New commitments on housing and social welfare, as well as an 11th hour agreement on pensions, are among the key elements of the new social partnership programme, Towards 2016.
Agreement on a successor to Sustaining Progress was finalised yesterday, with the exception of the agriculture section which the parties hope to conclude by the weekend.
For the first time since the partnership process began in 1987, the agreement includes a 10-year strategy for social and economic development. Specific commitments include a plan to solve the social housing problem by 2013, beginning with the provision of 27,000 social housing units within the next three years.
The lowest social welfare rate for a single person is to be raised to 30 per cent of gross average industrial earnings in 2007 and maintained at that level for the next years. These and other measures were welcomed yesterday as a "major breakthrough" by Cori Justice Commission director Fr Seán Healy, a participant in the talks as a member of the community and voluntary pillar.
Unions, employers and the Government also finalised measures in recent days to underpin employment standards and combat exploitation.
Central elements of the package had already been agreed, such as the setting up of a new Office of Director for Employment Rights Compliance.
Outstanding elements, such as steps to improve the regulation of employment agencies, were concluded in recent days.
A deal on pay had been delayed because of a row over pensions, which was also settled this week.
Among the measures agreed are that disputes over pension funds can be referred to the National Implementation Body, while the Government is to engage with employers and unions to formulate a comprehensive policy on pensions, leading to the publication of a Green Paper within 12 months.
The basic pay elements of the agreement will see workers receive a 10 per cent rise, in four phases, over 27 months.
Minister for Enterprise Micheál Martin said the employment rights package provided for in the agreement would guarantee the necessary strong protection of employment standards, "while also ensuring that Ireland continues to provide an excellent environment for business and job creation".
Towards 2016: main points
Pay, the Workplace and Employment Rights Compliance:
• 10 per cent pay increase in four phases over 27 months;
• Additional half per cent increase for those earning €10.25 or less;
• Minimum wage increase to be agreed by September 1st and applied from next January;
• Green Paper on pensions to be published within 12 months;
• Office of Director for Employment Rights Compliance (ODERC), to be established, staffed by 90 labour inspectors;
• New legislation to prevent employers from making people redundant in order to replace them with cheaper labour;
• New penalties of up to €250,000 and/or prison for breaches of employment law.
Social and macroeconomic measures:
• Lowest social welfare rate to be raised to 30 per cent of gross average industrial earnings in 2007;
• 27,000 social housing units to be provided in next three years;
• Provision of 500 primary care teams;
• Family carers strategy to be developed by end of 2007.
