asked the Minister for Labour the number of complaints which have been lodged with the Labour Court for investigation regarding builders who deduct pension contributions from their employees but who fail to submit these contributions to the pension fund involved.
Ceisteanna—Questions. Oral Answers. - Building Workers Pension Contributions.
39.
In 1987 the Labour Court received a total of 103 complaints in relation to the Construction Industry (Pensions Assurance and Sick Pay) Registered Employment Agreement. Of these 34 related to arrears of contributions to pension schemes. A total of 334 complaints in relation to the agreement has been received by the court to date in 1988 and of these 55 relate to arrears of pension contributions. The large increase in complaints in 1988 as compared to 1987 is mainly attributable to the establishment by the Construction Industry Federation and the Building Unions Group of a new enforcement agency financed by employer and employee contributions.
I have raised this matter on a number of occasions in the hope that some positive Government action would be taken to eliminate this appalling abuse by cowboy builders throughout the country. Would the Minister agree that it is a sad reflection on our labour laws that a man who worked hard all his life is informed, on retirement, that his pension contributions had not been paid and little or nothing can be done about it? Is the Minister further aware that a number of those cowboy builders, when the pressure is on, go into voluntary liquidation to avoid their commitment to their workers and to our institutions and, at a later stage, go into business again and carry on the same abuse? Is the Minister further aware that a number of those builders are now going to Great Britain and victimising Irish workers there in the same way and returning again to Ireland and are getting away scot-free? It is an appalling state of affairs when workers can be abused by such cowboy builders. When we are talking about those people, as I am sure the Minister is fully aware, we are talking about the real black economy, people who are getting rich overnight on the sweat of Irish workers. I would like the Minister to give me more positive information.
The Deputy has made his point and made it effectively.
I know Deputy Wyse has raised this on a number of occasions. I have done a fairly extensive examination of the position he highlighted. My reply may be a bit long but the Deputy has asked for more information so I will give the position as quickly as possible because there are some things which have happened since the Deputy put down his question. The Construction Industry (Pensions Insurance and Sick Pay) Agreement was first registered in 1969 and this September it was registered for the fifteenth time. Every employer in the construction industry is, therefore, obliged to provide these benefits either under the construction federation operatives pension scheme run by the Construction Industry Federation or under some other scheme.
The agreement is legally binding on all employers in the construction industry regardless of whether they are parties to the agreement. The enforcement of the agreement is a matter for the parties in the first instance. The Labour Court can only act on the basis of a complaint made by a trade union, an employer's association or an individual employer. If the court is satisfied that an employer who is in breach of the agreement fails to rectify the situation it can by order direct him to comply with the agreement. If the employer fails to comply with the order he is guilty of an offence and renders himself liable on summary conviction to a fine of up to £100 with a further fine of up to £100 for every day during which the offence is continued.
The court made 25 orders under section 10 of the Industrial Relations Act, 1969 in relation to breaches of this agreement. Of these 13 related to arrears of pension contributions while the remaining 12 concerned employers who had not made any pension provision for their employees.
This year to date the court has received 334 complaints in relation to the REA and these are being followed through. Where an employer fails to comply with an order of the Labour Court in relation to a breach of an REA the Minister may prosecute. In 1987 the Department obtained convictions against two employers who failed to comply with such orders in relation to the Construction Industry (Pensions) REA. This year convictions have been obtained against four employers and prosecutions are pending against a further nine employers.
I agree totally with the Deputy that those are the people in the black economy.
The Construction Industry Federation and the Building Unions Group of the Irish Congress of Trade Unions have recently established an enforcement agency which is being financed by contributions from both employers and employees. The role of the agency is to ensure that employers comply with negotiated terms and conditions of employment, various statutory regulations and other matters. The agency has been given specific responsibility for ensuring that employers are complying with the Construction Industry (Pension Assurance and Sick Pay) Registered Employment Agreement. This measure combined with the existing safeguards and the vigilance of the workers themselves should help eliminate abuses.
That covers all the points except the one in regard to insolvency. The Deputy is right in saying that a substantial number of companies are involved in this abuse. Under the Protection of Employees (Employers' Insolvency) Act, 1984 an employer can claim back any shortfall in his payments up to 12 months. The CIF and the Congress of Trade Unions have informed me, following the Deputy's earlier question this year, that they have launched a publicity campaign aimed at current employees urging them to check their position while they are in employment. That campaign will highlight some of the things the Deputy is now highlighting and will help to stop these fly-by-night contractors abusing the system. Much of this has happened since the Deputy's earlier questions and will go some way to stopping the abuses.
I appreciate the problem and I know what is involved. What I cannot understand is that as soon as one of those cowboy builders here is prosecuted he goes into voluntary liquidation, moves to another area and starts business again under a different name.
We have been over that ground.
There is no follow up to stop this practice. Can the Minister give some information in regard to following up such cases?
On the last part of the Deputy's question, this covers both company law and taxation control. It is a broader matter.