Silence Of Labour?

by Pat Maloney

AS THE 400 Irish Congress of Trade Union delegates assembled in Liberty Hall in Dublin on 17th April 2008, to consider new National Pay Talks—across the river Liffey at the entrance to Dail Eireann, the Agricultural 'pillar' of Social Partnership marshalled 10,000 of their 140,000 membership in protest "over EU proposals they fear will destroy the beef and dairy industry and bring rural Ireland to its knees" (Irish Independent, 18.4.2008).

The protest coincided with the visit of European Commission President Jose Manuel Barroso  who told the National Forum on Europe that it would be in the interest of Irish farmers to have a quick resolution at the upcoming World Trade Organisation (WTO) talks in Switzerland.

Padraig Walshe, President of the Irish Farmers Association (IFA), said the decision to be made by EU Commissioner Peter Mandelson at the United Nations Conference on Trade and Development in Geneva in May will have a huge bearing on the way farmers vote on the Lisbon Treaty.

Walshe told the rally outside Leinster House that since the turn of the year Mr. Mandelson had completely undermined the position of the Irish farmer and warned: "Sell us out and we will have our say on the 12th of June."

Mr. Walshe continued:

"Don't come back from Geneva having sold us out. Thousands of workers in the food industry will lose their jobs, hundreds of businesses will have to close down. Don't expect us to do your bidding in the referendum."

"We are all here today to defend our own interests, because if you shut down Irish farming—you shut down rural Ireland. Our battle is your battle, we have had our battles with the meat factories in the past, but today we are on the one side."

He attacked previous EU trade directives affecting agriculture, saying assurances given about the sugar beet industry before the Nice Treaty has seen that industry shut down.

United We Stand

Agriculture, industry and businesses closed down in a show of support for the farmers' protest, the largest in a decade. Major co-operatives, all 50 FBD insurance offices and 1,000 businesses, including livestock marts, closed their doors for the duration of the protest.

To a roar of approval, Jackie Cahill, president of the Irish Creamery Milk Suppliers Association (ICMSA), warned: "Tougher men than Commissioner Mandelson  have learned to their cost it is a mistake to underestimate Irish farmers and the population of rural Ireland" (Irish Independent, 18.4.2008).

The protest coincided with the visit of EU Commission President, Jose Manuel Barroso to Ireland.

Mr. Barroso was at pains to point out that the issues of concern to the farmers were outside the remit of the Lisbon Treaty.

He made the point that negotiations on the Doha Agreement and the WTO were ongoing and that the EU was intent on staying within the 2003 mandate.

He stated that the new deal would not affect the high-end of the agricultural market, which is where Ireland is placed.

Mr. Barroso also said that, in the main, tariffs would hit only half of the low-end market : a statement he surely would not repeat in Warsaw, Riga or Vilnius—but then they won't be engaged in any Referendums!

If the ratio of attendance at the Farmers' Protest were applied to the ICTU affiliates with a membership of 850,000, we could rally over 60,000 trade unionists outside the Dail and would we not be equally justified in the light of recent developments taking place in the European Union in relation to workers' rights? Are the rights of workers inferior to the rights of farmers?

In 3 recent cases, the European Court of Justice (ECJ) has moved to decimate the rights of collective action, including the right to strike.

"Laval"

In the 'Laval' case, a construction company from low-wage Latvia won a contract to build a school in Sweden. The company refused to sign a collective agreement with the Swedish construction union, but instead did so with a Latvian one which did not observe the Swedish collective agreement standards.  In response, the Swedish union took collective action in the form of a blockade of the site and got sympathy action from other unions.  The Latvian company went bankrupt, but the ECJ have held the Swedish union liable for their losses.

The ECJ ruling on the case means that unions cannot take action against companies employing imported workers at rates below those for local workers, except to defend wages up to a universally applicable minimum. For Ireland, this means the National Minimum Wage.

"Viking"

In the earlier case of 'Viking', a Finnish shipping line sought to evade a union agreement by re-registering its ship under the Estonian flag so it could instead employ workers from Estonia at lower cost.  The ECJ held that this was fine: worker's rights to collective action are less important than market freedom of access to cheaper workers.

That theme has run through all 3 decisions; the ECJ stated that the right to strike only exists where it is 'proportionate' and 'justified', and their test for those is heavily weighted in favour of exploitative employers.

"Ruffert"

In the 'Rüffert' case the ECJ cut the member states' power to make law to protect worker rights. It overruled the German regional government of Lower Saxony, which makes its contractors ensure that local union-backed labour standards are maintained. This case could be used to destroy progressive agreements that have been won in Ireland which exceeded the National Minimum Wage.

ICTU support 'Lisbon'

Since April 17th, the Farmers' organisations have put the Government on the run, with a first-class co-ordinated advertising campaign which highlights the loss of agri-jobs if Mandelson succeeds—it is now accepted that if the Referendum fails to get the support of the farming community, it is dead in the water.

The 20th May 2008 is decision day for the WTO negotiations in Geneva. Agriculture Minister, Mary Coughlan has met Commissioner Mandelson in recent days. There is talk that the May 20th meeting may not now take place, well, certainly not before the June 12th date of the Referendum in Ireland—it is a calculated risk by the Government but it is doubtful if the Farm Organisations will change their mind on Lisbon over a mere alteration of a date.

Both the Labour Party and the ICTU support the Lisbon Treaty, perhaps with their leadership, they might get enough workers out to vote 'Yes' and save the Government, however, a substantial section of Irish workers are now following the line of the farm organisations and they are not in the least concerned about "the remit of the Lisbon Treaty" and its relation to WTO talks, they are worried about their jobs and they're correct!

Padraig Walshe, IFA President, said 50,000 processing and service jobs would be lost, 50,000 farmers would be put out of business and there would be a €4 billion a year loss to the national economy.

"In 50 towns around the country, meat, milk and other food processing and allied services are vital employers and wealth creators—in some cases they are the only enterprises in the town," he said.

Mr. Walshe said the greatest threat comes from the proposals to cut beef and dairy product import tariffs by 70% and those for lamb, pig meat, poultry and cereals by 55% to 70%.

There is an amount that Brussels could achieve through internal reform before going down the road of a 'Constitution', but it hasn't the courage.

Why is Britain which is the third largest member of the community still refusing to enter the Euro monetary zone? One would think that of all the member states, Ireland, more than any other, pays the greatest price for Britain's refusal to leave Sterling and become a full and proper member of Europe.

With the Euro at such strength, Irish exports to Britain are being crucified at the moment and none more so than the indigenous trader. But not a 'beep' out of the Government, our 13 MEPs or Dick Roche!

ICTU Delegate Conference

Delegates representing more than 50 trade unions and over 850,000 workers agreed to enter talks on a Wage Agreement on Thursday, 17th April 2008, at a Special Delegate meeting of the Irish Congress of Trade Unions in Liberty Hall, Dublin.

The motion to enter talks was carried by 350 votes to four.

On the previous Monday, April 14th, at the Savoy Cinema in Dublin, more than 500 delegates from Ireland's largest trade union, SIPTU also voted overwhelmingly to back proposals put forward by the Irish Congress of Trade Unions (ICTU) that it should participate in the talks with the aim of securing improvements in pay, pensions, rights for agency workers and public services.

Talks were due to begin on 24th April 2008.

Congress is looking for measures to help the low paid and to reduce the gender pay gap. It also wants better pension provisions for workers and the introduction of a mandatory contributions regime that would secure the livelihood of workers in their retirement.

Other demands include the equal treatment of agency workers, the legal recognition of workers' rights to engage in collective bargaining with employers and further investment in public services, especially health, education, childcare and care for the elderly.

Small business group ISME has called for a 12-month wage freeze to provide "breathing space" for companies being hit by the slowing economy.

ICTU General Secretary David Begg told the conference that when the concept of social partnership was first developed 20 years ago, there was a feeling that Employers, Unions and the Government were coming together to work for the common good. However that "appears to have diminished on the employers' side", he said.

He dismissed a call from the Organisation for Economic Co-operation and Development (OECD) to show restraint in wage increases, and pointed to the hefty salary increases enjoyed by executives in the private sector.

"I know when somebody is taking me for a ride and this is what is happening in our economy at the moment—it just cannot go on," he told delegates.

But suggestions that Trade Union demands would lead to a wage price spiral were "nonsense", said Mr. Begg.

Recent factory closures could not be blamed on wage costs as this only accounted for 5% of employers' expenses, he claimed.

Mr. Begg warned delegates the health service was going the American way with the co-location plan. If the middle-class pulled out, soon only the rich would be able to afford healthcare.

Concern was raised about workers being exploited. More than 500 employment agencies exist in Ireland, delegates were told, and some were using legal loopholes to avoid providing standard rights or wages.

"Therefore, they don't have to worry about discriminating against people who are pregnant, old, people who are black or disabled or any of these normal provisions that they know they would not get away with in the standard arrangements for recruitment," said Mr. Begg.

He said a fifth of workers in Ireland were earning less than €10 an hour and hit out at private groups where bosses had given themselves millions of Euro in bonuses including in Bank of Ireland, Diageo, AIB, Tullow Oil and Ryanair. Talks will begin next Thursday.

"There's a real difficulty in Irish society. We need to develop a sense of common purpose, but it's missing because society is so unfair," the general secretary of the Irish Congress of Trade Unions (ICTU), David Begg, said yesterday, launching its Economic Outlook 2008. (Irish Times, 23.4.2008).

But Begg says that, in the absence of any shared sense of social purpose, "it would not be the worst thing in the world if there were no agreement". (ibid.).

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The five main pay talks objectives are:

* Sufficient pay rises to protect against the cost of living and a fairer share of profits that help the lower paid and reduce the gender pay gap.

* The establishment of an enforceable pensions policy which includes mandatory contributions from employers.

* Further legislation to give agency workers equal treatment and protect them against exploitation by employers.

* A legal framework to protect the right of an employee to bargain with their employer through a trade union.

* Adequate investment in public services especially health, education and care infrastructure.

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Peter McLoone, General Secretary of IMPACT, the Public Service Union, said:

"Left to their own devices, Government and employers want no wage increases—even increases in the minimum wage. In fact, what they want is lower wages."

IBEC, the employers' group, warns that a pay deal that tried to keep up with inflation would be bad for the country and put more jobs at risk at a time when the economy is facing its biggest challenge in 20 years.

Director General, Turlough O'Sullivan, added:

"It is not sustainable to suggest that pay should chase inflation" (Irish Independent, 18.4.2008).

The Trade Union, UNITE also backed the decision to join pay talks but warned they will be fraught with difficulties.

Regional Secretary, Jimmy Kelly of Waterford said:

"It is right that we should enter the talks but nobody should be under any illusion about how difficult they will be. We represent members for whom wages are real. they know that Ireland is a tough place to make ends meet.

"Employers who salt away big profits and then plead inability to pay because of macro economic trends need to listen to the voice of the working people of Ireland. We will bring that voice to the table loud and clear." (Daily Mail, 18.4.2008).

SIPTU Delegate Conference

SIPTU President Jack O'Connor predicted that talks on a successor to Towards 2016 will be the "most difficult negotiations in the history of this process".

And he warned Taoiseach-in-waiting Brian Cowen he would be "foolish" to attack workers who vote for Fianna Fail—something the current Taoiseach, Bertie Ahern "knew so very well".

The Tanaiste, Deputy Cowen has previously urged the social partners to accept wage restraint.

A spokesperson for Mr Cowen said the Finance Minister maintained that "all stakeholders in our economy must bear in mind the need to maintain our international competitiveness" (Irish Independent, 15.4.2008).

More than 500 delegates attended the Dublin conference at which SIPTU leaders demanded a pay rise above inflation—currently at 5%.

Proposing the motion that workers take part in the new partnership talks, SIPTU Vice-President Brendan Hayes said workers had not secured any significant contribution for the economic growth of the past 27 months.

"The people who made the profits, the people who made the super incomes, are the people who should accept the adjustments, not ordinary working people, and we'll be delivering that message to Government."

In addition to a pay increase equal to inflation, it wants an extra payment based on a proportion of the country's annual economic output, or Gross Domestic Product.

SIPTU leaders dismissed the previous national agreement as essentially a "pay freeze" because it "barely kept pace with inflation".

Towards 2016 awarded workers a 10% pay rise that was spread over 27 months.

The Trade Union said inflation in that time was far higher, at 11.7%, than the wage rises given to the two million-strong workforce under the pay agreement.

As a result, the Union calculated that the average worker is now taking home 1.2% less in real terms than before Towards 2016 began.

"We want to wish him (Mr. Cowen) well as all our interests are in his hands," said SIPTU President Jack O'Connor at the conference.

"But if 40% of workers are members of trade unions and Minister Cowen's party gets 35% to 40% support in opinion polls—many of them are the same people.

"It's alright to attack workers and attack unions, but it is very foolish to attack your own." (Irish Independent, 15.4.2008).

He told delegates:

"…his negotiating team would do its best to deliver an acceptable agreement but SIPTU also had to prepare for the alternative. We are not afraid to negotiate, but we are not afraid to fight either," he said.

"SIPTU General Secretary, Joe O'Flynn said that a nationwide consultation process had identified pay, pensions, trade union recognition and quality of life issues such as accessible and high-quality healthcare, affordable housing and childcare facilities as key concerns for SIPTU members." (Irish Times, April 15, 2008)

Mr. O'Flynn stated that members would also like an agreement of a shorter duration than previously, with a review clause included.

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"Dr. Ed Walsh, founding president of the University of Limerick, called for an immediate pay freeze to make Ireland a viable option for foreign investment.

"We have been paying ourselves too much for the last six to eight years and we have not attended to the needs of the multinationals in Ireland," he said. (Irish Independent, 30.4.2008)

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Benchmarking

On the controversial Benchmarking report, which recommended no special increases for most public sector workers, SIPTU General Secretary, Joe O'Flynn said members wanted a new mechanism put in place.

The SIPTU motion describes the Benchmarking process as "irrelevant" because of "growing inequality" between lower and higher paid workers.

The meeting also heard a call for the scrapping of benchmarking by shop steward Kieran Allen. He said workers must enter into new partnership talks but must do so "with a very very different spirit".

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Following a number of recent court cases there is now "no legal basis for collective bargaining", Mr Begg said. (Irish Times, 23.4.2008).

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Inflation Wipe Out

SIPTU Head of Research, Manus O'Riordan said that higher inflation had wiped out any real wage gain under the current national pay deal which provided for 10% increases over 27 months.

He said that the consumer price index had increased by as much as 11.7% over the period, leaving the lower-paid facing a decrease of 0.7% and those on average earnings with a drop of 1.2% in real terms.

Manus O'Riordan told the meeting that real pay and living standards were basically frozen when inflation and mortgage payments were taken into account.

"Higher inflation has wiped out any real wage gains," he said, while average pay had fallen by 1.2% in the 27 months of Towards 2016.

SIPTU Shop Steward Kieran Allen said the recession was caused by financial speculators "who've gone around the world, treated the world like a global casino. They're now bringing the world economy down to its knees".

Workers would not "carry the can" for them, and he warned that incoming Taoiseach Brian Cowen "is not going to bully the trade union movement".

Workers were not responsible for higher interest rates, higher fuel and food prices, he said.

Michelle Monaghan from the Health Professionals branch said the partnership talks were "the only game in town" and it would be a "disaster" to negotiate pay increases individually.

Paul Hansard from the Dublin Construction branch said conditions on construction sites were now "actually worse than they were before the agreement came into play". Large firms were removing direct employees and workers were being let go if they queried any practices, he said.

MANDATE return

MANDATE, which represents about 44,000 staff in the retail and bar sector, is to return to the national pay talks, two years after withdrawing from social partnership.

Mandate pulled out of the process in 2006 because it believed that national deals had failed to deliver for low-paid workers in the private sector. In the interim, the union has negotiated locally with employers and has said it secured a number of deals which gave workers increases over and above those in the National Agreement.

MANDATE General Secretary, John Douglas yesterday said that while the union would take part in talks today on a new pay deal, it would "reserve its position and re-evaluate its participation at any time in the future".

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THE GOVERNMENT has been strongly criticised by some of the social partners over a failure to implement several commitments set out in the current national agreement, Towards 2016.

The director of the Conference of Religious of Ireland (CORI) Justice, Fr. Seán Healy, said he would call into question the Government because of the non-implementation of key commitments.

Fr. Healy said these included the provision of funding for 300 primary care teams.

He also said the Government had failed to provide adequate funding for the mental health strategy, to deliver the National Carers Strategy and to make progress on resourcing those who had not previously pursued third-level education.

Fr. Healy said targets adopted in other national strategies had been hugely at odds with the commitments contained in Towards 2016.

He said these included setting a target for adult literacy in the National Action Plan for Social Inclusion "which accepts as okay that between a third and half a million people in the labour force will have serious literacy difficulties in 2016".

Fr. Healy added: "Major commitments on social issues in areas such as primary healthcare teams and adult literacy have not been honoured" (Irish Times, 25.4.2008)

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"Social Partnership Must Go"

"That time is past. Bertie Ahern and Brian Cowen should not waste too much energy chasing an agreement if it becomes clear that none is possible. Social partnership has served its purpose and is edging towards history. Its passing should not be mourned." (Sunday Independent, 17.2.2008).

"The danger now is that another deal will be agreed in order to keep the process alive, regardless of the economic consequences.

"This must be avoided at all costs. Strong political leadership is now much more important than a social partnership deal.

"Hopefully, Brian Cowen will deliver that. It is time to give social partnership a Christian burial." (Jim Power, Chief Economist, Friends First Group, Irish Independent, 24/4/2008).

"'Social partnership', far from promoting social cohesiveness and inclusion, has created a privileged class of workers in the public sector whose wages are paid for by a much less well-paid private sector. This isn't "social partnership", it's social exclusion.

"'Social partnership' was very much the creation of one man, Bertie Ahern. Now that he is leaving in disgrace, it's time to take a long, hard look at his legacy.

"'Social partnership' and centralised pay deals which only benefit public-sector workers should be top of the list.

"Brian Cowen should scrap 'social partnership' right now." (Dan White, Evening Herald, 24.4.2008).

No Wage Agreement—
No Partnership Agreement!

"Since the social partnership process began back in 1987, the wage element has been the central feature of the process, and it will be so again this time around.

"Without a wage agreement, the partnership process would fall apart" (Jim Power, Irish Independent, 24/4/2008).

"Of course, national pay agreements are not set in stone. If negotiators cannot reach a wage deal that benefits both sides, all bets are off and there would be a reversion to free collective bargaining. Many would applaud just such an outcome, but they should be careful of what they wish for.

"Free collective bargaining would reward the strong and punish the weak. Those operating in the non-traded sector—in local monopolies and the public sector—would benefit while those in the traded sector, particularly low-skilled workers in vulnerable industries, would suffer.
The transition to new types of bargaining procedures would cause dislocation and, most probably, an increased incidence of industrial disputes.

"But the principal costs would be social, not economic. Social partnership has been an attempt, often muddled, at creating a common bond—a sense of belonging—among all who live in Ireland at a time when exceptional economic change has placed great stress on the social fabric. Prolonged booms usually induce sharp redistributions of income, widening the gap between rich and poor.

"The evidence suggests this has not happened in Ireland. Income inequality has not decreased, but neither has it increased appreciably. Prof Robert Erikson of the Swedish Institute of Social Research wrote last year *: "The general increase in income does not seem to have been matched by a general change in income inequality, except for a possible but uncertain increase of the relative share of the very highest incomes."

"The Irish social partnership model, supported by the policies of successive governments, is founded on the belief that there is such a thing as society. This is not an article of faith that should be lightly discarded. We are more than a collection of individual self-interested profit-maximisers" (Paul Tansey, Irish Times, 25.4.2008).

*Best of Times?, edited by Tony Fahey, Helen Russell, Christopher T. Whelan, IPA, 2007, page 271.

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UNEMPLOYMENT reached its highest level in almost nine years (5.5%), the state employment agency FAS warned of further job losses by next year.

The general jobs market situation has been bleak since Christmas, with almost 1,500 employees being told they were to be laid off, either immediately or in the coming months.

Company liquidation, the relatively high cost of labour here and the downturn in the economy were among the reasons given for the job losses.

On April 29th, computer giant Dell announced the loss of 250 jobs in Dublin and Limerick.

Smurfit Kappa plant in Waterford is to cease production on May 8 with the loss of 24 full-time jobs.

Wavin, Europe's leading supplier of plastic pipe systems, said it would have to shed 50 jobs at its Balbriggan base, due to the fall-off in construction.

In February, Merriott Radiators in Clonmel, Co Tipperary announced that it was to close with the loss of 90 jobs.

The same day, staff at Grove Turkeys in Smithboro, Co Monaghan, were told of company plans to shed 130 jobs.

Workers at one the country's most iconic stores Arnotts also heard of plans to cut 400 jobs this year, ahead of a €1bn redevelopment. Arnotts, however, will employ a total of 1,200 in its new store.

On January 31st, pharmaceutical company Allergen announced that it is to close its plant in Arklow with a loss of 360 jobs.

The company will transfer its production of silicon and saline breast implants from Arklow to a state-of-the-art plant in Costa Rica.

A few days earlier, Jacob Fruitfield Food Group confirmed it was restructuring its operations with the loss of 220 jobs in Tallaght, Dublin.

And 100 jobs were lost in Dundalk, Co Louth with the failure of iQon Technologies.

In Bray, 40 staff at Trinity Biotech's manufacturing facility lost their jobs in a major restructuring operation.