TRADE UNIONS have welcomed a new directive governing pay and conditions for temporary or agency workers agreed by EU labour ministers as a "major step forward".
However, some employer organisations have expressed concern that the measures would damage business flexibility and potentially lead to knock-on pay claims by permanent staff. Under the agreement, agency workers should normally receive the same pay and conditions as permanent staff from day one of starting work - although it will be up to member states to decide whether issues such as pensions, sick pay or share options schemes will be included.
A flexibility clause in the legislation will enable employers to negotiate with trade unions to try to introduce a derogation or phase-in period before full rights are received for some sectors. But in the absence of this type of social partnership deal, the default position for agency workers is full rights from day one.
Up to 30,000 temporary agency workers in Ireland should benefit from the new measure.
The Irish Congress of Trade Unions (Ictu) warmly welcomed the deal as "a very good development for a very exploited section of the workforce".
Ictu general secretary David Begg said when the directive was agreed by the European Parliament, the Government here had to transpose it into domestic legislation within three years. He said the Government had blocked the new directive for four years and urged that it should not drag its heels on putting through the required legislation.
However, the Irish Small Medium Enterprise Association (Isme) warned that the introduction of the directive would "do extreme damage not only to small business flexibility but would not be acting in the interests of agency workers themselves".
Isme chief executive Mark Fielding said the legislation "would introduce yet more costs and another layer of bureaucracy that would not benefit business and in fact lead to the demise of the agency worker concept".
"As the majority of smaller businesses use agency workers primarily as cover for other staff who may be on leave of absence, including maternity, sick and parental leave, the dramatic increase in costs will be completely unsustainable, especially when the agency fee [sometimes up to 30 per cent] is factored into the cost equation. In many instances, it is actually more expensive to hire an agency worker, but the owner/managers accept that they are paying for the flexibility," he said. Isme also warned of potential "knock-on" implications with existing employees seeking to maintain the differential over the agency worker taking account of experience, loyalty and seniority.
Chambers Ireland welcomed the measure but said the key issue was how it would be implemented. It said it was crucial that it should be easily complied with.
The National Recruitment Federation, which maintains standards for the recruitment industry, urged the social partners to look to models in other countries with derogation periods of six months "when discussing a possible derogation and to come to an agreement that will allow for the continued flexibility and opportunity-rich model for which Ireland has been admired for many years".
The Government also welcomed the new directive.
Tanáiste Mary Coughlan said: "Agency working will continue to be a legitimate and important form of flexible labour market supply, but it cannot be used to indefinitely circumvent any obligations to workers regarding pay and other basic entitlements."
Mr Begg said the new measure would be "an enormous help" in the negotiations on a new social partnership deal, although it would not guarantee an overall agreement. He said the increasing use of agency workers had been "re-defining the traditional employment relationship".
Ictu vice-president Patricia King of Siptu said in some companies staff provided by agencies who were doing the same job as regular employees were not being paid the going rate and did not receive sick pay or other normal conditions. She said some were not even allowed to use the canteen or other company facilities.
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 dropped its opposition at the talks on Monday.