Partnership shifts into another gear

The social partners have recognised that the process begun in 1987 has run its course and the deal they have struck, with its…

The social partners have recognised that the process begun in 1987 has run its course and the deal they have struck, with its emphasis on a social programme, shows a new approach, writes Chris Dooley, Industry and Employment Correspondent

The new partnership programme represents a fundamental shift in the way social and economic policy is formulated in Ireland.

In place of the traditional pay deal with social objectives tacked on, the agreement finalised yesterday sets out a 10-year strategy for the future direction of society.

The new approach is a recognition by those involved that, in many respects, the social partnership process begun in 1987 has served its purpose.

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At that time the key objective was to kickstart an economy bedevilled by problems including chronic unemployment.

Today, so many jobs are being created by the booming economy that a chief concern is whether sufficient workers can be sourced to fill them all.

Economic issues, such as the need to maintain competitiveness, continue to exercise employer bodies in particular.

But it has been increasingly clear that social partnership has to be much more than a pay-deal-with-extras if it is to remain relevant.

The new programme recognises that. The traditional three-year format has been replaced by a 10-year strategy setting out social and economic objectives.

In the jargon of the day, a "life cycle approach" has been adopted to create specific programmes for five discrete groups: children, young adults, mature adults, older people and people with disabilities.

But, jargon or not, this section of the new agreement contains a range of meaningful commitments in areas including housing and social welfare.

A separate, 52-page section on pay, the workplace and employment rights includes a comprehensive set of measures designed to underpin job standards and combat exploitation.

The agreement also contains significant public service reforms, which State employees must sign up to in order to qualify for basic pay increases.

The ban on outsourcing core public service work, for example, which delayed Government attempts to reduce driving test waiting lists, has been removed.

A percentage of senior Civil Service posts will be advertised openly for the first time, while many health sector staff will be required to work extended rosters.

Pay increases, of course, continue to be a critical element of partnership agreements. As already reported, under the new deal workers will get a 10 per cent rise, in four phases, over 27 months.

Payment dates vary in the private sector, while public servants will get their first increase of 3 per cent on December 1st.

Other elements of the overall agreement will be reviewed when new pay terms are negotiated in two years.

Following the crisis caused by the bitter dispute at Irish Ferries last year, it was the employment rights strand which proved the most difficult to negotiate.

While an outline deal in this area was achieved at the end of April, following three months of painstaking negotiations, the final elements were agreed only this week.

Among key measures agreed are the establishment of a new Office of Director for Employment Rights Compliance (ODERC), which will have a director at top management level in the Civil Service and a statutory advisory board with the ability to commission its own research.

The number of labour inspectors, who monitor compliance with employment law, will be increased from 31 to 90 by the end of 2007.

Joint investigation units are to be set up to allow Revenue, the Department of Social and Family Affairs and ODERC to share data and target areas of non-compliance.

There will be a crackdown on the practice, prevalent in construction in particular, of declaring employees to be sub-contractors for the purpose of avoiding tax and other liabilities.

Penalties of up to €250,000, as well as prison sentences, will be introduced for breaches of employment law, and the onus will be on employers to ensure proper records are kept.

Detailed procedures will be put in place, through amendments to existing legislation, preventing employers from displacing staff through collective redundancies.

In cases where employers ignore these procedures, the Employment Appeals Tribunal can award workers reinstatement or up to five years wages.

This was one of the last items agreed in negotiations this week.

Among a range of other employment rights measures, a code of practice will be introduced regulating employment in the home, while companies hired for public capital projects will be required to certify that they are in compliance with labour standards.

Agreement was also finalised this week on the contentious issue of pensions, which prevented the parties from finalising a pay deal earlier this month.

Among the measures agreed will be that disputes over pension funds will be referred to the National Implementation Body, while a Green Paper on pensions will be published within 12 months.

Many targets set out in the wider social and economic section are restatements of existing Government policies. But the change in direction signalled by the document was hailed yesterday by Cori Justice Commission director Fr Seán Healy as a "major breakthrough".

Among the highlights he identified were the commitments to provide 27,000 social housing units in the next three years, and to raise the lowest social welfare rate to 30 per cent of gross average industrial earnings in 2007.

Cori will, in tandem with other parties to the deal, review its terms before making a formal decision on ratification. It is already clear, however, that with its remodelled format, social partnership has been given a new impetus.