Social Partnership in Ireland Michael Greene Department of Jobs, Enterprise and Innovation Dublin Social Dialogue Workshop Belgrade February 2013

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

Role of State State provides framework that supports collective bargaining Legislation and Institutions 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

Role of State (continued) 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

Negotiation Licence Criteria The 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 A 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

“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

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

Trade Union Density % % % % %

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 Agreement 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 Also under Constitutional scrutiny

Trade Union Recognition Irish Constitution guarantees right to join a trade union No right to have unions recognised by employer 2001 and 2004 Industrial Relations Acts an “Irish solution to an Irish problem”- seen as workable solution 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

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 Collapse 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 Employer/Union National Protocol governing orderly conduct of industrial relations

Croke Park Agreement Agreement between government and Public Service Unions Three year pay freeze in return for efficiencies and increased flexibilities No further pay reductions or compulsory redundancies Government currently negotiating extension- seeking additional €1billion on pay savings

Future of Social Dialogue Social dialogue continues to play a critical role in policy making Government values dialogue with key representatives of civil society 2012 call for new mechanism Regular contact takes place on issues of concern through bilateral contacts or consultation dynamic and has taken many forms over the years and continues to do so.