Small firms want partnership review

The social partnership process should be urgently reviewed because many small businesses do not believe it is beneficial, a survey…

The social partnership process should be urgently reviewed because many small businesses do not believe it is beneficial, a survey by ISME, the small firms lobby has found.

The organisation found that only 38 per cent of small businesses believed social partnership benefited them. In comparison, 24 per cent said it was notbeneficial, while 38 per cent had no opinion.

The organisation said this indicated that 62 per cent of respondents were "at best ambivalent about the process".

"If one considers that SMEs make up over 98 per cent of all businesses in the country it is obvious that there is widespread dissatisfaction with the process," said Mr Mark Fielding, ISME chief executive.

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Respondents gave various reasons for not supporting social partnership. These included: benchmarking; industrial unrest; no representation for small business in social partnership forums; additional pressure on wage costs and increased employee expectations.

The organisation acknowledged social partnership "undoubtedly contributed to the turnaround in the Irish economy in the past".

But it said the process had become the sole preserve of "big business, the public sector unions and the Government". It claimed small business had been excluded from the process.

"This has been partly due to the refusal of the SME sector to accept second-class status but is mainly due to the refusal of various Governments to allow ISME's entry into the negotiating process," said the ISME statement.

Mr Fielding said the results confirmed that only 38 per cent of SMEs were satisfied with the process. "It is imperative therefore, if future agreements are to be all-encompassing and successful, that the SME sector be afforded representation as an equal partner in the process and consulted accordingly."