108. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment his views on the impact of the transposition of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 will have on direct engagement employers in Ireland, and if sufficient time will be given to direct engagement employers to adequately introduce a new system given that the deadline for the transposition of this Directive is 15 November 2024; and if he will make a statement on the matter. [26630/24]

The Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed into Irish law by 15th November 2024. The Directive aims to ensure that workers across the European Union are protected by adequate minimum wages allowing for a decent living wherever they work.

Article 4 of the Directive, Promotion of Collective Bargaining on Wage Setting , aims to promote collective bargaining on wages in all Member States. The Directive requires Member States in which the collective bargaining coverage rate is less than 80% to provide “for a framework of enabling conditions for collective bargaining” and to publish an Action Plan to promote collective bargaining. It should be noted that the 80% threshold is an indicator triggering the publication of an Action Plan, rather than a mandatory target to be reached. The deadline for the Action Plan to be submitted to the Commission is the end of 2025. However, it is intended to publish it ahead of that date.

The European Commission's Expert Group Report on the transposition of the Directive published last November was clear that the design of the framework of enabling conditions and the content of the Action Plan is up to Member States, in consultation with the social partners.

Therefore, a technical working group has been established with Department officials and the social partners to consider the content of the Action Plan. The group will consider what policy changes may be included in Ireland's action plan.

My Department has also requested legal advice as to what legislative change, if any, is required in order to transpose this article of the Directive into Irish legislation by the transposition deadline. At present, there is no proposal for a new industrial relations system that would impact on direct engagement employers.

The consideration of the recommendations of the LEEF Final Report on Collective Bargaining will also be an important input to our Action Plan.