I thank the Chairman and all the members who are present. I am pleased to present to the committee for its consideration the draft Sectoral Employment Order (Mechanical Engineering Building Services Contracting Sector) 2018. The draft ministerial order is being made under section 17 of the Industrial Relations (Amendment) Act 2015. The intention is that the order will confirm the rates of pay, pension and sick pay entitlements for plumbers, pipe fitters and welders working in the mechanical engineering building services contracting sector.
In January 2017, the TEEU and Unite trade union asked the Labour Court to examine the terms and conditions of plumbers, pipe fitters and welders, including supervisory grades and apprentices, engaged in the mechanical engineering building services contract sector. The Labour Court advertised its intention to undertake the examination of the request and invited submissions from interested parties. Four submissions were received from the Mechanical Engineering and Building Services Contractors' Association, TEEU, Unite and the trustees of the construction workers pension scheme. All submissions were forwarded to be attached to the application before the Labour Court. Subsequently, the Labour Court convened a hearing on the matter on 9 October 2017 and the parties made written submissions and were invited to make formal oral submissions.
The Labour Court adjourned the hearing to facilitate the receipt of further submissions from the parties on matters that arose during the course of the hearing. The Labour Court received a further joint submission from TEEU and from Unite and a further submission from the Mechanical Engineering and Building Services Contractors' Association. The hearing was reconvened on 13 November 2017.
Following this, and being satisfied that making a recommendation would promote harmonious relations between workers and assist in the avoidance of industrial unrest in the mechanical engineering and building services contracting sector, the Labour Court submitted a recommendation to me on 20 December 2017. I considered the recommendation in line with the terms of the 2015 Act and notified the Labour Court on 25 January that I was accepting the recommendation. In making this recommendation the Labour Court must consider the factors set out in section 16(2) of the Act. This includes the potential impact of the making of an order on levels of employment and unemployment in the identified economic sector, the potential impact on competitiveness in the economic sector concerned and that the sectoral employment order would be binding on all workers and employers in the economic sector concerned.
The 2015 Act requires the Minister within six weeks of receipt of the Labour Court recommendation to accept or reject the recommendation or to make an order to give legal effect to the terms of the recommendation. The Act further provides that a draft of any order proposed must obtain the approval of both Houses of the Oireachtas before it can be made. A draft of the order was laid before the Houses on 25 January 2018 as required by section 17(4) of the 2015 Act. I hope that the committee will recognise the importance of ensuring stability in the employment terms and conditions in this sector and will refer the matter back to both Houses for approval so that the order can be given legal effect. When the order comes into effect, its terms will be binding across all of the sector and enforceable by the Workplace Relations Commission, WRC.
I thank the Chairman for giving me the opportunity to make this opening statement to the committee.
