Growing militancy by workers within a broad range of private and public services is threatening the future of wage stability and low inflation in this economy. DART drivers have announced a withdrawal of labour from next Monday in pursuit of a compensation claim. Their colleagues on mainline trains are waiting with related demands. And bus drivers will meet today to consider the possibility of industrial action in pursuit of a 20 per cent wage claim.
These workers have the capacity to bring the public transport system to a halt and cause serious dislocation and damage to business and industry. They are just one group of disaffected employees who regard themselves as badly paid in a booming economy. The Labour Court yesterday presented its findings on a claim by nurses and the report will be considered by Cabinet later today.
No matter what the outcome, or the response by the nurses' unions, the eventual settlement terms may encourage an avalanche of wage claims within other parts of the public service. In spite of an initial acceptance by the ICTU that the nurses' pay claim should be dealt with on a stand-alone basis, that commitment has withered in the face of the "blue `flu" pay claim by the Garda and a large pay increase for prison officers. Teachers unions are seeking extra resources and the INTO has served notice of its intention to demand pay rises that would reflect developments elsewhere. At the same time, some 2,000 members of the Association of Higher Civil and Public Servants are attempting to reopen negotiations to link them with the gains already made by their more aggressive colleagues.
Such militancy is not confined to the public sector. Building workers are seeking wage increases that would give them a share of the profits currently being enjoyed by the construction industry. And bank employees are threatening industrial action against the National Irish Bank over contract arrangements. The days of job insecurity and a timid workforce have dissipated as the economy has roared towards effective full employment.
It is a dangerous situation that could threaten the long-term health of the economy. Two months ago, the Taoiseach, Mr Ahern, spoke of the merits of partnership agreements and the contribution they have made to rising standards of living. Past benefits - and the prospect of negotiating a new national agreement - are being undermined by current developments. A return to the bad days of high inflation and industrial action in pursuit of unsustainable pay claims must be avoided.
Discussions on a new deal between Government and the social partners are due to open this month and a special ICTU conference has been scheduled for November 4th. The ICTU envisages that any new pay deal will include a tax-cutting package, measures to combat social inequality, profit-sharing schemes and a minimum wage agreement. A slide into widespread industrial action would make agreement on such a social contract very difficult, if not impossible. It would also damage the new industrial mechanisms that have been created during the past twelve years. There is an obligation on all sides to ensure that a platform for further growth and sustained social development is not destroyed by either greed or ineptitude.