John McGuinness
Question:25. Deputy John McGuinness asked the Minister for Jobs, Enterprise and Innovation his plans to deal with the court ruling on joint labour committees; and if he will make a statement on the matter. [42732/13]
View answerJoint Labour Committees Agreements
Questions (25, 41)
Brian Stanley
Question:41. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation the way he will ensure that the employers will fully engage with the JLC process and the reaching of agreements that deliver a living wage for low-paid workers. [42601/13]
View answerWritten answers
I propose to take Questions Nos. 25 and 41 together.
On 2 October last, I published the Report of the Labour Court’s Review of the Joint Labour Committee (JLC) system. The Report owes its genesis to Section 41A of Industrial Relations Act 1946 (inserted by Section 11 of the Industrial Relations (Amendment) Act 2012) which provides that reviews of each JLC be carried out by the Labour Court, as soon as practicable after the commencement of the Act, and at least once every 5 years thereafter. The review assisted the Labour Court’s deliberations as to whether any JLC should be abolished, maintained in its current form, amalgamated with another JLC or its establishment order amended and the Labour Court is required to make recommendations to me to this effect.
I have accepted the recommendations contained in the Report.
In publishing the Report and outlining the legal steps necessary for implementation of the Labour Court’s recommendations, I have been particularly mindful of issues arising as a result of the recent Supreme Court ruling in relation to Registered Employment Agreements (the McGowan case).
With the exception of the Agriculture JLC, implementation of the recommendations regarding the scope of the other nine JLCs will be given effect by way of Ministerial Order. As the Agricultural Workers JLC was established under primary legislation (the Industrial Relations Act 1976), an amendment to the Establishment Order requires amending primary legislation. I anticipate that the Establishment Orders necessary to give effect to the recommendations regarding the other nine JLCs will be made over the coming weeks.
At the conclusion of this process there will be eight JLCs remaining – and this will drop to seven when the legislation required to implement the recommendation relating to the Catering JLCs is enacted – leaving slightly over half the number that operated at the beginning of the reform process which I pursued on coming to Office. This latest development sits squarely within the context of the change required to improve Ireland's competitiveness by enhancing wage flexibility while also ensuring protection for vulnerable workers.
The Industrial Relations Acts provide the legislative framework within which JLCs are established and function, including provisions in relation to the formulation and confirmation of Employment Regulation Orders. While I would urge all parties to engage constructively in the reformed JLC system, in accordance with the voluntarist nature of our industrial relations system in Ireland, I have no powers to compel employers or trade union representatives to participate on any committee or to compel either side to reach agreement.
Employment Appeals Tribunal
Questions (26)
Thomas P. Broughan
Question:26. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 118 of 26 September 2013, the number of EAT awards which have been enforced through the civil courts by the enforcement services unit of the National Employment Rights Authority on behalf of employees; the nature and timeframe of the root and branch reform he has initiated to establish a workplace relations service; and if he will make a statement on the matter. [42573/13]
View answerWritten answers
The statistics below relate to the enforcement of the decisions of both Employment Appeals Tribunal (EAT) determinations and Labour Court rulings. The enforcement statistics are recorded by the National Employment Rights Authority (NERA) as one complete group rather than being allocated individually between the two bodies.
Table 1 summarises the number of cases in respect of which requests to institute civil enforcement proceedings were made to the Minister in the course of 2011, 2012 and for the period to 30 September 2013.
|
TABLE 1 |
2011 |
2012 |
End-Sept 2013 |
|
Cases on hand: start of year |
54 |
89 |
105 |
|
New Cases Received |
79 |
75 |
51 |
|
Cases Closed |
44 |
59 |
55 |
|
Cases on hand: end of year |
89 |
105 |
101 |
Table 2 summarises the amounts involved in civil enforcement requests which were made to the Minister for the years 2011 to 30 September 2013.
|
Year |
Arrears Paid to employees as a result of Civil Enforcement by NERA |
|
2011 |
€88,361 |
|
2012 |
€105212 |
|
End-Sept 2013 |
€34,146 |
A "fit for purpose" workplace relations system must be supported by proportionate, effective and efficient compliance and enforcement measures. It is my view that the current system of enforcement of employment rights awards is cumbersome, expensive and, accordingly, 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 measures will provide for more proportionate, efficient and effective enforcement of employment law.
The Government is committed to reform of the State’s Workplace Relations Services. The system that developed over the last sixty years had become unwieldy and complex; it lacked consistency, involved long delays and in some cases proved expensive for users. I propose to establish a two-tier Workplace Relations structure. That 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.
The WRC will replace the Labour Relations Commission, the National Employment Rights Authority, the Equality Tribunal and undertake the first instance functions of the EAT and the Labour Court. The Labour Court will take on the appellate functions of the EAT. These four bodies, including the EAT, will then be dis-established following the transfer of their functions to the WRC.
Significant progress has been made to date and I am happy to report that a number of priority actions have been successfully delivered within the target timescale. These include;
- a new single contact portal called “Workplace Relations Customer Services” has replaced the five separate entry points resulting in complaints being acknowledged and employers notified of complaints in a much speedier fashion,
- a Single Complaint Form that deals with over 100 first instance complaints has replaced the 30 forms previously in use,
- an Early Resolution Service is now seeking to resolve disputes at an early stage without the need for adjudication,
- responsibility for the Equality Tribunal (but not including the policy functions of the Minister for Justice and Equality concerning equality) was transferred from the Minister for Justice and Equality to me with effect from 1 January, 2013, and
- the final workplace relations website, which replaces the interim website and the websites of the existing five workplace relation bodies, was launched on 30 September, 2013. A new determinations database and e-complaint facility were also launched on 30 September, 2013.
While considerable progress has been achieved to date on an administrative basis, completing the proposed reform requires the enactment of detailed legislation. In this regard, significant amount of work has been completed on the preparation of the Workplace Relations Bill to provide the statutory basis for the new structures and processes envisaged.
Enactment of the Bill will necessitate amendments to 22 primary Acts, 12 specified parts or sections of Acts and 71 statutory instruments. The Scheme of the Workplace Relations Bill has been approved for priority drafting by the Cabinet and was included on the 'A' list for the Government's Autumn Legislative Programme 2013. Engagement is on-going with the Attorney General’s Office and I am committed to the publications and enactment of the legislation at an early stage with a view to having the proposed new structures in place during 2014.
In the meantime, I intend to continue to progress the reform and bring about further enhancements of the services offered, on an administrative basis in the coming months.
Crafts Council of Ireland
Questions (27)
Seán Ó Fearghaíl
Question:27. Deputy Seán Ó Fearghaíl asked the Minister for Jobs, Enterprise and Innovation the funding provided from his Department to the Crafts Council of Ireland; the reason the Crafts Council of Ireland is under the aegis of the Department of Jobs, Enterprise and Innovation; his views on whether his Department should have more engagement with the Crafts Council of Ireland; and if he will make a statement on the matter. [38465/13]
View answerWritten answers
The Crafts Council of Ireland is the national design and economic development organisation for the crafts industry in Ireland with the objective of fostering the sector’s growth and commercial strength, communicating its unique identity and stimulating quality design, innovation and competitiveness.
Since 1976, the State, through my Department, has provided funding to the Crafts Council. The Council’s annual Exchequer allocation is approved by my Department and disbursed through Enterprise Ireland. Funding for 2013 amounts to €2.9 million.
The Crafts Council engages directly with my Department and also through Enterprise Ireland in regard to funding, strategy, business plans and its other corporate governance matters. I appoint four Members to the Council’s Board of Directors including the Chair and a representative from Enterprise Ireland. This ensures an appropriate level of engagement with the Crafts Council.
In order to meet its objectives to grow the sector and develop its commercial strength, I believe that it is appropriate that the Council works closely with my Department and Enterprise Ireland whose remit includes indigenous company development, export growth and job creation.
Employment Rights Issues
Questions (28, 30)
Micheál Martin
Question:28. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation his views on so-called zero hours contracts where employees are not guaranteed any regular minimum number of hours of employment; and if he will make a statement on the matter. [42725/13]
View answer
Aengus Ó Snodaigh
Question:30. Deputy Aengus Ó Snodaigh asked the Minister for Jobs, Enterprise and Innovation if he will ban the imposition of zero hour contracts on workers. [42593/13]
View answerWritten answers
I propose to take Questions Nos. 28 and 30 together.
Section 18 of the Organisation of Working Time Act 1997 contains a protection for employees who are employed on zero hour contracts. The zero hour protection applies to all employees whose contract operates to require them to be available whether they work on a casual basis or not.
This feature of the legislation covers situations where, for example, an employee is sent home if things are quiet or is requested to be available for work and is not, on the day, asked to work. Where an employee suffers a loss by not working hours he/she was requested to work or be available to work, the zero hours provisions of the Act ensure that he/she is compensated for 25% of the time which he/she is required to be available or 15 hours whichever is the lesser. The level of compensation may be impacted if the employee got some work. An expectation of work does not, however, entitle an employee to compensation.
The zero hours provision does not apply to lay-offs, short-time, emergency or exceptional circumstances, employee illness, employee on-call or where the employee is paid wages for making him/herself available for work.
Section 17 of the Organisation of Working Time Act 1997 sets out the requirements regarding notification to the employee of the times at which he/she will be required to work during the week. Generally, an employee is entitled to 24 hours’ notice of his/her roster for the week, although section 17(4) allows for changes as a result of unforeseen circumstances.
Section 19 of the Organisation of Working Time Act 1997 sets out an employee’s entitlement to paid annual leave equal to 4 working weeks in a leave year in which he or she works at least 1,365 hours (unless it is a leave year in which he or she changes employment) or one-third of a working week for each month in the leave year in which he or she works at least 117 hours or 8 per cent of the hours he or she works in a leave year (but subject to a maximum of 4 working weeks).
Zero hour contracts are covered by contract law. A zero hour contract must be entered into freely between the employer and the employee – it cannot be forced upon an employee. Zero hour contracts are, normally found in sectors such as retail, healthcare and hospitality. I am very conscious that in certain circumstances, they may be of great benefit to both employers and employees. They allow greater flexibility for both, reducing the employer’s pay costs, while workers can decide when and if they want to work. Such contracts may be preferred by employees who require flexibility to facilitate educational or other personal requirements and banning such contracts could do a disservice to these workers. However this is an area I will keep under review.
The deputy may have noted that recent recommendation of the Labour Court concerning home helps employed by the Health Service Executive (HSE). This recommendation has been accepted by both sides as a binding recommendation of the Court. The HSE is proceeding to give effect to the recommendation, which will result in the region of 10,000 home helps receiving annualised hours contracts from the HSE.
Part-Time Job Incentive Scheme
Questions (29)
Seamus Kirk
Question:29. Deputy Seamus Kirk asked the Minister for Jobs, Enterprise and Innovation his views on the fact that part-time employment is accounting for a very significant proportion of new jobs being created in the economy; the way firms can be encouraged to take on more full time employees; and if he will make a statement on the matter. [42723/13]
View answerWritten answers
Employment is now increasing across many sectors and occupations, both in full-time and in part-time employments. The latest information from the Quarterly National Household Survey shows an annual increase in employment of 1.8% or 33,800 in the year to the second quarter of 2013, bringing total employment to 1,869,900. This compares with a decrease of 1.3% in the year to Q2 2012. The QNHS data shows that the increase in total employment of 33,800 in the year to Q2 2013 was represented by an increase in full-time employment of 21,600 (+1.5%) and an increase in part-time employment of 12,100 (+2.8%).
The signs of recovery in employment – and especially in the creation of more full-time jobs – are supported by the job creation figures of IDA Ireland and Enterprise Ireland for their client companies in 2012. Ireland’s enterprise development agency client companies cumulatively created nearly 9,000 net jobs in 2012. Total permanent full-time employment in agency-assisted companies operating in all sectors amounted to 294,785 in 2012, a net increase of 8,975 jobs (+3.1 per cent) on employment levels in 2011 and continues the trend of positive growth in employment following three consecutive years of employment losses between 2007 and 2010.
Total full-time employment among Irish-owned companies amounted to 144,964 in 2012, an increase of 3,228 jobs (+2.3 per cent) on the previous year. Among foreign-owned companies, total full-time employment amounted to 149,821 in 2012, an increase of 5,747 (+4 per cent) on the previous year. Foreign-owned part-time employment also increased, by almost 600 jobs (+3.4 per cent) in 2012, whilst Irish-owned part-time employment levels increased marginally.
The data from the enterprise agencies confirm that the vast majority of the additional jobs in grant-assisted companies were full-time jobs. We are seeing a pattern as we come out of the recession where initially the first signs of recovery were reflected in an increase exclusively in part time employment. Although job losses continue to be experienced in declining sectors such as construction, the positive results from the enterprise development agencies in 2012 underscores the merits of the Government’s focus on innovation and export-driven sectors under the Action Plan for Jobs to create employment.
In 2012, the total net full time jobs created in CEB assisted companies was 256 while the total net part time jobs created in CEB assisted companies was 769.
The Government incentives which we are putting in place are very much geared towards creating full-time employment rather than part-time employment. JobsPlus is a new employer incentive which encourages and rewards employers who recruit jobseekers on the Live Register to fill full-time positions. The Action Plan for Jobs identifies a number of key targeted sectors in the Manufacturing and Services areas with the potential to create significant sustainable employment. The Action Plan identifies the challenges facing each sector and sets out the measures required to ensure these sectors achieve their potential. Ensuring that all of the measures in the 2013 Action Plan - and in the Action Plans for subsequent years - are implemented will provide the best means of ensuring that employment opportunities are maximised in each sector.
Question No. 30 answered with Question No. 28.
Job Creation
Questions (31)
Bernard Durkan
Question:31. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he will indicate based on the experience of the past two and a half years, the extent to which he expects innovation and technology to play a significant part in the maintenance of existing jobs and the creation of new job opportunities in future years; and if he will make a statement on the matter. [42704/13]
View answerWritten answers
Innovation and technology are key aspects of employment across most sectors. My Department and its agencies are focused on the development and support of internationally trading manufacturing and services firms in Ireland, and have a clear and steady focus on the potential and opportunities that exist and can be created by prioritising innovation and technology as a key driver of success. Enterprise development agencies, Enterprise Ireland (EI), IDA Ireland and Science Foundation Ireland, provide a spectrum of innovation and science/ technology development programmes that deliver financial, technical and experiential support to help companies become more innovative, encourage and support competitiveness, and help them grow their sales and exports in order to create a climate in which sustainable employment will grow and expand.
The importance of innovation to Ireland has been well recognised by the Government as being crucial to growth in both our indigenous and FDI sectors. It was most encouraging to see that the European Commission’s Innovation Union Scoreboard, published in spring 2013, shows Ireland retaining its position among those EU Member States with above average performance in their research and innovation systems. Moreover, the European Commission ‘Indicator of Innovation Output’, announced in September 2013, shows Ireland, along with Sweden, Germany and Luxembourg as EU Member States getting the most out of innovation.
IBM’s Global Location Trends Report of 2012 places Ireland:
- 1st in the world for inward investment by quality and value.
- 1st in Europe for jobs created in Research and Development.
- 1st in Europe for investment in the pharmaceutical sector.
- 2nd in Europe and 4th globally for the number of investment jobs per capita.
In addition, improvements have taken place in Ireland’s cost competitiveness, reflected in the fact that, in 2013, Ireland’s international competitiveness ranking improved 3 places from 20th in 2011, to 17th in the IMD World Competitiveness Yearbook for 2013, published past May. Ireland is 6th out of the 25 EU countries featured.
These indicators correspond well with the stated ambition of our Taoiseach to make Ireland the best small country in the world in which to do business by 2016.
The Government’s strategy has been to put in place a range of initiatives with the overarching aim of accelerating both the economic and societal return on our public investment in Science, Technology and Innovation. In this way, implementation of Research Prioritisation, underway since March 2012, will see the majority of public research funding aligned with 14 priority areas where we are most likely to get economic and societal returns, particularly in the form of jobs. Another key initiative is the adoption of an Intellectual Property Protocol, which outlines a clear, robust and industry friendly policy for the commercialisation of IP arising from state funded research. As result of this, the central Technology Transfer Office (‘cTTO’) is currently being established. The aim of the cTTO is to encourage the commercialisation of IP arising from State funded research, with a view to achieving more job creation from our investment in this area. Furthermore, the remit of Science Foundation Ireland has been expanded to cover applied research, aligned with the 14 priority areas to further support the development of research findings into commercial opportunities, further enhancing our job creation potential.
Question No. 32 answered with Question No. 19.