Labour Relations to Move Front and Center

This government has won two elections. Both times the country was in the throes of astounding economic growth, general good feeling coursed through the veins of the all-important middle ireland (or celtic cubs if you will). Economic success we believed was premised on sound corporate involvement in social partnership. The unions and employers were at the same table hammering out deals which offered a sound environment for FDI. The threat of strikes was low and industrial relations was used to the advantage of all parties (employers, unions and Government).

Thus the background. Last December much was talked about the fate of the private sector. Most workers in the private sector are not unionised and more open to the currents of the marketplace. When Irish Ferries announced and then executed a process of worker replacement, the tinderbox took fire. The unions were up in arms over the treatment of workers, standards of jobs and security of the work currently in Ireland in the face of a race to the bottom. Many were mobilised on the streets of the country to protest at the treatment of the Irish Ferries workers.

Again little new here, the Ferries dispute was widely accredited to two co-existing conditions, the oncoming talks for a successor to sustaining progress and Union worries about increased worker displacement stemming from the expansion of the EU and other factors.

Yet the talks have long since started, look unlikely to hit their ambitious six-week target and give Bertie another document to wave about as evidence of our progressive attitudes to business and tax. Instead we have an increasing division between unions, employers, government, employees and the people. On all sides there are misperceptions and loads of mistrust.

All that lies ahead is more ammunition for a prolonged fight. As far as the eye can see there is grist to the mill of all sides. We have economists forecasting (albeit with some questions over the analysis) 15 years of the current celtic tiger. The associated immigration to account for 50% of population growth in that time. These new workers will continue to add to the case being made by both sides (either they will drive a race to the bottom by employers or they will offer a valve letting off steam built up in the economy). Yet no matter what they will be here and division will ensue.

Over the past few months unions have been making hay on stories of exploitation of migrant workers. GAMA stands as perhaps the prime example in the argument. And on this account the new edition of sustaining progress must be focussed on the issues at the heart of irish economic growth-a fair wage and a fair deal for workers.

It comes as no surprise that the Unions are revelling in their role atop the moral highground. The government has decided (or it has been decided for them) that now is the time when they must consider the privatisation of Aer Lingus. Bertie has been putting this (like all other tough decisions) off until it had to be made or someone else made the decision for him.

The addition of Aer Lingus to an already smoldering fire sets the scene for many flames, Labour has been out calling for the binning of the proposal. Yet it gets better.

In 2004 Charlile Mccreevy unleashed what was to become yet more ammunition for union unrest. Little did he know at the time that his big idea was to become a graveyard. Of course decentralisation was a preposterous notion, it was not the department but the power that needed to be decentralised. Doing this would help to disperse civil servants and allow for a more reasonable consideration of purely physical decentralisation. Yet McCreevy’s big plan saw power stay in Dublin but the oil and the cogs that ran is dispersed around the country. As 2008 approaches and Tom “parlon country” Parlon needs to find staff to fill his 10,000 quota the unions are raising the drawbridge.

FAS may be a “unique” situation, but it is surely the first of many potential sources of conflict over the movement of workers to the country. So there we have it, workers from other countries, workers going to the country and the country selling some workers. Its all there and ready to explode.

In the middle of it the unions, employers and government are to sit around a table to thrash out a new wage agreement. I feel that such an agreement is going to be long in the making. Whatever may have been thought about the Irish Ferries protest and show of power etc, unions get into the habit of agitating very quickly. I havent even mentioned the Nurses yet.

So a long road lies ahead, this government delivered partnership agreements, sustained growth and strike-free unions. Will the levee burst before election time? Its hard to say. There will no doubt be challenges, no doubt be temptations.

The question is will there be strikes. Walkouts gridlock and standstill have never featured highly on the electorates list of preferences when reelecting government. Labour relations looks likely to be the story of the coming months. Can Bertie pull a rabbit out of the hat in enough time to secure reelection?

Will Labour find that angry unions are a barrier to reelection instead of capitalising on FF misfortune? It looks like these questions will be unfolding in the coming months.