates of good industrial relations practice requires parties to honour their collective agreements in both spirit and intent.

I regret that the company decided against attending the Labour Court hearing, contrary to good industrial relations practice in that regard. In my view, the experience and expertise of the Labour Court offer the most appropriate and effective avenue for resolving such issues.

I would urge both parties to avail of the services of the State's industrial Relations machinery who remain available to assist the parties, if requested. It is my opinion that engagement with the State's industrial relations machinery offers the best way whereby the parties involved in this dispute can hope to resolve their differences.

However, the system of industrial relations in Ireland is essentially voluntary in nature and recommendations of the Labour Court are not legally binding. Neither the Labour Court, nor the Minister, can compel a company to comply with such recommendations. Ultimately, responsibility for the settlement of a trade dispute rests with the parties to the dispute.

As regards zero hours contracts, in accordance with the Statement of Government priorities, the Deputy will be aware that I recently commissioned the University of Limerick (UL) to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. The appointment of UL follows a competitive tendering process.

The key objectives of the study are:

- To fill the gap in knowledge that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.

- To assess the impact of zero hour and low hour contracts on employees.

- To enable the Minister to make any evidence-basedpolicy recommendations to Government considered necessary on foot of the study.

The study will have a broad scope, covering both the public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. The study will examine how zero and low hour contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular. The study may also identify how the information gap might be addressed in the future.

Unlike the position in the UK, Section 18 of the Organisation of Working Time Act 1997 provides that where employees on zero hour contracts suffer a loss by not being given the hours they were requested to work or be available for work, they can be compensated for 25% of the time or 15 hours, whichever is less. There is no equivalent provision in the UK, where employees on zero hours contracts are only paid for time spent working and if they are not given any hours by their employer they receive no compensation.

A wide range of stakeholders will be canvassed to contribute to the study and I expect the study, which commenced recently, to be completed within six months.

It is worth noting that while the proportion of Irish workers who are on temporary contracts rose slightly during the recession, reaching 10.5% in 2011, it has since fallen back to the pre-recession level of 9.5% and remains significantly below the EU average of 14.4%. The CSO data for February 2015 indicates that the share of casual and part-time workers on the Live Register was down over 11% on February 2014, equivalent to 9,049 workers. The cumulative decrease is 17,625 workers since February 2013.

The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government's consideration of the study's findings.