Written Answers Nos. 1-31
12. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the legislation he has promised in relation to collective bargaining; if he will provide some indication of the likely content of this legislation; and if he will make a statement on the matter. [18351/15]
View answerCabinet approval was obtained on Wednesday last, May 6th, to publish the Industrial Relations (Amendment) Bill 2015. Publication is expected this week with enactment to follow as expeditiously as possible thereafter.
The main purpose of the Bill is twofold: Firstly to provide (1) for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing remuneration and conditions of employment in individual enterprises, and (2) to provide for a new statutory framework for establishing minimum rates of remuneration terms and conditions of employment for a specified type, class or group of workers, particularly in the context of transnational provision of services and promoting harmonious relations between workers – in effect a framework to replace the former sectoral Registered Employment Agreements. The relevant provisions are contained in Part 2 of the Bill.
Secondly, to put in place the legislative amendments to the Industrial Relations Acts 2001 and 2004 required to give effect to the Programme for Government commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgments of the European Court of Human Rights (ECHR). Furthermore, the Statement of Government Priorities 2014-2016 prioritised the enactment of the Collective Bargaining legislation as approved by Government. The relevant provisions are contained in Part 3 of the Bill.
The proposals in the Collective Bargaining element of the legislation respect Ireland’s voluntary Industrial Relations system but ensure that where an employer chooses not to engage in collective bargaining either with a trade union or an internal ‘excepted body’ the 2001 Act will be remediated to ensure there is an effective means for a trade union, on behalf of members in that employment, to have disputed remuneration and conditions of employment assessed against relevant comparators and determined by the Labour Court if necessary.
They will also ensure that if an employer chooses to collectively bargain with an internal ‘excepted body’, instead of a trade union, that body must pass tests as regards its independence.
Provisions are included to ensure the Act is used appropriately. There are provisions to ensure cases dealt with are ones where the numbers of workers are not insignificant; provisions to ensure elements of remuneration and conditions of employment are not challenged without regard for the totality of remuneration and conditions of employment; provisions to manage the frequency of reassessment of the same issues.
Crucially, additional protection by way of interim relief is proposed where a trade union member, identified in the course of use of the process under the Act, believes her or his dismissal is a direct consequence of this.
In addition, any determination by the Labour Court may also be enforced by the Circuit Court, should any employer choose not to engage with a trade union or implement a previous recommendation of the Labour Court.
The new legislation will balance the interests of workers and employers by providing certainty and clarity for businesses while enhancing collective bargaining in workplaces, providing for registered employment agreements to be re-established and sectoral wage rates and conditions.
Integral to the process of drafting the Bill, submissions and presentations were received from a range of interested parties ranging from trade union representatives, employer representatives, State bodies and others. In addition, the Irish Congress of Trade Unions, the Irish Business and Employers’ Confederation, and the American Chambers of Commerce were consulted extensively and the Bill, balancing the concerns of both sides of industry in this area, very much reflects the consensus achieved through the submission and consultation process.
13. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation his views on the chapters of the Transatlantic Trade and Investment Partnership regarding regulatory co-operation; if he will provide a progress update on the latest negotiations at European Union level in relation to the partnership; and if he will make a statement on the matter. [18405/15]
View answerI welcome the publication of the EU’s draft Regulatory Cooperation Chapter which is intended to provide the framework for ongoing regulatory cooperation under TTIP. This is an area where significant mutual gains can be made which will promote trade and job creation. It will be a particular area of interest for Ireland with our large pharmaceutical and medical device sectors, It offers all parties an opportunity to make input into this significant area on the TTIP. The revised regulatory cooperation text was tabled by the EU and is available on the EU Commission website along with a detailed explanation of the EU proposal. The chapters on Regulation first set out the potential benefits of regulatory cooperation in terms of:
- Jobs and growth
- More choice for consumers
- Stronger regulation, better enforced
- Greater influence on the international stage
They then demonstrate that such cooperation will not lower existing protection in the EU or in the US. It makes clear that nothing in a TTIP agreement will affect the right of either side to make new regulations, or undermine the procedures through which those regulations are made.
The detailed articles set out the general objectives and principles of cooperation. The key objectives are to facilitate trade and investment by removing unnecessary burden, promoting a transparent and predictable regulatory environment and promoting international cooperation. Some principles of good regulation are enshrined in the cooperation agreement such as early indication of plans, opportunity for consultation, sound impact assessment, development of an annual cooperation programme covering information exchange, identifying the scope for mutual recognition of equivalence, simplification or harmonisation. It also provides for the establishment of a Joint Regulatory Cooperation Body to facilitate their implementation of the cooperation agreement.
In addition, nine specific sectors have been identified as areas on which regulatory cooperation work can be carried out and mutual gains achieved. These are cars, pharmaceuticals, medical devices, cosmetics, engineering, textiles, chemicals, pesticides, ICT.
The EU and US work closely already in a number of areas. Air transport is one example where common standards for safety and technical requirements are already in place, we have also agreed to recognise each other's organic food standards. The ultimate objective of these initiatives is to avoid duplication and to find ways to make our systems work more smoothly.
Regulatory compatibility and cooperation recognises the realities of globalisation and will make the trading landscape easier and more predictable. This will be particularly important in unlocking the potential of SMEs helping them to internationalise and grow exports as is reflected in my Department’s recent report on the impacts of TTIP on Ireland.
14. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which measures continue to be taken to monitor the jobs market, with a view to ensuring early detection, where jobs may be at risk; and if he will make a statement on the matter. [18342/15]
View answerAction Plan for Jobs (APJ) 2015 was published in January this year and is the fourth in the multi-annual series of a whole of government approach to economic recovery, export growth and job creation. The Action Plan for Jobs set a target to increase employment by 100,000 by 2016 and we are well on track to achieve that figure this year, ahead of the target. Much work remains to be done however to replace all the jobs lost in the downturn, the target which we have set is to achieve sustainable full employment by 2018.
This will require enhanced focus on developing skills and capability on the competitiveness of our sectors; on new business start-up, on developing new opportunities and on anticipating threats to existing jobs.
With this year’s plan (APJ2015) we have embedded a new assessment framework, which will improve monitoring associated with our employment policies. This is in response to a suggestion by the OECD that one area of improvement for APJ was to more clearly link actions to outcomes. For the first time we will be able to assess how actions increase sales, stimulate the domestic economy (retail, construction, tourism, agri-food), improve skills, activation and startups, enhance productivity and R&D, make doing business easier and cheaper, and enhance funding availability for SMEs. A full set of assessment metrics is set out in Annex 2 of APJ2015. As well as helping assess the effectiveness of the APJ, these metrics will also enhance monitoring of the jobs environment with a view to ensuring early detection of areas of risk or indeed opportunity.
My Department, Enterprise Ireland, IDA Ireland and the Local Enterprise Offices work closely with individual enterprises to identify early warnings of difficulty, to seek to minimise job losses where possible and to develop responses to assist the enterprises get on a firmer footing for the future.
My Department is also developing a dashboard of indicators which provide early indicators of changes occurring in areas critical to the developing environment which influences enterprise and jobs. This includes tracking of Labour Market data from the CSO and our various agencies but also trends in company formation, in purchasing managers indices, in company formation, in relation to indices of competitiveness etc. This early intelligence better inform our policy responses and longer-term strategies.
15. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation if additional resources will be required to reduce current waiting times for Employment Appeals Tribunal hearings from the current average of over a year to three months; and if he will make a statement on the matter. [18418/15]
View answerI am advised by the Employment Appeals Tribunal that, currently, the average waiting time for a hearing before the Tribunal is 63 weeks. This has reduced from an average of 79.5 weeks in 2012 and every effort is being made to finalise cases on hand as efficiently as possible. The Tribunal indicate that there are currently approximately 3,500 cases on hand. There is likely to be a small number of cases which may prove difficult to finalise in the short to medium term, including some cases adjourned, due to parallel High Court proceedings.
The Deputy will be aware that, as part of the current reform of Workplace Relations Services, the functions of the Employment Appeals Tribunal will be transferred to the Workplace Relations Commission (WRC) and the Labour Court insofar as first instance complaints and appeals respectively are concerned. The Employment Appeals Tribunal will continue to function for a limited period, after the establishment of the WRC, to finalise complaints and appeals which were lodged before commencement of the enabling legislation and will be dissolved on finalisation of those legacy cases. The decision to extend the period of operation of the Tribunal beyond the establishment of the new framework is predicated on the assumption that complainants and respondents in matters referred to the EAT prior to the establishment of the WRC would have a legitimate expectation of having the case disposed of before a tripartite tribunal, sitting in public and operating with the degree of procedural formality currently applied by the EAT.
With effect from the commencement of the enabling legislation, therefore, no new complaints or appeals will be presented to the Employment Appeals Tribunal, which will then be in a position to focus its resources on finalising legacy cases. My objective is to ensure that the Tribunal has the necessary resources to progress these cases to finality in an efficient and effective manner and within a reasonable timeframe.
More efficient and effective receipt, registration and referral of workplace relations complaints has already led to the removal of the hearings backlog in certain cases, particularly in the case of the Rights Commissioner Service. My objective as part of the Reform Programme is to greatly reduce the waiting time for hearings by putting in place a target period of three months from the time of complaint to hearing.
I am committed to ensuring that the Workplace Relations Commission will have the appropriate level of resources to ensure that waiting times are reduced and decisions issued on a timely basis. I am pleased to say that some 19 new Adjudication Officers, selected for appointment following an open competition conducted by the Public Appointments Service, will shortly complete an accredited training programme. These Adjudicators, together with the current cohort of Equality Officers and Rights Commissioners who will be appointed as WRC adjudicators, will be available for deployment on the establishment of the Workplace Relations Commission. The adjudication resources at the disposal of the Commission will, therefore, comprise a diverse group of experienced industrial relations and HR practitioners, employment lawyers and civil servants with appropriate skills and experience.
Work is proceeding at an accelerated pace on progressing a comprehensive programme of work to ensure that our workplace relations services are business ready. This critical work includes the rationalisation of accommodation and hearings venues in conjunction with the OPW on a phased basis, finalising arrangements for the introduction of compliance notices and fixed charge notices in support of inspection activities, the transitioning of e-business, the phasing out of ICT systems in line with the rationalisation of services and implementing the proposed Customer Relationship Management Solution to support complaints and adjudication management.
16. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation if he has given due consideration to the damage the Transatlantic Trade and Investment Partnership will create for Ireland and other countries in relation to the investor state dispute settlement and the fact that corporations, with profit as their only motivation, will be granted further rights to challenge Governments in legal proceedings, against decisions Governments make in the public good that will affect these corporations' profitability or potential profitability; if he will acknowledge that the partnership is a bad deal for Ireland and many other countries; and if he will make a statement on the matter. [18323/15]
View answerThe purpose of the negotiations on a Transatlantic Trade and Investment Partnership (TTIP) is to reduce barriers to trade and investment in order to generate jobs and growth. According to assessments made by the EU Commission and other European bodies, a comprehensive TTIP could over time boost EU GDP by 0.5% per annum bringing significant economic gains as a whole for the EU. This injection of economic activity will bring new job opportunities. Based on EU Commission estimates, about 30 million jobs in the EU depend on sales to the rest of the world, and on average, each additional €1 billion of exports supports 15,000 additional jobs across the EU. That suggests that across the EU, an ambitious TTIP could generate 400,000 jobs.
The results of the study commissioned by my Department suggest that TTIP will be good for Ireland. It estimates that the benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests growth in Irish exports of almost 4%, increases in investment of 1% and increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs. It also suggests that Irish small and medium enterprises (SMEs) will be particular beneficiaries.
In relation to ISDS, the EU Commission has been working over the last few months on a number of areas by way of follow-up to its public consultation on ISDS. These are: the protection of the right to regulate; the establishment and functioning of arbitral tribunals; the relationship between domestic judicial systems and Investor to State Dispute Settlement (ISDS); and the review of ISDS decisions for legal correctness through an appellate mechanism.
Last week, the EU Commissioner for Trade, Cecilia Malmström, presented a concept paper to the EU Council of Ministers and to the EU Parliament’s International Trade Committee. The paper sets out ideas for reforming the current ISDS system, with the overall aim of creating a new modern system of investment arbitration. The ideas include strengthening governments' right to regulate, making arbitral tribunals operate more like traditional court systems with a clear code of conduct for arbitrators, and guaranteeing access to an appeals system. The paper can be found at:
http://trade.ec.europa.eu/doclib/docs/2015/may/tradoc_153408.PDF
I welcome the comprehensive work by the EU Commission in following up on the views expressed by stakeholders, and the ideas it has set out in the concept paper, which I will be carefully considering.
17. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he remains satisfied regarding the competitiveness of this economy to attract foreign direct investment, while supporting and encouraging the indigenous sector in both manufacturing and services; and if he will make a statement on the matter. [18343/15]
View answerA key objective of the Action Plan for Jobs process which this Government commenced in 2012 was to rebuild our competitiveness and provide a solid foundation for future growth. The recovery in jobs and exports to date is in large part due to the considerable improvement in competitiveness that has taken place in recent years. Prices and labour costs have grown less in Ireland than in our trading partners. Combined with the recent depreciation of the euro, this has seen Irish competitiveness – as measured by the real effective exchange rate - recover most of the deterioration recorded during the boom years.
Our improved competitiveness is reflected in our international rankings also. Since 2011, Ireland’s rankings in both the IMD and WEF competitiveness reports has improved – from 24th to 15th in the IMD’s World Competitiveness Yearbook, and from 29th to 25th in the WEF Global Competitiveness Report. In the World Bank’s Doing Business 2015 report, Ireland is ranked 13th out of 189.
As noted in the Government’s Spring Economic Statement, this recovery in competitiveness has facilitated a reallocation of resources towards the tradable sectors of the economy. Exports are now at an all-time high and total employment in IDA supported client companies grew to 174,000 in 2014 from a low of 145,000 in 2009.
Enterprise Ireland reported that client companies created 19,705 new jobs in 2014 – a net increase of 8,476. This is the highest net gain in the history of the agency and demonstrates clearly the direct impact that increasing exports has on jobs in Ireland. Enterprise Ireland supported companies no, account for total direct employment of 180,000 people - the highest recorded in the history of the agency. Significantly, EI clients recorded the lowest level of job losses since 2000.
These successes are spread across manufacturing, services and R&D activities.
18. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation when promised industrial relations legislation will be introduced on collective bargaining rights, and on enhancing existing anti-victimisation provisions; the action being taken to address the industrial unrest at Ireland’s largest indigenous retailer; and if he will make a statement on the matter. [18353/15]
View answerCabinet approval was obtained on Wednesday last, May 6th, to publish the Industrial Relations (Amendment) Bill 2015. Publication is expected this week with enactment to follow as expeditiously as possible thereafter.
The main purpose of the Bill is twofold: Firstly to provide (1) for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing remuneration and conditions of employment in individual enterprises, and (2) to provide for a new statutory framework for establishing minimum rates of remuneration terms and conditions of employment for a specified type, class or group of workers, particularly in the context of transnational provision of services and promoting harmonious relations between workers – in effect a framework to replace the former sectoral Registered Employment Agreements. The relevant provisions are contained in Part 2 of the Bill.
Secondly, to put in place the legislative amendments to the Industrial Relations Acts 2001 and 2004 required to give effect to the Programme for Government commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgments of the European Court of Human Rights (ECHR). Furthermore, the Statement of Government Priorities 2014-2016 prioritised the enactment of the Collective Bargaining legislation as approved by Government. The relevant provisions are contained in Part 3 of the Bill.
The proposals in the Collective Bargaining element of the legislation respect Ireland’s voluntary Industrial Relations system but ensure that where an employer chooses not to engage in collective bargaining either with a trade union or an internal ‘excepted body’ the 2001 Act will be remediated to ensure there is an effective means for a trade union, on behalf of members in that employment, to have disputed remuneration and conditions of employment assessed against relevant comparators and determined by the Labour Court if necessary.
They will also ensure that if an employer chooses to collectively bargain with an internal ‘excepted body’, instead of a union, that body must pass tests as regards its independence.
Provisions are included to ensure the Act is used appropriately. There are provisions to ensure cases dealt with are ones where the numbers of workers are not insignificant; provisions to ensure elements of remuneration and conditions of employment are not challenged without regard for the totality of remuneration and conditions of employment; provisions to manage the frequency of reassessment of the same issues.
Crucially, additional protection by way of interim relief is proposed where a trade union member, identified in the course of use of the process under the Act, believes her or his dismissal is a direct consequence of this.
In addition, any determination by the Labour Court may also be enforced by the Circuit Court, should any employer choose not to engage with a trade union or implement a previous recommendation of the Labour Court.
In relation to the dispute mentioned, I continue to urge both parties to avail of the services of the State’s industrial Relations machinery who remain available to assist the parties, if requested. Engagement, in my opinion, with the State's industrial relations machinery offers the best way whereby the parties involved in trade dispute can hope to resolve their differences.
19. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation if he will ensure that the necessary support is being provided by his Department to the workers at Cadbury's in Coolock in Dublin 5, who have lost their jobs in recent months; and if he will make a statement on the matter. [18350/15]
View answerImmediately after the announcement by the company concerned, I established an inter-agency group to coordinate the response to the proposed job losses.
The group, chaired by Enterprise Ireland, will seek to secure alternative employment for the area affected and ensure that departing workers have access to supports they need from State agencies for retraining, access to social welfare supports, access to advice on employment rights and access to advice and support for those workers who intend to start their own businesses. The group includes Local Enterprise Offices, IDA Ireland, SOLAS, Education and Training Boards, Department of Social Protection, MABS, Northside Partnership and the Citizens Information Bureau. The first meeting was held on 18 March.
Recently it was proposed to the management, and through them to the staff unions, that a meeting of the interagency group could be held with the unions. That offer to meet has not as yet been taken up. However I can confirm that the group remains ready to meet employee representatives at their convenience.
Separately, I understand that the management and employee representatives are now in discussions on a variety of issues.
Ireland’s body of employment rights legislation protects all persons legally employed in Ireland on an employer-employee basis. Persons working under a contract of employment, on a full-time or part-time basis, have the same protection under law.
The National Employment Rights Authority (NERA) provides information to both employers and employees on their rights and obligations under employment, equality & industrial relations legislation.
NERA’s Workplace Relations Customer Services staff are available to meet the Cadbury workforce to provide information and answer any questions they may have with regard to their present situation.
If required, the State’s industrial relations machinery is also available to assist the parties concerned in any way possible.
I continue to monitor this situation very closely. Enterprise Ireland has had meetings with the company’s management on a weekly basis since the announcement of the proposed job losses. I have directed Enterprise Ireland and IDA Ireland to continue their drive to find alternative projects for the area affected.
20. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation his views on the concerns raised in many corners regarding the human rights implications of the Transatlantic Trade and Investment Partnership, including the recent call, reported in the British newspaper The Guardian, from a former senior official in the United Nations, Mr. Alfred de Zayas, for the suspension of the partnership negotiations for this reason; and if he will make a statement on the matter. [18404/15]
View answerThe primary objective of the TTIP is to promote growth and jobs, greater compatibility in regulation, high standards, and common rules to facilitate trade and investment.
The EU Commission’s mandate to negotiate with the United States on a Transatlantic Trade and Investment Partnership on behalf of the EU states that the Agreement will exclusively contain provisions on trade and trade–related areas applicable between the parties.
The mandate also states that the Agreement should confirm that the transatlantic trade and investment partnership is based on common values, including the protection and promotion of human rights and international security.
21. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation if the forthcoming Industrial Relations (Amendment) Bill, which reportedly will restore some sectoral registered employment agreements, will also outlaw bogus self-employment arrangements, which are rife in the construction sector; and if he will make a statement on the matter. [18410/15]
View answerCabinet approval was obtained on Wednesday last, May 6th, to publish the Industrial Relations (Amendment) Bill 2015. Publication of the Bill is expected this week with enactment to follow as expeditiously as possible thereafter.
The main purpose of the Bill is twofold: Firstly to provide (1) for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing remuneration and conditions of employment in individual enterprises, and (2) to provide for a new statutory framework for establishing minimum rates of remuneration terms and conditions of employment for a specified type, class or group of workers, particularly in the context of transnational provision of services and promoting harmonious relations between workers – in effect a framework to replace the former sectoral Registered Employment Agreements. The relevant provisions are contained in Part 2 of the Bill.
Secondly, to put in place the legislative amendments to the Industrial Relations Acts 2001 and 2004 required to give effect to the Programme for Government commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001, so as to ensure compliance by the State with recent judgments of the European Court of Human Rights (ECHR). Furthermore, the Statement of Government Priorities 2014-2016 prioritised the enactment of the Collective Bargaining legislation as approved by Government. The relevant provisions are contained in Part 3 of the Bill.
Part 2 of the Bill provides for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing terms and conditions in individual enterprises. Such agreements will not be legally binding beyond the subscribing parties.
It also provides for a new statutory framework for establishing minimum rates of remuneration and other terms and conditions of employment for a specified type, class or group of – in effect a framework to replace the former sectoral REA system. In this context, the new framework proposes a mechanism whereby, in future, at the request, separately or jointly from organisations substantially representative of employers and/or of workers, the Labour Court can initiate a review of the pay and pension and sick pay entitlements of workers in a particular sector and, if it deems it appropriate, make a recommendation to the Minister on the matter. If the Minister is satisfied that the process provided for in the new legislation has been complied with by the Labour Court, he shall make the Order. Where such an order is made it will be binding across the sector to which it relates, and will be enforceable by the National Employment Rights Authority (NERA).
The Deputy will be aware that NERA inspectors carry out inspections of employers’ employment records and workplaces to determine compliance with employment law and employee’s statutory entitlements. In 2014, NERA carried out over 5,500 such inspections including construction sites. The policy of NERA is to seek voluntary compliance where breaches of employment law are detected. NERA work with employers and allow them every reasonable opportunity to rectify breaches. Allegations of non-compliance with employment rights legislation should be referred to NERA who investigate matters brought to their attention.
It is not within the remit of NERA to make determinations regarding the employment status of individuals vis-à-vis employment or self-employment. This is the responsibility of the Department of Social Protection who make decisions in relation to the insurability of employment and the appropriate class applicable where the matter is called into question and the Revenue Commissioners who also make decisions concerning the correct employment status of individuals. Where either of these bodies makes a determination on these issues NERA, in accordance with the Code of Practice for Determining Employment or Self-Employment Status of Individuals will generally accept their decisions on the issue. Finally, the matter can also be determined by the Courts.
Whether any given situation is an abuse of the sub-contracting or RCT systems is a matter for the Revenue Commissioners.
22. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation if it is his intention to bring in legislation to deal with zero and low hour contracts, particularly in the context of the ongoing dispute between workers and employers at Dunnes Stores; and if he will make a statement on the matter. [18352/15]
View answerIn accordance with the Statement of Government Priorities, I commissioned, last February, the University of Limerick (UL) to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. The appointment of UL follows a competitive tendering process.
The key objectives of the study are:
- To fill the gap in knowledge that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.
- To assess the impact of zero hour and low hour contracts on employees.
- To enable the Minister to make any evidence-based policy recommendations to Government considered necessary on foot of the study.
The study will have a broad scope, covering both the public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. The study will examine how zero and low hour contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular. The study may also identify how the information gap might be addressed in the future.
A wide range of stakeholders is being canvassed to contribute to the study and I expect the study to be completed in Q3. The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government’s consideration of the study’s findings. However, the Deputy can rest assured that where the evidence points to some adjustment being required to the protections already in place under Irish employment law, these will be brought forward for consideration by Government.
In relation to the Dunnes dispute, I continue to urge both parties to avail of the services of the State’s industrial relations machinery who remain available to assist the parties, if requested. It is my opinion that engagement with the State's industrial relations machinery offers the best way whereby the parties involved in this dispute can hope to resolve their differences. Ultimately, responsibility for the settlement of a trade dispute rests with the parties to the dispute. However, an early and fair settlement to this dispute is in the interest of all concerned. Last week the Government agreed the text of the Industrial Relations (Amendment) Bill 2015 which in addition to providing a replacement for the Registered Employment Agreement system, will provide an improved framework for workers who seek to better their terms and conditions where collective bargaining is not recognised by their employer.
23. Deputy Joan Collins asked the Minister for Jobs, Enterprise and Innovation if he will confirm that the July 2015 deadline for the introduction of robust collective bargaining legislation is still on track; and if he will make a statement on the matter. [18359/15]
View answerCabinet approval was obtained on Wednesday last, May 6th, to publish the Industrial Relations (Amendment) Bill 2015. Publication is expected this week with enactment to follow as expeditiously as possible thereafter.
The main purpose of the Bill is twofold: Firstly to provide (1) for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing remuneration and conditions of employment in individual enterprises, and (2) to provide for a new statutory framework for establishing minimum rates of remuneration terms and conditions of employment for a specified type, class or group of workers, particularly in the context of transnational provision of services and promoting harmonious relations between workers – in effect a framework to replace the former sectoral Registered Employment Agreements. The relevant provisions are contained in Part 2 of the Bill.
Secondly, to put in place the legislative amendments to the Industrial Relations Acts 2001 and 2004 required to give effect to the Programme for Government commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgments of the European Court of Human Rights (ECHR). Furthermore, the Statement of Government Priorities 2014-2016 prioritised the enactment of the Collective Bargaining legislation as approved by Government. The relevant provisions are contained in Part 3 of the Bill.
The proposals in the Collective Bargaining element of the legislation respect Ireland’s voluntary Industrial Relations system but ensure that where an employer chooses not to engage in collective bargaining either with a trade union or an internal ‘excepted body’ the 2001 Act will be remediated to ensure there is an effective means for a trade union, on behalf of members in that employment, to have disputed remuneration and conditions of employment assessed against relevant comparators and determined by the Labour Court if necessary.
They will also ensure that if an employer chooses to collectively bargain with an internal ‘excepted body’, instead of a union, that body must pass tests as regards its independence.
Provisions are included to ensure the Act is used appropriately. There are provisions to ensure cases dealt with are ones where the numbers of workers are not insignificant; provisions to ensure elements of remuneration and conditions of employment are not challenged without regard for the totality of remuneration and conditions of employment; provisions to manage the frequency of reassessment of the same issues.
Crucially, additional protection by way of interim relief is proposed where a trade union member, identified in the course of use of the process under the Act, believes her or his dismissal is a direct consequence of this.
In addition, any determination by the Labour Court may also be enforced by the Circuit Court, should any employer choose not to engage with a trade union or implement a previous recommendation of the Labour Court.
24. Deputy Mattie McGrath asked the Minister for Jobs, Enterprise and Innovation if the Companies Act 2014, which is to be commenced on 1 June 2015, will make provision for regulating aggressive and intimidating actions by receivers, as part of their efforts to recoup assets; his views that such behaviour is a growing problem; and if he will make a statement on the matter. [18401/15]
View answerReceiverships arise as a result of private contractual relationships, normally between a company and a lending institution. Receivership is a remedy that derives from the courts of equity. The law in relation to receivership is largely made up of rules which the courts have developed by applying general private contract law and equitable principles.
The Companies Act, 2014, which will commence on 1 June 2015, substantially re-enacts the existing law on receivership. The most important change to the existing law is the codification of the powers of receivers in section 437 of the Act, which until now has been contained in case law. This change is in line with the position of other common law countries.
Under the Companies Act, 2014 additional transparency and protection exists as the receiver has specific statutory duties under section 439 which provide that:
- receivers must achieve the best price reasonably obtainable at the time of sale; and
- the receiver must not sell by private contract a non-cash asset of a company to a person who is or who, within three years prior to the date of appointment of the receiver, has been, an officer of the company unless the Receiver has given 14 days notice of his intention to do so to all creditors of the company who are known to him or who have been intimated to him.
Receivers also have a duty to provide certain information to the Registrar of Companies and the ODCE.
The Act also prevents certain persons from being appointed as Receivers (section 433), such as persons who are undischarged bankrupts and connected persons (parent spouse etc of an officer of the company), among others. Breach of a receiver’s statutory duties may result in the receiver being held personally liable for any loss incurred.
As part of its Work Programme 2014 - 2016 the Company Law Review Group will be examining the area of receivership law and I look forward to receiving its Report in due course.
25. Deputy Joan Collins asked the Minister for Jobs, Enterprise and Innovation when the appointment of the chairman for the panel of adjudicators will go before the Oireachtas Committee on Jobs, Enterprise and Innovation; when the Construction Contracts Act 2013 will be implemented; and if he will make a statement on the matter. [18358/15]
View answerThe Government is committed to the earliest possible implementation of the Construction Contracts Act, 2013 and, as a consequence, approved the delegation of responsibility for its implementation to my colleague the Minister of State for Business and Employment last November. I am informed that Minister Nash intends to appoint a Chairperson of the Ministerial Panel of Adjudicators, which is to be established under the Act, as soon as is practicable, having regard to procedural and contractual considerations.
The necessary work is continuing on the preparations for the full implementation of the Act, as the commencement of the Act is dependent on a number of factors set out in the legislation. These factors include the appointment of a Panel of Adjudicators by Minister Nash. The selection of the adjudicators for this Panel will be achieved through an open competitive process to be arranged by the Public Appointments Service, at the earliest opportunity. Minister Nash is also overseeing the preparation of a Code of Practice for the conduct of adjudications, which will be binding on all adjudicators operating under the Act. The drafting of the Code is at an advanced stage and will be finalised after consultations have concluded with the relevant construction industry stakeholders.
Once the preparatory arrangements have been finalised, a date for implementation of the Act will be announced in advance to provide sufficient notice to those affected by the Act's provisions.
26. Deputy Mattie McGrath asked the Minister for Jobs, Enterprise and Innovation his views on the appropriateness of Industrial Development Agency Ireland's direct intervention in the upcoming same-sex marriage referendum, by advocating a "Yes" vote; if he had discussions of any kind with the agency regarding same; and if he will make a statement on the matter. [18400/15]
View answerAttracting Foreign Direct Investment is a key element of the Government’s enterprise strategy. Ireland is currently enjoying a strong period of growth and almost 175,000 people are now employed at IDA Ireland client companies, the highest number on record.
These companies export over €124bn a year, procure 22.4bn in Irish goods and services, €8.5bn of which relates to payroll/salaries. IDA Ireland’s core mandate is to see this huge economic contribution expand further for the benefit of all the citizens of Ireland.
In that context, IDA Ireland has a central role in the business and economic life of Ireland and in furthering the goals of creating long-term, sustainable employment for the citizens of Ireland.
As a result IDA Ireland is asked regularly, often in public, to give its views on topical business issues linked to FDI, particularly those bearing directly on employment, the sourcing of talent and more broadly, Ireland’s international brand image.
In that context, IDA has commented over many years on a wide range of issues, including Irish and international economic performance, taxation, property, competitiveness, International and European relations, educational issues, talent attraction and issues relating to infrastructure and utilities.
The IDA Ireland Chief Executive Officer Martin Shanahan conducted a recent business interview with The Irish Times and during that interview, covering a range of topics, was asked about the marriage equality referendum and views expressed on this subject in public by IDA’s client companies.
As made clear by the CEO in this lengthy interview, IDA Ireland has not campaigned on the marriage equality referendum and is an ‘apolitical’ organisation. However in the context outlined above, the CEO of IDA Ireland felt it appropriate to respond to the questions asked on the likely repercussions internationally and in a business sense of a No vote and equally on the likely repercussions of a Yes vote.
IDA Ireland has not devoted any public financial resources to the referendum campaign and no discussions were held between IDA Ireland and my Department on this issue.
As the Deputy will be aware, promoting a Yes vote in the marriage equality referendum on 22nd May is Government policy. We firmly believe that this is a matter of equality, and that we should all have the right to marry the person we love, and we are attempting to convince the people of that case in advance of the vote.
Clearly there is a prohibition on the use of public funds to promote a particular outcome in a referendum and there are systems in place to ensure that this is adhered to.
I strongly believe that a Yes vote on 22nd May would be good for Ireland. I will be strongly making that case on the doorsteps and in the media between now and 22nd May.
27. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the level of analysis undertaken by his Department, and agencies under the remit of his Department on the availability of existing and possible future needs for infrastructure, such as roads, public transport and broadband in the western region, which are necessary to encourage investment, and promote indigenous job creation. [18411/15]
View answerSustained investment in economic infrastructure to underpin employment growth has been one of the key priorities of the Action Plan for Jobs. The soon to be published Capital Investment Programme along with other Government strategies such as the National Broadband Strategy will identify key infrastructural priorities to be addressed within the constraints of available resources.
The availability of competitively priced world class infrastructure (energy, broadband telecoms, transport, waste and water) and related services is critical to support economic growth and job creation.
My Department and its agencies engage on a continuous basis with other Departments and agencies and the private sector on the particular infrastructure needs required to support enterprise development and job creation in all regions of the country including the Western Region. In June 2014, Forfás made a submission to the Department of Public Expenditure and Reform’s review of capital investment outlining the main capital priorities for the period to 2020 to support enterprise development and job creation.
Earlier this year, the Government announced details of the Regional Action Plan for Jobs initiative which seeks to build on the strengths and assets of each region to maximise enterprise growth and job creation. My objective is that six Regional Action Plans, including one for the West region, will be launched by July, with the two remaining plans in development at that stage.
In launching the Action Plan for Jobs: Regional initiative, I also announced that new funding of up to €250 million will be made available over the next five years to support job creation through enterprise growth in the regions. This includes €150 million for an IDA property investment programme to attract foreign direct investment into the regions, and €100 million to Enterprise Ireland to support indigenous enterprises to start up, grow and export. As part of IDA’s capital investment programme, a total of nine locations were identified in the recent announcement as headline investments to occur in the period 2015-2017 - including facilities at Galway and Castlebar within the West Region. The Enterprise Ireland funds will be distributed through three new competitive calls which will be announced by Enterprise Ireland over the coming months. Funding will be allocated to the best ideas across the regions. Tangible jobs impact, enterprise start-up and scaling are amongst the criteria against which applications will be measured. Innovative collaborations among different regional agencies or stakeholders will also be favourably weighted.
28. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the way he and his Department communicated the need for new or upgraded infrastructure with other Departments and agencies responsible for providing or leading such investment; and if there are permanent lines of communication between the relevant parties in order that investment and improvements can be made without delays, which could impact on investment and job creation. [18414/15]
View answerThe availability of competitively priced world class infrastructure (energy, broadband telecoms, transport, waste and water) and related services is critical to support economic growth and job creation. Investing in economic infrastructure to underpin employment growth has been one of the key priorities of the Action Plan for Jobs since its inception in 2012. Despite the economic downturn this Government has continued to prioritise investment in key infrastructures and as set out in the 2015 Spring Economic Statement is committed to infrastructure investment to underpin future growth and the Public Capital Programme will be published over the coming months.
My Department and its agencies are continually engaged with relevant stakeholders on the particular infrastructure needs required to support enterprise development and job creation. The stakeholders include other Government Departments, regulatory bodies and public and private infrastructure providers. In addition, I am a member of the Economic Infrastructure and Climate Change Cabinet Committee. Officials from my Department are members of the relevant Inter-departmental Committees.
As the country returns to growth, further targeted investment and reform is required to address existing and likely infrastructural bottlenecks which could constrain growth in the economy by dampening productivity growth, increasing costs and limiting sectoral opportunities for foreign direct investment (FDI) and indigenous enterprise development. However, given the constraints on Government finances, capital investment in the short term must remain highly targeted and support our broad economic development objectives. In this context, I announced earlier this year as part of the Action Plan for Jobs an investment programme of €150m over five years by my Department through IDA Ireland in utility intensive sites to help attract more multinational jobs to the regions.
My Department (and previously through Forfás) assesses Ireland’s performance in meeting the infrastructure needs (energy, telecoms, transport, waste and water) of enterprise on a frequent basis. For example, in June 2014, Forfás made a submission to the Department of Public Expenditure and Reform’s review of capital investment outlining the main capital priorities for the period to 2020 to support enterprise development and job creation. The review, which will focus on infrastructural investment consistent with the Government’s economic and social priorities including the investments that would best support economic recovery and social progress, is to be published next month.
There is also significant scope for Government to improve infrastructure capacity and deliver more cost effective, higher quality services to business users without the need for Exchequer investment by addressing policy and regulatory barriers. It is critically important to put in place the right policy and regulatory framework to give investors the confidence to commit to long-term projects, and ensure the supply chain has the certainty and tools it needs to deliver effectively. For example, as part of the Action Plan for Jobs 2012, I requested Forfás to undertake a study to identify changes in the operation of sectoral regulators that would enhance cost competitiveness, which informed the Government Policy Statement on Economic Regulation, published in July 2013.
29. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his plans to encourage greater levels of research and development; and if he will make a statement on the matter. [18357/15]
View answerAll of our agencies have policies in place to encourage greater levels of research and innovation and to build the innovation capacity of our enterprises. Enterprise Ireland directly supports companies who engage in innovation with instruments designed to support companies at different levels of engagement in innovation.
IDA also has a suite of supports for client companies who invest in research.
Both IDA and EI collaborate in the establishment of clusters of companies to engage in innovation through Technology Centres. Nine new Technology Centres have been established under this government, the most recent of which was in Dairy Processing where huge opportunities exist for Ireland.
Science Foundation Ireland is a major funder of enterprise-focused research. Through research prioritisation it has ensured that investment is made where Ireland has the capacity to build competitive advantage. Its flagship investment in 12 world class Research Centres has made industry partnership a prerequisite for success.
A major focus of all the efforts of state agencies has been to increase the impact of investment in research on job creation. To this end, Knowledge Transfer Ireland was established in 2013. It has built upon the new IP protocol by taking initiatives to increase the uptake in terms of licences and spin-outs. The opportunity for successful commercialisation is supported by EI programmes for High Potential Start-Ups and by the Commercialisation Fund.
Since we have come into Government:
- the levels of Business Expenditure on Research and Development have increased from €1.86bn in 2011 to an estimated €2.09bn in 2013 due to, inter alia, improvements in the R&D tax credit regime;
- 12 world class SFI Research Centres have been established - the largest ever combined Government and industry co-funding collaboration of its kind in the research field in Ireland, involving up to 300 companies and a commitment of some €200m in cash and in-kind contributions from industry partners;
- A further nine industry relevant Technology Centres were established, bringing the total number of centres to 15, and involving collaboration with over 300 companies;
- Collaborative innovations between industry and the higher education sector reached 2,202 between 2011 and 2013;
- 294 HPSUs were established between 2011 and 2013;
- In 2013, the year in which Knowledge Transfer Ireland was established, there was a sharp increase in the number of loans/options/assignments signed, up 60% from the previous year at 139. In the same year, 31 technologies that had previously been licensed out by an RPO became available for commercial use.
30. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation if he supports the position of Aer Lingus cabin crew staff and their union, IMPACT, in opposing the partial outsourcing of transatlantic routes to the United States of America, based on using contract workers employed on inferior pay and conditions; and if he will make a statement on the matter. [18409/15]
View answerI take it the issue that is the subject of the Deputy’s question is the reported outsourcing of cabin crew for the new Boeing 767 aircraft which is being leased by Aer Lingus for three months over the summer period to meet seasonal demand on the Shannon to Boston route. I would urge the parties involved to avail of internal dispute resolution mechanisms to try and resolve the issues in dispute here.
I would like to assure the Deputy that the State’s industrial relations machinery is available, if required, to assist in this dispute.
Ireland’s system of industrial relations is, essentially, voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, rests with the employer, the workers and their representatives. The State provides the industrial relations dispute settlement mechanisms to support parties in their efforts to resolve their differences.
Even what often appears to be the most intractable of disputes is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides in a dispute make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences.
31. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation if he is prepared to support the proposals for the seafarers directive, proposed by Liadh Ní Riada MEP, which aims to provide the same rights to seafarers as those enjoyed by land based workers. [12814/15]
View answerA General Approach was adopted by the EPSCO Council on 11th December 2014 on the proposal for a Directive which aims to provide for a more uniform protection of seafarers' labour rights, including the right to information and consultation, and affording seafarers the same rights as those enjoyed by workers on shore.
The compromise position agreed by the EPSCO Council reflects the outcome of work undertaken by recent Council Presidencies that has been directed to enhancing the rights of workers in the seafaring professions under EU labour law. Ireland fully supports the proposals agreed at Council which aim to ensure that the optional exclusion of seafarers from key employment and social rights is removed and to ensure a level playing field in the maritime sector.
On 1st April 2015, the European Parliament’s Employment and Social Affairs Committee adopted a draft legislative resolution and voted in favour of entering into negotiations with the Council with a view to reaching an agreement on the draft Directive. I understand the Committee took account of the Opinion of the Parliament’s Committee on Fisheries on which Ms. Liadh Ní Riada, MEP, acted as Rapporteur.
I understand further that the trilogue negotiations on the draft Directive, which commenced recently between the European Parliament, the Presidency and the European Commission, reached a provisional agreement last week. I look forward to an early and satisfactory conclusion to these negotiations.
