Dáil Éireann debate -
Tuesday, 27 Jun 2000

Vol. 522 No. 2

Written Answers. - Performance Related Pay.

Jimmy Deenihan

Question:

174 Mr. Deenihan asked the Minister for Finance if he will outline the progress on the introduction of pay systems to better reflect performance in the work place including profit sharing and employee share ownership; and if he will make a statement on the matter. [18198/00]

Minister for Finance (Mr. McCreevy)

The question of innovative financial reward systems is essentially a matter to be developed at enterprise level through the partnership structures. The Programme for Prosperity and Fairness, in paragraph 16 of section 1.3, ‘Workplace relations and work environment' of framework 1, acknowledges that forms of financial involvement will be one of the topics for discussion and in paragraph 19 it is stated that:

ICTU and IBEC recognise the part which a link between the financial performance of the company and the individual employee plays in developing and deepening partnership and in increasing performance and competitiveness. The schemes in operation include ESOTs, ESOPs, gainsharing, profit sharing and other financial employee incentives. IBEC and ICTU will work together to produce guidelines to support, facilitate and encourage this process.

In paragraph 8 of section 1.1, Taxation of framework 1, the Government and the social partners acknowledged the role of the above mentioned financial employee incentives and it was agreed that a consultative committee, involving ICTU, IBEC and appropriate Government Departments and agencies, would be established to prepare proposals for consideration in the context of budget 2001. The committee has had three meetings to date and is due to meet again in July 2000.