Irish Social Dialogue Model

Past to Presentand

Recent Policy Developments

Liam KellyDepartment of Jobs, Enterprise and Innovation

Ireland

Irish System of Industrial Relations

• Inherited structures from UK model• Irish System began to take shape in 1940s:

– Voluntarist System of Collective Bargaining– Agreements binding “in honour”– No intervention by State– Floor of statutory rights e.g. minimum wage laid

down, sectoral agreements can be given statutory effect, etc.

Role of State

• State provides framework that supports collective bargaining– Legislation and Institutions

• Trade Union and Industrial Relations Acts• Labour Relations Commission• Labour Court• Employment Appeals Tribunal• Equality Tribunal• NERA

Labour Relations Commission

• Conciliation Service assists employers and workers and their trade unions in resolving disputes

• Advisory Development and Research Service works with employers and employees to build and maintain good relationships in the workplace

• Rights Commissioners investigate and recommend/decide on grievances referred by individuals or small groups of workers

Labour Court

• Tripartite• Court of last resort in industrial relations area• Mediates and adjudicates• Adjudications generally are non-binding• Also functions as appeals body in Employment

Rights cases

Employment Appeals Tribunal– Determines matters of dispute under a range of

employment rights legislation, including redundancy, Unfair Dismissals Act

Equality Tribunal– investigate or mediate complaints of

discrimination

National Employment Rights Authority– secure compliance with employment rights

legislation– Inspectorate/Information/Advice

Reform of Institutions

• System confusing and slow• New Workplace Relations Commission• One single body of first instance and one

appeal body• Single Point of entry for complaint• Early resolution, inspection and adjudication

Trade Union Legislation

• Trade Union Acts 1871, 1913, 1941 and 1975• Industrial Relations Act 1990 • Trade Union Negotiation Licence required to

engage in collective bargaining• No explicit “right to strike” – tort protection

Trade Union Representation

• Irish Constitution guarantees right to join a trade union• However – Constitution does not provide for obligations• 2001 and 2004 Industrial Relations Acts

– Provided mechanism where “non-union” employers could have legally binding terms and conditions imposed by Labour Court

– 2007 Supreme Court challenge by Ryanair – Government committed to review the legislation– Consultations with social partners underway

Negotiation Licence Criteria

• Trade Union must notify the Minister 18 months in advance• Must have a minimum of 1000 members in the State• €25,000 to €76,000 (approx) must be deposited with the High

Court - Minister can reduce amount of deposit• Rules of the Trade Union must include provisions relating to

secret ballots• Trade Union under the law of another country must have a

committee of management or other controlling authority consisting solely of members resident in the State who are empowered to take decisions

Trade Union Amalgamations

• Policy of Government and Unions to address problem of union proliferation

• 1975 Act provides mechanism for mergers, including financial assistance from State

• 120 trade unions were operating in State in 1941 – currently 39 hold negotiation licence

• Review

Trade Union Density

• 1994 - 46%

• 2001 - 38%

• 2007 - 31%

• 2010 - 33%

• 2012 - 31%

Similar to patterns elsewhere

“Excepted Bodies”

• Allows bodies which do not have a negotiation licence to carry on collective bargaining negotiations

• Essentially single employer representative bodies

• Exempted from having to make a financial deposit with the High Court

Collective Bargaining

• Bargaining at Individual and Collective level• Voluntary – generally not enforceable in Law• Joint Labour Committees• Registered Employment Agreements

Joint Labour Committees

• Machinery for fixing pay and conditions in low-pay sectors (e.g. Hospitality, Security, Cleaning)

• Collective Bargaining not well established• Committee draws up proposals - given legal

effect by Ministerial Order• Old system struck down as being

unconstitutional• New 2012 Act restores mechanism

Registered Employment Agreements

• Collective Agreement at enterprise or sectoral level• Once registered given legal effect by Ministerial order• Effect is to make agreement legally binding on parties

and others who are not party but in categories covered by agreement

• Mostly in Construction Sector• Supreme Court -unconstitutional• What next?

Social Partnership in Ireland

• Between 1987 and 2009• Series of 7 national agreements between

Government and social partners• Involved centralised pay deals• Evolved over yearswider range of policy areas,

including competitiveness, education, social policy, farming

Position in 1987

• Unemployment of 17%• Inflation of 12%• Public finances in disarray• High level of industrial unrest – 310k day lost

in 1986

Position in 2006

• Unemployment rate of 4.4%• Inflation at 2.2%• Public Finance under control• real earnings of workers increased by over

40%• Days lost to disputes down to 4100 in 2008

2009 – All Changes

• End of Social Partnership in December 2009• Severity of economic crisis too much• One outcome is division of procedures

between private and public sectors• Private sector returned to local bargaining and

governed by two Employer/Union National Protocol governing orderly conduct of industrial relations

Public Sector Agreements

• Agreements between government and Public Service Unions - 2010-2014 and 2013-2017

• Three year pay freeze in return for efficiencies and increased flexibilities

• No further pay reductions or compulsory redundancies

• Further additional €1billion on pay savings – some pay cuts, extended hours etc.

Position in 2013• Unemployment at 12.8% (down from 15%) i.e. (-40,000 over year

and -20,000 in last quarter)• Inflation pretty much flat• Numbers at work increasing - +3% (60,000)• Cost competitiveness within the EU has improved by over 20%

since 2009 – • Labour costs continue to decline – down 5% since 2011,• Our budget deficit will most likely fall below 3% of GDP by 2015,• Long-term Government bond yields are now at less than 4% down

from 14%, five years bonds gone from 7% to 3%, • We have implemented the conditions of the IMF-EU programme

and are on track to leave the bailout by year-end.

Future of Social Dialogue

• Social dialogue continues to play a critical role in policy making

• Government values dialogue with key representatives of civil society

• Social Partners and new mechanism• Regular contact• Dynamic