Ibec critical of new EU directive on agency workers

EMPLOYERS' GROUP Ibec has said that any local agreement to provide workers supplied to companies through employment agencies …

EMPLOYERS' GROUP Ibec has said that any local agreement to provide workers supplied to companies through employment agencies with the same pay and conditions as regular staff after three months would be "quite inappropriate".

In its first public comment on a new EU directive on agency workers, Ibec said that it wanted the system introduced in Ireland to be modelled on the best in operation elsewhere in Europe.

As part of the directive agreed by EU labour ministers last month, agency workers should normally receive the same pay and conditions as permanent employees in companies from the first day of work. However, a flexibility clause will allow employers to negotiate with trade unions on a possible derogation or phase-in period before the full rights are applied to agency workers in some sectors.

In the UK, the government agreed with unions in May that agency workers should have the same employment rights as permanent staff after 12 weeks in work.

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However, following social partnership talks yesterday, Ibec director general Turlough O'Sullivan rejected using the new British system as a model for Ireland. He said this would be "quite inappropriate".

"The directive will be coming into effect in about 3 and a half years. We need to have agreements in place in Ireland that are comparable with the better agreements existing in the EU to help Ireland and Irish industry to be competitive and not to anything in this area that would make us uncompetitive and enhance costs that are already crucifying a lot of companies," he said.

Mr O'Sullivan declined to comment yesterday on Ibec's view as to how long agency workers should work in particular sectors before the provision for equal treatment on pay and conditions should apply.

He said that given the way the world economy was going, if the British authorities had a chance to look at the issue again they might review the 12-week threshold.

If there is no agreement between unions and employers on a phase-in period for particular sectors, agency workers would be entitled to equal treatment from day one under the terms of the directive agreed by labour ministers.

The issue of agency workers was one of the main topics for discussion at talks between unions, employers and the Government yesterday on a new social partnership deal.

Up to 30,000 temporary agency workers in Ireland could benefit from the new directive or any local agreement covering the provision of equal pay and conditions.

Trade unions have campaigned strongly on the issue of equal treatment for agency workers and had argued that it was a "deal-breaker" in the current partnership talks.

Unions had maintained that the increased use of temporary agency workers on less favourable terms and conditions by companies was changing the traditional employment dynamic and potentially undermining arrangements enjoyed by permanent staff.

The Irish Congress of Trade Unions has welcomed the new directive on agency workers as "a very good development for a very exploited section of the workforce".

However, the Irish Small and Medium Enterprise Association has contended that the new directive would not only do damage to small business flexibility but would also not be in the best interest of agency workers. It warned that the measure could also lead to knock-on pay claims by permanent staff who wanted to retain existing relativities.