Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Low Wage Economies.

Michael Bell

Question:

166 Mr. Bell asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will outline her views on whether the availability of low wage economies has played a large part in the loss of industries such as Seagate; her further view whether these economies exploit the workforce and that it would be in the interest of our economy and in the interest of equity that a strong trade union movement would improve working conditions and wage levels in these countries; the policies, if any, the Government has to assist the international trade union movement in this regard; and if these policies will be developed in conjunction with ICTU. [1365/98]

Minister for Enterprise, Trade and Employment (Miss Harney):

The aim of the industrial development agencies is to attract and support projects with sufficient value added to avoid vulnerability to low wage competition. Competition from low wage economies is an ongoing factor affecting labour intensive industries here. Accordingly, policy in this area is directed at encouraging such industries to reposition themselves in higher value added areas and to adopt product development and other measures to improve their competitiveness. As I have previously indicated in relation to the impending closure of Seagate's Clonmel plant, the main reasons advanced for closure by the parent company were major worldwide over-capacity and market stagnation as well as substantially lower production costs in the Far East.

The International Labour Organisation, ILO, seeks to improve working conditions throughout the world by adopting and promulgating conventions, which set down minimum labour standards. The ILO is a tripartite body which is representative of workers and employers as well as Government. As a member of the ILO, Ireland participates in the process of negotiating and adopting new standards and overseeing compliance with the existing body of international labour standards. It is a requirement of membership that the Government consult with the representative organisations of workers and employers on all matters pertaining to the ILO.

The issue of linking core labour standards with membership of the World Trade Organisation, WTO, was considered at the first ministerial meeting of the WTO in December, 1996. In the declaration issued at that meeting the WTO renewed its commitment to the observance of internationally recognised core labour standards. The declaration went on to say that the ILO was the competent body to set and deal with these standards and the WTO affirmed support for the work of the ILO in promoting such standards.

It is through Ireland's participation in organisations such as the ILO and the WTO that we would seek to bring about improvements in working conditions in countries where such conditions were considered inadequate, having regard to their stage of development.