Government agrees major reforming industrial relations legislation
8 May 2015
Legislation will provide significant strengthening of laws to protect and promote workers’ rights and the low paid, and certainty for businesses and employers.
The Government has agreed the publication of legislation which provides for significant reforms to Ireland’s industrial relations laws.
The new laws will balance the interests of workers and employers by providing certainty and clarity for businesses while enhancing collective bargaining in workplaces, providing for registered employment agreements to be re-established and sectoral wage rates and conditions to be re-introduced and placing the Low Pay Commission on a statutory basis.
Minister for Business and Employment Ged Nash TD secured Cabinet agreement for the publication of the new legislation. It will provide an improved framework for workers who seek to better their terms and conditions where collective bargaining is not recognised by their employer as well as to provide a replacement for Registered Employment Agreements, and separately another Bill to establish the Low Pay Commission on a statutory basis.
The Collective Bargaining element of the legislation will provide a mechanism for workers who seek to improve their terms and conditions in companies where collective bargaining is not recognised by their employer. When enacted it will ensure that such workers, aided by a trade union, can advance claims about remuneration, terms and conditions and have these determined by the Labour Court based on comparisons with similar companies.
The proposed laws have strong anti-victimisation protections.
In addition, any determination by the Labour Court may also be enforced by the Circuit Court, should any employer refuse to engage.
Minister Nash said that he is confident that the legislation, when enacted, will fit Ireland’s constitutional, social and economic traditions and its international obligations, and will ensure continued success in creating jobs and attracting investment into the economy.
Minister Nash said, “A lacuna has existed for several years now in relation to the framework for workers who seek to better their terms and conditions either through collective bargaining or registered employment agreements (REAs). This arose after the Supreme Court struck down the old REA framework on grounds of constitutionality while the Supreme Court had also found fault with the application of the legislation that existed in terms of collective bargaining. These two pieces of legislation are a direct response to these rulings”.
“This is a key commitment of the Labour Party in Government and one I am very proud to have progressed. I entered public life 16 years ago in order to improve people’s living and working conditions. I believe the new collective bargaining legislation will do exactly that and is part of a package of measures we are introducing in order to promote the dignity at work agenda.”
The Programme for Government contained a commitment to address the legislative gaps and the Statement of Priorities agreed by the Taoiseach and Tanaiste in July also committed to prioritise the enactment of Collective Bargaining legislation.
The Minister is also publishing legislation to provide for a system of Registered Employment Agreements (REAs) and Sectoral Employment Orders.
This follows a judgement by the Supreme Court (McGowan and others v the Labour Court, Ireland and the Attorney General, May 2013) which effectively made the registration of employment agreements invalid.
As well as allowing trade unions and employers register agreements again, the new legislation will allow trade unions and employers to apply to the Labour Court to undertake a review of pay/pensions/sick pay in terms of workers in a particular sector and make recommendations to the Minister for the making of an order in these areas. These Orders will have legal effect.
Minister Nash said, “I believe the re-introduction of REAs and sectoral agreements in a constitutionally robust manner will be of benefit to both workers and their employers. Such agreements may be used in resolving industrial disputes or potential disputes and certainly we have seen a number of such disputes arise following the Supreme Court ruling.
“The new legislation will bring a sense of certainty to both sides of industry who engage in such agreements around terms and conditions – particularly when the employer is tendering for contracts. Ultimately, I believe the legislation will improve industrial relations after a period of uncertainty. It will also help to prevent a race to the bottom in terms of skills, training and terms and conditions of employment.”
Legislation which will establish the new Low Pay Commission on a statutory basis is also being published. The Commission will recommend to Government on an annual basis the appropriate rate of the National Minimum Wage. In addition, the Commission can examine related matters affecting the NMW subject to agreement at Cabinet in the first quarter of each year.
The Commission is being chaired by Dr Donal de Buitléir and is made up of nine members.
It has already begun its work on an interim basis, examining data sets and taking submissions on the minimum wage and is due to deliver its first report to Government by mid-July.