– Report of the Executive Council Biennial Delegate Conference
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Report of the Executive Council Biennial delegate conference 7 Tralee – 10 July, 200910 July, 32 Parnell Square, Carlin House, Dublin 1 4-6 Donegall Street Place, T +353 1 8897777 Belfast BT1 2FN Report of the F +353 1 8872012 T +02890 247940 F +02890 246898 Executive Council Biennial delegate conference [email protected] [email protected] www.ictu.oe www.ictuni.org Tralee 7–10 July, 2009 Overview by David Begg 07 Section One – The Economy 11 Chapter One – The Free Market Illusion 12 Chapter Two – Did Unions Cause the Recession? 16 Chapter Three – Low Standards in High Places 19 Chapter Four – Setting the Record Straight 22 Chapter Five – The All Island Economy 26 Section Two – Society 31 Chapter One – The Jobs’ Crisis 32 Chapter Two – Social Infrastructure 43 Section Three – Partnership, Pay & the Workplace 49 Chapter One – Partnership, Pensions and Repossessions 50 Chapter Two – Flexible Working and Equal Treatment 56 Chapter Three – Employment Permits and Regularisation 60 Chapter Four – Employment Law (the European Dimension) 64 Chapter Five – Employment Law (the Irish Dimension) 69 Section Four – Congress Organisation 73 Chapter One – Finance and Congress Committees 74 Chapter Two – Congress Networks 82 Chapter Three – Private and Public Sector Committees 86 Chapter Four – Building Union Organisation 97 Chapter Five – Congress Education & Training 102 Chapter Six – Communications & Campaigning 108 Section Five – Northern Ireland 115 Chapter One – Investing in Peace 116 Chapter Two – The work of NIC-ICTU 121 Chapter Three – Education, Skills & Solidarity 125 Section Six – Europe & the Wider World 131 Section Seven – Appendices 143 Executive Council 2007-2009 1 Patricia McKeown 9 Eamon Devoy UNISON (President) TEEU 2 Patricia King 10 Pamela Dooley SIPTU (Vice President) UNISON 3 Jack O’Connor 11 Seamus Dooley SIPTU (Vice President) NUJ 4 Joe O’Flynn 12. Liam Doran SIPTU (Treasurer) INO 5 Larry Broderick 13 Jim Dorney IBOA TUI 6 John Carr 14 John Douglas INTO MANDATE 7 Shay Cody 15 Steve Fitzpatrick IMPACT CWU 8 John Corey 16 Eric Fleming NIPSA Dublin Council of Trade Unions 4 Congress Executive Report 2009 17 Tom Geraghty 26 Louise O’Donnell PSEU IMPACT 18 Noirin Greene 27 Paddy O’Shaughnessy UNITE (AMICUS) BATU 19 Brendan Hayes 28 Jerry Shanahan SIPTU UNITE (AMICUS) 20 Blair Horan 29 Anne Speed CPSU SIPTU 21 Eugene McGlone 30 Linda Tanham UNITE (ATGWU) MANDATE 22 Peter McLoone 31 Clare Treacy IMPACT INO 23 Jim Moore 32 Betty Tyrrell Collard UCATT CPSU 24 Dan Murphy 33 John White PSEU ASTI 25 Sheila Nunan 34 Owen Wills INTO TEEU Congress Executive Report 2009 5 Overview No More Business as Usual Global trade has collapsed. Industrial output in Europe was down 20 percent year on year, in February 2009. This report was written on April 17, 2009, a day Nor was there much evidence that the rate of decline on which 20 well-known economists – some of a was slowing down, as industrial output in March was distinctly right wing hue - publicly called for outright 2.3 percent below that of February. In Europe’s case nationalisation of the banks in the Republic. If such a there was, at that time at any rate, no run down in prospect had been articulated by any participant at inventory stock unlike in the United States. our 2007 conference in Bundoran, they would have been taken away and locked up. It is a measure of the EU efforts to promote fiscal stimulus across the traumatic change in the global financial system that Eurozone were hampered by disagreements between public discourse has moved in this direction. Germany and France, on the one hand, and the Anglo Saxon economies on the other. The former argued And yet, at another level, it is clear that many in the for increased regulation and the latter for increased policy-making community and business regard the spending. These were to some extent resolved at crisis as a deviation of sort, a diversion from a set the G20 meeting in April – but not completely. trajectory and that we will resume this normal course European efforts have also suffered from a lack within a couple of years. In other words, a return to of coherence in the sense that monetary policy is business as usual. This is delusional. determined centrally by the ECB but fiscal policy is decided nationally. Moreover, the particular difficulties There will be no return to the liberal free market experienced by Central and Eastern European model because that model has proved to be (CEE) countries have caused its own tensions. The unsustainable and has effectively self-destructed. imperative to protect employment in western Europe The big question is what will replace that model? has led to charges of economic nationalism by the CEE countries. But the weakness of the latter is a This is a crucial issue for Ireland. Over the years, drag on the EU economy and a serious risk exposure Congress warned consistently and repeatedly (see to western banks with links to CEE banks. Not least Sect 1, Chapter 5) against the pursuit of economic of the considerations in this matter is a political one growth for its own sake and without regard to relating to the competing interest of Russia and the sustainability. It was a message that did not find EU, in the CEE sphere of influence. a resonance in many places. While Ireland will not shape the new era the world is entering, it does have Policy decisions of the Eurozone countries have choices about how it positions itself. At an economic implications for Ireland. For a long period monetary level it needs to restructure to reduce dependence on policy was pro-cyclical to the Irish economy. Low construction and financial services and to preserve European interest rates - intended to support German and expand its manufacturing base. At a social level industry - fuelled the property boom in Ireland. the country needs to decide what level of public Today the strength of the Euro militates against our service provision it wants and make the commitment competitiveness by making our exports into Britain to fund those services from a tax base which is itself and the US more expensive. Approximately 18 percent sustainable. of our exports go to each of these two countries and 40 percent to the Eurozone. Ireland is unique in this But it is important to realise that we are not just respect. Fiscal policy is determined at national level dealing with the domestic economy. The world is but is subject to limits imposed by the Stability & experiencing a depression on a par with that of the Growth Pact. 1930s, albeit that the response of governments has been far more interventionalist on this occasion. Congress Executive Report 2009 7 On the other hand, Eurozone membership offers Congress did not concur with this strategy, proposing protection against speculators. The hackneyed joke instead a 10 Point Social Solidarity Pact, details of about the difference between Ireland and Iceland which were widely publicised. The essence of the being one letter and six months is factually untrue, Congress approach is that there is a severe economic by virtue of our membership of the Eurozone adjustment to be managed, but that the burden of currency area. that adjustment should not fall on those least able to bear it. At the time of writing talks with Government The National Economic and Social Council (NESC) had finished and we were awaiting their response to has pointed out that Ireland is simultaneously our proposals, particularly on the issues of jobs crisis, dealing with five separate crises: an Economic crisis, pensions and threatened home repossessions. a Fiscal crisis, a Banking crisis, a Social crisis and a Reputational crisis. NESC has called for an The historian Eric Hobsbawn recently likened the integrated response. efforts of governments to deal with the global crisis to a blind man trying to get out of a maze by using Government policy has embraced the following different sticks to tap the wall (The Guardian on elements: April 10, 2009). – The Supplementary Budget introduced in April Also in April, 2009 the OECD noted in its Interim 2009 did not contain any stimulus for the Economic Outlook that: “The world economy is in economy. It focussed entirely on correcting the worst of its deepest and most synchronised the public finances. It was brutal and highly recession in our lifetimes, caused by global financial deflationary; crisis and deepened by a collapse in world trade.” In the US the rate of decline of manufacturing output – Government is relying on a combination of the compares with that of the Great Depression. In the stimulus plans of other governments to improve OECD area as a whole, output is forecast to contract the trading environment and the infrastructural by 4.3 percent this year and 0.1 percent in 2010, with capital programme (NDP) to provide stimulus for unemployment rising to 10 percent. Governments our economy; have had to put their healthy credit ratings at the disposal of their misbehaving financial systems in – Broadening the tax base and increasing taxes to the most far reaching socialisation of market risk compensate for the loss of revenue associated in world history. with construction-related transactional taxes, that were a feature of the boom; In Ireland the outlook is even more pessimistic. GDP in 2009 is forecast to fall by 6.75 percent - some think – A competitive devaluation of wages across the it will fall by 10 percent - and unemployment is likely public and private sectors to compensate for to reach 15 percent by the end of 2010. our inability to devalue our currency to restore competitiveness; What passed for public discourse over the past year has been enormously frustrating for a number – Increased borrowing but with the goal of achieving of reasons.