LATEST NEWS FROM N.E.C.I. ALWAYS FIRST WITH INDUSTRY NEWS 
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BESS CURRENT SITUATION (Building Emergency Safety Systems) 20th DEC 2011
In early 2009 the NSAI (National Standards Authority of Ireland) made approaches to various bodies involved in the installation and Maintaince of Emergency lighting to the Irish Standard 3217 (I.S. 3217). NSAI stated that they had been approached by the Chief Fire Officers Association who were concerned that some of the parties who were certifying that Emergency Lighting systems were in compliance with the IS 3217 standard, were not actually properly checking the installations. In Fact there was concern that the people certifying some installations were themselves not familiar with the actual standard.
It was suggested that a BESS (Building Emergency Safety Systems) Steering Group be formed to look into the development of a system of certifying compliance with I.S. 3217 which the various County Fire Officers could have confidence in. It was proposed that BESS registers be set up and maintained by both RECI & ECSSA. Only persons on these BESS registers would be entitled to purchase BESS Certificates and the Fire Officers would only accept these BESS Certificates. NECI understand that it was envisaged that both RECI and ECSSA would provide any training necessary to ensure their members were competent to certify installation up to the I.S 3217 standard.
The Following were invited by NSAI to be represented on the Steering Group and sent representatives.
1 RECI (Register of Electrical Contractors Ireland)
2 ECSSA (Electrical Contractors Safety & Standards Association)
3 Engineers Ireland
4 Chief Fire Officers Association
5 Consulting Engineers Representatives
6 ETCI (Electro Techicinal Council of Ireland)
7 AECI (Association of Electrical Contractors of Ireland)
8 NSAI (National Standards Authority of Ireland)
NECI understand that the ECA (Electrical Contractors Association) were invited to be part of the steering group but despite this ECA, were not represented at any of the meetings. NECI were not invited to partake in the steering group. A mission statement for the proposed BESS scheme was prepared by NSAI, this mission statement can be downloaded from the NECI website HERE .
It was decided that the level of training needed to be competent to determine that a system was in compliance with I.S. 3217 was to be FETEC level 6. There is currently confusion regarding who made this decision which now seems to be at the root of the current problems. At the October meeting of the BESS Steering Group concern was expressed mainly by ECSSA that the Level of training (Level 6 FETEC) was too high. Concern was also expressed that the cost of the training was too much in the current economic climate. In an email seen by NECI, ECSSA clearly outlined these concerns to Justin Tallon of NSAI. These concerns seem to have fallen on deaf ears. At the October meeting of the RECI board of Directors concern was expressed by both the Director Representatives of independent contractors and AECI regarding the scheme. The position of the RECI Independent Director was that Electrical Contractors were being asked to pay money to retrain for work which they had traditionally carried out. “This is unfair in the current economic climate he said” . At the November meeting of the RECI Board of Directors it was decided to write to Justin Tallon of NECI and inform him that RECI would not be supporting the proposed BESS scheme in its current format after December 2011. Reasons given for this were that the Level 6 FETAC was to high a standard and that the cost of the training was prohibitive. Also the fact that there was only one source for the training was a major concern. After the Email from RECI was sent to NSAI a meeting of the steering group was called for Friday the 25th of November.
NECI wrote to NSAI and requested a seat at the table at this meeting. This request was accepted and Dave Butler and John Smith attended the meeting on behalf of NECI. Serious concerns were expressed by NECI at the meeting regarding the Training Level (FETEC 6), Cost (€900 to €1400) and time required (5 Days) to complete the training. While NECI agreed that some training to prove competence was required, we argued that the proposed training standard was too high. There seemed to be general consensus at the meeting that the best solution would be a two tier qualification i.e. The proposed level 6 FETEC standard for design of a new emergency lighting installation and a qualification which could be achieved with a one day training course which would allow contractors to commission and test an existing installation. The outcome of this meeting was that the NSAI would after listening to all parties positions consider how to move things forward. On December the 9th NSAI circulated an email indicating that it was withdrawing its membership and its secretariat of the BESS scheme.
Another meeting of the steering committee has been organised for Tuesday the 20th of December at 2pm. NECI expect to be involved in all further meetings of the BESS steering committee and will only accept an outcome which does not put major costs on our members who wish to continue operating in the Emergency Lighting Sector.
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LETTERS FROM EPACE 19th DEC 2011
It has come to our attention that the Private Limited Company EPACE (Pensions and conditions Electrical Ltd.) has once again been sending out letters to Electrical Contractors. These letters request that contractors provide detailed information regarding pay and conditions and numbers of employees. We remind all Contractors that EPACE is a Private Limited Company and not a government appointed body, as such no Contractor is in any way obliged to provide any information to EPACE. Despite EPACE portraying itself as some sort of legally appointed body it is in fact only supported by the TEEU and the UK Based ECA with its 42 members. Despite threatening otherwise EPACE being a private company has no legal right to bring anyone to the Labour Court under Section 32 of the 1946 Industrial Relations Act. EPACE will normally engage the TEEU who are entitled to bring a case to the Labour Court using information supplied by the contractor himself, who is in fact providing EPACE / TEEU with a stick to beat him with. Please remember that it is up to EPACE / TEEU to provide evidence that a contractor is in breach of the Registered Employment Agreement. In a recent Labour Court case (1st November 2011) between an electrical contractor and the TEEU the Labour Court dismissed the case stating “A person alleging a contravention of a Registered Agreement must provide some credible and admissible evidence to substantiate the complaint. In this case no such evidence was tendered”
All the directors of EPACE whose names appear on the bottom of the recent letters hail from TEEU and ECA. They are as follows, Eamonn Devoy and Arthur Hall of TEEU, Terry Tierney of Patrick Lynch Ltd (ECA Member) and Joseph Conway of JRE Electrical Clonmel (ECA Member and now in receivership)
NECI has sent a number of legal letters to EPACE requesting they desist from harassing our members all have been ignored. While it is up to each and every Contractor to decide himself whether or not he wishes to provide information to EPACE we would warn that in our experience starting any transfer of information to EPACE is the rock upon which many contractors have perished.
YOU HAVE BEEN WARNED
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EPACE REPORTS €25K LOSS, TEEU GETS €21,345 23rd NOV 2011
The Private Limited Company EPACE (Pensions and Conditions Electrical Limited Number 303017) has reported a €25,194 loss in its 2010 accounts which have recently been lodged with the CRO (Companies Registration Office). The accounts also show that EPACE received €163,343 from the CWPS (Construction Workers Pension Scheme), down from €210,699 in 2009. This payment is generated from the weekly 38 cent deductions from both employee and employer who contribute to the Construction Workers Pension Scheme.
Despite the loss of €25,194 the company paid out a total of €21,345 (Comprised of €17,345 for Labour Court Hearings and €4,000 for secretarial services) to the TEEU. The ECA (Electrical Contractors Association) also received €4,000. Wages, Social Welfare and pension costs for the two employees of EPACE amounted to a massive €98,066. The performance of the company in 2010 has eroded the amount of cash in hand in the bank from €918,814 in 2009 to €880,681 last year.
The accounts were signed off on the 9th of September this year by EPACE Director Eamonn Devoy of the TEEU and EPACE Director Joseph Conway of ECA. Joe Conway represents Jer Ryan Electrical Contractors (T/A JRE Engineering Group) A Receiver was appointed to the JRE Engineering Group in Oct. this year.
NECI once again, Call for EPACE to be disbanded, and the remaining fund which is left in the Bank be returned to Electricians Pension Investments. It is now essential that this happens before this loss making Company spends the total fund or redirects it to the TEEU and the ECA.
Click HERE to Download a copy of EPACEs 2010 Accounts.
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STATEMENT FROM NATIONAL COUNCIL 19TH OCT 2011
The National Council of NECI reluctantly accepts the recent resignations of both Denis Judge and Chris Montague. Denis has been an excellent CEO and he will be a huge loss to the association. Chris was an excellent National Council Member and his valued input will be missed.
The National Council as elected at the AGM in June of this year will continue to run NECI with the assistant CEO John Smith taking over the day to day running of the association. John can be contacted on the NECI phone Number or by email at john.smith@neci.ie . It is now more that ever that we need to be represented at the levels where the decisions are made. NECI will continue to be the association which provides a voice to those who previously had no say.
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UPDATE ON HIGH COURT RULING 02nd August 2011
In Section 34 on page 19 of Justice Feeneys High Court Judgment of the 7th of July the Judge states the following,
“Where the consequences are an ERO which is to place an obligation on an employer to apply particular wage rates and conditions of employment which can be enforced by criminal sanction, those rates and conditions must be determined and based upon principles and policies laid down by the Oireachtas and not as determined by a delegated body acting in the absence of stated principles and policies.”
Having considered Justice Feeneys recent High Court decision and taken advice from our legal team and in particular considering the section of the Judgment outlined above, NECI now make the following observations.
Despite the fact that the National Employment Rights Authority (NERA) has been advising Electrical Contractors that the ruling of the 7th of July 2011 does not change the legal status of the REA (Registered Employment Agreement) for the Electrical Contracting Industry, NECI are of the opinion that the system of Registered Employment Agreements is, like the Employment Regulation Orders (ERO) Unconstitutional. The reason for this is that the High Court declared it Unconstitutional for a delegated body (as is the Electrical JIC) determining wage rates and conditions which can be enforced by criminal sanctions (As in the REA) without having regard to principles and policies laid down by the Oireachtas. NECI suspect that the fear that every Electrical Contractor who has paid out money's on foot of the Registered Agreement will go to the courts to get those funds returned is the major factor behind NERAs position. The Government need to realise that this last ditch effort to uphold the flawed REA system will only delay the inevitable, and that when the system of REAs eventually falls (As NECI are confident it will) the majority of Electrical Contractors will seek retribution for what they have suffered under the terms of this Unconstitutional agreement at the hands of the TEEU, EPACE and facilitated by the Labour Court. NECI will facilitate it's members in every way possible to achieve this retribution. Since its formation in 2008 NECI have never changed it's opinion regarding the legal status of the electrical REA.
This agreement was entered into in 1990 by employers who did not hold (and still do not hold) a negotiating licence and were not substantially representative as required by section 27 of the flawed 1947 Industrial Relations Act. It is shocking that the protests by the Majority of Electrical Contractors who have been forced to comply with the terms of an unlawful agreement by the activities of a Trade Union and a Private Company who stand to gain financially from every Contractor who is conscripted, have fallen on deaf ears. NECI understand that some legal Maneuvers in the High Court will soon see the end of the REA system. The biggest casualty from this will be the preferred pension scheme which will no doubt struggle to hold onto it's membership when employers can check out the full Market to achieve best value. We are confident that as with the challenge by the Quick Service Food Alliance, right will win out in the end. We would also assure our members that Electrical Contractors need never worry that another unrepresentative agreement will be introduced "Under the radar" as happened in 1990. NECI will never again allow the minority to rule the majority and will be wary of allowing any agreement with any Trade Union to be forced upon the business of every Electrical Contractor, big or small, operating in the state.
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HIGH COURT DECLARES E.R.O. UNCONSTITUTIONAL 07th JULY 2011
NECI welcome the landmark decision of the High Court where Mr Justice Kevin Feeney upheld the challenge by fast food operators to the JLC / ERO system, which was established almost 60 years ago. This system was used to set minimum pay and conditions for certain sectors of workers. The judge ruled as unconstitutional sections of the 1946 and 1990 Industrial Relations Acts under which minimum pay and conditions are set under Employment Regulation Orders (ERO) which are proposed by JLC's (Joint Labour Commitees) for approval by the Labour Court. The core of the issue is the arguement that because criminal sanctions apply for non compliance with an ERO which has been rubber stamped by the Labour Court, the Labour Court is in effect making law. Section 15.2.1of the constitution states that the sole and exclusive power to make laws is vested in the Oireachtas.
The Criminal Sanctions for breach of the Registered Employment Agreement which has been operating since 1990 in the Electrical Contracting Industry were also rubber stamped by the Labour Court under the 1946 Industrial Relations Act. This poses obovious questions regarding the legalility of our own Agreement. If a seperate legal challenge to the JIC /REA system is necessary NECI will not be found wanting. We will seek further clarification from our legal team as to the fallout from the Judgement by Justice Feeney. We will also get clarification regarding the legal standing of NECI members who have been, or are in the process of being criminalised by the courts for allegeded breaches of the electrical REA.
Todays Judgement completely vindicates the position taken by NECI since its formation. We have always been of the opinion that our agreement has been unlawful.
Click HERE To Download the full Judgement from the NECI Website.
Click
and HERE for report from the Sunday Business Post
Extract from Todays Judgement
"40. On the basis of the findings made by this Court, the plaintiffs are entitled to a declaration that the provisions of ss. 42, 43 and 45 of the 1946 Act and s. 48 of the 1990 Act are invalid having regard to the provisions of Article 15.2.1 of the Constitution of Ireland and also the declaration sought that the ERO is invalid. The Court will hear the parties in relation to the terms of such declarations. The court will also hear the parties in relation to the procedure to be followed in relation to outstanding matters for consideration by the court including the issue of the damages, if any, to which the plaintiffs might be entitled."
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ERO, REA REVIEW REPORT PUBLISHED 24th May 2011
Report calls for “… radical overhaul to make system fairer and more responsive to changing economic circumstances…”
Minister for Jobs, Enterprise and Innovation Richard Bruton TD today (Tuesday), following a decision of Government, published the Report of the Independent Review of Employment Regulation Orders (EROs) and Registered Employment Agreement Wage Setting Mechanisms and set out a time-limited programme for a Government decision to be taken and announced on an action plan before the end of June 2011. As part of this programme, Minister Bruton will be setting out proposals arising from the recommendations and other issues raised by the report, which will then be the subject of time-limited discussions with relevant stakeholders. Minister Bruton has been asked to bring an action plan to the Government in time to be finalised by the end of June 2011.
The Minister said that the report’s overall finding that the basic framework of the current JLC/REA regulatory system requires “radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions” is consistent with the commitment in the Programme for Government. “There is no adjustment as traumatic for any worker as the loss of a job, and the retail, hotel and catering sectors – the major sectors affected by these wage-setting mechanisms – have suffered a 20% loss in employment in the past three years. Furthermore, in many cases businesses are competing directly with the UK market where wages are 25-30% lower in these sectors; while rates of pay in the sectors covered by the JLCs have increased much faster than the National Minimum Wage, in some cases by more than 20%.
That is why it is important to formally begin a time-limited process of agreeing a series of urgent reforms to these mechanisms. As part of the process of finalising a comprehensive action plan, as required by the revised MOU, I will immediately begin discussions with relevant social partners and also with the European Commission Services. To this end I will make copies of the report available and set out a series of proposals for discussion based on the recommendations in the report and other issues raised in the report.
“It is my intention to complete discussions with relevant parties by Friday 10th June ahead of submitting a final action plan to Cabinet before the end of the month.”
Minister Bruton concluded by saying: “I would like to express my appreciation to Mr Kevin Duffy and Dr Frank Walsh for undertaking and completing the review on this very complex area within a very short timeframe and to all the parties who assisted the Review Team’s work through making submissions and direct consultation”.
Click HERE To Download a copy of the Report from the NECI Website.
Section 12.16 on page 75 addresses the Electrical Contracting REA and states :
"There are particular problems in relation to the REA for the Electrical Contracting Industry, which we consider appropriate to address in this report. These problems were addressed in the extended hearing before the Court which resulted in Decision REP091, previously referred to, and in the subsequent Judicial Review proceedings. Those problems were also the subject of a general review of industrial relations issues in the industry undertaken on behalf of the Minister for Enterprise Trade and Employment by Mr Peter Cassells and Mr Finbarr Flood in 2009. That report made a number of recommendations on how the issues identified should be addressed. We do not consider it appropriate to reassess the issues dealt with in that report which we regard as eminently sensible. It is noted, however, that these proposals have not yet been implemented although it is understood that discussions are continuing with the assistance of the LRC on their implementation. It is our view that the continued viability of the REA for the Electrical Contracting industry is dependent on the implementation of those recommendations without further delay"
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DUFFY ON COURSE FOR WHITEWASH AS EXPECTED 19th May 2011
Reports from RTE regarding the Review of EROs and REAs indicate that, as forecast by NECI the Labour Court Chairman will not allow any real and substantive changes the existing regime. Initial information indicates that the Labour Court Chairman has concluded that “abolition would not lead to an increase in employment”. Some of the dormant JLCs which have not operated since the 1950s and 60s are being abolished in a cynical exercise to make it look like real change is being implemented. Examples of these are the JLCs for “Aerated Water and Wholesale Bottling and the JLCs for provender milling and clothing.” These JLCs have not been active for the last 60 years. While the report says “there is a case for allowing employers under pressure to derogate from a JLC” it also gives itself a get out of jail clause by adding “provided this would not distort competition in the sector”. Of course it is obvious to any thinking person that this clause applies to each and every derogation and will be used to allow no derogations by employers. Since we learned of Mr. Duffy’s involvement NECI have never had any expectation that the review would address the problems which are causing the demise of many Electrical Contracting Company’s who are finding it impossible to operate a viable business while complying with an outdated agreement, which only 42 employers and 1 union get any input into. Further Job losses and business closures can be expected in the near future.
On a positive note we are confident that the ultimate success of one or more of the current legal challenges to the System will bring an end to Mr. Duffy’s strangle hold over our industry. Once again we would like to say that it is an utter disgrace that Mr. Duffy was appointed to his €170.000 a year position during the final days of the previous Government, by a Minister who was rejected by the people in the last General Election.
Click to see the RTE Report
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GOVERNMENT INITIATIVE RE. SECTORAL WAGE AGREEMENTS
10th May 2011
The Following important section is included in the Jobs Initiative Document Released by the Goverment today.
Sectoral Wage Agreements
"As set out in the Programme for Government, it is the Government’s intention to reform the structures for setting wages at sectoral level. The Minister for Enterprise, Jobs and Innovation has recently received the Report of the Independent Review of Employment Regulation Orders and Registered Employment Agreements, which he will be publishing shortly. The Report says that the system requires radical overhaul so as to make it fairer and more responsive to changing economic circumstances and labour market conditions. The downturn in the economy has had a profound effect on the labour market, with areas such as retail and accommodation and food being amongst those hardest hit. In this environment, it is necessary to ensure that these structures are flexible and adaptable to changing circumstances, and that they reflect the realities of our modern economy. In particular, there are issues relating to overtime and premium payments for Sunday working, the number of Joint Labour Committees, and the general functioning and supervision of the system."
Following the publication of the report, the Government is determined to proceed with urgency to substantial reform of the system.
Click HERE to download the full text of the Jobs Initiative Speech by Minister Michael Noonan.
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2011 AGM A GREAT SUCCESS 9th May 2011
The 2011 NECI Annual General Meeting which was held at the Hodson Bay Hotel last Saturday was a great success. The large attendance was welcomed by John Smith. John went on to read the 2010 AGM minutes which were adapted without change by the meeting. The Treasurers report was then presented by the independent NECI Auditor / Accountant. Members present adopted the report after it was proposed and seconded. The final draft of the new rule book was next on the agenda and after a detailed discussion the rule book was also adopted by the membership present. The Secretary’s report was read out and this report contained detailed information regarding meetings attended by the NECI National Council Members during the previous year.
Denis Judge was next on the agenda with the CEO address. Denis outlined not only our achievements in the previous 12 months, but out achievements since the formation of NECI in 2008. He informed the attendance regarding the current situation with the Registered Employment Agreement, the NECI Pension Scheme, the government review of EROs and REAs and proposed changes to Emergency lighting and CCTV / Access control installations. It was agreed by the meeting the some sort of Regulation was necessary in our Industry. “This regulation needs to be backed up by legislation; legislation requires education and ultimately enforcement” said Denis.
The Debate continued after the Coffee Break and the members also indicated that we should update out Aims and Objectives to reflect our aspirations in 2011. The discussion went on to detail the proposal to revamp and update the NECI Website. It was agreed that an update was a good idea and that the new National Council would examine the costs associated with this update.
The meeting went on the elect a new National which is as follows
CEO Denis Judge Ass CEO John Smith
Treasurer Derek Nash Secretary Dave Butler
Council Members: Jonathan Barron, Claire Tunissen, Paul Lynch, Paedar Leddy, PJ Sammon, Chris Montague, Brendan Hegarty.
The meeting continued with a detailed presentation outlining the success of the Pension Mortality and Sick pay scheme. There was further discussion regarding the role of CER, RECI and ECSSA and also the issues regarding completion certificates and sub- contracting. One NECI member in attendance asked “Why does it all have to be so complicated?”
Many other issues affecting contractors were discussed and much useful information regarding the direction we need to take going into the future was passed on to the new National Council. A full and detailed account of the proceeding will be sent directly to all Members.
THE NECI 2011 NATIONAL COUNCIL 
Rear Left to Right John Smith,Derek Nash,Chris Montague,Paul Lynch,Jonathan Barron,P.J. Sammon.
Front Left to Right Brendan Hegarty,Denis Judge,Claire Tunissen, Absent Dave Butler,Paedar Leddy.
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