I move:
That a sum not exceeding £157,474,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1992, for the salaries and expenses of the Office of the Minister for Labour, including certain services administered by that Office, and for payment of certain grants and grants-in-aid.
The central purposes of my Department are threefold: to promote better employment standards while protecting the basic rights of workers; to promote efficiency and fairness in the labour market and to help eliminate disadvantage; and to promote good industrial relations and to ensure that the skills our economy needs are available, thereby facilitating job creation and job maintenance.
To achieve these goals my Department have adopted the approach of separating the responsibilities for policy development from the responsibilities for their execution. In recent years my Department have set up three separate agencies — FÁS, the Health and Safety Authority and the Labour Relations Commission. FÁS take responsibility for day-to-day management of all manpower programmes. The Health and Safety Authority take responsibility for administration of the Safety, Health and Welfare at Work Act, 1989 and for the implementation of its underlying principles. The primary role in developing industrial relations policy, administering the law and overseeing the collective bargaining structures in this country rests with my Department. In 1990, the most fundamental review of trade dispute law since 1906 came to fruition with the enactment of the Industrial Relations Act. Responsibility for day-to-day promotion of good industrial relations lies with the new Labour Relations Commission.
The Department's responsibility in promoting better employment standards while protecting the basic rights of workers is enhanced by the charter of fundamental social rights of workers which was adopted by Ireland and ten other member states of the European Community in 1989. The EC Commission action programme to implement the charter includes some twenty legally binding instruments as well as a range of other measures. In the last year, the Social Affairs Council have been giving consideration to the Commission's proposals relating to non-typical workers — such as part-time, temporary and agency workers — the organisation of working time, the protection of pregnant women at work and women who have recently given birth, and the provision of information to employees about their conditions of employment.
The Government fully recognise the need to develop the social dimension of Community policies. It is a vital complement to the emphasis on the economic dimension. We see social cohesion as an essential basis for the creation of the Single Market and for sustainable economic integration generally.
As always, an important aim is to ensure that specific community actions in this broad area are satisfactorily adjusted to Ireland's distinctive circumstances and needs, particularly our need to maintain and increase the numbers in viable employment.
At the most recent meeting of the Council for Social Affairs Ministers, which was held in Luxembourg on 30 April last, there was a lengthy discussion on the consideration of the proposed Directive on the Organisation of Working Time. Our approach to the working time directive is that it should be sufficiently flexible to take account of the many and varied patterns of work in modern industry and that it should avoid any adverse affects on employment and jobs.
In pursuit of this more flexible outcome, I argued for a longer reference period over which the 48-hour working week would be averaged. I am glad to say that I got an encouraging degree of support on this. When the Social Affairs Ministers meet again in June, I am optimistic that we can find a compromise which will suit all 12 member states.
At that Council we also considered two other Commission proposals for directives. The Council adopted a common position on a proposal for a directive concerning the health and safety of workers in extractive industries. This will now proceed to the European Parliament. The proposal for a new directive on collective redundancies was adopted by the Council on the basis of unanimity. I welcome the progress made in both of these instruments.
The Health and Safety Authority which was established under the Safety, Health and Welfare at Work Act, 1989, is now two years in existence. During 1991 they continued to develop their role as the body charged with overall responsibility for the day-to-day administration and enforcement of the new occupational safety and health system. This new system is a radical replacement for its precursor in that, under the 1989 legislation, protection was extended from approximately 20 per cent of the workforce in the "traditional sectors" such as manufacturing, industry, mining and construction, to include all places of work. The Health and Safety Authority are implementing a comprehensive three-year programme of work at present.
Significant progress was made during 1991 on a number of important European Community Occupational Safety and Health Directives. In that year seven further directives were transposed into Irish law.
1992 has been designated by the EC as European Year of Safety, Hygiene and Health Protection at Work. The main objectives of the year are to raise awareness among workers and employers about hazards in the workplace and the appropriate ways of combating them. The Health and Safety Authority are co-ordinating a wide variety of activities and events for the year.
In addition to the toll in human suffering, the annual cost to this country of occupational accidents and diseases, including employers' liability insurance, social insurance and health service costs, is around £300 million. The various indirect costs which also arise including work days lost, lost production, loss of orders and so forth, are difficult to assess and quantify but, all told, these costs are an additional burden on our economy and competitiveness. Any savings which we could generate through reduced levels of accidents and ill-health at work, would be far better deployed towards creating badly needed jobs.
One of the most important issues in terms of economic performance and one over which we ourselves have control is the industrial relations environment. Nothing can be more damaging to investor confidence than the perception of unreliability and uncertainty which is generated by highly publicised incidents of industrial relations unrest. The consensus-based approach of both the Programme for National Recovery and the Programme for Economic and Social Progress has facilitated a significant improvement in industrial relations.
There can be little doubt that the pay agreements associated with both programmes have benefited all parties involved. They have provided workers with real increases in take-home pay and at the same time allowed employers to plan ahead with a considerable degree of certainty as to wage costs. With industrial relations and wage cost stability, firms have been able to concentrate on competing in their respective markets and this has contributed greatly to our good performance on the export front.
While our industrial relations climate has been very good in recent years there are signs of increasing levels of industrial unrest in some employments. The recent dispute in the four associated banks is, of course, the most obvious example.
The present postal dispute, could hardly have come at a worse time, a time when we should be preparing for the competitive challenges which are ahead. I regret that the talks with the Labour Relations Commission have not to date succeeded in reaching a settlement. As indicated, the Government are not prepared to subsidise a loss-making company and if An Post are to become profitable, changes must be made. I would therefore ask all the parties to make further efforts to see how this can be best achieved. My information is that progress was made at the talks at the Labour Relations Commission. The commission remain available to the parties.
The most recent dispute statistics available to me present evidence of the increasing level of strike activity. In the first three months of this year 52,000 days were lost due to industrial disputes compared with 10,000 and 25,000 respectivbely in the same reference period in 1991 and 1990. While this is an improvement on most years in the seventies and early eighties I am concerned that this trend should not continue as it would undermine the whole consensus approach adopted since 1987 and would, of course, be totally at odds with the objectives of the Programme for Economic and Social Progress and its forerunner, the Programme for National Recovery. We have enjoyed a remarkable record over the past number of years in terms of strike activity and days lost and it would, to say the least, be unfortunate if that achievement were to be lost.
In this context, I am pleased to record that funds have been secured this year to enable the necessary staff to be appointed to the advisory service of the Labour Relations Commission. The commission have recently appointed a director of this service and are in the process of getting the service off the ground. I look forward to the successful operation of the advisory service. I am anxious that it should play a significant role in the industrial relations arena assisting both unions and managements in dealing with what may sometimes seem like intractable difficulties.
In their first year of operation the Labour Relations Commission have been very active and successful in the prevention and resolution of disputes. In 1991 over 1,800 disputes were handled by the conciliation service and a settlement rate of 86 per cent was achieved. This compares with an average settlement rate of about 60 per cent in preceding years. There has been a corresponding drop in the proportion of disputes being referred to the Labour Court for investigation.
While it is likely that claims under the local bargaining clause of the Programme for Economic and Social Progress will inevitably lead to some increase in the workload of the conciliation service, employers and unions should make every effort to reach settlements at local level without resort to third parties. This would be in keeping with the central principle underlying our approach to industrial relations, that of free collective bargaining between the parties whereby they work out their own solutions.
I have every confidence in the expertise and professionalism of the Commission, but there must be a realisation that their involvement cannot bring about magical solutions to industrial difficulties. At the end of the day it must be for the parties themselves to arrive at mutually acceptable solutions to their problems. In addition, too great a reliance on the State machinery will place very severe demands on the capacity of the machinery to respond quickly and could lead to unnecessary delays and frustration.
The code of practice on dispute procedures including procedures in essential services is the first code to be drawn up under the Industrial Relations Act, 1990. It provides a set of procedures which enables the issues involved in a dispute to be processed without the need for recourse to industrial action. The code has the advantage of providing comprehensive and reasonable procedures without being over-prescriptive and can be adapted for use in all employments. Its success ultimately depends on the commitment of unions and employers to making it work. My Department and the Labour Relations Commission have ensured that the code has been widely circulated and will continue to encourage and monitor the implementation of dispute procedures as provided for in the code.
The experience with the Programme for National Recovery and the Programme for Economic and Social Progress has demonstrated what can be achieved when all the main social partners come together and are involved in the drawing up of a range of agreed targets and objectives. The success of this approach, based on consensus rather than adversarial attitudes, sets a clear example as to what could be achieved by the adoption of participative arrangements at the level of the industrial enterprise. Indeed, there is evidence of a move away from the traditional adversarial style of industrial relations to a more consensus-based approach. This trend derives from a recognition that it is in everyone's interest that enterprises be developed to achieve their maximum potential.
Last June saw the launch of the FIE-ICTU joint declaration on employee involvement in the private sector, drawn up under the auspices of the Employer-Labour Conference. I welcome the clear commitment by the FIE and the ICTU in the declaration to the concept and practice of employee involvement. I believe that the provisions of the document should form the basis on which employee involvement in enterprises can be encouraged and developed.
Low pay has been highlighted as an issue which needs particular attention. The Government have been seeking to address it in ways which are in keeping with our system of pay determination. For example, the pay agreements associated with the Programme for Economic and Social Progress are weighted in favour of those on low pay, providing for minimum flat increases to be negotiated and agreed. There are other Government supports for those on low pay, including the family income supplement and, of course, the radical overhaul of the taxation system which is being progressively implemented and provides very positive evidence of the Government's intentions in this overall area.
Furthermore, the Joint Labour Committee, established last year for the retail, grocery and allied trades, greatly extends the scope of the system. It brings an additional estimated 25,000 workers under the protection of the system compared with 40,000 prior to its coming into existence. The committee recently submitted proposals to the Labour Court for setting minimum rates of pay and conditions of employment for the workers concerned. Once the court gives effect to these proposals by making an employment regulation order they will become legally binding on all the employers in the retail grocery sector to whom the order relates.
In the period 1989 to 1993 Ireland will have received over £1 billion from the European Social Fund. When matched by Exchequer funds this amounts to an investment of nearly £2 billion in co-financed training and employment programmes. These funds have been applied to the provision of training for a range of economic sectors — industry and services, tourism, training of foresters, farmers and fishermen, rural development and for the upgrading of the skills of the trainers themselves. We can anticipate a significantly increased allocation in the post-1993 period. The European Commission has indicated the possible extension of Structural Funds aid to new areas in the education and health sectors. In the forthcoming negotiations I will seek to ensure an outcome that takes the fullest account of our national priorities.
In the future, the skills differential which exists between Ireland and the most economically advanced member states of the Community will have to be bridged. This requires a fundamental change in the attitude of employers to the importance of training if trading competitiveness is to be achieved and maintained. Certification of standards achieved is an essential part of this process. I am pleased that a realisation of this fact is increasingly a part of our training activity.
The European Commission no longer contributes to spending on the social employment scheme. As a consequence, the Exchequer has this year to fully fund the social employment scheme at a total cost of almost £73 million. This scheme is exclusively aimed at those long term unemployed people over 25 years of age. It allows for part-time employment on improvement schemes which deliver amenity or environmental benefits to local communities throughout the country. Participation in the scheme should assist in the rehabilitation into working life of those who have suffered from long spells of unemployment and improve their chances of getting work. I know that this scheme is generally valued and does confer benefits.
I am anxious to have it reinstated for assistance from Social Fund post-1993. I will be making a very strong case with that objective in mind. It is clear that programmes such as the social employment scheme cannot be assessed exclusively by reference to economic criteria. Accordingly, my concern is to have a clearer view on the economic and social objectives of training and employment programmes to be assisted under the Community Support Framework for Ireland in the years 1994 to 1997.
Demographic considerations continue to render the employment problem more acute here in Ireland than elsewhere. However, the growth in unemployment throughout the world, even in the most industrialised countries, is now a growing cause of concern to all. As the House is aware, the All-Party Committee on Employment have just begun their work under the chairmanship of Deputy Brian Hillery. Their brief is to examine all aspects of the employment problem. It is my hope that the work of that committee will play a crucial role in formulating policies for the future which will allow us to address the problem of unemployment, the most serious problem we face as a nation.
I intend addressing the main policy issues relating to the labour market and manpower policy in a White Paper which will be published later this year — training, apprenticeships, European Social Fund intervention, certification, employment schemes and so on. In particular I intend to see that the recommendations of the Culliton report on the training of the employed are implemented. In particular, this will mean the establishment within FÁS of a separate division with special responsibility for training and employment.
The target of 15,000 persons being recruited from the live register for the employment subsidy scheme recently announced is ambitious. I am still optimistic that with the co-operation of the social partners the target is achievable. Up to last Friday, 8 May 1992, 2,482 jobs had been approved under the scheme.
In view of the current level of registered unemployment I might take this opportunity to strongly urge employers to take advantage of the subsidy of £54 per week for 52 weeks, giving a total of £2,808 under the scheme, and take on additional workers. I recently amended the conditions of the scheme to render it as attractive as possible to employers.
The job training scheme, which is also targeted at persons on the live register, is a scheme providing opportunities on employers premises for work-based training. Such a scheme is a departure from the practice to date of providing training for unemployed people in training centres. The scheme has tremendous potential but the potential can only be realised with the co-operation of employers and trade unions. I appeal again to the social partners to take advantage of the assistance available from the EC towards the training allowance costs of persons taken on under the scheme. I expect that the first recruits will be taken on in the next few weeks.
A well-trained workforce is a key element in the competitiveness of industry and business generally. This year's budget allocation for FÁS is £245.39 million and last year they had a total through-put of trainees amounting to 28,848. That figure does not include all those who were engaged in employment schemes.
In the past our training system has tended to be based on a British model. However, as we have widened our European horizons, other national models have come to our attention, including that of Germany and Switzerland. Whereas in Ireland we have 30 designated trades the German apprenticeship system covers almost 370 different trades. Furthermore, the German system is characterised by employer funding and the chamber of commerce administering the system. In the future I intend to take a closer look at the training systems which operate elsewhere in Europe with a view to considering their best features in an Irish context.
Arrangements for a revised apprenticeship system were agreed in the Programme for Economic and Social Progress. Funding arrangements have now been agreed for a 0.25 per cent levy on employers. In particular, we must now widen the number of occupations covered by the apprenticeship system.
It is important for the future that certification of vocational qualifications be such that they will be recognised as representing attained skill levels both at home and abroad. Standard based training certification is an extremely important and urgent matter. I intend to give the matter priority. Our view is that we need a new authoritative independent national certification body. I intend to have consultations with the Minister for Education about this matter in the near future.
The tourism sector continues to offer strong potential for employment creation and income generation. The Government's job creation targets for the tourism industry are likely to be achieved, The industry now accounting for one in every fourteen jobs in Ireland. A recent study of the Irish tourism industry carried out by CERT has highlighted great diversity emerging in the make-up of the non-traditional areas of the hotel and catering industry.
Activity and cultural holidays in particular have shown rapid growth. CERT is actively involved in addressing the training needs of these newer sectors of the Irish tourism industry. In total CERT plan to train almost 9,000 people in 1992, thereby continuing the provision of skilled personnel for the industry as a whole.
Therefore, the picture overall is, one of steady progress in the various areas of my Department's work — in industrial relations, safety, training and employment schemes and labour legislation. As a nation employment creation remains our major challenge. It is my hope that the good relations this Government have maintained over many years with the social partners will continue to flourish and that we will take each other's interests into account in future negotiations on a wide range of matters.
The spirit of consensus which this Government have successfully built up should not be thrown away. Certainly it is my hope that it shall not be.