The Labour Relations Commission achieved net savings of around €4 million for the economy last year on costs of €41,000 it incurred through intervention in four selected industrial disputes, according to independent survey data.
The estimates were based on the benefits to the economy in the form of pay/productivity deals, strike avoidance savings and the introduction of new products and services, as brokered by the LRC.
On this basis, at an annual cost to the Exchequer of under €3 million, the LRC represented "extraordinary value for money", its chairman, Ms Catríona Murphy, said yesterday, at the launch of its annual report for 2001.
A number of developments were worthy of note, she said. Last year had seen the lowest number of industrial disputes since the foundation of the State. "Unfortunately, there was an 18 per cent increase in the numbers of days lost", almost two-thirds of which were accounted for by the ASTI dispute.
The introduction of the euro did not "visit Armageddon on us" as predicted. It was extremely successful and led to little additional industrial costs, said the LRC chairman. However, the new currency, which was now virtually on a par with the dollar, would ensure transparency in labour, service and raw material costs: "In effect there is no hiding place on these issues in the European or North American markets and comparative intra-company costs will now be more transparent than ever."
Unemployment, at 3.8 per cent, was at its lowest since "social partnership" began 15 years ago. But current uncertainties in the US markets had impacted on confidence and would affect foreign direct investment and multinationals operating in the Republic.
A further challenge for the LRC was benchmarking, with "75 per cent of the Benchmarking Body's recommendations falling into the milieu of local bargaining", necessitating change and flexibility. The LRC was poised to help resolve such issues as they arose, if required by the relevant unions and managements, regardless of the level of consensus to arise from any negotiations on a successor to the current national wage agreement.
She hoped every effort would be made to achieve a formula that would provide a backdrop of stability for the economy: "From any perspective, social partnership has served the country extremely well."
The LRC's conciliation service handled over 1,800 disputes last year, said its chief executive, Mr Kieran Mulvey. Settlement rates for the last five years have averaged 83 per cent, he said.
The majority of disputes are referred from the private sector, although an increasing amount of conciliation time was now being spent on such issues as change management, pay and restructuring in the public sector and public enterprises. For example, the survival plan for Aer Lingus last year involved the LRC in more than 70 meetings in less than two weeks.
The service was also "heavily involved", said Mr Mulvey, in the successful reorganisation plan for The Irish Times, which included the move to the paper's new printing complex in Dublin's City West.
The work of the Rights Commissioner had more than doubled in the last two years and some 5,000 referrals on employment rights were expected this year, Mr Mulvey said. The service was currently administering 15 legal enactments concerning employment rights and further employment legislation would be "added to their remit" within 12 months.
Ongoing activities at the LRC involved a close working relationship with the social partners and their constituent organisations, said Mr Mulvey.
Because of the social and economic difficulties anticipated over the next 12 months, the need for good industrial relations would be at a premium, he stressed.