Vol. 518 No. 5
4 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on the introduction of the minimum wage; if she has satisfied herself that all employers have introduced the wage; if any inspections have been carried out; the number of inspectors available to carry out these inspections; the level of inquiries handled through the special telephone number; and if she will make a statement on the matter. [12283/00]
The National Minimum Wage Act, 2000, became law on 1 April 2000. It applies, with some exceptions, to the generality of employees whether they be full-time, part-time, temporary or casual workers. The national minimum hourly rate of pay is £4.40, which sum must be paid by way of a minimum hourly average rate of pay to all experienced adult employees. Hourly rates of pay of lesser amounts than £4.40 may be paid to certain categories of employee – for instance, to persons under the age of 18, to first time job entrants or to those engaged in training or study.
It is estimated – source: ESRI impact study on the national minimum wage – that the number of employees who will materially benefit immediately from operation of the national minimum wage is 163,000. The average minimum hourly rate of pay must be paid to employees over specific reference periods which may be of a duration of one week, a fortnight or a month. The choice of selection of the reference period to apply to any individual employee is a matter for that individual's employer to exercise. In view of the range of reference periods involved, the longest being of one month's duration, it is not possible at this early stage in the operation of the Act to say whether all employees who stand to gain from the national minimum wage have benefited from it as yet.
By Government decision of last December an additional seven inspectors were authorised for allocation to the labour inspectorate of my Department for the purposes of enforcing the national minimum wage. Such allocation brings the numerical strength of the inspectorate to 17. The internal departmental process to select the additional inspectors was completed last month and the resulting appointments were finalised earlier this week. All 17 inspectors will be engaged in national minimum wage enforcement activity and in the enforcement of employment legislation generally. In their conduct of this work they will have available to them wide ranging powers of inspection which are laid down in the Act itself and in a variety of other labour law statutes. The conditions of employment attaching to the position of labour inspector render the individual inspector liable for out of normal office hours work, including night work. It is intended that some of the investigative/inspection duties to be performed by the inspectors in respect of both the national minimum wage and other labour legislation will be carried out at night-time.
The newly appointed inspectors are undergoing training in the various aspects of their duties and activities. A particular focus of that training is the national minimum wage related dimensions of their work. The established inspectors, too, are receiving national minimum wage related training. It is intended to implement, following completion of the initial training programme, a targeted enforcement exercise in respect of the national minimum wage; plans for this exercise are being prepared with a view to implementation in early course.
Additional information
In the meantime, however, the inspectors are, in the course of their normal inspection duties, checking on the compliance of employers with their responsibilities under the National Minimum Wage Act. Such checks, at this initial post-introduction phase of the operation of the Act, are designed primarily to “educate” employers in their new obligations and to render all possible assistance in sorting out misunderstandings and “teething” difficulties which arise in individual places of employment. Some minor irregularities have been detected but no cases of flagrant violations of the Act have yet been encountered.
As part of the general national minimum wage information campaign additional dedicated telephone lines have been installed to complement and extend the service provided to the public by the information unit of the employment rights division of my Department. Staff in other sections of the Department have also been drafted to assist in dealing with the additional phone inquiries arising. In the first two weeks of April over 7,000 calls of inquiry in relation to the national minimum wage were handled through these arrangements during which time the telephone information service was available to the public up to 9 p.m. on weekdays and also on Saturday, 1 April, the day of launch of the Act.
The Act provides two alternative avenues for redress action for the resolution of disputes between employers and employees with regard to entitlements under the Act. One such avenue is via the Rights Commissioner Service; the alternative course is to request investigation of the dispute by an inspector. No such request has been received to date.
When will those extra inspectors begin to carry out inspections? What is the duration of the training in which they are currently engaged? When exactly will they take up their job? I understand the recent radio advertisements were successful. Will the Minister consider a revised radio advertisement concerning part-time workers' rights? Given that many students may have worked during previous summers there is a lack of clarity about their rights. I suggest the Minister put on an advertisement in May indicating to employers the position about part-time workers who will take up summer jobs and the rate per hour. How many inspections will the 17 inspectors carry out per year given that they will have to cover the whole panoply of labour law? How many visits per year or, even per two years, can an employer who is paying the minimum wage expect? Is it the case that they could fall behind and not be found out?
The Deputy's first question was when all the inspectors would be out doing the job. I expect that to be in a matter of weeks but I will get precise facts for her. Their work will be in the educating side and will involve informing employers and employees of their responsibilities and entitlements. Much of the current work is to clear up some misunderstandings. In regard to part-time workers, on which there is a question on the Order Paper for today, I shall consider getting information into the public domain. There are issues which need to be addressed arising from legislation introduced by the previous Government but it is our responsibility to implement it.
In the first two weeks of April over 7,000 calls of inquiry in relation to the national minimum wage were handled through the arrangements in place – which worked reasonably well – during which time the telephone information service was available to the public up to 9 p.m. on weekdays and also on Saturday, 1 April. On the question of the specific number of visits, the inspectors will implement this legislation. Much of their work will be concentrated on various sectors. While I will ensure the maximum number of inspections take place, I cannot give a precise figure. I can provide the figures for the number of inspections taking place if the Deputy wishes to table a further question. In regard to part-time workers they have pursued particular sectors and have got good results.
The summer jobs scheme is being advertised at £3 per hour. Even for those under 18 years of age the rate is £3.08, if I recall correctly from the leaflet, and is the lowest wage regardless of the category. Does the summer jobs scheme for 18 year olds at £3 per hour fall outside the National Minimum Wage Act?
Is the Minister aware that FÁS has advertisements on the window still that are—
I appreciate that.
These are priority questions and Deputy Rabbitte cannot intervene.
FÁS is the subject matter of a later question. I am aware there were some FÁS advertisements from an earlier period but that has been resolved.
It is gas.
I will come back to the Deputy on that. Obviously there are transitional periods for first entrants and young workers.
Even at that, £3.08 is the lowest rate.
It really raises questions about FÁS working within the Minister's Department. It confirms everything one hears about—
