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Dáil Éireann debate -
Wednesday, 27 Feb 1991

Vol. 405 No. 7

Written Answers. - Prosecution of Retail Sector Employers.

Michael Bell

Question:

34 Mr. Bell asked the Minister for Labour the numbers of employers in (1) the retail sector (2) shops and (3) stores who have been prosecuted for non-payment of statutory minimum rates; the rates of pay applicable to workers in these sectors; the standard number of hours required to be worked per week; and if he will make a statement on the matter.

Alan Shatter

Question:

46 Mr. Shatter asked the Minister for Labour the number of prosecutions brought in 1990 against employers for failure to pay a statutory minimum wage; the nature of the employment concerned; and the outcome of such prosecutions.

I propose to take Questions Nos. 34 and 46 together.

The statutory minimum rates of pay which I have power to enforce arise under employment regulation orders (ERO's) and registered employment agreements (REA's). During 1990 I referred 25 cases for the institution of legal proceedings against employers for failure to pay the statutory minimum wage. Of these 25 cases 19 were instituted under employment regulation orders and six under the registered employment agreement for the security industry.

Of the 19 cases referred under the employment regulation orders five related to hotels, four to catering, four to hairdressing, two to agriculture, one each to women's clothing and millinery, law clerks, tailoring and contract cleaning. In one of these cases the employer was convicted, fined and ordered to pay the arrears due; eight are awaiting hearing; in five cases the arrears due were paid and proceedings withdrawn; in one case the company went into liquidation and arrears due to the 38 employees were paid from the social insurance fund; in two cases the employers are now outside the jurisdiction; and in two cases the employees failed to furnish sufficient evidence to successful prosecutions. In relation to the six cases referred under the registered employment agreement for the security industry two were convicted and fined and four are awaiting hearing.
At present the only employers in the retail sector who are required to pay a statutory minimum wage to their workers are those who come within the scope of the Dublin and Dún Laoghaire Footwear, Drapery and Allied Trades Registered Employment Agreement. This agreement rlates to establishments which are situated in the area of the County Borough of Dublin or the Borough of Dún Laoghaire and of which the business is the sale by wholesale or retail of one or more of the following classes of goods: footwear, clothing, headgear, drapery and haberdashery. Rates of pay under this agreement range between £91.21 for a shop assistant to £169.07 for a chargehand and the hours of work are 75 hours per fortnight.
The Industrial Relations Act, 1990, significantly increased the fines for breaches of registered employment agreements and this coupled with a significant increase in staffing in the inspectorate of my Department has greatly improved enforcement of statutory minimum rates of pay generally.
The Deputies will also, of course, be aware that the Labour Court have recently concluded an inquiry into an application as to whether a new joint labour committee should be established for the retail, grocery and allied trades and will shortly be issuing a decision in the matter.
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