Report of the Executive Council Report of the 2005 - 2007 2005
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32 Parnell Square, Dublin 1 T +353 1 8897777 F +353 1 8872012 [email protected] Carlin House, 4-6 Donegall Street Place, Belfast BT1 2FN 2005 - 2007 T +02890 247940 F +02890 246898 REPORT OF THE EXECUTIVE COUNCIL 2005 - 2007 REPORT OF THE EXECUTIVE COUNCIL CONTENTS Executive Council 2 Introduction 5 Towards 2016 Summary 9 Section Equality 19 Section 2 Organisation 43 Section 3 Pay and the Workplace 69 Section 4 Northern Ireland 103 Section 5 The Economy 113 Section 6 Health & Care 127 Section 7 International 133 Appendices 139 Congress Executive Report 2007 Executive Council 2005-2007 1 Brendan Mackin 8 John Carr AMICUS INTO 2 Peter McLoone 9 Shay Cody IMPACT IMPACT 3 Joe O’Flynn 10 John Corey SIPTU NIPSA 4 Mick O’Reilly 11 Eamon Devoy ATGWU TEEU 5 Larry Broderick 14 Jim Dorney IBOA TUI 6 Catherine Byrne 15 John Douglas INTO MANDATE 7 Rosheen Callender 16 Eric Fleming SIPTU (Trades Councils) 2 Congress Executive Report 2007 Executive Council 17 Brendan Hayes 25 Jack O’Connor SIPTU SIPTU 18 Noirin Green 26 Paddy O’Shaughnessy AMICUS BATU 19 Amanda Allaway 28 Clare Tracey NIPSA INO 21 Patricia McKeown 29 Owen Wills UNISON TEEU 22 Jim Moore 31 Rosaleen Glackin UCATT CPSU 23 Dan Murphy 33 Louise O’Donnell PSEU IMPACT 24 Patricia King 34 Linda Tanham SIPTU MANDATE Observers: John White (ASTI) Barney Lawn (PCS) Congress Executive Report 2007 Executive Council 3 Introduction For those who follow these things closely, the Executive Council Report to BDC 2005 turned out to be an accurate forecast of the challenges we would face in the period under review. The strains and pressures inherent in matching high levels of economic growth with adequate infrastructure and public service provision have become acute. Within months of the Belfast conference, we saw employers exploiting migrant workers and initiating a race to the bottom – this was a challenge Congress had to confront head on. But we have, at very least, held our own in this difficult environment. In fact, there is every reason to believe that the standing of the trade union movement was bolstered considerably by the stand we took on that key issue, providing leadership at a time of huge uncertainty. Crucially, Congress has put a strategic shape on its activities and this should equip us to deal with whatever challenges emerge in future. Northern Ireland The historic political settlement in Northern Ireland is an achievement that many of us who lived through 38 years of violence and strife never thought we would see. The tedium of negotiations that never seemed to end should not blind us to the significance of what has actually occurred. The hope now must be that economic progress will follow political progress to make a better life for all. In this regard, Congress President Peter McLoone and General the climate may be such as to facilitate a greater Secretary David Begg lay a wreath at the Irish North/South dialogue. Congress negotiated an All International Peace Park, Messines, Belguim, Island dimension in Towards 2016, which was in turn November 11, 2005 reflected in the National Development Plan. Congress Executive Report 2007 Introduction 5 The Economic Climate While employment growth remains very strong (90,000 to 00,000 new jobs each year), the loss of The International Economy manufacturing jobs due to businesses relocating to The global economy remains strong and this is low wage economies is a matter of major concern. important to Ireland given the very open nature of The construction industry is likely to remain strong our own economy. However, global imbalances that because there is a huge volume of infrastructural particularly affect the US and the Far East are a work to compensate for the housing slowdown. threat. The US economy grew at an annual rate of 2.2 percent in the fourth quarter of 2006. For 2006 In February, inflation fell to 4.8 percent but rose again as a whole GDP is estimated to have grown by 3.3 to 5. percent in March & April and the annualised percent. This growth is largely driven by domestic rate is expected to be 4.6 percent in 2007. (See also consumption rather than exports. In effect this Section 5) consumption is supported by the willingness of foreigners to invest in the US and this is causing Industrial Relations the global imbalances referred to. At the moment it looks as if this pattern of consumer spending will On one level, industrial relations can be said to be continue due to reduced unemployment and some good if the low level of industrial disputes is used wage growth. Some weakening of the dollar in the as an indicator. At another level the picture is more early months of 2007 has caused competitiveness disturbing. problems for Irish manufacturing. The period under review was characterised by some The Eurozone very bitter disputes, Irish Ferries and An Post for The pace of growth accelerated in the final quarter example, and by the refusal of a number of large of 2006, with the rate of expansion picking up in the employers to use either the National Implementation four largest economies, particularly Italy and France. Body or the Labour Court. This was particularly evident in strategic disputes such as those relating According to Eurostat, GDP grew by 0.9 percent in to pension schemes. This calls into question the the fourth quarter of 2006, up from 0.6 percent in the viability of a voluntarist system of industrial relations third quarter. It rose 3.3 percent on an annual basis. and suggests a move towards a more legally-based Household final consumption expenditure increased system is inevitable. by 0.6 percent in the final quarter, following 0.7 percent growth in the third quarter. However, the recent Supreme Court judgement in relation to Ryanair would appear to say that the right Investment also rose in the fourth quarter, up .2 to collective bargaining cannot be legislated for. If percent on a quarterly basis. Exports also picked up this is so, then any legally based system of industrial considerably, expanding by 3.7 percent in the fourth relations would not rest on solid foundations. quarter, compared to .8 percent in the pervious quarter, while imports increased by .9 percent, down Notwithstanding the difficulties mentioned above from the 2.2 percent growth seen in the third quarter. the National Implementation Body has assumed an Overall, GDP in 2006 increased by 2.7 percent, increased importance as a forum for engaging with compared to .4 percent growth recorded in 2005. complex disputes. It cannot, and does not, seek to replicate the work of the Court or the LRC but rather The UK Economy tries to create a road map towards resolution of The UK economy expanded by 2.7 percent in 2006, disputes using existing procedures. up from .9 percent in 2005. Manufacturing has undergone something of a recovery, with the 2007 performance the best on record since July 2004. Organising & Recruitment BDC 2005 was a platform for raising consciousness The Irish Economy amongst unions on the need to recruit new members. It is a concern for many unions today and a lot of The Irish economy saw ‘unbalanced’ growth of effort and resources have been put into this work 5.75 percent GDP and 6.25 percent GNP in 2006. A – but not enough. The core mission of the trade union similar performance is expected in 2007. The growth movement is to work for social justice by organising is unbalanced insofar as it is driven by domestic workers and ensuring they receive a fair share of demand – primarily the construction sector - while the wealth generated in the economy. Congress will export growth has declined. Business complains that be unveiling some further initiatives on this theme, at manufacturing competitiveness is being adversely BDC 2007. (See also Section 2, chapter 2.) affected by the weak dollar, poor infrastructure and higher costs. 6 Congress Executive Report 2007 Introduction The National Economic and fashion, the integration of the global labour market has conferred disproportionate power on capital and Social Council (NESC) placed tremendous downward pressure on wages. The main tasks of NESC according to its Constitution and Terms of Reference shall be to analyse and Everywhere, developed countries struggle to maintain report on strategic issues relating to the efficient their social provision and protection with constant development of the economy and the achievements pressure from business for lower taxes. of Social Justice. Congress representatives on NESC are: Peter McLoone, Sally Anne Kinahan, Manus The EU would also attempt to change its social model, O’Riordan, and David Begg. if it could get away with it. For example, a recent Green Paper on Labour Law effectively sought to undermine In the period under review NESC published a number employment security. In addition, social policy is of major reports, viz: relegated to the task of facilitating labour force participation, for many at minimum wage rates, and providing a safety net for those who cannot participate. ■ NESC Strategy 2006: People Productivity and Purpose; In Ireland there is a danger that, with a population likely to increase to 5.5 million in the next 20 years, this ■ The Developmental Welfare State; minimalist approach to social policy will become more ■ Migration Policy prominent. It is a trend which must be fought because ■ Managing Migration Policy in Ireland: A Social and Economic Analysis. good quality social services will only be sustained if they are used by everybody, not just the marginalised. These reports, individually and collectively, have The socially excluded do not have political power.