asked the Minister for Labour if his attention has been drawn to the suggestion made recently by a labour relations expert (details supplied) that the introduction of a statutory minimum wage could provide benefits for the economy; if, in the light of this suggestion, he intends to re-examine the possibility of introducing a statutory minimum wage; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Statutory Minimum Wage.
10.
As the Deputy will be aware, statutory minimum rates of pay and conditions of employment are already provided for in certain sectors of the economy covered by joint labour committees. It is open to any trade union or organisation claiming to be representative of any class, type or group of workers to apply to the Labour Court for the establishment of new joint labour committees.
In the context of the reform of industrial relations I gave consideration to methods of dealing with low pay. It is my view that the joint labour committee system provides an effective method whereby statutory minimum rates of pay and conditions can be established for various sectors, taking account of the economic, employment and industrial relations circumstances in those sectors.
The Bill on industrial relations reform which is at present being drafted will, however, contain provisions designed to improve the operations of the joint labour committee system. In addition, the new labour relations commission which will be provided for in the Bill will be charged with the responsibility of carrying out periodic reviews with a view to ascertaining whether new joint labour committees should be established.
I am not sure that I heard everything. The Minister was rather rapid but I understand he intends to pursue this through the joint labour committees. Will he agree that the manner in which they can do anything in this area is very limited at the moment and would involve around 40,000 workers? Does the Minister intend to extend the legal powers of those committees in relation to a minimum wage? Secondly, has the Minister read the comments of Mr. Gerard McMahon, lecturer in industrial relations in the College of Commerce, Rathmines, to the effect that the provision of a statutory minimum wage could be of great benefit to the economy and to productivity in industry as well? He is very concerned about the extent of low pay in industry here.
Yes, I read Gerard McMahon's submission in January and we have found it quite useful and interesting from the point of view of discussion and of how exactly to approach this matter. We do intend to give some further strengthening of powers to joint labour committees. The present position under the Industrial Relations Act, 1946, is that if a group of workers, a trade union or the Minister in any sector believe that a group are not getting the full benefit of free collective bargaining, that group can apply to the Labour Court for the operation of a joint labour committee. There are 14 at present covering between 30,000 and 40,000 workers, all in the low wage area. They could be used much more frequently. There is a reluctance on the part of organised trade unions to use joint labour committees because they do not require them but in the unorganised area of the workforce there is, perhaps, room to beef up industrial relations. There are independent members and an independent chairman and the committees are comprised jointly of employers and workers. Such a committee is a useful forum. At the same time we recognise the studies which have been done and Gerard McMahon's considerations on low pay. They have a part to play.