The new arbitration process agreed between the Government and the Irish Congress of Trade Unions' (ICTU) represents a highly significant development. Although the potentially damaging disputes involving the nurses and the teachers remain unresolved, there must now be some grounds for optimism that a sustained period of industrial conflict in the public service can be averted.
Certainly, the framework proposals point the way, towards a resolution by allowing for the use of a facilitator or independent adjudication and by holding out; the prospect of further discussion on pay and working conditions during the lifetime of the Programme for Competitiveness and Work (PCW). The decision to provide for independent arbitration is especially welcome the lack of such a process has been the Achilles heel of the PCW since unions have no real option but to move towards industrial action when talks break down.
The long term implications of the Government/Congress agreement are also important with luck, the agreed process will open the way for a new national pay deal and help build a renewed climate of industrial peace. And the importance of industrial harmony to this State's current economic well being should not be underestimated: the social partnership developed between government, employers and workers has been an essential building block for economic growth.
Both the Government and Congress, who were involved in a series of discussions last week, are to be" commended for their resolute response to the current wave of industrial conflict in the public service. Instead of waiting for the threatened industrial action to materialise, the Government has made a decisive move to avert it. For its part, Congress criticised in some quarters for its relaxed approach to the threats of industrial action in the civil service has demonstrated just how seriously it takes its responsibilities under the PCW.
That said, there are still several obstacles to progress. At this stage, the Government/ICTU agreement provides no more than a framework for dealing with industrial conflict in the public service: there is a great deal that must still be fleshed out and clarified. The nurses' unions, who are proceeding with their ballot on industrial action, will clearly be seeking firm assurances about pay and, conditions. But there is also an onus on them to clarify how exactly their dispute could be resolved under the new framework.
The key issue for the nurses - and the rest of the public service - is likely to be the existing three per cent ceiling on pay rises, which is at the heart of the PCW. Several public service unions have argued, with some conviction, that this ceiling is too low given the level of productivity and flexibility being sought in return. It may be that the new arbitration process will allow for a more flexible approach, in which public service workers secure real gains in return for dramatic changes in their working conditions. This kind of approach, in parallel with the long delayed reform of the taxation system, could help to pull the public service back from the brink of industrial conflict.