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Dáil Éireann debate -
Thursday, 23 Mar 2000

Vol. 516 No. 5

Other Questions. - National Minimum Wage.

Jan O'Sullivan

Question:

94 Ms O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of prosecutions initiated in each of the past five years under the Industrial Relations Act, 1946, for failure to pay minimum wages set for particular sectors; if she has satisfied herself that the operation of the Act in this regard has been properly policed and if she will make a statement on the matter. [8021/00]

In the five year period from 1995 to 1999 a total of 35 cases were referred by the labour inspectorate of my Department to the Chief State Solicitor's Office to have prosecutions initiated against employers for offences under the 1946 Industrial Relations Act. There were 11 cases in 1995, eight in 1996, four in 1997, three in 1998 and nine in 1999. The majority of these cases involved multiple offences under the Act, including the offence of failure to pay statutory minimum rates of pay as specified in employment regulation orders made under and in accordance with the Act.

In the same period 37 cases were referred by the labour inspectorate to the Chief State Solicitor's Office for the institution of legal proceedings against employers for offences under the Industrial Relations Acts, 1969 and 1990. A further 40 cases involving offences under these Acts are at present in the course of preparation for referral by the labour inspectorate to the Chief State Solicitor's Office for initiation of legal proceedings against the employers involved.

I am satisfied that the Industrial Relations Acts are being properly policed. In 1999 4,611 visits to employers' premises were carried out by the labour inspectors to check for compliance with the Acts and a similar inspection rate can be expected in the present year.

The Deputy will also wish to be aware that the labour inspectorate of my Department is being augmented by the addition of seven extra inspectors being appointed in the context of the implementation of the national minimum wage and who will also be engaged in implementing the full range of employment legislation generally.

How can the Minister of State say he is satisfied as to the adequacy of inspections when we have only a handful of referrals to court over a period of five years? What changes are proposed in terms of enforcement when the new National Minimum Wage Act becomes law? Will there be a unitary enforcement section of the Department that will monitor breaches of the National Minimum Wage Act or employment regulation orders under the Industrial Relations Act?

The modus operandi of the inspectors is clear. In the past a blitz of inspections was carried out on particular categories of industry. Catering and services were closely investigated in recent times. The first step is to ensure that employers are compliant. That first stage involves the inspectors giving an initial warning. Clearly the motivation is to try to help employees. If they are successful, legal proceedings are not necessary. Many cases are resolved at that level.

The Deputy's second question relates to how the inspectors will operate in the context of the new minimum wage legislation. The inspectorate will now be involved in enforcing all the legislation, whether the National Minimum Wage Act or legislation relating to the protection of young workers. That is one area where there is a need for a strong presence of inspectors. If complaints are made by individuals, the inspectors will follow them up.

Regarding the role of the inspectorate, will it operate after 5 p.m. and at weekends? What would be the additional costs associated with that?

This relates particularly to the protection of young workers. The answer is "yes". I understand this question was raised here before. There are new provisions for inspectors to work at weekends and late at night. That is an important development. This was not the case some time ago. One could argue that seven inspectors is not a huge number, but the number we were working with is 11. In my Department we had to deal with the whole question of safety inspectors and increase the complement there. Equally this is an important area. I stress that there is always a facility for people to complain. It is an important element of this debate that inspectors will follow up on complaints. The other element is to pursue particular sectors where there are problems with regard to workers' rights.

In the context of the general spread of employment over the country, how many inspectors are located outside Dublin? How well are we providing for the policing of the situation outside Dublin?

I will get that additional information for the Deputy. The vast majority are based in Dublin. I do not see this as a major problem. If there is a geographical blitz or a sectoral blitz, it should not be a huge logistical problem for people to carry out that blitz. I will be glad to pass on to the Deputy any additional information in regard to the precise spread of inspectors.

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