Dáil Éireann Debate, Wednesday - 10 December 2008
70 Deputy Joe Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of inspections carried out by the labour inspectorate to ensure that the minimum wage was being paid in 2006, 2007 and to date in 2008; the number of breaches detected; the number of prosecutions initiated; and if she will make a statement on the matter. [44914/08]
View answer93 Deputy Eamon Gilmore asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of workplace inspections carried out by the labour inspectorate to date in 2008; the way this compares with the same period in 2007; and if she will make a statement on the matter. [44913/08]
View answerI propose to take Questions Nos. 70 and 93 together.
The number of employment rights inspections, visits or calls undertaken by the inspection services of the National Employment Rights Authority in the year to the end of November 2008 was 26,787. During the same period in 2007 some 12,369 inspections, visits or calls were undertaken. Of the 26,787 inspections, visits or calls to the end of November 2008, breaches were detected in 4,407 cases. In the same period in 2007 breaches were detected in 2,290 cases. To the end of November 2008, €2.34 million in underpayment of wages due to employees has been recovered by the NERA inspection services compared to €2.48 million for the corresponding period in 2007.
The outputs and outcomes to date in 2008 reflect the focused and targeted activities being undertaken by NERA in respect of employment rights promotion and compliance and the increased number of NERA inspectors. The number of inspections carried out in respect of the National Minimum Wage Act 2000 during which breaches of the Act were detected and the number of prosecutions initiated is as follows. In 2006, 2,002 inspections were undertaken; in 104 cases breaches were detected and in one case a prosecution was initiated. In 2007, 1,942 inspections were undertaken; in 192 cases breaches were detected and no prosecutions were initiated. In 2008, 2,979 inspections have been undertaken to 30 November; in 258 cases breaches have been detected and in two cases prosecutions have been initiated. In one case, at the commencement of the trial, the parties entered into a compromise agreement and the prosecution was withdrawn on the direction of the District Court judge.
NERA undertook a targeted campaign, which focused on compliance with the National Minimum Wage Act 2000 between 14 April and 11 May 2008. Such campaigns, accompanied by awareness and promotional activities, are a significant feature of NERA's employment rights compliance and information strategy. The primary role of the authority in the case of breaches of employment rights legislation is to seek compliance and rectification of any breaches identified, including redress for the employees concerned and payment of any arrears due to those employees. Employers rectify breaches of employment law and pay under payments of wages due to employees without prosecution in the majority of cases. However, the authority reserves the right to initiate prosecutions in respect of breaches of employment legislation. Rights commissioners of the Labour Relations Commission also hear complaints concerning breaches of the National Minimum Wage Act 2000.
I accept that and I understand why there are not many prosecutions. Once the initial breach is detected, negotiations are entered into and matters are resolved. Is the Minister of State concerned there will be more pressure on wage structures in 2009 because of the economic downturn? Is there a forum for discussion under Towards 2016 between the social partners to ensure the minimum wage will at least be paid? Are discussions taking place regarding another matter relating to the hotel industry, which we brought to the Minister of State's attention? Will he update the House about this matter, to which he obliquely referred earlier?
A procedure is in place for striking the minimum rate. The transitional agreement under Towards 2016 was not agreed. ICTU has been in contact with the Labour Court requesting that it set up the procedure of striking a rate. The court has contacted the social partners and asked them for their observations, which must be submitted prior to Christmas week. The court will then adjudicate on them, following which I will be handed the unenviable task of accepting, rejecting or amending them.
With regard to the joint labour committees, JLCs, in the hotel and catering industries, we have set in motion the amalgamation of the two catering JLCs — Dublin and the rest of the country. They met last Friday and they have more or less agreed the procedure. I requested the Labour Relations Commission to appoint a chairman so that everything can be done as quickly as possible. It is up to the members of the JLCs to agree rates, pay and conditions at the end of the day. Everybody accepts the catering and hotel sector are facing pressures and challenges. IBEC and ICTU are in discussions regarding the hotel sector because everybody acknowledges the pressures in both the broader economy and, in particular, in that sector.
I am concerned about breaches of the minimum wage legislation. Whether people like it, it is the minimum wage. The Parliament and the social partners have agreed this is the minimum amount to which an employee is entitled for a fair day's work. Most Members will support that ethos. NERA is targeting compliance with the legislation to ensure the most vulnerable are paid that rate and, more important, are paid arrears.
Following the "Prime Time Investigates" programme recently, which appeared to reveal a significant number of serious breaches of legislation in both the restaurant sector and the road haulage industry, will the Minister of State target the inspectors at these sectors to establish what is going on and to tidy them up since they must account for significantly more breaches than other sectors?
Will the Employment Law Compliance Bill make provision for on-the-spot fines or something more immediate to deal with these cases?
The "Prime Time Investigates" programme highlighted two issues — exploitation in the context of pay and conditions and breaches of the Road Traffic Acts. The national minimum wage regulates payment in the transport sector because there are no collective agreements, joint industrial councils or joint labour committees in the sector and, therefore, NERA is focused on that. I do not instruct the authority on what it should do but officials carry out risk assessments and profiles of industries, engage in targeted campaigns in several ways, including education and promotion and informing employers of their obligations and employees of their entitlements and rights and they undertake targeted inspections in particular areas, as outlined in reply to previous parliamentary questions.
The Employment Law Compliance Bill is still under discussion with stakeholders. While it was published in March 2008, further discussions have taken place. Stakeholders had concerns in the context of the transitional agreement under Towards 2016 and we are trying to accommodate everybody so that we can achieve as much consensus as possible. The Bill will be introduced in the House early in the new session. I am sure there will be a lively debate on it and there will be a great deal of support among parties for it.
When will there be a full complement of inspectors in the labour inspectorate? The Government signed up to this in the previous partnership agreement but a new agreement has come into force since. The Minister of State said the new legislation to put NERA on a statutory footing cannot be implemented because of the lack of agreement to date with the social partners, yet when there is agreement on an issue, the Government cannot deliver on it.
Are there plans to establish cross-departmental labour investigation teams similar to those proposed by Deputy Morgan for the transport sector? The "Prime Time Investigates" programme also exposed the flouting of tax laws. It is critically important to have that mechanism up and running as soon as possible so that a co-ordinated approach can be adopted on this issue.
The Deputy has raised the issue repeatedly for the past year. We are living up to our commitments under Towards 2016. A total of 81 labour inspectors are in place and no Deputy can deny they have been on the ground enforcing pay and conditions under the Protection of Young Persons (Employment) Act 1996, the Organisation of Working Time Act 1997, the National Minimum Wage Act 2000 and the Payment of Wages Act 1991. Inspectors are out and about.
With regard to cross-departmental enforcement, NERA was in contact with the Road Safety Authority, RSA, in June prior to the "Prime Time Investigates" programme to ascertain where they could complement each other. The authority will also increase co-operation with the Department of Social and Family Affairs and the Revenue. The Employment Law Compliance Bill will also contain measures to ensures that happens. NERA will also be responsible for ensuring compliance with the work permits regime. Inspectors will be at the coalface and there will be full cross-agency support, for example, with the Garda on work permits, the Revenue, the Department of Social and Family Affairs and the RSA.
Sometime in the future.
No, this is happening
Everything is dependent on the legislation being implemented and we still do not know when it will be enacted.
NERA has been established on an interim basis.
However, it is not a statutory body.
It can enforce all employment rights legislation and it does so effectively.
The authority can only enforce existing legislation, which many people believe is inadequate in many sectors.
The authority has taken prosecutions and it has the full support of legislative provisions. Officials are working with their counterparts in Revenue, the Department of Social and Family Affairs and the RSA to make sure sectors are targeted where there is profiling of vulnerability.
