Towards 2016

The big news on the Labour front for September was the massive acceptance by Trade Unionists of the seventh Social Partnership programme "Towards 2016".

More dramatically, Ireland's workforce has exceeded two million for the first time in the state's history and has presented organised labour with a huge challenge.

More than half of the increased workforce of 87,800 are immigrants: 55% of the total.

More ominously, the construction industry alone accounted for almost a quarter or 20,300, of the State's new workforce. There are 250,000 people currently employed in construction—a serious imbalance in the economy, some say.

Finally, the soaring cost of housing and energy brought the annual rate of inflation to 4.5pc in August, the highest figure for almost three and a half years.

And, yes, the farmers have still not signed 'up to a deal' on "Towards 2016".

AFTER VOTING to accept "Towards 2016", the new National Pay Agreement, the many Cork delegates who attended the Irish Congress of Trade Unions' Special Conference at the Jury Doyle Hotel, Ballsbridge, Dublin, on Tuesday, 5th September 2006, got a big shock on arriving at Mallow railway station to be informed that they would have to find a way home other, than by rail.

A strike by rail maintenance workers crippled Iarnrod Eireann's InterCity and commuter rail services. Workers walked off the job in protest at being asked to undertake work which, they argued, should be carried out by others.

The men were supported by other Iarnrod Eireann workers in Cork.

"Industrial peace may be the order of the day in general, but incendiary disputes in both the private and public sectors, although not of a traditional type, seem inevitable in the current climate" (Industrial Relations News, 13.9.2006).

Delegates to the Special Conference of the Irish Congress of Trade Unions (ICTU) voted by a big majority—242 in favour and 84 against—to accept the 10-year agreement Towards 2016: a 74% majority.

The main employers' body, IBEC, announced that its members had also accepted the deal, which was negotiated by the social partners and the Government earlier this year.

As well as a 10-year social and economic strategy, the agreement includes new measures to uphold labour standards and a 10% pay increase for workers in phases over 27 months, which provides for average pay rises of 4.6%.

Public servants will receive the first-phase increase of 3% on 1st December 2006 but a large proportion of private-sector employees will have their pay rises backdated to January 1st, 2006.

They will receive a 3% rise from that date, as well as a further 2% increase due to them since 1st July 2006, giving them a cumulative increase of slightly over 5%.

Many Union leaders were swayed by promised improvements in monitoring and enforcement of employment standards and labour legislation.

The 32,000-member Irish Nurses' Organisation opted out of the 'social partnership' decision after its delegates voted on 1 September 2006 to pursue their 10.2% pay claim and demands for a 35-hour basic working week.

And the 40,000-strong MANDATE retail Trade Union also withdrew from the process six months ago and is pursuing individual demands for a flat €1 an hour increase in basic pay rates.

"…there was little by way of excitement. Most of the speakers had been around the same track a few times already in the past year and were glad to move on. The opponents of the deal, while critical of the pay arrangements, were—without exception—pleased with the employment standards measures" (Industrial Relations News, 13.9.2006).

That traditional Union opponent of centralized bargaining on principle, the ATGWU, epitomized the above. John Bolger made a point of praising the Executive of Congress for a job well done in this regard. He was one of many speakers who took their cue from IMPACT Deputy General Secretary, Shay Cody, who thanked the management of Irish Ferries and Ryanair for giving a major boost to the Union movement in the form of the new employment standards and for the 2001-2004 Industrial Relations Acts.

The size of the vote in favour was striking across most of the Unions that accepted the deal. SIPTU members in both sectors backed it by a similar margin (72%), while in Unions that used to oppose the deals, like the TEEU, there were big votes in favour.

The chief negotiator, Congress General Secretary, David Begg, said that Congress believes that when the pay agreement expires there will be 'headroom' between it and the overall inflation picture.

Begg also believes that the employment standards measures constitute—

"perhaps the single most important piece of social legislation ever seen in this country. Across the globe, good working conditions and standards are under threat…Here in Ireland we have reversed that trend".

Several delegates expressed concern that the pay increases might not keep pace with inflation.

There were also calls for Unions to engage in concerted action to prevent employers from downgrading Pension Schemes.

The agreement includes a commitment by the Government to engage with Unions and employers in drawing up a comprehensive policy on pensions. It is also to publish a Green Paper on the issue.

Irish Bank Officials' Association President Colman Moore said Pensions had been a key issue in the latter stages of the Partnership talks, but what had emerged in the Agreement had been a "major disappointment".

"Even the proponents of the deal have publicly stated the section on pensions is extremely weak," he said, after informing the conference that IBOA members had voted by nine-to-one to reject the Agreement.

However, Public Service Executive Union General Secretary Dan Murphy reflected the majority view when he said opponents of the Agreement had failed to put forward a better course of action.

Technical, Engineering and Electrical Union leader Owen Wills said the employment standards provisions of the Agreement addressed issues of concern to workers in the construction and electrical sectors.

The Teachers

The Association of Secondary Teachers in Ireland (ASTI) said there had been an 82% vote to reject the Agreement.

Only 15% of its members entitled to take part in the ballot actually voted on the Agreement, which the Union claims failed to address key issues such as the under-funding of second-level education, overcrowding in classrooms, under-resourcing of science education, and a lack of emphasis on special education needs.

The Teachers' Union of Ireland has also rejected the Agreement in a members' ballot. TUI General Secretary, Jim Dorney, suggested that pay should be indexed linked with further local bargaining allowed on top of this.

Taking the opposite view, John Carr, Irish National Teachers' Organisation (INTO) General Secretary, said the "priorities of this Agreement are the creation of a fair economy and society which distributes its resources in an equitable manner. It is a timely and badly needed vision for modern Ireland."

MANDATE?S
Pay Challenge

Most of the criticism came from traditional opponents, or from those who—like the IBOA and ATGWU—believe they could secure better pay deals in free collective bargaining.

Mandate, by its very absence from the process this time, believes the same. Its General Secretary, John Douglas, has attacked "the restrictive agenda placed on wage increases" which, he claims, governed the conduct of the talks from the outset. Douglas also believes that the "cosy consensus of social partnership" has done little to improve the lot of lower—and many middle-income earners. (Mandate has lodged pay claims with all major retailers in a bid to secure an extra Euro 1 per hour on all existing hourly rates for 25,000 workers across the country.)

John Douglas
Interview

"Last October, we decided not to participate in a process to thrash out a successor agreement to Sustaining Progress. Why then did we choose to remain outside of the talks, while the vast majority of our colleagues in ICTU decided to proceed?"The answer for us is very simple. For our members, most of whom are employed in the booming retail and hospitality sectors, the restrictive agenda placed on wage increases which governed the conduct of the talks from the outset did not inspire any hope that this agreement would do any more than its predecessor deal did to address the ever-widening gap between those on higher incomes and those at the lower end of the scale.

"The sop of an extra 0.5% pay increase negotiated at the 11th hour at the national agreement talks for those earning less than Euro 10 an hour is, in MANDATE's opinion, nothing more than a sick joke at the expense of the lower paid.

"Research carried out last year on behalf of the union by Farrell Grant Sparks Consulting shows that since 1998, the wages of full-time equivalent workers in the wholesale and retail sectors grew by 34.7%, a full 10% behind the average in the economy of 44.8%.

"Profits in retail have increased dramatically. In the decade between 1995 and 2004, the incomes of retail workers increased by 126%, while profits increased by 338%." (John Douglas, General Secretary of MANDATE, Irish Times, 5.9.2006).

THE LAST WORD?

The final words at the Congress gathering were left to SIPTU General President, Jack O?Connor, the pivotal figure in the talks, and leader of the largest Trade Union. He said they should have no illusions that by ratifying the Agreement that the agreed measures would actually be realised.

"The same forces that resisted them will continue to resist them…the same forces that see Trade Unions and labour regulations and agreements as impediments on the free market."

The Unions must protect the gains made in employment regulations, gains that he said were the "most significant in almost half a century".

While it could be argued that some of the gains made would be achievable in the context of a General Election, O?Connor said that no one who had been through disputes such as Pat the Baker, right up to the present day, would really believe that.

And he signed off with a warning on inflation and its impact on the pay deal: if the inflation forecasts are not realised, he hoped that this would be confronted by "a united trade union movement".

IBEC Director General, Turlough O'Sullivan, for the employers, said the pay terms were at the higher end of what was appropriate for the Irish economy.

"However, business and employers have agreed to the programme on the grounds that it will deliver stable economic development, industrial peace, real reform in the public sector, increased productivity and practical measures to assist the manufacturing industry."

Towards 2016: the pay provisions

Workers covered by the new 27-month pay deal will receive the following increases:

• An initial increase of 3% (the start date for this first phase varies from one employer to another but generally, January 1st, 2006);

• 2% after six months of the deal (additional 0.5% for those earning Euro 10.25 or less per hour);

• 2.5% after a further nine months;

• 2.5% after a further six months to cover the final six months of the Agreement.

Public sector staff will receive the first increase of 3% on December 1st, followed by increases on June 1st, 2007, March 1st, 2008, and September 1st, 2008.

A tendency to 'whinge'?

"Ultimately, most opponents of social partnership deals within the trade union movement, are made up of activists or officials. But even the proponents of the system can undermine their own cause" (Industrial Relations News, 13.9.2006).

This point was effectively made by Public Service Executive Union (PSEU) General Secretary, Dan Murphy. A staunch supporter of the Agreements, Murphy said the achievements in respect of the employment standards "are in sharp contrast to the position in other countries where the trend is in the opposite direction".

Another issue the Unions need to take into account is the relationship between their approach to the programme and Trade Union organisation.

"We have a tendency—not just in respect of the Programmes but in almost everything we discuss—to concentrate on what we might not have achieved and to appear almost as 'whingers'. Yet, at the same time, we recognise that our overriding concern has to be to strengthen the Movement by a massively enhanced recruitment and organisation programme."

Murphy said it was difficult to imagine "a less effective means of seeking to attract workers to our cause than to spend our time highlighting what we may not have achieved". On the contrary,

"we need to make the most of the gains the Trade Union movement has secured in this Programme and trumpet them abroad as real and significant gains in this, our core activity. We should not be sheepish about the gains we have made and which are for the benefit of workers generally."

Murphy is correct about the 'whingers' who see all the faults, failures and 'might-have-beens'—but cannot acknowledge any gains, unless begrudgingly.
The Left have still the hang-up about 'revolution'—it blinkers everything else. They cannot be seen to be helping the 'system' to work. Rather than engage in social partnership, they just sit and whinge, waiting for the recession.

The fundamental contradiction in all these agreements since 1987, surely, is the absence of price control. All we have is wage control. If the Left took up this issue and took it up seriously, Dan Murphy's persona as the 'rational, reasonable' voice of Trade Unionism would be quickly exposed. But again, he need never worry as the 'whingers' just do not believe in social partnership or even a prices and incomes policy.

To them, it would be total betrayal, if the Left did anything to make these social programmes work more effectively, even if that effectiveness is to the greater benefit of their members and the working-class generally.

You see it in the writings of the Social Workers' Party activist, Kieran Allen—in the book: The Celtic Tiger: the myth of social partnership in Ireland. Allen completely avoids the issue of price control in tandem with wage control.

As we go to press, our argument about price control is borne out, further:

"Trade union leaders last night called for E.S.B.'s planned 19.7% hike in electricity bills to be scrapped, say the rise endangered wage agreements.

"ICTU fears the rise—along with the 33.8% hike in gas bills from next month—will eat into wage increases and squeeze hard-pressed families" (Irish Examiner, 22.9.2006).

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Sadness as workers
leave Irish Ferries

"JUST to let you know," said the e-mail to Seascapes, "that the last Irish Ferries ratings, directly employed by the company, have left.

"There are still a small number of officers left but they will be going soon also. We put up a good fight but the time had come to bow out gracefully. Thanks to everyone who supported us along the way. It was a good job—The best…But now it is only a part of Irish maritime history. Irish Shipping went, B&I followed it and also closed, then came Irish Ferries but it has few Irish seafarers left."

"An e-mail with a tinge of sadness and regret. As I understand it, there were, after the Irish Ferries dispute earlier this year, 48 Irish seafarers left in the company. There are now about 12. I asked Irish Ferries for comment, but they preferred "not to go back into that debate" (Tom MacSweeney, Seascapes, Evening Echo, Cork, 13.9.2006).

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Benchmarking

No wonder Dan Murphy and the Public Service Unions can go ahead and put all their endeavour into the second programme of Benchmarking—the Private sector workers are out of the way now, they have their 10% for 27 months.

The cost of implementing the first phase of Public Service Benchmarking in July, 2002, was over Euro 1.1 billion for two years. These special pay increases averaged out at 8.9%, but varied from 3% to 25% across the Public sector. It meant that the public sector workers, on average received pay increases of over 16% under Sustaining Progress 2003-2005.

Murphy and McLoone may be regarded as 'reformist' Trade Union leaders but they have kept their eye on the political ball on behalf of their members.
The public service is the country's largest employer, 235,000, nearly 20% of the working population—immune from the waves of East European immigration.

No wonder Bertie Ahern and Fianna Fail view them as the bulwark of Fianna Fail's vote!

Two Million
Workers

Herein lies the greatest challenge to the future of the Trade Union movement:

* Employment stands at 2,017,000, the first time the workforce has exceeded two million.

* More than 84,000 from the new EU member states form part of the workforce.

* Just less than a third of those employed have a third-level qualification.

Employment and the labour force grew by 4.7% and 4.8% respectively, outstripping the EU averages of 1.7% and 1.25%. Since 1998, the number of people in employment has grown by more than half a million.

The construction and services industries continue to fuel employment growth in Ireland, according to the latest figures released by the Central Statistics Office (C.S.O).

The survey shows Ireland?s workforce has exceeded two million for the first time in the state?s history.

The construction industry, alone, accounted for almost a quarter, or 20,300, of the country's new workforce.

More than half of the country?s new workers are foreign nationals, who make up 55% of the 87,800 increase in the workforce.

The total workforce of Ireland now stands at 2,017,000 people.

The biggest employment increases were in the 25-34 year age category, which seen an overall increase of 36,000 jobs in the 12 months since April 2005.

Congress is the largest civil society organisation on the island, representing and campaigning on behalf of some 770,000 working people. There are currently 56 Unions affiliated to Congress, north and south of the border.

"Total affiliated membership in the Republic of Ireland was 557,097, in 43 Unions—an increase of in membership of 10,277 over 2004." (ICTU—Report of Executive Council, 2003-2005).

Trade Union membership in Republic as percentage of all employees
1960	44.0%
1975	55.0%
2000	36.7%
2001	37.6%
2002	35.6%

Minimum Wage
Increase

EMPLOYERS and Trade Union representatives failed to agree on increasing the minimum hourly wage rate in advance of the ICTU Special Conference on 5th September 2006.

Earlier this year the main 'social partners' agreed that they would "make a joint recommendation as to the amount of the increase by September 1, 2006".

This is set out under clause 2.1 of the new pay terms. The wage rate affects an estimated 220,000 workers.

Neither the Ibec employers nor the Irish Congress of Trades Unions' representatives have even met to consider a revision of the minimum wage.

They are now expected to meet later this month and if agreement is not reached the matter is likely to be referred to the Labour Court.

Under the Sustaining Progress pay deal, both sides decided to outsource the determination of the minimum wage increases to the Labour Court which, most recently, recommended a 65 cents rise to Euro 7.65. The minimum wage adjustment is due to come into operation at the beginning of 2007.

The Irish hourly minimum wage is the second highest within the EU.

Nurses and Shop
Workers go it alone

As reported above, the pay terms were also side-stepped by two leading ICTU Unions, the Irish Nurses' Organisation, which has made demands including a 35-hour working week, and MANDATE, which is asking for a €1-an-hour wage rise for most of its members in stores and supermarkets.

Delegates at a special Irish Nurses' Organisation (INO) meeting on 1st September 2006 voted unanimously for a 'go-it-alone' policy separate from the Irish Congress of Trades Unions.

The Union, representing 32,000 members, put a claim to the Labour Court in June and a recommendation is expected this month.

They are seeking: a standard 35-hour working week; a wage rise of 10.5% for nurses; a special Dublin living allowance; a review of premium and overtime pay; payments for monitoring trainees; and extra senior nursing promotion jobs.

INO General Secretary Liam Doran explained that his Union is not indicating acceptance, rejection or abstention. It would indicate its position on the Towards 2016 terms after its members consider the anticipated Labour Court recommendation.

The INO. has already decided to boycott the second Public Service benchmarking review because it feels that its concerns were ignored by the first review in 2002.

Mr. Doran explained that his Union is engaged "in a difficult balancing act", which involves "assessing the benefits of 'Towards 2016' and the nurses' ongoing pay campaign".

"We cannot remain an independent trade union and also be constrained by the concept of social partnership, which has achieved many good things but also hindered our ability to address our members' claims."

Seven years ago, nurses held a nine-day strike which secured special increases and spurred the Government and other Public Service Unions into promoting the concept of benchmarking.

The delegates heard that since 1999 about 7,500 nurses left the country, while many older nurses decided to opt out of the health service.

Bureaucracy

Mr. Doran criticised the growing "layer upon layer of management bureaucracy in the Health Service Executive, which paid 11% pay rises to the growing number of managers".

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SOCIAL PARTNERSHIP
AGREEMENTS 1987-2008

FIRST PROGRAMME: (1987) Programme for National Recovery (3 years = 36 months)
Increase in basic pay at the beginning of each of three subsequent years (1988, 1989 and 1990) of 3% on the first £120 (Euro 152.37) of basic weekly pay and 2% on the balance (yielding an estimated average increase of 2.5 %). A minimum increase of £4 (Euro 5.08) per week in basic pay for full time adult employees would apply.

SECOND PROGRAMME: (1991) Programme for Economic & Social Progress (3 years = 36 months)
First Year: 4%; Second Year 3%; Third Year 3.75%. Total: 10.75%.

THIRD PROGRAMME: (Jan. 1994, December 1996) Programme for Competitiveness and Work (3 Years = 36 months)
First Year: 2%; Second Year: 2.5%; Third Year (first six months): 2.5%; Third Year (second six months) 1%. Total: 8%.

FOURTH PROGRAMME: (Jan. 1997-March 2000) Partnership 2000 for Inclusion, Employment and Competitiveness (3 Years and 3 Months—39 months)
First Year: 2.5%; Second Year: 2.5%; Third Year (first nine months): 1.5%; Third Year (final six months): 1%. Total: 7.5%.

FIFTH PROGRAMME: (April, 2000-Dec. 2002) A Programme for Prosperity & Fairness (2 Years and Nine Months-33 months)
First Year: 5.5%; Second Year: 5.5%; Third Year (nine months): 4%.
Total: 15%

SIXTH PROGRAMME: (January, 2003-Dec. 2005) Sustaining Progress; (3 Years = 36 months)
3% over 9 months; 2% over 6 months; 2% over 6 months; 1.5% over 6 months; 1.5% over 6 months; 2.5% over 6 months. Total: 12.5%.

SEVENTH PROGRAMME: (January, 2006-March, 2008) Towards 2016; (2 Years and 3 months = 27 months)
3% over 6 months; 2% over 9 months; 2.5% over 6 months; 2.5% over 6 months. Total: 10%.

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Inflation Stalks

THE soaring cost of housing and energy brought the annual rate of inflation to 4.5% in August, the highest figure for almost three and a half years.
Despite less aggressive rises in the cost of petrol and mortgages in the second half of the summer, consumers are still being hit hard for everyday goods and services, new figures show.

According to the Central Statistics Office, inflation increased by 0.7% last month alone.

Consumer prices were 4.5% higher than in August last year—the fastest rate of annual inflation since March 2003.

CSO figures showed higher oil and interest rates drove the cost of housing, water, electricity, gas and other fuels almost 17% higher over the year, while transport costs rose 5.2%.

Dearer energy and mortgages account for almost half the 4.5% increase in the national shopping basket. But the other half appears to be rising in price faster than elsewhere in the Euro area. Health costs were 4.1% higher, education charges were up 4.7%, and restaurant and hotel prices rose 4.3%.

Several economists predict inflation could reach 5% by the end of the year, with Davy Stockbrokers forecasting a grim 5.5%. "The last increase in mortgages will show up in September inflation, with more to come", they said.

"If this trend continues, inflation at general election time could be the highest since the election of this Government in 1997," said Green Party Finance spokesman Dan Boyle, T.D.

Labour Standards

SIPTU General Secretary, Joe O'Flynn said:

"Union members have clearly decided in favour of the proposals on the basis of the substantial progress achieved on measures to combat exploitation, the threat of displacement and the proper enforcement of labour standards as well as the wider social agenda.

"Our concerns in this area were highlighted by the events surrounding Gama and Irish Ferries and we held firmly to the view that only when sufficient progress was made on these issues could we proceed to consider the rest of the talks agenda," he said.

Employment Rights Compliance
and Enforcement

* A new high-level Office of Director of Employment Rights Compliance (ODERC) to be established. The number of Labour Inspectors will be increased from 31 to 90 by end of 2007 and will have much greater administrative support. Penalties on employers for non-compliance are to be greatly increased.

* Joint Investigation Units: New legislation to allow Revenue, Social Welfare and ODERC to work together, share data and target areas on non-compliance in JIU's.

* Sub-Contractors in Construction: The RCT1 (Tax-Form) regime will be overhauled to minimise bogus self-employment. The employment status of workers will be a particular focus of the JIU's.

* Employment Records: Legislation will be introduced to require the keeping of statutory employment records in a prescribed format. Failure to do so will be a criminal offence punishable by a fine of up to Euro 250,000.

* Amendments to the Protection of Employment Act, 1977 and the Unfair Dismissals Acts, 1977-2001, will be put in place to prevent replacement of workers via collective redundancy and awards of up to five years salary for dismissals in this context.

Economic Migration
Policy

* Workers will own their own work permits. Non EEA students will have to be covered by work permits; permit holders may transfer between employers and language schools will be regulated.

The Lords of
the Land

The Irish Farmers' Association (IFA) and the other farming bodies have still not signed up to Towards 2016.

The IFA. newsletter for the World Ploughing Championship being held in September in Tullow states: "I.F.A. could have signed up to a deal in June, at the same time as the Employers and Unions, but the money on offer fell far short of what farmers require."

It is understood the farm lobby is seeking €7.1 billion and Government has offered €6.3 billion.

"The Partnership agreement coincides with Ireland's next National Development Plan 2007-2013, which covers all the key farm schemes: REPS, Disadvantaged Areas, Early Retirement, Installation, On-farm Investment and Forestry.

"In 2000-06, these schemes were funded roughly 50:50 by the national exchequer and the E.U. In future, because of Ireland's prosperity, the E.U. share will decline.

"As a result, the national share of funding will have to increase to about 70% for 2007-13. The total value of these schemes to farmers will be close to €1,000m per year for the next seven years." (IFA September newsletter).

What the farmers are seeking is for the workers to make up the shortfall they will now experience with the reduction in EU subsidies.

Where is the voice of Labour?

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"A group of up to 130 Irish farmers in an investment syndicate are pooling their resources to build a $200 million (€157.5 million) apartment development and golf course in Florida, one of the biggest holiday destinations in the U.S." (Irish Times, 21.9.2006).

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TRADE UNION
NOTES

LECH WALESA, the legendary founder of Poland?s Solidarity movement which helped bring down communism, said yesterday he had formally left the Trade Union.

"I have given up my membership because Solidarity and I have gone separate ways," he said.

He also said he planned to stay away from events marking the 26th anniversary of Solidarity's founding on 31st August, 2006.

COACH DRIVERS working for private bus operator Aircoach have won Trade Union recognition after a 20-month organising campaign.

SIPTU organiser Paul Hardy said the Union began recruiting Aircoach drivers in January, 2005. Management had initially resisted unionisation despite the fact that its parent company, First Group, recognises Trade Unions throughout Britain.

"We're delighted to have finally concluded this recognition agreement," said Mr Hardy.

"Our members now hope to build on the recognition agreement and the improved industrial relations atmosphere at the company to make real improvements in terms and conditions."

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