A real threat to the future of social partnership has developed following a decision by the largest trade union in the State, Siptu, not to enter negotiations in the absence of specific undertakings by Taoiseach Bertie Ahern to protect employment standards.
This pre-emptive decision by Siptu, in advance of today's special Ictu conference, is certain to antagonise some of the smaller unions which will be forced to take their lead from a powerful competitor. But the underlying risk is that the entire negotiation process could unravel over the displacement of Irish workers and the introduction of cheap migrant labour.
There is still time in which the required assurances can be offered, because talks on a new national agreement are not due to begin until the middle of next month. But the devil will always be in the detail. And, in that regard, it is difficult to see how the Taoiseach can promise precise legislative and administrative changes in a unilateral way without causing serious offence to the employers' organisation, Ibec. In all of this, Ibec can play an important role. For, while its membership is much more independent and diverse than on the trade union/Ictu side, a broad statement favouring the preservation of established employment standards would help the situation. The dispute at Irish Ferries, where 543 seafaring staff have been offered voluntary redundancy or reduced pay and inferior conditions, has done considerable damage to the industrial relations climate.
The social partnership model has served us well. In its initial manifestation, it provided for industrial peace and wage moderation, and it underpinned increasing growth and profitability. But shortcomings have been exposed and reforms have been advocated by employers and trade unions. In particular, union activists wish to engage in local, top-up pay bargaining where companies are especially profitable. And employers wish for more flexibility in the face of increasing international competition.
The difficulties facing the Government are considerable. Specific assurances are being sought by Siptu at a time when Congress has already rejected as inadequate legislation on migrant work permits now before the Dáil. Unless that Bill is amended significantly by the Minister for Employment, Micheál Martin, it is difficult to see how any new undertakings by Mr Ahern will move the situation forward.
Siptu president Jack O'Connor has remarked that if social partnership cannot protect vulnerable workers, there is no point in being in the process. That is a negative attitude. Employers also have a responsibility to ensure that their enterprises are profitable and are capable of competing in the international marketplace. There will always be a tension between these two positions. The history of industrial relations has shown, however, that jaw, jaw is better than war, war. The most successful economies in Europe are the ones with agreed bargaining procedures and highly-developed dispute mechanisms. That is the way to go.