Written answers

Wednesday, 20 September 2017

Department of Jobs, Enterprise and Innovation

Industrial Relations

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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137. To ask the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the fact that the Labour Court recommendation not to include travel time in the upcoming construction SEO amounts to a 11% pay cut for persons; and if she will make a statement on the matter. [39394/17]

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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The Industrial Relations (Amendment) Act of 2015 provides for a new statutory framework – Sectoral Employment Orders - for establishing minimum rates of remuneration and other terms and conditions of employment for a specified type, class or group of workers.  This is in effect a framework to replace the former sectoral Registered Employment Agreement (REA) system which was found to be unconstitutional in 2013 in McGowan - v – The Labour Court. 

The new framework sets down a mechanism whereby at the request, separately or jointly from organisations substantially representative of employers and/or of workers, the Labour Court can initiate a review of the pay and pension and sick pay entitlements of workers in a particular sector and, if it deems it appropriate, make a recommendation to myself as Minister on the matter. If I am satisfied that the process provided for in the 2015 Act has been complied with by the Labour Court, I can then make the Order. Where such an order is made it is known as a Sectoral Employment Order (SEO), will be binding across the sector to which it relates, and will be enforceable by the Workplace Relations Commission.

In November 2016, the Construction Industry Federation made an application to the Labour Court to review the pay, pension and sick pay entitlements of craftsmen, construction operatives and apprentices in the Construction Sector. The Labour Court conducted its review, which included a public consultation and a hearing of  interested parties, and submitted its recommendation to me on July 13th. Having examined the recommendation and being satisfied that the Court complied with the provisions of the 2015 Act, I accepted its recommendation. A draft Order to give effect in law to the recommendation was laid before the Houses of the Oireachtas on 22nd August. The order cannot be made until approval of both Houses is obtained and I intend seeking that approval at the earliest opportunity when the Houses reconvene after the summer recess.

Under the legislation it is the Labour Court that is mandated to determine the specific elements of the recommendation based on oral and written submissions to the Court. I have no function in this regard. 

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