Tom Kitt
Question:5 Mr. T. Kitt asked the Minister for Enterprise and Employment the action, if any, he is taking in response to the recent report by SIPTU entitled Case for a Minimum Wage for Hotel and Catering Workers. [6442/97]
Ceisteanna — Questions. - Wages of Hotel and Catering Workers.
I have only recently received a copy of the report referred to by the Deputy and I have asked my officials to examine it. I am aware that the SIPTU trade union has been expressing concern about pay rates for employees in the hotel and catering sectors of our economy.
Under the Industrial Relations Acts, 1946-90, trade unions, or other organisations claiming to represent a category of workers, may make application to the Labour Court for the establishment of a joint labour committee, known as a JLC. In the final analysis any decision to set up a JLC or to extend the remit of an existing committee rests with the Labour Court.
The function of a JLC is to draw up proposals for fixing minimum rates of pay and conditions of employment for the workers involved. When proposals submitted by a joint labour committee are confirmed by the Labour Court, through the making of an employment regulation order — ERO — they become statutory minimum pay and conditions of employment for the workers concerned.
There are three JLCs in operation which impact on the areas referred to by the Deputy. In the catering sector two JLCs cover Dublin and Dun Laoghaire and the rest of the country respectively. The hotel JLC covers the whole country with the exception of Cork city, Dublin city and Dún Laoghaire. I am informed that SIPTU has applied to the Labour Court for the establishment of a JLC for hotels in the Dublin and Dun Laoghaire areas. The Labour Court is to hold an inquiry on 3 April 1997 into the application by SIPTU.
It is open to SIPTU to bring its report to the attention of the Labour Court on 3 April, as regards its findings in relation to the hotel industry in the Dublin and Dun Laoghaire areas. Also the report could be brought to the attention of the other relevant JLCs in the catering and hotel sectors.
Will the Minister agree this is a damning report on the treatment of workers in this sector, as was the recent survey by CERT which showed that almost half the graduates surveyed received less than £150 per week compared with the average industrial wage of £279 per week? Does the Minister accept there is a recruitment crisis in this sector——
They are working very long hours too, over 48 per week.
——as 68 per cent of employers have indicated they have recruitment problems? The Minister will be aware from media reports and surveys that skilled and unskilled foreign labour is now being sought by employers. There is a crisis in this sector which demands a response.
The Minister's reply is unsatisfactory. The report by Norman Croke makes the case for a minimum wage and demands a direct interest and involvement on the part of the Minister by a concentration on workers in that sector.
There is a procedure established by an Act of the Oireachtas for dealing with issues of this nature. Pay issues are usually matters for negotiation between the two sides but the JLC procedure is available where there is weakness in the organisation of workers. The unions can apply to the Labour Court to have a joint labour committee established which will determine rates of pay. The procedure exists and SIPTU is acting on it. We are determined the policy approach will be to build profitable enterprises that can provide good pay and conditions. That aim underpins all our work. With regard to action on the report, SIPTU is taking the action it regards as appropriate and which is in accordance with the legislation.
Will the Minister accept, in view of comments by many Ministers and especially the Minister for Tourism and Trade, that tourism is set to become the second largest employer in Ireland in the new millennium? We agree with the Minister that this sector demands particular attention and that the JLCs have a role to play with regard to equitable wages. However, we should take note of the report's finding that there is a marginal difference between the wages paid to many people working in the tourism sector and unemployment benefit. That requires particular attention from the Minister.
The Minister will also agree we need a highly motivated and skilful workforce in this sector if we are to provide the jobs that should be available. In view of the statistics and the survey carried out by CERT, does the Minister not feel it is inadequate to rely solely on the JLCs and that ministerial attention is required to ensure wages in this sector are appropriate?
The Minister for Tourism and Trade has addressed the core issue of training and creating an environment for profitable tourism ventures and has done so effectively. The proof of the pudding is in the eating. Last year, 350,000 extra visitors came to Dublin, leading to an additional spend of £90 million in the city, as a result of successful strategies being put in place. That provides a basis for building a strong tourism sector in Dublin. I endorse the Deputy's view that we need a strong tourism sector which provides good working conditions and pay levels. That is also the aspiration of the Minister for Tourism and Trade and, if the Deputy puts down an appropriate question, he will outline the strategies involved.