Written Answers Nos. 20-27
20. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the steps taken to create employment to encourage the return of recent emigrants; and the number of jobs created under such schemes. [24466/13]
View answerAt a macro level the Government’s strategy is to re-build the economy and accelerate the transition to a sustainable, jobs-rich economy based on enterprise, innovation and exports. It is in this way that we will create the environment in which sustainable jobs will be created, living standards will be raised and Ireland will be regarded as an attractive location in which to live and work. More specifically, engaging with the Diaspora to strengthen and form new relationships is a particular Government priority underpinned by the Global Irish Economic Forum. For example, Enterprise Ireland and IDA Ireland’s Senior Management team are focusing on the roll-out of a number of joint initiatives, including marketing and events aimed at attracting entrepreneurs and start-ups to Ireland, and ongoing engagement with Irish emigrants through the Global Irish Network.
IDA Ireland engages with the Irish Diaspora working in multinational companies in its role to attract new Foreign Direct Investment (FDI) to Ireland and to build on the existing FDI base to support Irish management to win new business. The ability of the investor to source the very best quality people, with appropriate levels of training and experience, is a prime consideration and a real location differentiator. Attracting skilled Irish emigrants back to Ireland is an important component in creating this skill base. The “Succeed in Ireland” initiative to attract greater numbers of inward investors to Ireland provides direct financial incentives to people around the world to create employment in Ireland by making payments to people responsible for bringing sustainable jobs to Ireland. Enterprise Ireland (EI) also plays a significant role in forging linkages with Ireland’s Diaspora. Under the Action Plan for Jobs 2012, EI initiatives included the establishment of a €10m International Start-up Fund and a targeted marketing campaign making greater use of existing networks in the IDA and the wider Diaspora. In 2012, twelve entrepreneurs were supported by Enterprise Ireland to establish their companies here. This campaign is continuing in 2013. Enterprise Ireland is also involved in the establishment of www.itshappeninghere.ie, a website which features opportunities in Irish SMEs in the ICT sector and allows our Diaspora a full view of the potential opportunities for employment and advancement. The website brands the Irish indigenous ICT sector as innovative, dynamic and a great place to build an exciting career. In addition, Enterprise Ireland sponsors/supports conferences to showcase particular sectors with opportunities.
The Government recognises that there has been an increase in emigration, particularly amongst young people, since the start of the recession. However, the CSO data also indicates that significant numbers of Irish migrants have been returning to the country since 2008. For example, 20,600 Irish people returned to Ireland in 2012. These are people who had previously emigrated seeking work, and many of them are coming home having gained skills and expertise abroad that we can now capture here to strengthen the operation and management of companies based here.
While there will always be people who choose to emigrate for personal or professional reasons, the Government’s aim is that, by continuing the process of transforming our economy step by step through the Action Plan for Jobs, we can provide opportunities for employment in Ireland.
21. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the current status of the REAs in view of the recent Supreme Court ruling. [24137/13]
View answer53. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to ensure that low-paid workers under the JLC and REA schemes continue to be fully protected and their income safeguarded. [24465/13]
View answer54. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation if he will give an assessment of the impact of the recent Supreme Court judgment with regard to REAs. [24463/13]
View answerI propose to take Questions Nos. 21, 53 and 54 together.
In recent years there has been a continuing series of legal challenges to the JLC and REA systems, including the 2011 Grace Fried Chicken case that resulted in the High Court striking down all Employment Regulation Orders (EROs) and the recent Supreme Court ruling in relation to Registered Employment Agreements (REAs). As the Deputies will be aware, on 1 August last (informed by the judgment in the Grace Fried Chicken case), a new legal framework for REAs and EROs was put in place by way of the Industrial Relations (Amendment) Act 2012.
The Act provided for a comprehensive suite of measures to strengthen their constitutional and legal framework (such as procedures to be followed by the Labour Court and enhanced Ministerial and Oireachtas oversight and discretion), to allow for enhanced flexibility of application, and to restore and underpin the protections afforded to workers.
In the judgement delivered on 9 May last in McGowan and others v The Labour Court, Ireland and the Attorney General, the Supreme Court held that Part III of the Industrial Relations Act 1946 was invalid having regard to Article 15.2.1 of the Constitution.
That Article provides, in effect, that the exclusive power to make laws is vested in the Oireachtas. The Supreme Court took the view that Registered Employment Agreements are instruments having the status of laws made by private individuals subject only to a limited power of veto by a subordinate body. While the Constitution allows for the limited delegation of law making functions, the provisions of the 1946 Act went beyond what is permissible under the Constitution. The effect of this decision is to invalidate the registration of employment agreements previously registered under Part III of the 1946 Act. In consequence the Labour Court no longer has jurisdiction to enforce, interpret or otherwise apply these agreements. As a result, all such agreements no longer have any application beyond the subscribing parties and are not enforceable in law.
However, as was the case in relation to EROs following the 2011 High Court judgment, existing contractual rights of workers in sectors covered by Registered Employment Agreements are unaffected by the ruling. Contractual rights can be altered only by agreement between the parties involved. There were 6 existing sectoral REAs registered or varied by the Labour Court in recent years: two in the Construction Sector and one each covering Electrical Contracting, Printing, Overhead Powerline Contractors and Dublin Drapery, Footwear and Allied Trades. It is estimated that between 70,000 and 80,000 workers were covered by these sectoral agreements. In addition, there were over 50 employment agreements covering individual enterprises that had been registered by the Court under the 1946 Act.
The striking down of the REAs means that new employees in these sectors can now be hired at a rate agreeable between workers and their employers. This is subject only to the provisions of the National Minimum Wage Act, 2000. From the parties’ perspective, the primary objective of REAs is to provide them with a sense of certainty around terms and conditions that will apply when the employer is tendering for and working through contracts and to have in place agreed grievance and industrial peace provisions. The agreements also have the effect of ensuring that the industry terms and conditions are recognised and maintained. In addition, the existence of these legally backed agreements is recognised under European Union law and ensures, in accordance with the Posted Workers Directive, that contractors from outside the jurisdiction, who may be using employees from lower wage economies, do not obtain an advantage over local contractors in terms of wage costs.
This is a significant judgment that requires careful consideration having regard not only to the provisions of the 1946 as it stood when the REAs were fashioned and registered but also to the amendments to the 1946 Act contained in the 2012 Industrial Relations Act. Insofar as REAs are concerned, the Attorney General has been asked to supply advice. That advice is awaited as is the Order of the Supreme Court.
22. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which his Department continues to monitor the manufacturing and service sectors with a view to identifying any weaknesses in competitiveness which might present a threat to employment in the future; if any particular early warning strategy has been devised in this regard with particular reference to the need for the utilisation of modern technological and scientific advances as a means of achieving increased production, improved efficiency, retention of employment and general economic benefit; and if he will make a statement on the matter. [24386/13]
View answerFollowing an initiative which I undertook last year, in the context of the Action Plan for Jobs, where I asked Forfás to undertake a detailed strategy for the Manufacturing Strategy in Ireland up to 2020, I was delighted to have had the opportunity last month to launch that finalised strategy, which sets out a range of steps necessary to consolidate and develop that sector.
This report sets out the actions needed to address cost competitiveness and access to finance – building on the steps already taken by this Government to improve our international competitiveness. Key actions are proposed across a range of areas, including; access to new funding, management training and support, costs reduction, technology adoption and the implementation of a National Step Change initiative.
In terms of addressing our Competitiveness issues, Ireland’s cost competitiveness can be improved in two ways: through reductions in costs nationally; and/or at firm level through improvements in productivity. Encouragingly, a key finding in this Strategy has been that productivity in manufacturing has been increasing over recent years – annual average growth rates in per hour labour productivity across manufacturing sectors amounted to 5.6 per cent over the period 2007 to 2010 - enhancing the competitiveness of Ireland’s manufacturing firms on international markets.
It is, of course, the case that many of the Competitiveness issues faced by the Manufacturing Sector are similar to those facing businesses generally. In a separate initiative last year, I requested Forfás to undertake research into a number of factors impacting on Ireland’s international competitiveness, to benchmark these factors and to develop proposals to systematically reduce excessive key business costs or delays.
That wider Forfás research indicates that in the period between January 2000 and April 2008, Ireland suffered a 22.5% loss in competitiveness. However, in the period from April 2008 to July 2012, Irish cost competitiveness improved by 19% as measured by the Harmonised Index of Consumer Prices. Prices have now fallen back to levels last seen in 2002. The research benchmarks Ireland’s performance against a number of our key trading partners, as well as the OECD and Euro area averages. Positive trends are emerging in relation to some key cost factors, including Labour costs, where our labour cost competitiveness continues to improve; Construction and new rental costs, which have fallen significantly since the collapse of the property bubble; and the cost of most business services, which have fallen to, or below, 2006 levels.
I have asked the enterprise agencies and others to drive the delivery of a National Step Change Initiative, aimed at enabling companies to take one step up to drive enhanced productivity and competitiveness, to internationalise, to deepen engagement in innovation and to collaborate to compete. In addition, IDA will, of course, continue to attract new investments in manufacturing, including ‘new’ and emerging sub-sectors by tailoring their marketing proposition specifically to a firm’s needs, and based on Ireland’s reputation for high standards in manufacturing, our skills base and R & D strengths.
Enterprise Ireland will work closely with companies with potential to grow through expansion of business development programmes including management development and board strengthening, technology development and a range of productivity improvement programmes: The agencies currently provide supports to manufacturing firms to assist in transformational change and LEAN initiatives on enhancing productivity, leadership and management development and in stimulating innovation. Enterprise Ireland are initiating a Development Capital Fund Scheme which will help to support established manufacturing firms as they seek to automate and to prepare for expansion.
In terms of the Services sector, services account for two thirds of total employment. While the majority of service firms are not supported by the State, about 125,000 persons are employed in Agency supported firms, an increase of 4.6% on 2010, with growth particularly strong in business services, ICT and financial services. The Action Plan for Jobs outlines a range of sectoral initiatives to facilitate new and established companies grow in this space with particular focus on International Financial Services, Business Process Outsourcing/Shared Services, Education Services, Retail and Wholesale, Tourism, Construction Services and ICT Services.
23. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the actions his Department is taking to ensure timely implementation of EU directives; and if he will make a statement on the matter. [24435/13]
View answerMy Department is proactive in ensuring that good performance on the transposition of Directives is consistently maintained. Within my Department transposition is monitored through a customised intranet database which is used as a central management and information tool to track the implementation of Directives on an ongoing basis. This complements the central tracking and monitoring of transpositions carried out by the Department of the Taoiseach. The EU Presidency Planning Committee of my Department also tracks the position on transposition and regular updates are provided to the Management Board of my Department.
A total of 4 Directives require to be transposed by my Department up to the end of 2013. One Directive is recently overdue since 11th May 2013, Directive 2010/32/EU on implementing the Framework agreement on prevention from sharp injuries in the hospital and health care sector. A number of issues arose late in the legal settlement process and further engagement was required on a technical matter with the Commission which meant that the transposition deadline for this Directive could not be met. It is hoped to be in a position to complete the transposition of this Directive at an early date. A full list of Directives to be transposed up to 2015 is provided on my Department’s website at www.djei.ie.
In the Spring 2013 Internal Market Scoreboard, across Government, we achieved a first place in the EU for successfully transposing all Directives within the given timeframes.
I will continue to give a high level of political commitment to the ongoing monitoring and management of the transposition of EU Directives within my Department.
24. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation in view of the rise in au pair placement agencies and on line recruitment if he will consider legislating to ensure that au pairs receive the protections entitled to all workers. [24449/13]
View answer55. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation in view of the recent findings of the Migrants Rights Centre Ireland into the recruitment and employment of au pairs, the steps he will take to regulate this industry and recognise that au pairs should not be outside of the employment protections. [24448/13]
View answerI propose to take Questions Nos. 24 and 55 together.
Genuine au pairs live as part of the host family. They receive free food and lodging and are normally expected to perform light household duties – normally childcare - for a limited number of hours per week, while having appropriate opportunities to learn about the language and culture of the host country. They should receive an allowance, in the same way as a permanent member of the family may receive an allowance. Accordingly, a genuine au pair placement falls outside the scope of the employer-employee relationship.
Au pair applications in respect of non-EEA nationals are processed by the Department of Justice and Equality, which issues the necessary residency permits. The Department of Children and Youth Affairs has responsibility for childcare matters generally. My Department does not issue employment permits for domestic workers; they are currently an ineligible category.
I am aware that the National Employment Rights Authority (NERA) has encountered individuals described as “au pairs” who have been found to be domestic employees and as such are fully protected by the State’s employment rights legislation. In these instances NERA investigates employers who are using the term ‘au pair’ to avoid their statutory obligations under employment law. Where the employment status of an individual is in question, the provisions of the “Code of Practice Determining the Employment or Self-Employment Status of Individuals” are used in order to determine the employment status of the relationship.
Guidance and information for both workers and employers as to the employment of persons in domestic situations is contained in the “Code of Practice for Protecting Persons Employed in Other People’s Homes” which was developed in 2007 by the Labour Relations Commission in consultation with the social partners.
Ireland’s body of employment rights legislation protects all employees employed on an employer-employee basis in Ireland. Therefore, once it is clear that a person is working under a contract of employment in another person’s home, on a full-time or part-time basis, that person has the same protection under law (including the right to the National Minimum Wage) as all other employees.
Where people have concerns that employees may be exploited or are receiving less than their statutory entitlement, the matter may be reported to NERA for investigation. Cases for redress on matters relating to Employment Equality or Employment Rights legislation can be made on the workplace relations complaint form available from NERA or online at www.workplacerelations.ie. Further information on employment rights is available by phone from 1890 80 80 90 or online from www.workplacerelations.ie.
25. Deputy John Halligan asked the Minister for Jobs, Enterprise and Innovation when he will deal with the situation whereby the Employment Appeals Tribunal and Labour Court recommendations may be ignored or avoided by employers, in some cases by changing the names of the company; and if he will make a statement on the matter. [24469/13]
View answerThe enforcement of Employment Appeals Tribunal (EAT) determinations and Labour Court rulings under employment legislation are a matter for the courts. In cases other than those covered by the Payment of Wages Act, the Enforcement Services Unit of the National Employment Rights Authority (NERA) has some capacity to have a determination of the EAT enforced through the civil courts.
In general, where an award has been made in favour of an employee, the employer has six weeks in which to comply. If the employer fails to do so within this period, the employee, or the employee’s trade union, may make an application to the Circuit Court for an order directing the employer to comply with the determination. Where an employee is not in a position to do so the matter can be referred to NERA Enforcement Services Unit, which may, in certain circumstances, make an application to the Courts for an order on his/her behalf.
In deciding whether or not to intervene in the Minister’s name, NERA has regard to the amount of the award, the potential for achieving a favourable outcome for the claimant and the scale of the costs likely to be incurred in doing so. The enforcement of a Circuit Court order in these circumstances is the responsibility of the relevant County Sheriff.
Where an employer is legally insolvent and where a determination has been made by the EAT or an appeal to the Labour Court is in favour of employees, employees are entitled to seek redress from the State through the Insolvency Payments Scheme.
The Companies Acts make provision that a change of name shall not affect any rights or obligations of the company, or render defective any legal proceedings by or against the company, and any legal proceedings which might have been continued or commenced against it by its former name may be continued or commenced against it by its new name. In effect, it is a continuance of the same company with the same registration number as before the name change.
As you may be aware, I have commenced a root and branch reform of the State’s existing Workplace Relations Services with the objective of establishing a world-class Workplace Relations Service. I propose to establish a two-tier Workplace Relations structure. This will involve two statutorily independent bodies replacing the current five. We will have a new single body of first instance to be called the Workplace Relations Commission (WRC) and a separate appeals body, which will effectively be an expanded Labour Court. Work has commenced on the drafting of a Workplace Relations Bill to give effect to the new two-tier structure.
I believe that for a workplace relations system to have credibility it must be supported by proportionate, effective and efficient compliance and enforcement measures. The current system of enforcement of employment rights awards is cumbersome, expensive and not fit for purpose. For this reason, I am proposing to make provision in the Workplace Relations Bill for a range of enhanced compliance measures, including the use of Compliance Notices, Fixed Charge Notices and a new mechanism for enforcing awards of the WRC Adjudicators and Labour Court Determinations. I am confident that the introduction of these these measures will provide for more proportionate, efficient and effective enforcement of employment law.
27. Deputy Michael Moynihan asked the Minister for Jobs, Enterprise and Innovation if he is satisfied with the operation of the credit guarantee scheme; the number of jobs it is supporting to date; and if he will make a statement on the matter. [24415/13]
View answerThe Credit Guarantee Scheme (CGS) began operating on 24 October 2012. As at 10 May 2013 thirty six (36) live CGS facilities have been put in place resulting in €3,661,100 being sanctioned through the scheme by participating lenders and it is expected that 190 new jobs will be created and 115 jobs maintained under these facilities.
My Department, the scheme operator, Capita, and the participating lenders have committed significant time and resources to the establishment and operation of this Scheme. The Minister for Small Business and I promote the scheme at every available opportunity, locally, regionally and nationally, as appropriate. The Scheme is demand led and the take - up of the Scheme is being closely monitored. My Department and Capita are currently actively engaged with the participating banks and the Irish Bankers Federation with regard to examining issues which may be affecting take – up of the Scheme.
The Loan Guarantee Scheme is one of a number of significant new initiatives introduced by this Government to help businesses access the credit they need. Each SME faces a unique combination of local economic conditions and complex relationships with customers, suppliers, and creditors. Hence I have not advocated a one-size-fits-all solution. This is just one initiative in a programme of strategic interventions which includes the Microfinance fund, the Development Capital Scheme and the Innovation Fund Ireland. These interventions are designed to improve access to SME finance, to aid economic recovery, and clearly shows this Governments’ determination to get our economy back on the right path.
Quarterly progress reports are published on my Department’s website www.enterprise.gov.ie. The latest progress report detailing the analysis and performance of the CGS for the quarterly period ending end 31 March 2013 is now available on my Department’s website.
