A group of South Africans working on a multi-million euro, Government-funded contract to retro-fit seatbelts on Bus ÿireann schoolbuses are currently being paid a basic wage of €2.80 an hour, less than half the minimum wage, The Irish Times has learned.
The workers, 19 in total, have not been receiving payslips and have yet to be paid for overtime, both of which are basic conditions under Irish employment law.
The South African company employing them has denied there are any breaches of Irish employment law, however, as has the Irish firm they are subcontracted to. Both state that when free accommodation, transport, flights and subsistence allowances are taken into account, the men are receiving more than the minimum Irish wage of €7.65.
In detailed figures sent to Bus Éireann, the main Irish contractor has said that when the cost of their flights, accommodation and bonuses are taken into account, the men are receiving an average wage of €8.74 an hour.
The conditions compare with direct employees of the Irish company, many of them Polish, who are being paid a basic wage of €10 an hour, before overtime, for the same work.
Although the companies claim they are in compliance with minimum wage legislation, there is no explicit provision in the legislation to include such benefits to make up any part of a minimum wage. Under separate 1991 employment legislation some deductions can be made, but written agreement of employees is needed before such deductions can be made from wages above the minimum wage.
The men, based in various locations around the country since earlier this year, are working for a South African company, Marble Gold.
This company is in turn working as a subcontractor for an Irish firm, Transport Component Distributors (TCD), which won the Bus Éireann contract for the retro-fitting.
Yesterday Bus Éireann said it would be reviewing the situation. "It is Bus Éireann policy to only deal with contractors compliant with all aspects of employment legislation requirements - both in respect of their directly-employed staff and any staff subcontracted by them," a statement from the company said. "Should it emerge that there has been a breach of contract in respect of any of these issues, Bus Éireann will immediately instigate a process to rescind the contract."
TCD last night said the original rates of pay for the South Africans had increased by 20 per cent to reflect a recent weakening of the rand in order to comply with Irish minimum wage legislation.
The company's managing director, Harry Nash, added that if it was established the men were being paid below the minimum wage, TCD would make direct payments to ensure compliance with the law.
Gordon Thompson, operations manager with Marble City, which trades as Proseat in South Africa, said claims the men were being paid less than the minimum wage were "hogwash".