Up to 30,000 temporary agency workers in Ireland should benefit from the same pay and conditions as full time staff under a new law agreed by EU labour ministers early this morning.
Following marathon talks in Luxembourg yesterday, ministers finally agreed a deal on two related labour laws: the working time and temporary agency workers directives.
Under the agreement, agency workers should normally receive equal pay and conditions from day one of starting work. A flexibility clause included in the legislation will enable employers to negotiate with trade unions to try to introduce a phase-in period before full rights are received for some industrial sectors.
But in the absence of this type of social partnership deal the default position for agency workers is full rights from day one.
Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan said although agency working will continue to be a legitimate and important form of flexible labour market supply, "it cannot be used to indefinitely circumvent any obligations to workers regarding pay and other basic entitlements".
"This directive represents another key measure agreed by the EU to ensure that there will be no "race to the bottom" in terms of employment standards."
Minister for Labour Affairs Billy Kelleher, who attended the negotiations, said the key breakthrough from Ireland’s perspective was that the compromise deal empowered the social partners to find a deal.
“Now, arrangements can be agreed to ensure the continued flexibility and availability of agency work to those choosing it, but also that temporary agency workers will achieve equal treatment on pay and basic entitlements within an agreed time frame,” he said.
The Irish Congress of Trade Unions (Ictu) warmly welcomed the deal as “a very good development for a very exploited section of the workforce”.
“The initiative has now been four years in gestation and has been held up by a blocking minority of countries, which includes Ireland and the UK,” said David Begg, General Secretary of Congress, who warned the Government not to delay implementation of the directive.
Siptu has also welcomed the draft directive.
General President Jack O'Connor said: "Once again, an EU directive will improve people's rights at work in Ireland. Indeed, in the absence of the EU, working conditions in Ireland would still be very primitive.
"This decision will begin the process of alleviating the plight of tens of thousands of our most vulnerable workers. It will also help mitigate the degree to which their exploitation serves to undermine standards of employment in the economy generally here," he added.
Labour MEP Prionsias De Rossa said it "remains to be seen" how the deal incorporates the amendments adopted to the Commission's proposal by the European Parliament.
"I am optimistic however that any remaining weaknesses can be resolved when this issue returns to the European Parliament by the end of the year," he added.
"The Parliament's Employment Committee, of which I'm a member, will closely examine the agreement and will come forward with any appropriate amendments."
EU ministers were able to break a four year deadlock to agree the new legislation on temporary agency workers following a U-turn by the British last month. Ireland also removed its opposition to the directive at last night’s talks, although the Government will now encourage employers to engage with trade unions in social partnership talks.
Under pressure from trade unions, Britain dropped its opposition to providing full labour rights to agency workers and brokered a social partnership deal between the Confederation of British Industry and the Trade Union Confederation. Under this deal, temporary agency workers will now receive full labour rights after 12 weeks of service.
Agency workers working on short term contracts have become an increasingly important component of the workforce in recent years. They commonly work in seasonal jobs in fields such as agriculture and construction and get paid less than full time employees.
Up until late last night the deal on the temporary agency workers directive was in danger of collapsing due to disputes between member states over a related labour law, the working time directive. This key piece of social legislation was introduced by the EU in 1993 and limits the amount of time an employee can work in a week to 48 hours. Britain negotiated an opt-out back in 1993 which it wants to retain on a permanent basis.
France and several other EU states opposed the British opt-out arguing that it put workers health in jeopardy and provides British employers with a competitive advantage. A compromise was agreed limiting the maximum number of hours worked in a week, even with an opt-out, to between 60 and 65 from the previous 78 hours.
Ministers also agreed that to redefine “on-call time” to prevent this being applicable to the maximum working limits in the working time directive. This should give greater flexibility to health services, whereby staff often are on call while sleeping in hospitals.
Both EU directives must still be considered by the European Parliament. However, it is not expected that MEPs will amend it in a major way. Ireland will have to implement the directive within the next 24 months.