Dáil Éireann Debate, Thursday - 14 July 2022
606. Deputy Jennifer Whitmore asked the Minister for Children, Equality, Disability, Integration and Youth when it is expected the Employment Regulation Order will be issued by the Joint Labour Commission; if this occur in time for the new school year in September 2022; the measures that he has in place if the Order is not issued by then; and if he will make a statement on the matter. [39495/22]
View answerAn Employment Regulation Order (ERO) is an instrument drawn up by a Joint Labour Committee (JLC), adopted by the Labour Court, and given statutory effect by the Minister of State for Business, Employment and Retail. The ERO fixes minimum rates of pay and conditions of employment for workers in specified business sectors: employers in those sectors are then obliged to pay wage rates and provide conditions of employment not less favourable than those prescribed. The Industrial Relations Act 1946 sets out the process for adopting an ERO. I acknowledge the independent nature of the Labour Court and Joint Labour Committee (JLC) process and the hard work of its members to negotiate pay and conditions for employees in the early learning and childcare sector. I understand that two draft EROs on a number of grades within the Early Years sector have been published by the JLC for the purpose of public consultation. In both cases the consultation processes have now ended, and the JLC is considering the submissions it received during the consultation processes.
Any ERO that comes into force will set minimum rates of pay for the relevant roles within the sector, and it will be open to employers to pay higher rates of pay than the minimums.
The new Core Funding stream I announced in the Budget to begin in September 2022 is designed to support a range of objectives, including the drawing up of EROs to determine minimum rates of pay for workers, as well as supporting career pathways and graduate employment.
Of the €221 million Core Funding budget, approximately two thirds is intended to contribute to improved pay rates across different categories of staff. This portion of the budget cannot be made available without assurances that this funding will be channelled towards achieving this intended objective.
Accordingly, a pre-condition of the Core Funding Partner Service Funding Agreement is that Core Funding will only come into effect and is contingent upon EROs being in effect to cover all roles across the sector as defined in the Early Years’ Service Joint Labour Committee Establishment Order.
In the event that there are no EROs, or an ERO that only covers one role in the sector in effect on 1st September 2022, Core Funding cannot proceed.
Officials in my Department are working with Pobal on the development of an alternative funding arrangement for the sector in the regrettable event that EROs are not in effect in time for the introduction of Core Funding in September.
Without the EROs in place in time, the alternative funding scheme cannot make available the intended funding contribution towards staff costs. Provision will be made to ensure that services do not experience a reduction in income compared to that which they received in higher capitation and programme support payments last year and remain sustainable but the alternative funding scheme will mean that the quantum of funding available to most services will amount to approximately one third of the value that they would receive through Core Funding.
I am fully supportive of improved pay and conditions for this valued workforce and achieved significant investment from Government in Budget 2022 for this purpose. I urge the JLC to continue its negotiations to agree EROs for all grades in the sector, including minimum rates for graduate Lead Educators and graduate Managers. I am hopeful that EROs can be agreed swiftly and that Core Funding can go ahead underpinned by the EROs in September.
