Minimum wage laws broken by 296 bosses

ALMOST 300 employers were found to have breached the minimum wage laws in the past two years, but just one prosecution was taken, the Dáil heard yesterday.

Labour leader Eamon Gilmore said there was “continuing exploitation” of low-paid workers, and raised a number of issues with Taoiseach Bertie Ahern.

“It appears that there has been an increase in the number of labour inspectors employed, which is welcome, but there has been a drop in the number of inspections carried out.”

Mr Gilmore questioned what the Government was doing to address those issues.

He also questioned whether the Government was investigating reports that workers on an Irish Ferries vessel were being paid just €4 an hour.

He asked what the Government would do to protect the pay and conditions of 25,000 hotel workers affected by a recent High Court case.

Finally, he asked when the Government would bring forward promised legislation to protect low-paid workers.

In response, Mr Ahern said more labour inspectors had been appointed. As regards the breaches of minimum wage laws, he said: “I understand the reason there are not prosecutions in most cases is because the companies pay the arrears as a result of the inspection and correct the procedures. The inspectors do not then proceed on actions but they call back.”

In relation to Irish Ferries, he said the National Employment Rights Authority (NERA) was examining the case. NERA’s inspectors are empowered to refer breaches of workers’ rights to the Chief State Solicitor’s Office for prosecution.

“I understand that they had already commenced an investigation last Tuesday into the Irish Ferries case to see if it was factual, which would not surprise me, and, if so, what arrangements were to be used to pay those workers,” said Mr Ahern.

The Taoiseach said the Government was “anxious” to progress the promised legislation, and that Enterprise Minister Micheál Martin had completed two of the bills. Consultations were now ongoing with the Irish Congress of Trade Unions.

Finally, Mr Ahern said the Government was examining the outcome of the High Court case.

The case, brought by the Irish Hotels Federation, effectively challenged the right of the Labour Court to set pay rates in the hospitality industry.

Mr Ahern said the immediate effect of the injunction granted in the case was to prevent increases in the minimum rates of pay for circa 25,000 hotel workers, which were due to come into effect on 16 November last.

“I was surprised by the action of the Irish Hotels Federation in this area but that is its entitlement. We must now examine the system,” he said.