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Dáil Éireann díospóireacht -
Thursday, 2 Jun 1988

Vol. 381 No. 6

Worker Participation (State Enterprises) Bill, 1988 [ Seanad ]: Committee and Final Stages.

Sections 1 and 2 agreed to.
SECTION 3.
Question proposed: "That section 3 stand part of the Bill."

In many ways this section represents the core of what the provisions of the Bill are about. Certainly it is the triggering section that brings the new machinery into effect.

This Bill has had a lengthy gestation period. It is in many ways quite similar to the Bill circulated during the lifetime of the previous Government. It is, of course, a follow-up to the Worker Participation (State Enterprises) Act of the mid-seventies.

There are a couple of comments that have to be made. The first is that although there has been quite a wide-ranging debate on worker participation since then, during which period we have had reports of advisory committees on worker participation, quite a degree of academic discussion on the subject and so on, what is before us is not a Bill dealing with worker participation. It deals with a much narrower subject. It deals with the question of worker participation in a stated number of State enterprises and in respect of those State enterprises the approach taken is a fairly traditional one.

Since the seventies there have been circumstances obtaining in which there have been worker directors serving on a number of boards, I think six initially and subsequently An Post and Bord Telecom Éireann. Now two further State bodies are to be added to the list that will have worker directors. The two selected or identified as being right for addition at present are well chosen. I am thinking particularly of the very considerable degree of preparation there has been involving workers and management in Aer Rianta and the considerable enthusiasm obtaining within that body for taking its place among the front-line group that have full formal worker directors.

That is at one level. The other level — and this really is what this section is at — is the opportunity afforded by this Bill to a wider range of State enterprises to become involved in a formal way because, of course, many of them will have had their own structures in the area of worker participation at sub-board level. I would make one particular appeal, that is, in implementing the provisions of this section, there be the maximum degree of flexibility. The legislation to date has suffered from the fact that it has applied a uniform procedure. We have had one level of participation, that by way of worker directors elected in accordance with a standard set of procedures. That has not taken account fully of the very wide variation in character of the different State enterprises, variation in terms of the activities in which they are involved, in terms of the sizes of their workforce, in terms of the extent to which they have a track record on consultation, co-operation, of code decision-making, variation in terms of the way in which their workforce is distributed, in some instances, between a very small number of plants and, in others, in small numbers scattered all over the country.

If one was to identify a weakness in the way in which the 1977 Act has operated it has been that it has been uniform in character. My concern would be that this new Bill, when enacted, should not follow that same approach but that there should be the maximum degree of flexibility and inventiveness in trying to devise formulae that will meet the individual needs of the workplace. The Bill, as drafted, provides that opportunity if it is seized.

We really have been quite conservative in many ways in the way in which we have looked at worker participation. There has been an assumption that this is achieved by way of election, with all the paraphernalia we have come to associate with local or general elections and which have been transferred into elections for worker directors onto the boards. We have not looked at the question of supervisory boards, works councils, or the various other machineries that have operated successfully in other countries.

There can be no quarrel it seems to me on the principle. It seems to me that the argument in both the public and private sectors for saying that there is a broad community of interest between all of those who go to make up the enterprise — management, shareholders and workers — is undisputed and that we must devise structures to give effect to that. That is clear but we have been remarkably unadventurous in attempting to give effect to it. Of course there has been the initiative taken by Fine Gael in Government in their succession of Finance Bills with their incentives of the offering of shares in a company to workers. That initiative was very worthwhile and I should like to see it availed of much more widely than has been the case to date. In saying that one has to say that workers, just by virtue of being employed in an enterprise, have a very direct share in that enterprise and that having a share certificate is not necessary for that to be said. Nonetheless it is the case that the issuing of shares by a company to its employees confirms the community of interest and can be effective in helping to eliminate the "them" and "us" attitude which to some extent, has been a feature, of our industrial relations from time to time; I stress to some extent only. It is unfortunate that that kind of confrontational approach should be in the news today arising from the developments in Longford.

My appeal really would be that we should not get hung up on any one model. If one looks at the list of enterprises in the First Schedule one will see just how remarkably different in character are some of those bodies. Some are very new — FÁS and so on — some are very centralised, some are overwhelmingly staffed by specialists. Any attempt to lay down a standard form of participation must necessarily fail.

I would hope that what we will see is a very innovative and flexible approach to worker participation in the public sector and that that would be triggered by the provisions of this section. I hope that will be taken up with much greater enthusiasm by the private sector.

On Second Stage there were appeals for recasting this Bill. It was suggested that the Minister should legislate for worker participation in the private sector. I have to say I consider that to be more than a little unreal. One cannot coerce people, by legislation, into becoming partners. One cannot coerce people into a belief that they have a community of interest but I do believe that the Minister has an important role to play, by promotion and education, in advancing worker participation in the private sector. I hope this Bill is not seen as being the end of the road and as being the Government's response to worker participation because this is limited. It is the Government's response to worker participation, in a limited number of companies. I agree with it.

I am in total agreement with Deputy Birmingham. In a very long Seanad debate many of the issues in this Bill were teased out and amendments were put forward and agreed to in order to make the Bill better. In relation to the private sector, section 3 is very important. In the Department of Labour, throughout the autumn, winter and spring, we awaited the passage of this Bill and during that time on a nationwide basis we have been promoting in the private sector, the concept of worker participation. As Deputy Birmingham said, it is not realistic to legislate for the private sector in relation to worker participation but I agree that we should endeavour to get them to implement the process which Aer Rianta and An Bord Telecom have been engaged in for quite some time. This is how we can get the concept of worker participation across.

Another point which is very important relates to flexibility, because of the range of organisations involved. The Bill has developed since the two years when Deputies Quinn, Birmingham and Kenny were in the Department of Labour in order to make it as flexible as possible, so that we will not tie the hands of people who have to make this legislation work. Section 3 sets the pace for the legislation.

Question put and agreed to.
Sections 4 and 5 agreed to.
SECTION 6.

I move amendment No. 1:

In page 7, after line 49, to insert the following subsection:

"(6) In the absence of any agreement, the information to be furnished or disseminated by the specified body, shall include such information:

(a) as may be prescribed by the Minister, and

(b) such other information as the specified body would be obliged to furnish if it were a company under the Companies Act, 1963, as amended.".

I observe that amendment No. 2 is related and I would suggest that we discuss amendments Nos. 1 and 2 together. There can be separate decisions if required.

This section deals with the giving of information. The amendment goes further in requiring that the Minister may request information he deems relevant to the Bill, so that the Bill will be broadened to allow for the disclosure of information in accordance with the Companies (Amendment) Act, 1987. There is a provision in the Companies Act regarding private companies, but this does not extend to the State companies. If there was such a clause we would not have had the battle earlier this week when a semi-State company sold off their shares in Irish Distillers. This company could, without disclosing information, sell off their shares simply because the financial sector is excluded from the Act. As these two amendments are related I would ask the Minister to consider accepting both of them.

I take it that amendment No. 1 is intended to cover a situation in which it has not been possible to conclude an agreement under section 6 of the Bill. Section 3 requires that the specified body shall as soon as may be make arrangements pursuant to section 6 of the Bill. An amendment along the lines proposed by Deputy O'Sullivan would change the provision of section 3 from a definite imperative to a provisional requirement and this would alter the intention of the provision. The sub-board arrangements in the Bill give flexibility to the State enterprise concerned and to the representatives of the employees to identify the issues they see as central to the evolving process in their enterprise. The Bill deliberately refrains from specifying the kind of issue to be included in the agreement. It is likely that if requirements, no matter how minimal, are written in, it would be seen in some quarters as removing the need for dialogue in other areas. That is not what the Deputy wishes.

It would be easy to put in legislation an information requirement which would come into force in the absence of the development of participation and co-operation in the enterprise. The purpose in this legislation is to facilitate the development of joint consultation and co-operation. In general agreements drawn up under this section both sides are free to agree on what issues should be in the agreement so that they would have a platform on which to discuss these issues. We say that there should be a written agreement signed by both parties. I take the Deputy's point that certain aspects should be covered by these sections and we say generally in the Bill that certain things should happen, without tying them down to details. We encourage people to make agreements in as broad as possible a way. Some organisations and semi-State bodies have already developed worker participation. An Bord Telecom, as the Deputy knows, is extremely developed in this area and the Deputy would not like to limit them in this Bill. We are trying to allow it to be as broad as possible. The Bill is broad enough to allow the issues raised by the Deputy to be covered in the Bill.

The use of words such as "flexibility" and "broad" is interpreted at times as indicating an area of weakness which can be used to militate against the workers. That is why one must be specific. One cannot legislate for flexibility. If we want something included in the Bill it must be spelled out clearly and this is not the case in this section.

Amendment No. 2, particularly, and amendment No. 1, if accepted would weaken rather than reinforce the requirement to establish sub-board participation. Under sections 3 and 4 (8) there is an unequivocal legal obligation on each body to provide worker involvement arrangements following requests from employees. Once this is agreed, through the various procedures in the Bill, an enterprise must have worker participation. The arrangements are then a matter for agreement between both sides. The amendment might remove that legal obligation so that it would dilute rather than strengthen the Bill.

As has been said every time this has been debated, one cannot legislate for every aspect of worker participation. We cannot legislate for every aspect of what should be in every agreement but we can legislate for the concept and then make that concept legally binding. That is precisely what section 6 seeks to do. The proposed amendment would qualify the clear obligation by requiring only that the specified body make every reasonable effort to facilitate the making of the agreement under section 8. For that reason the amendment would have the wrong effect.

May I take it that amendment No. 1, in the name of Deputy O'Sullivan, is withdrawn?

If one is specific the danger is, as Deputy O'Sullivan is aware, that you would then set the floor above which many enterprises would not go any further. They will say, "This is the requirement of the Worker Participation Act, 1988. We have to comply with that section and if you set the floor too high it may be beyond what organisations or employees want and nothing further will be achieved." If you let it broaden you will allow the organisations where there is a developmental attitude to worker participation to extend.

This amendment was prompted by the experience of some worker directors in some companies and as a result of this we asked that this amendment be included. They were excluded from some decisions and information was withheld from them.

I have on a number of occasions met the worker directors and I am aware of one particular incident which I would not be over the moon about standing over. In view of all the boards and all the excellent work which has gone on in the past 11 years, if one tries to legislate to tighten up everything because of that one incident that would provide bad legislation. I think I know the incident to which Deputy O'Sullivan referred and we are not condoning that. We in the Department of Labour and my predecessors have been keen not to allow these kinds of regulations to continue. In relation to this section, the Deputy's amendment would limit what many of the worker directors would want both now and in the future.

Is the amendment withdrawn?

Yes, if the Minister is prepared to give me an assurance that he will try to redress any abuse of this legislation and that there will not be a repetition of what happened in the past.

We in the Department are committed not to allow the type of abuse — I am not sure if it was abuse — that would affect worker directors at sub-board level. It would not be condoned by the Department of Labour. We always try to keep that balance.

Amendment, by leave, withdrawn.
Amendment No. 2 not moved.
Section 6 agreed to.
Sections 7 and 8 agreed to.
SECTION 9.
Question proposed: "That section 9 stand part of the Bill."

The whole question of the involvement of subsidiaries was one that troubled the Seanad considerably. The Bill as originally drafted alarmed some of the unions. It is worth putting on record that the very exhaustive debate which took place in the Seanad means that there would be a general view on both sides of industry that the Bill is now a much improved Bill. For those who would question the value of the Seanad, it seems to me that the debate which took place on this particular issue is a fair answer.

I would like to echo that remark. The discussions which took place in the Seanad and the various meetings with organisations such as Aer Lingus have concluded a satisfactory solution to what was, in the original Bill, the most controversial issue. It is now satisfactorily resolved.

Question put and agreed to.
Sections 10 and 11 agreed to.
SECTION 12.

Amendments Nos. 3, 4 and 5 are related and may be debated together if that is satisfactory.

I move amendment No. 3:

In page 11, subsection (1), line 22, after "body" to insert the following:

"provided that a cessation shall not take effect where it is under appeal and the question under appeal has not been determined.

Amendment No. 3 seeks to protect a worker director who may be removed from the board and be under investigation. There could be a situation in which it would be advantageous to have him off the board. This amendment seeks to protect the position of a worker director while he or she is under appeal. It has occured in the past that worker director could be suspended for one reason or another, he may be on strike and his term of office may be concluded. I ask the Minister to accept this amendment with a view to protecting that worker's interest.

Amendment No. 4 which refers to the Principal Act of 1977, states that:

A member or director of a designated body who is appointed or elected prior to the passing of this Act, shall not be obliged to cease to be an employee of that body merely by attaining an age of retirement before the expiry of the term of office stipulated in section 17 of this Act.

If, for instance, somebody retires in the month of January and his term of office as a worker director is not due to expire until seven months later, he would be entitled to continue on until a new board is elected.

There are two issues that we are now debating. The first deals with the question of the displacement of a worker director and what happens in terms of when the vacancy arises and the procedure to be followed. On that point Deputy O'Sullivan and I have both tabled amendments. The second issue relates to the question of someone who is elected but in the course of his term of office retires. I will deal with that issue first. I am not convinced by the arguments put by Deputy O'Sullivan. It is of the utmost importance that worker directors be just worker directors, that they not be former worker directors and that they not be people who have changed employment or people who have severed their direct links by ceasing employment on retirement age.

The argument in favour of worker directors is because of the intimacy of the link between someone who is in current employment and the contribution which that person can make to the board table. I would not favour that change. There is a very good case right across the State sector, and indeed in the private sector, for seeing to it that there is effective representation of pensioners' interests and it may be that some of the flexible arrangements that can be developed at sub-board level should concern themselves with that question. While it is true that in some of the State companies the unions have a very honourable record in defending the interests of their pensioners, there have been other companies where that priority has not been placed and where the emphasis has been on achieving conditions for those currently employed and at the expense of their pensioners. For instance, in CIE the pension position was appalling for a number of years. A situation where the board were confronted on a regular basis with the needs of pensioners would be valuable. There is a very good case for devising a system, and it would have to be on a non-statutory basis, which would see to it that pensioners' concerns are on the agenda, as it were, but I do not think that means, nor would that objective be achieved, that someone who has gone out on pension would be allowed to remain on as a director after he ceased to be an employee.

The other issue on which Deputy O'Sullivan and I find ourselves in agreement is where a worker director is dismissed. I have suggested that instead of the vacancy being deemed to arise on the day following the vacation of the post, as the Bill provides, it will not arise for a week and will be further stayed if within that week an application is brought to the Employment Appeals Tribunal. In that case the vacancy will not arise until after the determination of that case by the Employment Appeals Tribunal or any appeal therefrom.

I concede that this is by no means cut and dried. If one adopts the procedure Deputy O'Sullivan and I argue for there are drawbacks. It means that perhaps in cases where someone has been properly dismissed and the dismissal is fully upheld, eventually the board have been for that much longer short of effective representation. I realise that must inevitably influence the Minister's thinking, but on balance where someone is dismissed on the dismissal the election procedure is commenced and then perhaps weeks or months afterwards the dismissal is found to be unfair by the Employment Appeals Tribunal, the Employment Appeals Tribunal order reinstatement and then where are you? Who is the director at that stage? If the person is reinstated does reinstatement reinstate him on to the board as well? If so, what happens to the person who was elected in the meantime, or to the election that may by then be in progress? The potential harm that could be caused in such a situation outweighs the inconvenience of a longer period of an incomplete board which is a consequence, I concede, of what we are proposing.

It may be said that this is not very likely. There are two answers to that. First, so far as we can, we should protect not only against what seems to us to be probabilities but against what could be seen as latent but improbable dangers in our legislation. My recollection is that the late Cearbhall O Dálaigh expressed that view on a number of occasions in very trenchant terms, that if legislation has the potential to give rise to difficulties even in scenarios that seem somewhat improbable one should guard against them if at all possible. Second, it is not altogether that improbable. One hopes it will not arise but one can conceive that perhaps in a particularly acrimonious dispute or whatever the worker director finds himself being dismissed. If the worker director also found himself being fired from the board and the result was that decisions were being taken without the workers' input the effect would only be to exacerbate what would already be by that stage a very difficult situation. Therefore, I ask the Minister to think about this. I know he has already thought about it, but it is nagging at a number of people. I hope the Minister will have some good news for us or, at the very least, he will indicate that he will attempt to address it, perhaps on some non-statutory basis.

Regarding Deputy Birmingham's remarks about the operation of this on the person, I take his point that what happens to the worker director should not affect the workers, but it is unrealistic to say that a former employee would continue as a worker director having ceased employment with any company. Election to get on to these boards is very competitive in the workforce as a rule and the likelihood of any person being re-elected, having ceased to be employed, is very remote. In the interests of the dignity of the person who represented the workers for so long on the board, having reached the age of retirement he should be allowed to finish his term of office until the next election. It is unlikely if somebody is several months from retirement before an election that he will be elected on to the board. It is usually only a matter of months and the issue should be non-contentious. It is just to afford some dignity and allow a man to retire with some grace having reached his age limit. There is a certain appreciation for the contribution he has made to his workmates in the company. I do not think the issue should be debated at length.

My views are similar to Deputy O'Sullivan's. Let me give an example. If a person who has worked for many years for a company is eventually elected to the board of that company under the provisions of the Bill and has reached the age of retirement or whatever and ceased to be employed by the company, why should legislation provide that that person should be off the board immediately while two-thirds of the board members very often have no connection with that company whatsoever? They are business people who are appointed to the board.

I am not unsympathetic to the point that has been made and maybe the experience that has been brought to bear at the board table and through many years of working in the company would be such that that person would be eminently suitable for appointment as, say, a ministerial nominee to the board.

Have we precedents for such developments?

What is at issue is whether the person should occupy one of the slots reserved for a workers director. If he does it means the workers' participation is to that extent reduced to one. Deputy O'Sullivan has prompted one train of thought and perhaps I can diverge momentarily to put it to the Minister. Over the years before this legislation was brought into force there was a tradition in many semi-State companies that leaders of the trade union movement were appointed to the boards of semi-State companies. We can all think of people appointed to Aer Lingus, Aer Rianta and so on. The universal opinion within those companies is that those leaders have brought a unique contribution to bear, that their background in the trade union movement coupled with the fact that they have a knowledge of dealing with companies right across the economic spectrum has been valuable indeed to the company. There has been some tendency in those companies where worker directors are elected to take the view that the trade union interest, the worker interest, is now on the board and that in appointing the rest of the board the Minister does not look to that section of the population for his directors but he looks exclusively to the business community or whatever. In companies where worker directors are elected some of the leading figures in the trade union movement who are involved in the NESC and have a contribution to make at national level can prove very worthwhile directors. I hope the Minister, and his colleagues, will bear that in mind when making appointments.

Many points have been made on this section. The question in regard to pensioners' interests being represented is an important one. I do not think Deputy Birmingham is suggesting that we should deal with it in the legislation but those interests should be kept in mind in any arrangements made. Everybody is a potential pensioner and for that reason we should keep that issue in mind.

I agree with Deputy Birmingham that the worker director is different person from the trade union representative. It is usual that senior people hold these board positions. Trade union representatives have a broader view than worker directors who tend to have a view of their own enterprises. They would not have the over-view that senior trade union people bring to the boards they are on. We have appointed them to many of the boards under my control. I accept that the Department of Labour are different from other Departments because we are involved with the social partners and there is a social dimension in our work.

Section 12 provides that worker directors who cease to be employees of a designated State enterprise shall at the same time relinquish the board membership and resultant vacancies shall be treated in the same way as a casual vacancy under section 22 of the Principal Act. Under that provision, casual vacancies may be filled by the appropriate Minister who shall have regard to the results of the election before making the appointment. A number of important issues arise in regard to this. It is a complex matter and the more one goes into it the more complex it becomes. Today, retiring workers are not necessarily those at the end of their working life, a person who is just filling out the last three or four months before ceasing work. Such a person may be leaving a semi-State body and taking up an appointment in the private sector which is in direct conflict with the semi-State body. The matter was not dealt with in the 1977 Act but we are dealing with it in this Bill for the reason I have outlined.

I have a lot of sympathy for the point of view expressed by Deputy O'Sullivan. It is a different issue if we are dealing with a worker who has six weeks or two months to go before reaching retirement age. Under the present system — I am aware of this from my experience as Minister for Labour in the last 15 months — reference is made to the ballot held for the previous election before the casual vacancy is filled. If there is a view among the directors, the trade union interests and the staff that such a person was an excellent representative on the board and should be retained there is nothing to stop the Minister concerned re-appointing that individual. We are trying to have flexibility while at the same time ensuring that a person who leaves a State body for the commercial sector does not remain on as a director. I am more concerned about the person who is not 65. The reappointment of a person of that age who is about to retire can be dealt with under section 22 of the 1977 Act.

As Deputy Birmingham said, the matter was discussed at length in the Seanad and up to 20 scenarios were put forward. I had discussions with the Attorney General and the parliamentary draftsman and the Seanad agreed that the matter should be dealt with administratively because of the various problems that could arise. I was asked in the Seanad what would happen to a candidate for the position of worker director who was dismissed the day before the elections. Most of the fears expressed in the Seanad are unlikely to occur but that is not the point. Our view is that if such a dismissal leads to a major disruption in the company it is more likely that the enterprise will be brought to a standstill. Dismissing a person for no good reason would not be tolerated. If there is a doubt about the dismissal of the person and an appeal is lodged with the Unfair Dismissals Tribunal or the Employment Appeals Tribunal it would be better to await the outcome of that appeal. It would be better to leave the filling of the casual vacancy to the relevant Minister, in consultation with the Minister for Labour. In the event of the dismissal appeal being rejected the relevant Minister could act accordingly. As was mentioned in the Seanad, it is usual that because the relationship between employer and employee has broken down in the case of dismissals, appeals tribunals tend not to reinstate the employee.

What is the position if an employee is reinstated?

In my view if the appeal involved a worker director they would be more likely to be arguing about a matter of principle than the job. The filling of a casual vacancy should be dealt with administratively. A dismissal may occur for a number of reasons, such as the misuse of funds and the Minister may not want to reinstate such a worker to the board. That is the reason why I do not think we should include a provision in regard to the filling of such vacancies.

I cannot agree with the Minister's views on these issues. The Minister is saying that a person who has appealed to a tribunal against a dismissal is guilty until proved innocent. That could lead to a black mark being put on the person's character. It would be difficult for such a person to live that down. It is very unlikely that a person who reaches retirement age will be re-employed. We must remember that there are 250,000 unemployed here.

Suppose a person takes early retirement under the voluntary redundancy package?

How many of those people have been re-employed?

By definition many of the people who apply for voluntary redundancy do so because they know they have an employment opportunity available elsewhere.

That may be so, but 99 per cent of the people who retire early are forced to do so. Deputy Birmingham referred to trade union officials being appointed by the Minister and I do not think he was fair in what he said. There is a definite distinction between ministerial appointments and those who are elected to State boards. I cannot see the need to introduce this provision. The person appointed by the Minister may be elected at a later stage. The debate has taken on an element of stonewalling by the Minister. We want him to legislate on behalf of workers and ensure that their rights are defended. The Minister is asking us to leave everything alone, and saying that everything will be all right but in practice things will be different. I am left with no choice but to press the amendment.

Let us take the case of a worker who receives a large redundancy payment and immediately invests it in an industry similar to the one he is leaving. What would be the position? He could be acting on behalf of the workers in one company while having an investment in a similar company.

A person might take voluntary redundancy from Aer Lingus and join Ryanair.

Yes. That would be a very unfair practice.

I am very alarmed about the comments being made. It is being claimed that the worker director who is elected to the board and ceases to be employed would immediately have to relinquish his seat on the board because he might take redundancy and set up another little business in conflict. Are Deputies not aware that many members sitting on the boards of State companies are already directors of companies which are in conflict with those State companies?

They should not be.

There have been examples through the years. The chairman of one semi-State company was in business in opposition to the State body. He was also doing some business with the State body. Are we not aware that such things are happening? We are very worried about the worker director who would cease employment in case he might set up a business in conflict. My goodness, he would be such a threat.

Under section 20 of the Act such a person from the private sector has to declare his interests. I am not sure that the practice to which Deputy Sherlock refers has actually happened. I have a lot of sympathy for a retired worker who has a short period to go and wishes to participate but to legislate for that person in this section would allow all sorts of anomalies. I am asking the House to agree that this should be a matter for the Minister of the day in association with the Minister for Labour, who normally deals with worker directors. We should not leave a loophole in the legislation which might create difficulties. The prinicple is that workers should be represented by workers. It has already happened that a person who retired continued for some time on the board. This Bill extends the period served by worker directors from three to four years, which makes it more likely that this kind of thing could happen.

Deputy O'Sullivan's amendment asks what happens in the switch from three years to four years to protect people who may reach the age of 60. He is concerned about the interregnum between the current Act and the coming force of this legislation. We have made inquiries since the debate in the Seanad to find out if there are any worker directors who will reach normal pension age in this period. There are no persons in this category. In future there will be a four-year period. If somebody aged 63 is elected he will have to go at the age of 65. The point Deputy O'Sullivan made is not in line with his amendment. Any worker directors at present serving a three-year period will not be affected by this legislation.

Amendment put and declared lost.

I move amendment No. 4:

In page 11, between lines 29 and 30, to insert the following subsection:

"(3) A member or director of a designated body who is appointed or elected prior to the passing of this Act, shall not be obliged to cease to be an employee of that body merely by attaining an age of retirement before the expiry of the term of office stipulated in section 17 of this Act.".

Amendment put and declared lost.

I move amendment No. 5:

In page 11, between lines 29 and 30, to insert the following new subsection:

"(3) Whenever a person serving as a director of a designated body is dismissed a vacancy shall not be deemed to arise until the expiry of one week from the date of dismissal. If, within the said period of one week an application is made to the Employment Appeals Tribunal then no vacancy shall be deemed to arise until the determination of that application and any appeal therefrom.".

Amendment put and declared lost.
Question: "That section 12 stand part of the Bill" put and agreed to.
SECTION 13.

Amendment No. 6 from The Workers' Party. Amendments Nos. 7 and 8 are alternatives. It is proposed to take amendments Nos. 6, 7 and 8 together, by agreement.

I move amendment No. 6:

In page 11, lines 47 to 49, and in page 12, lines 1 to 6, to delete paragraph (d).

This is to allow all employees in a company to participate in the procedure for the election of worker directors. We are opposed to the discriminatory exclusion of part-time workers. This is more important than ever as more and more companies, including State companies, are employing part-time workers. They are already discriminated against in the social welfare area and are not covered by workers' protection legislation concerning unfair dismissal, minimum notice, redundancy payments, etc. There is a need to ensure that part-time workers are given the same rights and entitlements as other workers. With unemployment so high it is likely that the use of part-time workers will increase and we should at least give them the same rights in industrial democracy as full-time workers.

There is also the question of seasonal workers who are at present excluded from participation in the election of worker directors. Some companies such as the Irish Sugar Company make widespread use of seasonal workers, many of whom have great loyalty to the company and come back year after year. Consideration should be given to their position. I have great experience in this regard. In the Mallow area where I come from there are people who have a record of service to the Sugar Company extending over 25 or 30 years. They are seasonal workers who opt for that position for one reason or another. They are loyal, faithful workers to that company and come back year after year at the start of the season. They are slightly protected under the legislation as regards redundancies and so on. The purpose of the amendment is to include such categories of workers.

The question of part-time workers has occupied the minds of Deputies in the House at Question Time on several occasions recently. There is a general feeling that part-time work will be an increasing aspect of the employment scene and there is already statistical evidence to that effect. Many people will argue that to exclude part-time workers from the protection that is available to those who work full time is harsh and unfair. As against that, the voice of caution would say that the reason there is a growth in part-time work is that many employers find it more advantageous to have the flexibility that is associated with it and that they would not be in a position to be bound by the various regulations on unfair dismissal, minimum notice, holidays and so on, available to full time workers. The argument is if you put part-time workers and full-time workers in the same position you would simply have less part-time work.

Whatever substance there is to that argument, when it comes to the application of protective legislation — and there is some substance and cogency in that argument although it may not be an argument that any of us like — what is involved here is quite different. What is involved here does not impose any burden on the enterprise. It is simply the right to participate, the right to vote in an election. There is no logical reason for saying that for example, someone employed as a cleaner, in the airport for many years, working 17 hours a week, is any less qualified to fill in a ballot paper and express a view on who should represent worker interests on the board than somebody employed for 25 hours a week. I see no logic in that. The basic principle should be, is someone an employee of the enterprise and if so, they should have equal voting rights. We do not attempt to weigh votes in a parliamentary or local democracy depending on the contribution that someone makes. There was a time when in local democracy people had property votes depending on how many houses they had but there was an essential view that everyone got one vote. It seems to be perfectly reasonable to say that everyone working in an enterprise, for whatever period they work, should have one vote.

There is a particular anxiety that stems from the fact that part-time workers are overwhelmingly women. That is certainly true in the economy as a whole. Whether that statement would hold up to the same extent when it comes to part-time workers in the State enterprises I do not know but I suspect that it would. If that is so, by excluding part-time workers from participating in the electoral process to elect worker directors we are indirectly reducing the prospects of participation by women in the electoral process. On that basis it represents an indirect, and I accept unintended, discrimination against women.

In ease of the Minister I accept he did not set out on the basis of wanting to discriminate against anybody. What he has done is widened the franchise in this measure as against the 1977 Act and to that extent he deserves to be commended. It probably would be the case that if he had not tried to do so no-one would have ever addressed himself to this issue but the Minister has addressed himself to the issue and it is before us. We should consider whether it is appropriate that there be a cut-off point and given what is involved here, I do not think it is. If it is a question of costs or of people's entitlements to benefits, then obviously questions arise as to the levels they were paying contributions but that is a debate for another day.

What is involved here is a much more limited right, the right to participate in an election which will elect minority representation onto the board of a company. The maximum number of worker directors will be one-third of the board anyway. To identify any category of workers and say that their contribution does not measure up and they have not earned a vote represents a rather invidious discrimination. I appeal to the Minister to accept the spirit of the amendments, or if he has problems with the wording of any of the amendments to provide one of his own.

I support what the other two speakers have said regarding people who are working on a part-time basis. What we are really talking about is a fundamental right which these people are being deprived of and I would ask the Minister to recognise this. The point has already been made sufficiently and I will just ask him to accept the amendments.

Can the Minister clarify the position in regard to people engaged in temporary or seasonal employment? Am I right in thinking that if the election takes place in a week when the person is on the payroll he would have a vote but otherwise he would not?

I have been advised that they must have one year's continuous employment before they would have a vote. Deputy Birmingham has clarified that the subsection changes the definition of employee in this Bill so that it applies to employees working a minimum of 18 hours per week. The definition had previously applied to whole-time staff only. I am glad that the number of hours is being reduced from 40 a week to 18 a week.

There has been a number of definitions of employees in various statutes, the Redundancy Payments Act, 1967, the Minimum Notice and Terms of Employment Act, 1973 and the Holidays (Employees) Act, 1973. The definition to include part-time workers is in line with the most favourable provision in other legislation. The definition of part-time employment generally is a matter for consideration in a separate discussion. I would like to say that you could isolate this legislation. The issue of part-time workers which this amendment seeks to cover has implications beyond the scope of the proposals before the House. It is the considered opinion that they cannot be isolated. There has been considerable discussion in recent times, as has been stated by the Deputies, concerning the appropriate definition of part-time work. It is not a matter which will be resolved in the context of this Bill because it affects several Ministers. It affects the Minister for Industry and Commerce, the Minister for Finance, the Minister for Social Welfare in regard to some of the regulations on health and it also affects the Minister for Labour. It cannot be isolated. The social partners have put forward very strong views on this issue in recent months. Concern has been expressed today and previously during Question Time about this issue.

As I have stated, under the Principal Act only whole-time employees could participate in worker director elections. In the insolvency legislation in 1983 the hours were reduced to 21 but it still applied to whole-time employees until now. The Bill broadens the scope of the definition to include anyone working at least 18 hours a week. This is a catching up measure — I am not saying it is any more — intended to bring the definition of employee for the purpose of work involved into line with that obtaining in other legislation. As Deputy Birmingham has said, while all the other legislation reduced the number of hours to 21, this legislation still referred to whole-time employers. It is now being changed from whole-time to 18 hours a week. That is a considerable change and will take a number of people into account because it is unfortunately a growth area.

I fully understand the underlying case for the amendments and recognise that the definition in the Bill does not take account of concerns relating to part-time employees working few hours per week. I acknowledge that point. I ask Deputies to accept that the Irish Congress of Trade Unions for some time have been canvassing on the issue of how we should deal with part-time workers. Recently I received a very detailed submission for the implementation of a package of measures to improve the position of part-time workers across the board. I am looking at this matter to see what can be brought forward. This is an excellent submission.

I have a lot of sympathy for what the Deputies have said. A revision in our employment standards is warranted because there may be exploitation of part-time workers in some legislation, but not in this Bill. It is important that there be uniformity and that part-time workers be treated uniformly. I cannot say what will happen in the discussions with the Congress of Trade Unions, the Federated Union of Employers and the social partners because there are other Ministers affected, particularly the Ministers for Social Welfare, Health and Finance. I have been assured that they are anxious to help to eliminate discrimination against part-time workers.

This issue was raised in the Seanad. Deputy Birmingham asked why this issue could not be taken alone. I cannot do that, even if I wished. An Post have a total of 8,200 staff and 422 temporary employees. Telecom Éireann have only 124 members who work less than 18 hours a week. Aer Lingus have no temporary staff, and casuals who are recruited around this time of the year are not included. Bord na Móna, B & I, Nitrigin Éireann Teoranta and the ESB have no part-time staff. The Sugar Company have no part-time staff, but they do have campaign workers, the people Deputy Sherlock mentioned, who are not covered. I am not too sure if these people could be covered even if the figure was 18 hours, although they could work maybe 40, 50 or 60 hours a week for a short period. I am not too sure into what category they would fall. I have been told that there are one or two obscure categories in CIE who would have workers employed for less than 18 hours. Aer Rianta have casual workers and NRB have three or four part-time staff. As Deputies can see, this legislation will not affect a great number of people. I do not think the part-time worker concept is prevalent in State organisations. It is far more prevalent in the private organisations, as statistics will prove. Perhaps somebody would quote statistics for one of the organisations mentioned.

I do not want to argue against a concept I believe in. We have to do something more in legislation for part time workers. Many people have looked closely at this issue and have said there are ruthless and uncaring employers who do not concern themselves with the issue of part time workers. These workers have to be protected. Needless to say, whatever the outcome of the discussions, this matter will have to be dealt with. I ask Deputies to accept that.

There is no better way for the Minister to demonstrate his concern for the people who are being exploited than to show the way in the semi-State sector. He has the opportunity to do that here and he should not let it go by. If he accepted the amendment, he would be taking a positive step forward and showing that it is his intention to redress the situation in the private sector where many part time workers are exploited.

I do not fully understand the Minister's position. First, he said there were wider implications in these amendments and later he said one had to adopt a uniform position. I do not know what those implications are, and I do not believe we have to adopt a uniform position, but at present there is not a uniform position in relation to part time workers. There is some protective legislation which excludes them and some which includes them — for example in the health and safety areas there was never any differentiation in terms of the obligations of employers. If what was involved was simply a blanket statement that every part time worker was to have all the rights and benefits of a full time worker, I could understand the Minister's concern. If these amendments were saying that the part time worker the newsagent takes on to help with the after Mass rush on Sunday should qualify for protection against unfair dismissals, have pension and maternity rights and so on, I could see that there would be very serious implications involved, but that is not what is involved here. What is involved is one specific proposal dealing with the extension of the franchise. I can see no reason this cannot be considered on its own because it does not appear in any way to prejudice the wider debate.

If one addresses the wider debate it will not be possible to take, even there, a uniform decision. There will be a general view that there is a need to extend the protection available to part time workers, but there will also be a view that we will have to have regard to the cost that will impose on the employer and the State. That means when we go through the menu of the various items in protective legislation, we will probably reach different conclusions in respect of each one as to whether protection can be extended. However, all that is for another day.

This is a very narrow proposal and the Minister has to some extent, made the case for us by showing how narrow it is. All that is involved here is marginally increasing the electorate in a number of State boards to allow people, who make a very real contribution to those enterprises, to have a say by casting a ballot paper.

I want to make this very clear. The definition in legislation for the lowest number of hours worked by an employee in full time employment is 18 hours, and that is what we are putting into this Bill. Most of the people working in the organisations we are talking about will be covered. If we were to reduce the figure from 18 hours to zero, we would be entering into the debate on part time workers, and I do not believe we can change that. In separate discussions on several issues, including the conditions of part time employees, we are trying to reach common ground with the Federated Union of Employers and the Congress of Trade Unions. In this legislation I took the lowest figure I could find in existing legislation, which was 18 hours.

We can discuss all the other issues together and we can make considerable progress. Perhaps later on we might have uniformity in the legislation, as mentioned by Deputy Birmingham. It would be wrong for me to say that we would get uniformity in every case, but we can tidy things up a great deal. This Bill helps that process. It does not appear to affect very many people, so it will not have a great effect one way or the other, but it is an important principle, and we are changing legislation which is only 11 years old. That shows how much the concept has changed in that time. Until this legislation is passed by the Oireachtas it is only the whole time worker who can vote, but this will bring eligibility down to 18 hours which is a substantial improvement.

I am acknowledging that perhaps in the overall discussion about a package for part-time workers it does not go far enough. It is the Government's view that the discussions should continue, to see what can be done across the board to help the lot of the part-time worker. I shall be supporting those efforts and have given my commitment here on a number of occasions during Question Time. It is now necessary only to give an indication of our commitment to helping the lot of the part-time worker. We are doing that by bringing down the 40 hours mentioned in the 1977 Act to 18 hours. In an orderly way we can continue on with discussions rather than create precedents and break up discussions. We must try to get a fairly long-term solution to the problem of part-time employees, but it is better to do that in an orderly way rather than try to jump ahead of all other legislation.

I might indicate that we have had a refined debate on these three amendments to the point where we might move forward. I take it that Deputy Sherlock is not pressing his amendment No. 6?

Amendment, by leave, withdrawn.
Amendments Nos. 7 and 8 not moved
Section 13 agreed to.
SECTION 14.

Amendment No. 9 is in the name of Deputy Sherlock. With your permission, it is suggested that we take amendments Nos. 10 to 14, inclusive, and amendments Nos. 26 to 39, inclusive, together for discussion. Is that agreed? Agreed.

I move amendment No. 9:

In page 12, line 35, after "Bord na Móna" to insert ", Bord Gáis Éireann".

Briefly, the basic aim of the amendment is to extend the scope of industrial democracy by the election of worker directors or board members. The amendments in the names of the president of my party, Deputy De Rossa, Deputies Tomás Mac Giolla and Pat McCartan are linked. They refer to RTE, Eolas, Teagasc, VHI, FÁS and a series of State financial institutions, such as the Central Bank, Irish Life, Industrial Credit Corporation, Fóir Teoranta. We are in favour of extending the principle of industrial democracy as far as possible. Why should major employers like RTE, with some 2,000 employees, and FÁS with perhaps 10,000 employees, be excluded from the full benefits of worker democracy by not being allowed to elect worker directors? What is the difference between an employee of Aer Lingus or NESC, who is allowed such election and employees of FÁS and An Bord Gáis who are not? There is worker participation in the Electricity Supply Board but not in the increasingly important An Bord Gáis. I ask the Minister to think very hard and have such bodies included.

We can never sufficiently stress the importance of worker participation. For far too long workers at ground floor level have experienced bad decisions made at board level. The whole purpose of worker participation is to have representation from the ground floor to the board room. This should have been done long ago. Where it is in operation it is working effectively.

It is significant that one area of the State sector has been totally excluded from any element of industrial democracy. This is the area of the financial institutions such as the Central Bank, Irish Life, the Industrial Credit Corporation, ACC and Fóir Teoranta. Not only are the employees denied the right to elect worker directors, but they are excluded from participation even at sub-board level. I understand that the justification put forward by the Government for this extraordinary exclusion is the alleged need for confidentiality. This is an implied slur on the integrity of those who work for the State's financial institutions. These people deal every day with financial matters which require confidentiality. There is no evidence that this trust is ever breached, nor is there evidence of any suggestion that if workers were on the boards of these financial institutions that would endanger confidentiality.

Let us take, for instance, the case of ACC. A person working in a local ACC office down the country will have knowledge of the financial position of many farmers, what exactly they borrowed, how much they are in debt and whether they are able to meet their repayments. What information would they have at board level that would be more sensitive than that? I want to emphasise that point. Why is it assumed that worker directors could not be trusted on the board of the Central Bank or Irish Life but that the representatives of the commercial banks or other privately owned financial institutions who are on their boards can be trusted? It is far more likely that these people would abuse the confidentiality of the information to which they have access on such boards for the benefit of their own companies.

I ask the Minister to look again at the case for worker directors on the boards of the bodies mentioned. If he cannot agree to participation at board level, surely he should be able to agree to their involvement in sub-board structures. The importance of having representation on boards generally, or at sub-board level, is the giving to the employees of a say in matters where they know that changes need to be made. There is an irrefutable argument for asking the Minister to include such bodies.

Before I come to my amendment, I should like to say that I support Deputy Sherlock in all that he has said regarding industrial democracy. I would refer first to his amendment No. 11 regarding Teagasc. There is no justification whatsoever for not proposing to have worker directors in Teagasc. They were elected to ACOT and should be elected to the new company. Is the Minister really serious about industrial democracy and about worker participation? It would be deplorable if this new body had not such representation. I ask the Minister to single out this amendment above all others. There was a lengthy debate during the passing of one of the Agricultural Bills in the House with regard to this organisation.

My amendment No. 27 reads:

In page 17, Part I of the First Schedule, between lines 9 and 10, to insert "The Irish Forestry Board Limited".

I question the Minister's sincerity regarding the role of the worker in the semi-State sector. Why have those workers been excluded? If the Minister is serious about involving the workers he should include the Forestry Board. Amendment No. 37 seeks the deletion of lines 15 and 16 which refers to the National Rehabilitation Board. Representation in this case is being reduced to two, which is unacceptable. I will be interested to hear the Minister's reply. The Minister, consciously or otherwise, is eroding the role of the worker director and undermining the concept of industrial democracy. He may not accept that but when there are exclusions and reductions of representation on various boards it is time to question the Minister's intentions.

It is astounding that adding 39 organisations to the position of worker participation could be interpreted as eroding their position.

Why are there exclusions?

Is is very hard to exclude something which has not been set up like the Irish Forestry Board and Teagasc — they are not legal entities. Therefore, their position has not been eroded. The purpose of these amendments is to add certain enterprises to the Bill for worker-director arrangements. The proposed enterprises include five financial institutions referred to by Deputy Sherlock. The financial institutions have been excluded from the scope of the Bill because the Government are concerned to safeguard the highly confidential character of their operations in the private, corporate and public sectors. The confidential nature of their work must preclude the establishment of channels for reporting back on individual customers and incentive market information. From discussions I have had, I understand that this is an accepted position in those organisations as they have their own arrangements, not related to this legislation. Even though these decisions were made around Christmas, there has been no representation from any of these organisations to me or to the Department of Labour. They understand their position but, if they wish to forward proposals, I will be glad to look at them.

The proposals contained in the Bill regarding RTE and Eolas provide for the sub-board participation to fully explore the opportunities for involvement given to them in the Bill before seeking to be included in worker-director arrangements. This was probably the reason that the previous Minister admitted RTE. designation of enterprises for worker-director arrangements should be a matter for the appropriate Minister to decide in due course.

Under the 1977 Act, many of the organisations and semi-State bodies were given full worker directors. The argument made by worker directors when they met me, in Government and Opposition, was that we should operate worker participation at sub-board level before going to board level. This would enable them to get used to working together. When any of these organisations succeed in building up worker participation, worker-director participation could be looked at again. Many people think that people get used to working together at sub-board level, building up confidence and understanding of each other and agreeing to disagree when necessary. At that stage, they could become full board members and that concept is accepted.

When organisations who have worker participation at sub-board level reach agreement where both sides are quite confident, they can then have worker directors on the board. Since 1977 we have not been allowed to make changes where necessary but under section 24 (2) of the Bill the Minister will be allowed to do so. The Minister for Labour in consultation with the Minister for Finance can, by affirmative order, add a particular board. That is an important change in this legislation which was welcomed in the Seanad and I am sure it is also welcome here. If an organisation have proved their merit at sub-board level they can go forward, by affirmative order, without a lengthy procedure. That is a great step forward and has been accepted by the agencies with whom I have been in contact.

The Minister for Health appointed a worker director informally to the existing VHI five member board. A Bill comprehensively amending the Voluntary Health Insurance Act, 1957, will be introduced by the Minister for Health shortly and it will be more appropriate to discuss the size of the membership of the board then. The provision of worker directors on the board of Irish Steel is a matter for the Minister for Industry and Commerce. He has intimated that the appointment of such worker directors should be deferred at present. The body to be known as Teagasc does not have a legal existence and, therefore, their inclusion in the Bill would not be possible at this Stage. However, the Department of Agriculture and Food have indicated that Teagasc will in due course be included in the sub-board provisions in the Bill in place of ACOT and An Foras Talúntais. In regard to Bord Gáis Éireann, the Department of Energy do not consider it appropriate to appoint worker directors at present, but the Bill allows for the designation of further enterprise worker directors by order. The procedure in this instance — as in others — could be used at a later date if it was decided that worker directors should be on the board of Bord Gáis Éireann.

The worker participation Bill coincided with the legislation in regard to FÁS and I gave a commitment some time ago to the Workers' Union Of Ireland and other unions concerned that they could proceed with worker director elections.

Is the Minister suggesting that the proper way to proceed is by sub-board level and then on to a full board? Perhaps he will explain why that course had the reverse effect in IFI? The worker directors were on the full board of NET, yet when there was a joint venture with Imperial Chemical Industries and with what emerged as IFI, the role of the worker director was significantly reduced. Is the Minister suggesting that the sub-board level is a process of learning about the company? I would not like to see what happened to NET repeated. Does the Minister not see any obstacles to appointing worker directors to the boards of Teagasc and the Irish Forestry Board?

Will the Minister elaborate on his comments in relation to Teagasc? Perhaps he will bring us through the route to be followed when the body has a legal entity, to get them into the system, step by step? I am a little confused.

As I understand it, as soon as Teagasc become a legal entity, the Minister for Agriculture and Food intends that they would have sub-board representation and would continue to participate on that sub-board until the new organisation settles down. The Minister would then be willing to consider whether they should have full board representation.

At what stage would it have to come back to this House?

Under section 24 (2) an order may be made which would allow worker directors to sit on the board of a particular agency. Such an order would have to come before both Houses of the Oireachtas. New legislation would not have to be introduced, an affirmative order would only be required. I assume that the Deputy's question referred to the process of going from sub-board representation to full board representation. In the case of sub-board representation the names can be added by the Minister for Labour in consultation with the relevant Minister and he can move on from there through the making of regulations and an affirmative order which would come before both Houses of the Oireachtas. That is a very streamlined procedure.

Would the Minister care to reply to my question in regard to the NET and Imperial Chemical Industries joint venture? Further joint ventures, which seems to be the policy of the Government and the major Opposition parties, could lead to an undermining of the position of many worker directors in many State companies.

I share the Deputy's concerns on this issue. Let us be clear that because of the arrangements negotiated under the joint venture there are no worker directors on the Board of IFI. However, there are four worker directors on the board of NET. There are no worker directors on the board of IFI. I would be concerned if our semi-State companies entered into joint ventures leaving worker directors one step removed from the action, which is one of the concerns of the workers in NET. There are four worker directors on the board of NET.

The worker directors in IFI will not be privy to the IFI board discussion before decisions are made. It seems that the Government intend that there would be further joint ventures and the likelihood is that the private commercial companies in those joint ventures would be allowed to call the shots, as has happened in this particular case.

Unfortunately, I was not involved in the discussions which took place on the setting up of that joint venture——

The Minister is a member of the Government.

Unfortunately, it was the last Government who negotiated that joint venture, but that is neither here nor there.

It was introduced in the Minister's term.

Perhaps they had no alternative. Perhaps if they had not taken action there would now be no NET or IFI. I do not want to be critical but I would be concerned if worker directors had no role to play. I had a meeting with the worker directors in NET some months ago and although tensions exist they are working their way around the arrangements. That is a practice which I would not like to see happening. The arguments in regard to NET are much broader. Perhaps the Minister for Industry and Commerce of the day was doing the best thing for the organisation in negotiating the joint venture and, as I have said, there are still four worker directors on the board of NET.

As I understand it, the board of NET have been absorbed by IFI.

The board of NET still exist. At the time when the Minister for Industry and Commerce negotiated the joint venture he succeeded in getting agreement that there would be sub-board representation in IFI outside the terms of the legislation, on a voluntary basis. The IFI remain the holding company of NET.

The Minister said that he had received no representations from bodies representing the banking institutions. Can the Minister tell us whether the Congress of Trade Unions made any submission? Would it be true to say that it was not because of the confidential character of their operations that these bodies were excluded?

In their own view, these financial organisations consider themselves to be different. On a daily basis they deal with highly confidential information and whatever arrangements they will enter into will have to be kept separate from their other business. I wait to see if these organisations wish to be involved at sub-board level but as far as I am aware no submissions have been received on this matter. Having been involved with a union in a dispute in the Central Bank I understand that the Central Bank have their own internal arrangements and have trade union representation. Perhaps they do not see themselves as falling in line with this kind of structure.

Is Deputy Sherlock happy enough with the Minister's response to amendment No. 9 as not to press it?

Nilím sásta.

Amendment put and declared lost.
Amendments Nos. 10 to 14, inclusive, not moved.
Section 14 agreed to.
Sections 15 to 19, inclusive, agreed to.
NEW SECTION.

I move amendment No. 15:

In page 14, before section 20, to insert the following new section:

"20.—The following subsection is hereby inserted in section 20 of the Principal Act:—

`(4) Nothing in this section shall operate to prevent a Worker Director from voting on any question or proposal for an agreement under section 6 of this Act.'.".

Perhaps we could take amendments No. 15, 16, 17 and 18 together. Is that agreed? Agreed.

The purpose of these amendments is to protect the interest of worker directors on the boards of State companies. Amendment No. 15 arose out of an incident which occured at a board meeting of Bord na Móna on 26 April 1985 when the worker directors were not allowed to vote on a pay increase. I hope the Minister will accept this amendment. If we are going to allow worker directors to sit on a board it is only right and proper that they should play a full role and it should not be left to anybody's discretion as to whether or not worker directors should vote on a particular issue.

My amendment No. 16 is self-explanatory. My amendment No. 17 provides that a worker director shall not participate in or vote on any question before the board which affects that director only and does not affect other employees of that body. Essentially what that amendment provides is that if such a worker director does vote for anything he should declare his interest. A worker director should be subjected to the same conditions as apply to other board members under which a person is forced, under standing orders, to declare his interest and not vote.

My amendment No. 18 reads:

In page 14, before section 20, to insert the following new section:

"20.—The following subsection is hereby inserted in section 20 of the Principal Act:—

`(7) A Worker Director shall have the same (and no less) right to participate in the business of the Board, and to vote on any question before the Board, as any other member of the Board, including the Managing Director.'.".

These amendments are self-explanatory. Time does not permit me to expound further on them. I would ask the Minister to accept them.

The Deputy's proposed amendments appear to upset a basic principle of company law which is the equivalent status of all directors. That principle ensures that all worker directors carry the same rights and responsibilities as directors generally. Section 20 of the Worker Participation (State Enterprises) Act, 1977, which these amendments seek to amend, has been carefully drafted to protect the equivalence of all directors. The provisions of that section affect all directors, not merely worker directors. If an amendment of the nature proposed were made, other directors, with some justification, might seek similar and distinct affirmation of their rights as directors. I know that these amendments might give rise to concrete proposals in some quarters to restrict the role of worker directors on boards and worker directors generally.

I am aware of the case Deputy O'Sullivan made. As I said earlier, it was an isolated incident. I am not aware that it has been reported or has occurred elsewhere. If that type of incident were to recur in the future we would have to deal with the issue. However, the equivalent status of all directors is a useful provision ranging over many areas.

I am advised that time has caught up with us. Therefore, I must put the following Question: "That sections 20 to 27, inclusive, are hereby agreed to; that the Title is hereby agreed to; that the Bill is hereby agreed to in Committee, is reported to the House without amendment, that Fourth Stage is hereby completed and that the Bill is hereby passed."

Question put and declared carried.
Barr
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