THE PUBLISHED IN ASSOCIATION WITH THE IRISH CONGRESS OF TRADE UNIONS

UNIOSPECNIAL EDPITION OST FEBRUARY 2009 UUNNIITTYYY

THOUSANDS of people will converge on the resolving the crisis. Congress has drawn up streets of Dublin on February 21 to voice an alternative vision to the ‘slash and burn’ their anger at the government’s failure to approach adopted by the current coalition. respond fairly to the current crisis and its It involves a 10-point programme of attempt to shift the burden on to the regeneration and contains proposals on shoulders of working people. protecting jobs, saving people’s homes and The demonstration has been organised by getting the unemployed back to work. Congress as the first step in what has been Last night, David Begg, left, said: “Govern - described as a “a rolling campaign of ment needs to understand that any plan they action” to put fairness back on the arrive at must be underscored by the principle agenda and ensure government of fairness. introduces measures that will “Working people will not be the scapegoats see all sectors contribute to here.” MARCH & RALLY FEB 21 PARNELL SQ @ 2PM UNION POST A BETTER WAY

THIS is not the first time we have and it will be business as usual. Timeline... from faced a crisis and it almost certainly Their ideas hark back to the vote to crisis talks 4 will not be the last. But on this 1980s and their outdated political occasion the collapse of the Irish agenda is largely the same: let economy has been echoed by working people bear the brunt, ei - collapse on a global scale. ther through lower wages or re - When one of Wall Street’s most duced public services – less public hallowed names – Lehman Brothers transport, closed hospital wards, – collapsed on September 22, 2008, larger classes for the youngest and Congress Plan for it became clear that the superstruc - no help for those with special ture of an entire world order fell to needs. National Recovery 10 earth with it. Let us be very clear: there The era of the unfettered can be no more business as free market was dead. The usual, those days are over and only problem is that certain it is time political and busi - elements in this country – ness leaders grasped this very primarily those who benefited obvious fact. most from the old world order Let us also be very clear that their Death of last – have not yet grasped this old failed agenda will neither work, Irish Brigadista 21 simple truth. nor be accepted by the Irish trade The US has grasped it: George union movement. Bush carried out the single greatest The employers have in effect wave of nationalisations in US his - walked away from the pay deal ne - tory and President Obama’s elec - gotiated in September, but have yet tion was a massive rejection of that to explain why individual companies old order. could not have utilised the very And all across Europe, govern - sophisticated ‘inability to pay’ mech - ICTU boycott ments of right, left or centre have anism built into the agreement. call over Gaza 28 recognised the same reality: that Curiously, they have also failed to light regulation, poor oversight, bad explain why many large companies enforcement and a perverse bonus have already paid the deal, or com - system which prioritises short term mitted to doing so. gain over long term good, has no Their stance has been effectively place in the modern world. endorsed by Government. The neoliberal ideology that was Thus, what we are seeing is noth - given full expression by Thatcher ing less than a campaign against An end to casino and Reagan has self-destructed and wages and living standards, an at - capitalism 30 now threatens to take the global tempt to drive down wages in a economy with it. mistaken belief it will make the UNION POST was produced by Brazier Media for the Irish Congress of Trade Unions Unfortunately, this country seems economy competitive again. be in thrall to slow learners in both It won’t – it will (and already has) Irish Congress of Northern Ireland Committee Trade Unions Irish Congress of Trades Unions government and business, those terrorise people into not spending. 31/32 Parnell Square 4-6 Donegall Street Place Dublin 1 Belfast BT1 2FN who cling to the desperate hope The result? Less goods bought, Ireland Northern Ireland Tel: +353 1 8897777 Tel: 02890 247940 that after a few rounds of ‘cuts’ the more outlets closed, more jobs lost. Fax: +353 1 8872012 Fax: 02890 246898 Email: [email protected] Email: [email protected] economy will return to rude health This course of action has the www.ictu.ie Web: www.ictuni.org

DESIGNED & EDITED BY BRAZIER MEDIA Email: [email protected] Neoliberal ideology has self-destructed 2 “ UNION POST S February 2009 ICTU VIEW David Begg A FAIRER WAY General Secretary

potential to send us into a down - same top bank executives that fools of. Congress believes that ward, deflationary spiral from which crashed their own banks, the same viable national recovery requires it could take decades to recover. top executives that have difficulty genuine national effort and under - And people under severe financial surviving on a weekly wage that standing and a genuine sharing of pressure are then forced to watch equals what most would earn in a the burden. “ the spectre of billions in tax rev - year. If people are angry, it is be - We believe that there is a enue being handed over to the cause they feel they are being made better, fairer way.

and now threatens to take the global economy with it

February 2009 S UNION POST 3 SIDE LINES ME...TIMELINE...TIMELINE...TI

IFUT vow to BITES resist pay cuts UNIVERSITY lecturers have vowed to Cash boost resist any bid to cut pay or change announced conditions as individual third level in - MAJOR in - stitutions struggle to deal with cur - frastructure tailed budgets. projects in SSept – Nationatl wage argreemenut brokered. Wgorkers get gtional strikelin solidearity with the baltlot for iondustrial Northern The Irish Federation of University increases of six per cent phased in over 21 months. A action by our members in the electrical contracting in - Ireland are Teachers warned that any changes to three-month pay pause for those in the private sector dustry.” to get core pay and conditions had to be and 11 months for public sector employees was also Nov 26 – CIF rejects national pay agreement £1.4bn in agreed. Low-paid workers receive an extra 0.5 per cent. negotiated nationally. and seeks 10 per cent pay cut across the funding in General secretary Mike Jennings Nov 17 – ICTU special delegate conference sector, affecting more than 200,000 workers. the coming said: “Whether it is attempts to with - at Dublin’s Liberty Hall accepts national Director general Tom Parlon said: “The bot - year, it has wage agreement. Delegates vote 305 in tom line is the industry cannot afford the been re - hold pay increments, non-filling of favour of deal with 36 against. deal.” SIPTU chief Jack O’Connor dubs vealed. vacancies, or seeking not to renew move “unbelievably short sighted” and Stormont contracts, nothing can be imposed by Nov 17 – SIPTU chief Jack O’Connor claimed any em - claimed it was ironic the employers who Finance Min - college managers.” ployer who reneged on agreement was guilty of benefited most from the Celtic Tiger should ister Nigel He added: “But we will gladly sit “national sabotage” and called on the government to be the first to renege on the agreement. Dodds said a down and negotiate with the Higher total of £3bn Education Authority or the Depart - would be spent over ment of Education to deal with any of the next two these questions on a national basis.” years. Mr Dodds added: "I ‘McJobs’ for out think it's ab - solutely crit - of work physios ical at a time THE president of the Irish Society of when things Chartered Physiotherapists has are difficult. claimed graduates in the profession "It will not only build are forced to work in fast food outlets good infra - because they can’t find positions structure within the health service. and good Annette Shanahan, speaking to the public serv - Oireachtas health committee on Janu - ices, but also ary 28, said this was despite patients keep people having to wait up to a year for physio - in work now." therapy. She claimed graduates were work - Deal endorsed: Union delegates vote to accept the national wage agreement ing in jobs “from care assistants to withhold state contracts from those that do. CIF presi - Owen Wills of the TEEU describes the deci - Burger King”. dent Tom Parlon hits back accusing SIPTU of blackmail - sion as “an unparalleled act of betrayal” and Cork Port According to figures presented to ing construction companies. calls on the Government to take action jobs to go the committee, only 16 per cent were Nov 17 – Business group ISME calls on gov - against CIF members. in permanent employment. Cork dockers ernment to suspend deal in interests of Dec 4 – Brian Lenihan tells RTE’s Morning Ireland pro - Ms Shanahan added: “It’s totally have voted wider economy. Chief executive Mark Field - gramme “nothing can be ruled out” regarding a review to accept a inadequate when we know that peo - ing claims firms must have a “sus - of the national pay deal and asked all parties redundancy ple need our services.” tained pay freeze” to “trade out to “reflect” on the difficult conditions package of” their current difficulties. facing the economy. which will

Nov 17 – Employers group IBEC ac - He added: “I am saying to people radically HSE jobs freeze that we are living beyond our change the cept agreement “as the best that Firms who renege can be achieved at national level". means and we have to face up to way the “ plan is blasted Director Turlough O’Sullivan said on agreement are that. We won't be able to com - portside HEALTH service unions have called on pete if we don't.” But adding to facility does they had agreed “with caution” the HSE not to put in place a plan to but added that the guilty “of national a seeming confusion of opinions business. restrict recruitment without further document provided “a flexible within government, Tanaiste In a state - sabotage Mary Coughlan tells the Dail: ment Port consultation. framework… in these extremely difficult times”. Jack O’Connor “On the issue of the national pay bosses said The proposals include a morato - deal, it is not up for SIPTU had rium on outside recruitment for Nov 22 – Fine Gael calls for a negotiations, but there is constant in - accepted the admin posts and a ban on filling complete freeze on public sector teraction between all members of the deal under approved vacancies until alternatives pay for 12 months at its conference government and social partners.” The follow - the terms of for redeployment and reassignment in Wexford. Leader Enda Kenny told dele - ing day she is accused by Enda Kenny of sending out a Labour gates: “The country cannot afford the na - “conflicting messages”. Court agree - have been looked at. Impact’s Kevin Callinan claimed the tional pay deal…If we want to be masters of ment to our own destiny, we have to control our Dec 4 – ICTU denies holding any discussions modernise freeze breaches existing agreements. spending and ensure we regain our competi - with the government or Taoiseach “that in dock work - In a letter to HSE chiefs, he said the tiveness.” SIPTU president Jack O'Connor any way involved amending, deferring, alter - ing. proposals were in breach of obliga - blasted the call and dubbed it “the same old, ing, suspending or changing the pay and The agree - tions to inform and consult with staff same old” from Fine Gael, attacking workers workplace rights deal recently concluded between unions, government and employ - ment will re - representatives, as clarified by the to shore up profits. sult in 93 ers”. redundancies Labour Court. Nov 24 – Technical, Engineering and Electrical Union in the casual He added that it also ran counter to general secretary Owen Wills warned of nationwide ac - Dec 4 – Invoking the “inability to pay” clause contained labour force. the terms of Towards 2016. tion against bosses who renege on regional employ - in the national pay agreement, CIF issues claim over 10 ment agreements. He told delegates at the union’s per cent pay cut to eight unions – including SIPTU, biennial conference: “It may be necessary to have a na - Unite, the TEEU, Batu and UCATT.

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bDec 4 – Irirsh DailyoMirror rekports 20 joebs rmean the govaernment tearing ufp the Toawards 2016 ir“There isda lot of hoet air beingaspoken ablout lost every hour in the past month as unem - transitional agreement and abandoning social partner - public service reductions in pay but the law ployment hits a 12-year high with 16,900 ship as a means of dealing with the crisis. He added: “I on the matter is it cannot happen without more people on the live register which now do not have, will not get and will not seek a mandate for the consent of the individual.” INO general totals 227,200. pay cuts from our members.” secretary Liam Doran added: “The executive feels it would be counterproductive, defla - Dec 5 – SIPTU’s Jack O'Connor calls on the govern - Jan 10 – Finance Minister Brian Lenihan tionary and wholly unfair to ask any nurse ment to exclude construction bosses from public claimed public revenues were too dependent or midwife who is already overworked and procurement projects after what he described as the on taxation, but added: “It is essential that often working in overcrowded and difficult “most savage attack on building workers since the we broaden our tax base as well as pruning environments to consider any reduction in 1930s”. The union also seeks action from the govern - our expenditure.” their already poor levels of pay.” ment to bail out mortgage holders who lose their jobs through slapping a moratorium on their repayments for Jan 12 - ICTU general secretary David Begg warns of a Jan 13 – The INTO condemns what it call a “declaration up to two years. deepening “deflationary spiral” if government cuts back of war” on the public service by government and cer -

Dec 12 – ISME chief Mark Fielding calls pay deal “utter lunacy” in face of falling inflation figures.

Dec 13 – Finance Minister Brian Lenihan tells Dail the overall contraction in the economy over the next 12 months will be three to four per cent.

Dec 15 – Taoiseach Brian Cowen says the government will not change the terms of the pay deal for public servants without discus - sions under the social partnership process.

Dec 16 – Mr Cowen meets with social partners at Government Buildings. He informs them that a fall in tax revenues means €3.5 billion will have to be borrowed and forecasts “difficult times ahead”. Hinting at a review of the pay agreement, he later tells the Dail: “I have re - fused to isolate the pay issues from all the other issues. All government expenditure has to be looked at in that context.”

Dec 17 – Labour leader Eamon Gilmore calls the government's handling of the economic Get the message: Workers staged a sit-in at crisis-hit Waterford Crystal plant situation downright incompetent. on wages. Speaking on RTE's This Week, he called for “a tain right wing commentators. General secretary John Dec 23 – Impact general secretary Peter McLoone says: sensible compromise” between cuts in public services Carr said: “Unfair and unwarranted attacks on the pub - “This current crisis has not arisen because the earnings and pay, tax changes, and the length of time “over which lic service will only make the prospect of finding agree - of the vast majority of those in employment are too all of this is done”. ment on a national recovery plan more difficult.” high and it follows that a reduction in incomes will not Jan 13 – Some 200 economists attend a con - resolve this crisis.” Jan 14 – Speaking during his trade visit to ference titled Responding to the Crisis at Japan, Mr Cowen said he wouldn’t hesitate Jan 5 – Exchequer returns show a tax short - UCD. Prof Karl Whelan told delegates a cut to take tough decisions if no agreement is fall of €8bn for 2008. Speaking on RTE in public sector pay alone would not “come reached with unions and employers over Radio's This Week, Mr Cowen claimed deci - close to solving the crisis”. He said too many public-sector pay. He added: “We’ll take sive action was needed to address problems commentators had concentrated on what whatever decisions are necessary. That's in public finances. He predicted that without they saw as the "bloated public sector", what we have to do in the interests of the “corrective action” the deficit could shoot adding that the average public sector country.” Back in Ireland, Justice Minister up to €20bn by 2010. worker was not the “overpaid paper pusher Dermot Ahern added: “We have to cut our of public imagination” but a garda, nurse or cloth to meet our measure.” Jan 8 – Dell announces the loss of 1,900 jobs at its teacher. At the same conference, economist Limerick plant, as the computer giant moves production Colm McCarthy, who heads up the govern - Jan 14 – ICTU tells the government it will not engage in to Poland. Dell products make up at least 5.5 per cent ment task force dubbed An Bord Snip Nua, any process based solely on cuts in pay and public serv - of Irish exports and two per cent of GDP. said a regular tax on residential property ices. The position is set out in a formal submission on would be a more stable source of taxation. the government's economic recovery programme. Jan 10 – Impact and SIPTU promise “huge He also mooted the sell-off of state assets, campaign of resistance” and vow to fight including Bord Gais, ESB and the 25 per cent Jan 15 – Edna Kenny, right, claims the gov - “tooth and nail” plans by Finance Minister stake in Aer Lingus. ernment “deliberately Brian Lenihan to cut public sector pay by and consciously” five per cent. SIPTU’s Jack O’Connor said Jan 13 – Public Service Executive Union chief Dan Mur - walked the coun - unions were prepared to show leadership phy warns of IMF intervention in the crisis if the gov - try into an eco - over what he called “truly horrendous” pub - ernment is unable to bring public finances back under nomic morass. lic finances as long as the burden was shared control. He said: “The IMF’s normal prescription involves He added: “We across all sectors of society. But he under - mass dismissals from the public service without com - are now losing lined that a unilateral cut in pay would mean pensation and pay cuts for the remainder, along with the equivalent that workers and those on low incomes cuts in pensions.” Mr Murphy also claimed unions were of five Dells “carry the burden” before adding “that prepared to be constructive, “provided no unilateral ac - every month.” won’t wash”. tions are taken that would render our co-operation im - possible”. Jan 15 – Teaching Jan 10 – Impact chief Peter McLoone said his union was unions willing within the context of social partnership to iden - Jan 13 – The Irish Nurses Organisation re - tify and implement savings as well as improving public veals it is seeking legal advice on any gov - service flexibility and responsiveness. However, he ernment move to cut its members' pay. warned that any attempt to impose pay cuts would Deputy general secretary Dave Hughes said: CONTINUES PAGE 6

February 2009 S UNION POST 5 ME...TIMELINE...TIMELINE...TIMELINE...TIME

SFrotmrpauge 5 ggle to broker a fair deal

vow to fight pay cuts “by all necessary means”. INTO quences” for banking in Ireland if it had been merged with Ulster Bank branches. general secretary John Carr attacked what he called a permitted to fail. SIPTU boss Jack O'Connor “declaration of war” on the public service and said such tells the Irish Independent that whatever Jan 26 – At a meeting of Fianna Fail backbenchers and attacks were offensive and demoralising to hard-working deal emerges cannot be about to "what de - senators, Brian Cowen outlines details of a five-year public servants. He added: “Rather than continually gree workers are going to be screwed". “stablisation plan” involving cuts of €15bn. These break scapegoat public servants, government must move to down to €2bn in 2009, a further €2bn in 2010, rising to protect essential services like education and ensure that Jan 19 – INO general secretary Liam Doran blasts at - €4bn in 2011, a further €4bn in 2012, and €3.5bn in contributions to recovery are made by those with the tempts by IBEC and ISME to attack public sector work - 2013. means to do so.” ers’ pay and pensions as “opportunistic, antagonistic and unwarranted”. Jan 26 – ICTU seeks a redrafting of an initial Jan 15 – Employers group IBEC call for radi - protocol document drawn up by government cal reform of public sector pensions. This Jan 22 – Social and Family Affairs Minister officials, claiming it is“too vague”. Unions would involve a “fundamental repositioning” Mary Hanafin tells The Irish Times at least want a broadening of the tax base including of current arrangements. It said this should €400 million extra will be needed to meet a new 48 per cent tax band, a new property involve a move away from a defined benefit the rising cost of unemployment benefit, tax on second or “trophy” homes, curbs on scheme – under which the size of the payout taking the total spending on social welfare executive pay and restrictions on tax breaks. Jan 27 – There is a more positive reaction from trade unions to a redrafted framework document with sources claiming that a “social solidarity pact” is starting to take shape with an emphasis as much on taxation as on public spending cuts.

Jan 27 - Congress general secretary David Begg formally rejects demands by employers to defer the current pay deal as well as an “indefinite delay” to a rise in minimum pay rates. He warns IBEC in a letter that if they proceed to “detach” from the process it will make the formation of any form of social solidarity pact “very difficult”.

Jan 28 – ICTU executive council approves Framework for Stabilisation, Social Solidarity and Economic Renewal document as a basis for talks. Social partners agree on the need to progressively reduce the level of Exchequer borrowing to below three per cent by 2013. The docu - ment outlines that this should come about through a mix of spending cuts and tax rises. It says that all sectors of society should contribute to the recovery pro - gramme. However, it adds that the most vulnerable – Working it out: ICTU executive council approved framework document on Jan 28 the low paid, unemployed and social welfare recipients – should be insulated against the worst effects of the re - is guaranteed – towards a defined contribu - to more than €20 billion. cession. tion scheme for new entrants, under which Jan 23 – Commenting on the continuing focus from Jan 30 – Unions press for changes to the tax the employee would bear the risk of any some quarters on public sector pay and pensions, Jack code to "ensure the burden of adjustment to shortfall. Director Brendan McGinty O’Connor said: "This quick-fix solution is the new economic conditions is borne by claimed it was time to take difficult

being promoted by the same people who those most able to do so". ICTU general sec - decisions. Impact accused IBEC of created the problem by making a retary David Begg also calls for a “demon - exploiting the recession to quick buck over the last years.” stration” by the government that tax

drive down the value of both changes will happen this year, preferably public and private pensions, IBEC ploy to Jan 24 – Reflecting trade through a mini-Budget. However, speaking while Labour Party leader union anger over IBEC’s drive down“ wages from the World Economic Forum in Davos, Eamon Gilmore blasted the call for a 12-month pay Brian Cowen signals such changes may not employers group for pursu - freeze in the private sec - is a hand happen until after the Commission on Taxa - ing “an old and bitter “ tor, Impact general sec - tion reports later in the year. agenda”. grenade in the retary Peter McLoone claimed its mask had Feb 1 – SIPTU president Jack O’Connor claims agree - Jan 16 – ICTU urges the government talks process slipped to reveal the real ment is contingent on the better off contributing in line to renationalise Eircom to boost David Begg intention behind attacks on with their ability to do so. Unite’s national secretary broadband provision – just one of sev - public servants’ pay and pen - Jerry Shanahan flags up the issue of pension protection, eral ideas contained in a submission docu - sions. He said IBEC was “exploit - while IBEC chief Turlough O’Sullivan claims businesses ment to the government on dealing with the ing the recession to drive down were bleeding and profits “a thing of the past”. crisis. Among other sugges - incomes across the economy”. ICTU chief The Sunday Business Post reveals Department of Fi - tions was the setting David Begg described the IBEC ploy as a nance tax receipts for January down between 13 and 15 up of a “national “hand grenade in the talks process” and said per cent on same period last year – a decline of €600 recovery bond” it confirmed the view that the overall objec - million. scheme as well as tive of business interests was not just to re - a move away duce the pay bill in the public sector, but to Feb 2 – ICTU’s David Begg said unions would from spending secure “a competitive devaluation of wages have questions to answer if they came out of taxes – such as in the broader economy as an alternative to the talks with nothing on pensions at a time VAT – towards currency variation”. when the National Pension Reserve Fund direct taxation. had been used to recapitalise the banks. He Jan 25 – Speaking on RTE, Justice Minister Dermot Jan 18 – Brian added: “I do not think that you could credi - Ahern speaks of the need to broaden the tax base. He bly explain it [to the public].” Linehan, defends adds: “One of the aspects that could be looked at is, for the decision to instance, the second homes. There are plenty of people Feb 2 - Minister for Health Mary Harney said she did nationalise Anglo in this country who had the money over the good years not want to confirm nor deny reports the government Irish Bank claiming to buy second houses.” was considering cutting the early childcare supplement. there would have Meanwhile, figures from the Department of Enterprise, been “cata - Jan 26 – Ulster Bank Group announces the Trade and Employment’s redundancy payments division strophic loss of 750 jobs. The First Active brand in revealed a record number of redundancies last month – conse - the south of Ireland is to be phased out and 143 per cent higher than in the same month last year. In

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total, 6,708 people were made redundant with the serv - Eireann CEO Tim Smith who had just made a presenta - tions and I find it as unacceptable now as I would have ices sector hardest hit. tion to the committee on plans to shed 290 jobs at when Catholic and Protestant workers were set against Dublin Bus and 320 positions at Bus Eireann. each other in Belfast in the 1920s.” Feb 3 – Negotiations break down at 4am. ICTU chief David Begg told RTE the talks Feb 8 – Environment Minister John Gormley Feb 10 - Fianna Fail senator Jim Walsh calls had “just run out of road”. He said there had said executive pay would have to be slashed for a swingeing cut in public sector salaries been a number of important social policy is - if the state uses taxpayers’ money to shore and jobs claiming there was a divide devel - sues, including pensions, that negotiators up the banks. oping between public and private sectors. He had “been trying to crack”, adding “pulling called for salaries to be slashed by at least 10 all the strings together was a formidable Feb 8 – Impact general secretary Peter McLoone per cent along with a 15 per cent reduction task and ran out of time in the end”. On the claimed that while unions wanted to effectively oppose in the number of public sector workers, con - question of public pay sector cuts, he de - the unfair public service levy they also wanted to main - centrating on those who were “not perform - scribed the figures involved as “punitive”. tain a focus on employment, pensions and economic re - ing”. The pensions levy would have involved de - covery. He said: “A big part of the anger among public ductions of between €2,250 for staff on servants comes from the fact that workers alone have Feb 11 - ICTU announces it has drafted €40,000 to €4,750 for those on €60,000. Per - been singled out to make sacrifices while top executives a 10-point programme dubbing it a “fair” sonnel on €100,000 per year would have faced deductions of €8,750. Mr Begg added: “There would have been a revolution against them.”

Feb 3 - In a statement, Taoiseach Brian Cowen ex - presses regret at the failure of the economic recovery plan talks but praises the sincerity of those who took part.

Feb 3 - Labour Finance spokesperson Joan Burton described the breakdown as “the worst of both worlds” and criticised last week’s framework document for having “al - most no specifics in it”. IBEC director gen - eral Turlough O’Sullivan said it was “great pity” the process had not secured an agree - ment, and called for decisive action from the government “to make sure our external rep - utation is protected”.

Feb 3 – Brian Cowen tells the Dail the Cabinet has agreed to press on with the new pension levy claiming it would save €1.4 billion on the public pay service bill. Defending the cuts he said the government had been Points north: Eamon Gilmore’s Labour Party is ahead of Fianna Fail in MRBI poll guided by “principles of fairness and prudence in making these tough decisions”. Fine Gael leader Enda Kenny de - and the wealthy have not been asked to make any tangi - plan for economic recovery. The document outlines scribed the plan as a “€2 billion sticking plaster” for a ble contribution.” how issues of competitiveness, taxation, consumer con - fidence and employment rights could be dealt with. It ar - gaping wound that had not been treated at its root. Feb 8 - About 800 staff working in private Labour leader Eamon Gilmore claimed the net effect gues for a third rate of tax for the higher paid and says hospitals in Dublin are to ballot on industrial property tax should only apply to second homes. Con - was that nurses and gardai on modest incomes of action over the payment of the first €45,000, who were already paying €5,000, gress also called for a national rally to be staged in

phase of the national pay agree - Dublin on Saturday February 21. would be asked to pay an additional ment. SIPTU’s health sector €3,375. He added: “They will want to organiser Paul Bell claimed Feb 11 - SIPTU leader Jack O’Connor claims

know, ‘Why are they paying this for?’” There is some profitable private government and bosses’ failure to honour Impact claimed the failure to agree hospitals felt they did the national pay deal “will inevitably result measures to protect lower paid an orgy“ of not have to pay pay rise. in sustained campaigns of industrial action”. workers, or secure a bigger contri - He added: “We cannot bution from business and the bet - scapegoating accept private hospitals Feb 13 - Irish Times MRBI poll reports a collapse in sup - ter off, made the announcement “ port for Fianna Fail with Labour forging ahead of them profiteering from the “extremely difficult” for ordinary workers in public situation by not paying for the first time ever. Support for Fine Gael also workers to swallow. SIPTU chief sector their employees the 3.5 slipped. Jack O’Connor said that he regretted per cent and thereby the failure to reach agreement on a so - Eamon Gilmore Feb 14 - SIPTU general secretary Jack making bigger profits to re - O’Connor calls the levy proposals a deliber - cial solidarity pact. He added: “Regrettably ward shareholders.” working people once again are expected to ate attempt to lower wages as a substitute carry the entire burden of a crisis created by Feb 9 – INO general secretary Liam Doran for devaluing the currency. Meanwhile, those at the top of society.” claims all options will be considered in forcing a govern - Defence Minister Willie O’Dea claimed there ment rethink on what he called the “unfair, unjust and would be no fundamental Feb 4 – At a press conference in Dublin ICTU indefensible” pensions levy. Meanwhile, Health Minister changes to the levy chief David Begg claimed the missing ingre - Mary Harney said it was not unreasonable to introduce plans. dient in the government’s proposed cuts was a pension contribution. She added: “The view was taken Feb 15 - Impact general fairness. He said that if the union could not that we should start introducing a pension contribution, a secure a re-engagement on more secretary Denis given the huge benefits that are attracted to having a Rohan claims public favourable terms, “we would have to con - guaranteed pension in today’s environment”. sider a campaign against the government”, servants are ready adding, “We're not going to be rolled over Feb 9 – SIPTU chief Jack O’Connor warns of to play their part in by anybody in that process, no matter what industrial action “on a dramatic scale” and any economic re - happens”. Mr Begg said ICTU would also would involve much more than “just walks covery process, but seek to convene a full executive council around town”. He also accused government insists they want any meeting to discuss future strategy at which of being party to an agenda with bosses to measures to be fair. “all options” would be on the table. drive down wages.

Feb 4 - Frank Fahey, chairman of the Oireachtas trans - Feb 9 – Labour leader Eamon Gilmore claimed there port committee, claims Dublin Bus has gone for "the was an “orgy of scapegoating” against public sector Poll boost: soft option" in cutting jobs. Frank Fahey made his com - workers. He added: “Setting worker against worker is an Labour’s Joan ments to Dublin Bus supremo Joe Meagher and Bus old stratagem, used by establishments down the genera - Burton

February 2009 S UNION POST 7 BRIEFING Draft Framework for a Social Solidarity and 1. The Challenge IN EARLY January, Congress met with Taoiseach Brian Cowen and We are experiencing the most profound global senior Government officials to discuss how the unfolding economic economic crisis in seventy years. In addition to might be tackled. the effects of an international financial and bank - Congress proposed the establishment of a Social Solidarity Pact, ing crisis and a worldwide recession, the Irish where the burden was shared across all sectors. Congress subsequently economy is suffering from the aftermath of a submitted a range of detailed proposals on what might be contained in a large housing and construction boom and a loss Social Solidarity Pact. of cost competitiveness after a period of sus - On January 28, following intense negotiations between Government, tained growth. Congress and the employers, agreement was reached on the principles This is being exacerbated by the decline in the that would underlie any new national deal, along with the key issues it value of Sterling relative to the Euro which is would address. placing extreme pressure on Ireland’s base of ex - porting companies. While the uncertainty about international de - velopments makes predictions difficult, Ireland gramme for National Recovery in 1987, the Gov - scrutiny of all areas of public expenditure includ - now faces the prospect of: ernment and Social Partners believe that a similar ing agreeing measures on how to constrain G a reduction of up to 10% in national income approach now, based on an equitable approach to growth in public sector pay and pension costs. over the 2008-10 period tackling the problems facing the country, will help Taxation The adjustment to be achieved through further G a loss of more than 120,000 jobs over 2009 us find a way through current difficulties and sup - and 2010 port internal and external confidence. taxation measures will be informed by the follow - ing principles: G an increase in unemployment to more than In developing a Pact, the Government and So - G 10% cial Partners are fully committed to an approach Changes to be fair and equitable with a higher proportion falling on higher incomes while min - G tax revenues in 2008 more than €8 billion in which all sectors of society contribute in ac - imising distortionary effects between different below expectations, and a further fall projected in cordance with their ability to do so, and con - forms of tax 2009, creating an unsustainable Exchequer deficit versely the most vulnerable, low paid, G Support the productive sector of the economy G without further adjustments, a General Gov - unemployed and social welfare recipients are in - to keep Ireland competitive ernment Deficit in the range of 11% to 12% of sulated against the worst effects of recession. G Ensuring that tax expenditures are fully evi - GDP for each year up to 2013 The Government and Social Partners believe dence-based There are in fact significant downside risks to that by making the correct decisions now, and G Broaden the tax base and make changes that these projections including: committing to working together through the fur - are straight forward, easily understood and easy G ther difficult challenges which lie ahead, we can a steeper or more prolonged downturn in our to administer main trading partners deliver reforms which allow us to still realise our G Additional progressive tax measures consistent G shared goals for Irish society, most recently out - the possibility that global financial market with the social solidarity approach lined in Towards 2016, while also laying the foun - problems deepen or persist for some time Additionally, given the urgency of the situation G dations for sustainable economic recovery. further exchange rate appreciation and the role that taxation will have to play in G a further decline in international and domestic bringing stability back to the public finances, the 3. Stabilising the Public Finances confidence and investment Government is asking the Commission on Taxa - Although the pace and scale of the economic tion to identify appropriate options to raise tax The Government and Social Partners are agreed crisis is unprecedented, making a full analysis of revenue and to complete its report by Septem - the causes and implications for global and domes - on the necessity to progressively reduce the level ber 2009. tic policies difficult at this time, the Government of Exchequer borrowing over the next five years An Equitable Approach and Social Partners agree that urgent and radical in order to reduce the General Government The Government and Social Partners believe action is required to restore stability to the pub - Deficit to below 3% by 2013 through an appro - that support for these adjustments will be lic finances, to maximise short-term economic ac - priate combination of expenditure and taxation strengthened by measures which demonstrate tivity and employment and to improve adjustments. that the burden is being shared equitably across competitiveness. Public Expenditure society. This includes: Failure to implement radical decisions has the The adjustment to be achieved through reduc - G the need to ensure that moderation in respect potential to erode national and international con - tions in expenditure will be based on the follow - of executive remuneration is seen to contribute fidence in the Irish economy with profound risks ing criteria: meaningfully to the adjustment required for all sectors of Irish society. G ensuring a fair and equitable spread of the bur - G that those who benefited most from the eco - This document therefore sets out a framework den of adjustment nomic boom should within which the Government and Social Part - G maximising the level of sustainable employ - make a particular contribution to the adjustment ners have agreed to develop a Pact for Stabilisa - ment required tion, Solidarity and Economic Renewal. G solidarity with those now losing their jobs Delivering the Fiscal G maintaining high-priority public investments Stabilisation Framework 2. Shared response through partnership G careful forward priority planning The Government and Social Partners agree G increased efficiency, effectiveness and a focus that a credible response to the fiscal situation re - As Social Partnership was central to Ireland’s on outcomes quires a further adjustment at this stage of the economic resurgence starting with the Pro - The scale of the necessary adjustment requires order of €2 billion in 2009.

8 UNION POST S February 2009 Pact for Stabilisation, Economic Renewal... Sustainable Economic Renewal: Building Ireland’s Smart Economy including: G building on strengths in the Agriculture, Fish - eries and Food sectors G developing the ideas economy with intensified R&D activity and greater commercialisation of the output of that research G supporting the manufacturing sector G encouraging entrepreneurship and business start-ups G pursuing opportunities to expand the services sector, in particular international services G realising the long-term potential of the tourism sector G improving trade, investment and tourism links In addition to this immediate adjustment re - senior executives, in accordance with the recom - with new and fast- developing markets quired in 2009, the Government and Social Part - mendations of the independent committee estab - G pursuing opportunities in the Green Enter - ners commit to working together under the Pact lished by the Minister for Finance, including the prise sector, including in the area of energy effi - to support the further adjustments required to requirement that bonuses are measurably linked ciency reduce the General Government Deficit below to reductions in guarantee charges, reduction in (ii) to develop a new approach to upskilling and 3% over the remainder of the five year period. excessive risk taking and encouraging the long reskilling those in employment and those outside term sustainability of the institution the labour market; we will convene a Jobs and 4. Short-term Stabilisation G maximise sustainable employment in the sec - Skills Summit in March 2009 to devise innovative of the Economy tor approaches to maintenance of employment, cre - Recognising that unemployment will rise signifi - ation of new employment and early and active Given the severity of the short-term economic cantly in the period ahead, the Government and engagement with those losing their jobs; we will crisis facing the country, a range of measures will Social Partners will work together to maximise also seek to maximise eligible support from the be undertaken as part of the Pact to stabilise the employment and help those who lose their jobs European Globalisation Adjustment Fund for ini - economy and minimise negative social impacts. by: tiatives to support those who are made redun - In order to maximise economic activity and G designing a flexicurity approach appropriate to dant employment in the short- term, the Government Irish conditions which keeps people working (iii) to ensure that sheltered sectors of the econ - will: where feasible and equips people to return to omy, including professional services, bear their G provide a fiscal stimulus in 2009 and 2010 by employment as quickly as possible by maximising full share of the burden of adjustment maintaining capital investment at a high level by the availability and impact of education, upskilling (iv) to implement the employment rights provi - both international and historical standards and training supports sions in the Towards 2016 Transitional Agreement G re-prioritise this capital expenditure in 2009 G redeploying resources to ensure efficient and (v) to deliver measurable public service reform and 2010 in order to support labour-intensive ac - timely delivery of direct State supports to those to improve the efficiency and quality of public tivities where possible who lose their jobs including social welfare pay - services, based on the Government’s Statement G bring forward further proposals to support en - ments, redundancy payments and payments to on Transforming the Public Service published in terprises during this extremely difficult period, workers n cases of insolvent companies 2008 recognising in particular the pressures arising The Government and Social Partners will ad - (vi) to continue implementation of the Health from currency movements, and thereby support dress the serious and urgent difficulties facing pri - Service Reform Programme, including utilising the those in vulnerable employments vate sector pension schemes. Health Forum under Towards 2016 G act quickly to improve competitiveness includ - (vii) to finalise a comprehensive framework for ing increasing competition across the economy 5. Work together to future pension policy which responds to the chal - and reforming price regulation in areas such as implement a reform agenda lenges facing the Irish pensions system in the energy years ahead It is recognised that stabilising the financial and The Pact will set out a short-term agenda to ad - (viii) to ensure our approach to regulation, ac - banking sector is essential to secure a banking dress the economic crisis facing the country. In countability and corporate governance delivers a system which is fit for purpose. doing so, the Government and Social Partners ac - sustainable society and economy Accordingly, Government action will seek to: knowledge that reform and change across many G assist those who get into difficulties with their areas of economic and social life need to be pri - 6. Conclusion mortgages; in early 2009 a new statutory Code oritised to ensure that Ireland emerges from the of Practice in relation to mortgage arrears and crisis as quickly as possible. The Government and Social Partners commit to home repossessions will be brought forward, and However the Government and Social Partners work intensively over the immediate period the mortgage interest scheme will be reviewed commit to working together on the following pri - ahead to develop specific measures to finalise and G maximise the flow of credit to the enterprise ority issues in the period ahead, within the then implement a Pact based on this framework. sector and ensure early introduction of a code of agreed fiscal stability framework set out above: practice on business lending (i) to implement an agenda for enterprise and G introduce controls on the remuneration of competitiveness based on the Framework for 28 January 2009

February 2009 S UNION POST 9 10 POINT PROGRAMME BRIEFING

CONGRESS has consistently advocated the adoption of a Social Solidarity Pact as a better and fairer route to national recovery. On January 28, Congress, Government and the employers settled on an outline Framework Agreement, which was to provide a basis for more detailed discussions on a National Recovery Plan. The Framework committed all parties to a plan in which “all sectors of society contribute in accordance with their ability to do so, and… the most vulnerable, low paid, unemployed and social welfare recipients are insulated against the worst effects of recession.” But Government failed to follow through on this commitment, which envisaged no less than a coherent response to all of the major issues fac - ing working families. They resorted instead to a narrow focus on the public finances – without seeking a contribution from the wealthy. Their intent is to achieve a competitive devalu - ation of wages across the economy, as we are no longer in a position to devalue the currency. Ironically, a currency devaluation would be more equitable, as it would reduce living standards for everyone, not just workers. Congress remains committed to the concept of a Social Solidarity Pact and here we present 10 key initiatives that we believe must form part of such plan or agreement. Our preferred option is to engage with all par - ties on these initiatives but if that is not possible, we will embark upon a major campaign to achieve a change in policy, commencing with nationwide demonstrations on February 21.

Protecting jobs and tackling unemployment 1Our social welfare system must be radically al - tered and integrated with skills enhancement, ed - ucation and training. In a number of European utives, we require a complete overhaul of Corpo - regime that has pushed prices higher to ensure countries, unemployed workers are guaranteed rate Governance and clear indications that private generating companies make a profit. Cou - incomes of 80 percent of salary for two years, wrongdoing will be punished. Support for the pled with the failure of our broadband infrastruc - conditional on their participation in extensive banking system should be conditional on: ture - following the privatisation of Eircom - this training and upskilling. Employers are also assisted G Public control, either through Recapitalisa - demonstrates the critical importance of strategic to identify alternatives to redundancy, such as tion or Nationalisation; state intervention in the economy. short term working weeks and other arrange - G A legally-enforceable obligation to provide Our cost of living in Ireland is some 20 percent ments. support for innovation and development in the above the European average. Failure to pass A similar scheme, modified for Irish conditions, economy, along with credit and support for busi - through gains from a weakened Sterling and high could be funded by amalgamating current expen - ness cash flow, where it can be shown that it is professional fees are an unjustifiable drag on com - diture on benefits with additional funding from critical to job protection or creation; petitiveness. the Public Capital Programme (PCP). This ap - G Replace all top executives responsible for proach should be complemented by reprioritising the crisis, in the relevant banks; The ‘pay the PCP to support job protection and labour in - G Remuneration from all sources for those at 4agreement tensive activities. the top must be capped; Congress continues to adhere to the Social G Three year moratorium on home reposses - Partnership agreement. The Government, CIF The bank system and sions, where people cannot pay due to redun - and IBEC have now, in effect, reneged on the pay the public interest dancy or unfair dismissal. deal they negotiated in September 2008. Yet, sig - 2The Bank Recapitalisation Programme involves nificant numbers of private sector companies handing over €7 billion of public money, from the Competitiveness have paid the first phase of that deal and others Pension Reserve Fund, to the same people who have committed to doing so. No credible reason presided over the collapse. Their refusal to forego 3In addition to the absence of a properly func - has been advanced to explain why the ‘inability to enormous personal salaries and bonuses speaks tioning banking system, the most immediate pay’ clause has not been utilised. volumes about their contempt for the taxpayer. threat to our competitiveness comes from the That €7 billion must not disappear into a black weakness of Sterling, not wage rates. This ac - This is no less than a campaign against wages, as hole and only one consideration – the public in - counts for about two thirds of the deterioration an alternative to a currency devaluation, to pro - terest – should inform Government decisions on in recent months. mote competitiveness. But the state of the global this crucial matter. And given all that has Energy prices must be reduced and the only economy is such that wage devaluation is unlikely emerged about the conduct of senior bank exec - impediment to this is the nonsensical regulatory to have much impact on exports, whereas it will

10 UNION POST S February 2009 Public service ‘pension levy’ 7We acknowledge there is a crisis in the public finances. Government must return to the Frame - work Agreement of January 28. This recognised the necessity for radical measures to bring the public finances under control, on the basis of all sides contributing in accordance with their ability to do so. Until that happens there can be no sus - tainable plan for national recovery. The so-called ‘Public Service Pension Levy’ is a There is crude and unfair instrument. As currently struc - tured it is a straightforward pay cut. It has no re - gard for ability to pay. Indeed, some people on lower incomes pay proportionately more than those on higher pay. Apart from seeking to tackle the public finances without charging the wealthy a cent, it is also part of a strategy to drive down wages across the economy. Workers did not create the problem, but will a better, contribute to resolving it - as long as the wealthy also contribute. The problem with the course currently being pursued by Government and em - ployers’ organisations is that the weakest suffer, while the wealthy contribute nothing.

Pensions

8Private sector pensions are in crisis and there fairer way is increasing doubt about the long term viability of many funds. Government cannot stand by and allow people to emerge with nothing, having worked and contributed to a fund for perhaps 40 Congress Plan for years. Waterford Crystal is a case in point. Congress wants the National Pension Reserve Fund to be used as a Pension Protection Fund – which EU law requires us to establish. It has not National Recovery escaped people’s notice that there is official reluc - tance to use it for this purpose and none whatso - ever when it comes to propping up the banks. Other innovations suggested by Congress in - seriously depress domestic demand. Restoring clude a state backed annuity and the possibility Ultimately no incomes policy can have credibil - 6consumer confidence that private pension funds could have the option ity unless the remuneration of senior company The property boom encouraged unsustainable of voluntarily surrendering their assets to the executives is curtailed, as has happened in the US. levels of credit and spending. This has now been state, in return for a certain level of guaranteed reversed and people are frightened to spend. This pension. Fairness fear is paralysing the economy as people are wor - 5and taxation ried about unemployment, pensions and repos - Employment The Framework Agreement includes commit - session of their homes. As almost half our GDP 9rights legislation ments to fair and progressive taxation measures. comes from consumer spending, this has enor - In Towards 2016 Government committed to But Government must spell out what this means mous implications. It undermines employment enacting a programme of legislation to protect in practice. How much of the €2bn shortfall will and jeopardises the survival of businesses. The the rights of all workers in the context of EU en - state also loses out on tax revenue. be carried by the wealthiest in the country? We largement. The aim is to stop exploitation of It is imperative that people’s fears are ad - believe the following reforms should be intro - workers regardless of nationality. Recent events dressed. The failed policies of letting the wealthy duced: in the UK demonstrate the need to get this legis - off the hook, while forcing working families pay lation enacted quickly. G Income from all sources – capital and labour for the crisis, has already led to a slump in con - - must be taxed the same; sumption unparalleled elsewhere in Europe. Re - Restoring G Tax exiles must stay away if they don’t want tail sales in Ireland have been falling at an annual consumer confidence to be taxed here; rate of 8 percent, as compared with the EU aver - 1It 0is clear that people are anxious to contribute G Tax shelters without a proven economic gain age of one to two percent. RecentVAT increases to national recovery. This spirit could be chan - should be abolished; have exacerbated the problem. nelled positively by establishing a National Recov - G A property tax should apply to property Policy to date has been almost exclusively de - ery Bond. While we have enough borrowings for other than the principal private residence; flationary in practice. Surely the most sensible op - the immediate future, the state will presumably G The levy on high earners (above €100k) tion is to stimulate the economy, rather than need to borrow more next year. With the cost of should be graded upwards significantly; dampen spending and growth? To this end, all par - this borrowing increasing, a domestic National GA new rate of income tax at 48 percent for ties must now return to the negotiating table to Recovery Bond could save the exchequer a lot of high income earners; agree a resolution of the situation on the Na - money. It could also be targeted at specific sec - G Abolish hospital co-location, with its gener - tional Pay Agreement, to provide people with tors such as school building or public transport, ous tax breaks for developers. some confidence for the future. so people could see tangible gains

February 2009 S UNION POST 11 PRIVATISATION Put brakes on PFIs/PPPs call

NIPSA has published a landmark report on the use ible base to support the current policies. She said: John Corey strongly welcomed the report and in - of Private Finance Initiative/Public Private Partner - "Our report shows that the economic case for sisted it provided “compelling” evidence for a fun - ships in Northern Ireland. using PFI/PPP in Northern Ireland is extremely damental change of policy. The union commissioned the independent re - weak, and is becoming weaker still as the relative He said: “NIPSA has campaigned against the use view from the University of Edinburgh’s Centre for cost of private finance increases due to the finan - of PFI and PPP for the provision of essential public International Public Health Policy. cial crisis. service infrastructure and public services. We have It found that Northern Ireland faces a staggering “At the same time, with public sector ac - never been convinced that these procure - £10 billion plus bill in unitary charges for PFI/PPP counting rules due to change, the so- ment routes provide taxpayers with

contracts if Executive ministers stick with current called additionality advantage of value for money. investment policies. PFI/PPP is being eroded, under - “We have also been deeply

The research also found that critically, when local mining the Northern Ireland Ex - We have never concerned that in the longer companies are facing meltdown and workers un - ecutive’s central rationale for term massive unitary charges been conv“ inced employment, the current set up channels work to the policy. for PFI/PPP projects would large overseas companies at the expense of local “This is therefore an appro - these p“rocurement leave Northern Ireland short providers. priate time for a full, inde - routes provide of public funding for essential The report concludes the time is right pendent inquiry and, in services. for an independent review of capital in - the meantime, a value for money “The publication of this inde - vestment policy in Northern Ireland moratorium on the John Corey pendent and rigorous report and recommends an immediate mora - use of private finance analysing the current and future torium on the use of PFI/PPP until the for current projects. PFI/PPP commitments for Northern review is completed. “For the inquiry to be success - Ireland provides a compelling case for a fun - Speaking at the launch of the report ful, it will require the publication of all damental review of the Northern Ireland Execu - Professor Allyson Pollock, widely re - PFI/PPP contracts and financial models, tive’s policy on future public service procurement.” spected as an expert authority on so that value for money can be properly NIPSA has forwarded copies of the report to all PFI/PPP issues in the UK, said evaluated." NIPSA general secretary ministers and Assembly committees urging them to the team’s research con - impose the moratorium on further use of firmed there was no cred - Inquiry call: John Corey PFI/PPPs INFOFILE: Public Private Partnerships G The use of public private rently in negotiation are – an accounting anomaly involved in contracts. partnerships in Northern signed off, the liabilities ac - which distorts financing de - G These costs are increasing Ireland has dramatically in - cruing to PPP contracts in cisions. Similarly, the notion for new schemes due to the creased since the late 90s. Northern Ireland will rise to that PPP can help to rebal - financial crisis, which has As of March 2008, contracts more than £10 billion. ance the economy is a mis - eliminated bonds - the for 35 PPP projects had G Different rationales have conception. This is a policy cheapest source of private been signed, representing been used to support PPP that will channel work to finance - and increased the private financing of £1.29 large, overseas companies in Northern Ireland. The margins on bank finance. billion. A further 13 proj - at the expense of domestic first devolved administra - G ects, with a capital value of providers, curtailing private New accounting regula - tion regarded PPP as a £1.94 billion, are now being sector growth. tions will address the means of generating “addi - anomaly whereby debt negotiated with private sec - G In reality, the legitimacy tional” investment. How - raised through a private tor bidders and are due to of PPP stands or falls on its ever, this rationale was sign before 2012. cost-efficiency credentials: sector intermediary is not broadened during direct G Private finance creates a i.e. whether the policy is recorded on the public sec - rule, when PPP (by now the public debt. The public bod - better value than alterna - tor’s balance sheet. This “preferred” method for ies involved in PPPs have to tives, such as direct borrow - will remove the central at - pay annual payments to the capital investment) was ing. The evidence shows traction of PPP for the po - private sector over a long embraced as part of wider finance costs are higher for litical parties of Northern period, often 30 years. The measures to reduce the size the private sector, and this, Ireland. With devolution re - future payments on of the public sector. combined with an excessive stored, there is a clear need schemes signed to date G In fact, neither rationale rate of return on capital, for a full, independent re - amount to some £4.7 bil - is valid. The “additionality” has led to very high costs view of capital investment lion. As the projects cur - of private finance is illusory for the public authorities policy in Northern Ireland.

12 UNION POST S February 2009 NEWS BRIEFS Zero tolerance call for bus thugs THE NATIONAL Bus and Rail Union has called for thugs who at - tack bus drivers to be jailed and to face heavy fines. It follows an incident on January 3 when a Dublin Bus driver was as - saulted and his bus hijacked. The driver, a Chinese national, suffered a hand injury and severe bruising when he was dragged off his vehicle on Cork Street and beaten up. NBRU official John Mc - Grane called for "a zero-tolerance policy" when drivers are targeted. He said: "The Minister for Justice and the Minister for Transport need to put some sort of policy in place. “Too often these people are just dealt with by the Garda juvenile liaison officer and the cases don’t go through the courts. “There needs to be heavy fines Mesothelioma: and custodial sentences.”

‘Disappeared’ fears over end of survey ‘Funding’s vital’ THE Teachers Union of Ireland has expressed fears a generation of school leavers will become “the MESOTHELIOMA support groups in the UK have benefits. Researchers are desperate for funds to de - disappeared” of the educational called on the British government to fund a national velop life saving treatments - mesothelioma is far system in the Republic. centre for asbestos-related diseases. and away the least researched of the top 20 cancers It follows the ending of Currently almost all cash raised for research into in the UK. the ESRI School Leavers this form of cancer comes from families and friends “Funding for a UK centre is a priority. Such an in - Survey, which in the past of sufferers. stitution would encourage collaboration between has provided invaluable in - British-based support groups have praised the current and future researchers and stimulate trans formation on charting stu - Australian government for giving $6.2 million to set national research to generate future treatments to dents’ progress through the up a research centre at the Concord Hospital in prolong and save lives." school Sydney which opened last month. system. Liz Darlison, a consultant nurse who works in the Vital role: Ryan Now they want the UK government to do the TUI president Don Ryan field, added: “For too long mesothelioma victims' same and they’re planning to raise awareness of the claimed it was “absolutely vital” to plight has been overlooked and under researched. desperate need for funding on Action Mesothe - monitor every child in the system “Mesothelioma is a global public health disaster, lioma Day on February 27. to find ways of combating drop out The disease, caused by exposure to airborne as - wealthy countries with a high incidence of the dis - rates. bestos, kills more than 2,000 people in the UK ease must work together to improve outcomes. He added: “There is now a severe alone each year. “We have the networks available for us to col - risk that there will be an informa - Consultant thoracic surgeon John Edwards, who laborate internationally but need government sup - tion deficit on the progress and fate chairs the British Mesothelioma Interest Group, port and secured funding to enable us to move of these marginalised young people, said: “Patients and their carers do not want the forward." who will then in every sense be - compensation - they want their lives back. A series of events are being across the UK on come ‘the disappeared’ of Irish edu - “Industry does not want to pay the compensa - February 27. Check out www.asbestos cation.” tion. Government does not want to pay the forum.org for details. NIPSA blasts Civil Service comments NIPSA has defended civil servants following com - conditions. He told the BBC: “Civil service staff Jones’ stated view that many civil servants “frankly, ments by two members of the House of Lords. qualify for a small environmental allowance to take deserved the sack” and that the job could be done Lord Laird had raised the issue of what he called account of the particular circumstances of their by half as many employees. “danger money” being paid to 1,500 civil servants workplace and the physical conditions in which Mr Corey joined UK-based PCS union chief in the Northern Ireland Office – a sum of £5.50 they carry out their duties.” Mark Serwotka in labelling the Peer’s views “nar - per week gross. Civil Service employees working in prisons, po - row minded, naïve and insulting”. But NIPSA general secretary John Corey coun - lice stations and other law and order functions have Mr Corey added: “Clearly in his 16 months as a tered that the payment was in fact not danger qualified for the payment since the 1970s. minister Lord Jones didn’t learn much about the money but part of civil servants’ agreed terms and NIPSA also slammed Trade Minister Lord Digby Civil Service and what it does.”

February 2009 S UNION POST 13 jOBS Record unemployment rise in Northern Ireland

NEW figures have revealed Northern Ireland was “Last month showed another sharp increase in Laois, Meath and Kidare has shot up by more hit last year by its largest annual hike in unem - the registered unemployed and the increase over than 100 per cent over the past 12 months. ployment ever recorded as Stormont’s Economy the last six months has been particularly Meath was the leading unemployment Minister Arlene Foster warned the North could marked. blackspot, with nearly 8,220 people on the dole not expect to escape “unscathed” from the global “It is clear the local economy, in line with other compared with less than 3,900 in January economic downturn. UK regions, is facing very immediate economic 2008. Government returns showed the number of pressures. The number of those unemployed in the dole claimants went up by 2,200 to 38,400 in “Northern Ireland cannot expect to emerge Kildare, Meath and Wicklow region as a whole January – a similar figure to that recorded in unscathed from the global downturn, however, we rose by 15.5 per cent last month. December. are working to limit its detrimental impact.” The Central Statistics Office figures showed The increase over the year to January - at 327,861 were claiming jobseeker’s benefit or 14,700 - was higher than the UK average. Stats grim south of border... allowance. The annual percentage increase was 62pc, the FIGURES published last month show the number CSO results also flag up how unemployment highest since the claimant count began in January of people unemployed in the Republic has more rates among non-Irish nationals is growing at a 1971. than doubled in some counties in the last year. faster rate than among Irish-born workers. Up to 80 per cent of the annual increase The grim statistics revealed that the number of Non-nationals now make up almost one in five occurred in the last six months. Ms Foster said: people on the live register in Cavan, Monaghan, of those signing on the live register.

Gardai lash levy Defence Forces body: We don’t MID-ranking gardai have strongly rejected government pay plans. want to be used to break strikes The Association of Garda Ser - Gerry Rooney SOLDIERS have called for assurances been used in the past to break a num - geants and Inspectors said its mem - they will not be asked to break strikes ber of disputes, including those by bers were furious they are being if the public sector is hit by ambulance and bus workers. made to carry the can for errors industrial action. Claiming that Defence Forces per - made by major financial institutions. Pdforra, the group sonnel were firmly against the pen - General secretary Joe Dirwan which represents sion levy, he added: “It will be claimed many officers were facing Defence Forces morally wrong for soldiers to be hefty cuts in their wages - an aver - personnel, asked ordered to break strikes arising from age €100 a week - and would be for clarification this imposition." forced into debt. from Defence Minis - In reply to a question in the Dail on The AGSI, which has already out - ter Willie O'Dea. February 4, Mr O’Dea said: "Defence lined its opposition to the move in a General secre - Forces may be called on to contribute letter to the Taoiseach, are to study tary Gerry to maintaining vital services in the levy legislation before working Rooney said sol - times of industrial action.” out a strategy. diers had Clarification: Willie O’Dea

EXPAND, INVEST AND ORGANISE TO BEAT RECESSION PAGE 20 Full access to education vital IMPACT general secretary Peter McLoone has standards that you have all worked hard to expressed alarm that cuts have already begun achieve. We should hope for nothing less than to affect education provision. that, but continue to be ambitious.” He made his comments at a seminar on Barnardos chief Fergus Finlay also spoke and equality and disadvantage in education flagged up the huge role education system had organised by the union. not only in dealing with the causes of poverty, Speaking before the breakdown of talks but also in ending child poverty. involving the social partners, Mr McLoone He blasted the opportunity squandered in claimed the most vulnerable had to be not setting up a pre-school education system protected when dealing with the economic during the boom years of the Celtic Tiger. downturn. Mr Finlay said: “There is little doubt that He said: “This means maintaining the level high-quality intervention at an early stage Alarm: Peter McLoone of service you already provide; protecting the does a lot to tear down barriers.”

14 UNION POST S February 2009 Jobs fear over Royal Mail plan to restructure ROYAL Mail has denied they plan to scrap 16,000 jobs across the UK under a massive restructuring plan. Bosses are to hold talks with trade unions next month in a bid to “mod - ernise” the business in the face of what it terms increased competition. According to the Communication Workers’ Union, which represents about 3,000 Royal Mail staff in North - ern Ireland, the cost-cutting aspect of the plan will see 10 per cent savings across the group. The postal group has already writ - ten to some workers setting out op - tions including offers of voluntary redundancy or part-time work. CWU deputy secretary Dave Ward said: “Royal Mail is pushing for an arbitrary 10 per cent cost saving for offices across the country. “This is not agreed by the CWU and could have a huge impact on both job losses and a reduction of full-time jobs to part- time jobs.” Describing the move as being a panic measure that would Impact services: Dave Ward hit services, Bastille stormed again he added: “This decision comes after profits in Royal Mail have soared, FRENCH unions have hailed a one- filled the Place de la Bastille – po - which brings into further question the day strike on January 29 as “the tent symbol of the French Revolu - necessity of these cost-cutting quo - biggest workers’ protest in 20 tion – as opinion polls showed tas.” years”. three-quarters of the public sup - CWU’s Northern Ireland Secretary Dubbed ‘Black Thursday’, unions ported the action. Laurence Huston said there had been claimed up to 2.5 million people CFDT union chief Francois no talks locally with postal bosses took part in the demos – at least Chereque said: “We have not seen about the planned cuts. 300,000 in a massive show of action on this scale for two He told one newspaper: “We are strength in Paris. Angry chants decades. It is a cry of anger.” disappointed that this has been re - ported before Royal Mail has even met with the unions. “We are left in limbo, this is a con - cerning time for workers.” The Royal Mail has denied it has Minimum pay warnings plans to cut 16,000 jobs. A spokesperson said: “We have no LABOUR Affairs Minister Billy Kelleher has called Kelleher's ministerial colleague Mary Harney also plans for 16,000 job cuts and while we for a "realistic" review of the minimum wage, warn - weighed in on the issue. are trying to cut costs, it is about cen - ing it could hit the creation of new jobs. She warned that many small restaurants were tral costs and overheads and certainly He claimed new economic realities had to be being affected finding it difficult for them to make a not about our frontline people.” taken into account and pointed out return on the wage levels they have to pay. The Royal Mail employs around that Ireland had the second Ms Harney described the current minimum – last 180,000 staff, mainly in its postal highest minimum wage – at increased in July 2007 – as “the floor” upon which division. €8.65 – in Europe. all other wages were based, adding, “in some places, In particular he highlighted twice that level is paid, for example, on a Sunday to the "huge pressures" on the all levels of employees.” JOBS TIMELINE tourism sector with increased She claimed jobs were being put at risk and called PAGE 19 lay-offs among hotel workers. for “pragmatism” on setting a rate. Harney: Wages warning

February 2009 S UNION POST 15 16 THERE IS A BUNIOEN POST S FeTbruary 2009 TER, FAIRER WAY THERE IS A BETTEFRebruary 2009 S UN,ION POST FAIRER WAY 17 VIEW POINT Congress Policy Officer ESTHER LYNCH argues there is an alternative to the damage inflicted on individuals and society by unemployment... it’s called Flexicurity On the payroll ...not the dole

THERE is nothing more soul-destroying than the This facilitates job transitions by providing stabil - For example, only a quarter of those currently at dole queue, nothing more likely to dishearten and ity, income security and an opportunity to improve work in this economy aged over 35 have a third dull the spirit than the prospect of ‘signing-on’. employability. level qualification. I recently heard an unemployed Unemployment has a corrosive effect on individ - Implicit in this model is an awareness of the construction worker point out that he desperately uals, families, wider society and, or course, the social and economic damage done by consigning wanted to learn new skills, as opposed to ‘sitting’ on economy. people to the dole queue - a waste of time, money the dole. But every state agency he contacted told The higher the number out of work, the greater and peoples’ lives. him there was no money. and more widespread the damage. Crucially, Flexicurity overturns the traditional His despair and frustration were palpable. How Faced with the possibility of some 450,000 ‘welfare’ paradigm by focusing on the skills and em - can this make sense? unemployed by year’s end, we need to engage in ployability of the person, as opposed to protection The lack of training provision for workers, some very creative and innovative thinking if we are of the job. particularly those on non-standard contracts is to prevent a downturn shape-shifting into a full- If the last decade has taught us anything, it is that endemic and access to personal skills enhancement blown socio-economic crisis, the implications of technological churn will ultimately render all exist - remains outside the grasp of the majority. which we cannot even yet conceive. ing jobs superfluous, while simultaneously creating With a handful of honourable exceptions, As Congress has repeatedly stressed, the first new opportunities and therefore new employment. employers have consistently failed to provide train - and foremost priority must be to protect And it is the recognition of this trend which ing for workers. existing jobs and maximise employment makes Flexicurity a central component Most other EU countries have introduced laws

levels generally. of any new or even smart economy. requiring employers to support employees learn - We should take this opportu - Equally, by removing the gen - ing through paid leave, or to spend a percentage of

nity to fundamentally overhaul Flexicurity is uine terror induced by the annual payroll on training. and reshape our Social Welfare threat of unemployment, the Of course, the sceptics will point to Denmark’s system, which was originally designed“ to system incentivises people to relatively high taxes and higher public spending. designed to ensure mass un - balance“ competing continually upskill and retrain. A simple answer is to point straight back to Ire - employment did not evolve In countries, such as Ireland, land’s now bankrupt low-tax economy, poor public into mass destitution and, even - needs of flexibilty that adhere to the traditional services and rapidly growing unemployment. tually, social upheaval. and security ‘welfare’ paradigm, the reverse It might also be worth pointing out that ‘high tax That model is no longer appro - is true. Denmark’ regularly outstrips the low tax models priate in a globalised economy and Someone on the average indus - in the international competitiveness stakes. certainly not for the Smart Economy trial wage, who becomes redundant The construction of a Flexicurity model in Ire - proposed by government. today, faces losing close to 75 per cent of land would take time and cost money. But such a Congress believes we look to Denmark for ex - their income. project must be seen as a major investment in our ample. Nothing can prepare you for this shock. workforce, skills’ base and social cohesion. Here, a system known as Flexicurity has helped Once on the dole they will be expected, not to Ironically, the one point of consensus that has maintain one of the lowest unemployment rates live, but to exist on €200 per week. emerged in recent months centred on the and highest job satisfaction levels in Europe. Indeed a family of four will be forced to survive necessity to continue capital spending and maintain As the term suggests, it is a system designed to on just €15 per day. Debts mount. The family home investment, despite the economic gloom. balance the competing needs of flexibility for is threatened. Homeless numbers rise. Bridges, roads and rail are important in the econ - employers and security for employees. And, of course, the longer a person is on the omy, but they don’t spend money, buy produce, pay Danish workers facing redundancy must be given dole, the lower the chance of ever regaining mean - tax and create wealth. three months notice – in Ireland it could be a ingful employment. Surely our national skills base demands and matter of days. It will be impossible to build any plan for national requires the same priority. In addition, redundant workers are guaranteed recovery on such a foundation. If we cling to the traditional welfare paradigm, it 80 per cent of their salary for 48 months and they It will also prove impossible to work our way is almost certain that we will be condemned to are provided with training to equip them with the through recession if we continue to fail in matching repeat the many mistakes of our past. And that most up to date skills, relevant to their job. rhetoric to reality, in terms of training and skills. does not bear thinking about.

18 UNION POST S February 2009 JOBS TIMELINE...JOBS TIMELINE...JOBS

Jan 8 – Dell announces the loss of almost 1,200 outside Belfast. The cuts follow an extended had so far volunteered for redundancy. jobs at its Limerick plant, as the computer gi - Christmas break and the cutting of jobs at its ants moves production to Poland. The remain - Derry-based Calcast subsidiary in November. Feb 5 – Aviation firm Bombardier in Belfast announces a ing 1,100 Dell staff will primarily work in further 300 job losses among sub-contractors, while an - product development, engineering and logistics, Jan 22 – Brokerage firm Prestige Insurance Holdings is to other 300 full-time staff are to be made redundant at moble focused on supporting overseas manufacturing. create 40 jobs at a new facility in Jennymount Business Park manufacturer Ericsson’s Dublin plant. The lay-offs will take The cuts are not set to affect the 1,300 market - in North Belfast. place over the next 18 months. ing and sales staff at Dell's Cherrywood plant in Jan 23 – About 80 jobs are to go by the end of Feb 5 – Co Monaghan-based forklift maker south Dublin. Dell products make up at least 5.5 March at Kildare County Council after council Combilift is to shed 34 jobs from its total work - per cent of Irish exports and two per cent of chiefs announced they would not be renewing force of 230. GDP. contracts. Feb 5 – Ryanair says it is to cut services at Shannon Airport Jan 8 – Blaming “market conditions”, engineering firm Co Jan 23 – Britvic’s Irish division announces it is to shed 145 and shed 100 jobs in the process. Airline chief Michael Antrim-based FG Wilson announced today that it was shed - jobs over the next year as part of a restructuring pro - O’Leary blamed “insane and suicidal” 10 euro travel tax for ding 260 jobs at its three sites in the county. The firm laid gramme. The losses will primarily affect the firm’s logistics, fall in passenger numbers in the west. off more than 180 workers employed through a local re - finance, IT and sales sections and will reduce Britvic’s Irish cruitment agency before Christmas. workforce from 940 to about 800. Feb 5 – Grain company Drummonds announces the loss of 44 jobs with the closure of its Jan 8 - Up to 150 workers are laid off for at Jan 26 – Ulster Bank Group announces the loss branches at Clonee, Navan, Kells, Drogheda, least a month the Fintec plant in Ballygawley. of 750 jobs. The First Active brand in the south Ardee and Knockbridge. Bosses at Fintec, which manufactures construc - of Ireland is to be phased out and merged with tion equipment, expressed confidence staff Ulster Bank branches. IBOA, which represents Feb 5 – Home entertainment chain Chartbusters is to close would return after the lay off. 4,000 staff in Ulster Bank, and SIPTU, which 17 of its stores with the loss of 60 jobs. represents 360 staff in First Active, issues a Jan 10 – Supervalu store in Kilkeel, Co Down, is to close at Feb 6 – 70 jobs go as production ceases at the joint condemnation of the proposed cuts. end of January with loss of 30 jobs. South Down MP Eddie NN Euroball plant in Kilkenny. McGrady describes it as “a devastating blow”. Jan 27 – Co Tyrone engineering firm Power - Feb 6- Reports that US banking giant Merrill Lynch is to screen announces the loss of 90 jobs. The com - Jan 12 – Asda announces it will create at least shed 31 staff from its Irish HQ in Dublin. 400 new jobs when it opens a flagship store outside Antrim. Feb 6 – The Carlton Hotel Group announces it was stepping in to rescue Castletroy Park Hotel Jan 13 – Usdaw welcomes jobs boosts in the retail sector in Limerick. The hotel closed last week with the across the UK. Tesco is creating 10,000 positions, Morrisons loss of 130 jobs. over 5,000, Sainsbury’s up to 4,000 and Iceland 2,500 jobs. Feb 6 – A total of 93 dockers are to lose their jobs at the Jan 14 – Dublin Bus announces a restructuring Port of Cork following an agreement on the modernisation plan to reduce its fleet of 950 buses by 120 and of work practices. cut 290 jobs from its staff of 3,500. Dublin Bus branch president Tony Fallon, after meeting Feb 7 – Co Armagh-based pharmaceutical firm with management, said they would formulate a Almac is to create 99 full time and 28 tempo - response to the proposals but made it clear the rary posts. More than 90pc of the permanent union “will not accept compulsory redundan - jobs are for graduates with scientists particu - cies”. larly sought after.

Jan 16 – German-owned car components company Kostal Feb 7 – Fears grow for an unspecified number of jobs at the seeks 300 voluntary redundancies from its workforce - 200 Royal Mail in Northern Ireland following announcement of at its plant in Abbeyfeale, Co Limerick and 100 more in Mal - a massive UK-wide modernising programme. low, Co Cork. It is also seeking to introduce short-time working for all employees until the end of March. Feb 9 – Food group Glanbia is looking for 210 redundancies across its operation as part of a Jan 20 - Bus Eireann informs its 2,700 staff it is €16m cost-cutting plan announced last month. looking to cut 320 jobs and reduce its fleet by 150 vehicles, blaming a “challenging economic Feb 9 – SIPTU confirms layoff talks involving nearly 500 environment”. A pay freeze is also announced. workers at Banta RR Donnelly have begun. The plant’s facil - SIPTU sectoral organiser Willie Noone said the ity at Raheen, Limerick, provided services to Dell. It’s announcement, which contained no details thought the firm is preparing to transfer its service to Lodz about where the jobs were to be axed or bus in Poland. pany cut 70 jobs in December and blamed on a withdrawn, had created “an air of uncertainty” Feb 10 - SIPTU warns that up to 1,000 local fall off in orders. Workers at Seagate Technol - affecting “every employee, every commuter authority staff on temporary contracts could ogy have been asked to take a 10pc pay cut. and every community in the country”. be let go. Jan 28 – Retail giant Asda is to create 7,000 jobs across the Jan 20 - GE Money announces 100 compulsory redundan - Feb 12 - Swiss-based aircraft maintenance firm SR Technics UK. About 800 of the new positions will go to Northern cies at its Dublin and Shannon operations. This follows a is to shut its operation at Dublin Airport with the loss of Ireland. The company is currently seeking planning permis - similar jobs cut in the second half of last year. IBOA general 1,135 jobs. Chief Executive Bernd Kessler said the manage - sion for new stores in Larne, Belfast and at the Junction secretary Larry Broderick dubbed management handling of ment were aware of the “personal implications of the clo - One complex outside Antrim. the situation “appalling” describing as “alarming” their “cava - sure to our staff in Dublin”. A Unite spokesman described lier attitude to industrial relations norms”. Jan 29 – Newry-based Software consultancy the news as a “devastating blow”. Meanwhile, Ryanair also Jan 21 - Superquinn confirms it will shed 400 firm First Derivatives is to create 150 jobs in announces it is to get rid of 200 positions including pilots, jobs nationwide and close its Dundalk store. Northern Ireland. cabin crew and engineers. This means the grocery chain will shed 12pc of Jan 29 – Belfast hotel TenSquare hopes to create 75 new Feb 12 - Workers at three of Tuam’s biggest its staff. Management said it would also be jobs if plans for a new expansion of its Donegall Square employers - Transitions Optical, Valeo and looking for remaining staff to agree more flexi - South site are approved. Logstrup - are told they are to go on three-day ble terms and conditions. and four-day working weeks. Jan 29 – Sandwich chain Subway announces it is Jan 22 - The Galmoy zinc-lead mine in Co Kilkenny will to create 400 jobs across Northern Ireland over Feb 12 - Tesco announces it is to create 250 new jobs in close in May two years earlier than planned, with the loss of the next two years. Coleraine as planners give the green light to expansion 200 jobs. Canadian firm Lundin Mining Corporation, which plans at its current store in the Co Antrim town . owns the works, said the closure is due to the sharp drop Feb 1 – Vista Primary Care Campus is to create 120 jobs at in zinc prices. SIPTU regional organiser Dennis Hynes said a new purpose-built in Naas, Co Kildare. Feb 12 - Steam Global Services Inc in Derry “It’s very disappointing. The workers are very fraught now. A confirms it has put 150 employees on protec - lot of these people have been there for years and will find it Feb 1 - US firm Melcut Cutting Tools Ltd an - tive notice following the end of some of its local very hard. At least if this had happened four or nounces it is setting up shop in Co Clare contracts with Logica. five years ago there was with the creation of 50 jobs. some chance of getting Feb 16 - The National Bus & Rail Union revaled it has re - another job, but with Feb 2 - A hundred jobs are to be created over the ceived an overwhelming mandate for industrial action up to what's happening now, next two years with the expansion of online tax and including strike action over the lay-offs at Bus Eireann that's gone. They're going agency taxback.com at its centres in Cork, Dublin and Dublin Bus. out into a vacuum, and Kilkenny. Feb 16 - More than 150 former employees there's nothing there.” Feb 5 - 90 staff are to go over the com - protested outside food firm Swissco’s Little Is - Jan 22 – Car parts ing year at Pobal, a not-for-profit firm land plant in Cork. Swissco closed in December maker Montupet is that manages programmes on behalf of with staff receiving only statutory redundancy . to axe 40 jobs at its the government and EU. Pobal chief plant at Dunmurry, Denis Leamey said 52 out of 270 staff

July 2008 S THE BRAZIER 19 COWEN SPEECH SIDE LINES Cabbies call for BITES licences action TAXI drivers are demanding Trans - Drivers blast port Minister Noel Dempey slaps a Green Party three-year moratorium on the issuing DUBLIN Bus of new licences. drivers have Cabbies claim their livelihoods are accused Coal - under threat from an influx of new - tion partners the Greens of comers entering the industry as well hypocrisy. as a sharp drop in business from cash- They claim strapped firms. the party has Organiser Jim Waldron said: "Dri - stood by as vers are staying on an extra couple of the transport hours a night trying to get an extra firm with - few quid. There's going to be a tragedy draws 120 ve - hicles from its with someone falling asleep at the fleet and wheel.” axes 290 jobs. Figures released by the Commis - Angry drivers sion for Taxi Regulation show a total waving plac - of 25,695 Small Public Service Vehicle ards staged a licences were issued in 2007. By 2008 protest out - this had jumped to 27,429. side of the Talking shop: Brian Cowen at Congress last year. His speech to the Dublin Chamber party’s HQ of Commerce earlier this month drew a more robust response from trade unionists on February 2. Protest or - Pension gripes ganiser Owen McCormack shoot up 43pc said: “We COMPLAINTS to the Pensions didn’t expect a whole lot Ombudsman rose by 43pc last year out of Fianna with the construction industry facing Woolly words Fail regarding a particular hike in numbers. public trans - Pensions Ombudsman Paul Kenny port, but it is claimed that in 2008 his office dealt a core Green with 101 complaints – up from 35 in policy.” 2007. won’t change According to Mr Kenny, many com - plainants came from eastern Europe. He said with the rising number of Fears 31 subs redundancies in the sector, more jobs could go workers have been examining their fact workers Journalists entitlements, only to realise these have at the Derry not been put in place. Journal are Mr Kenny pointed out the growing to ballot on industrial ac - number of liquidations in the con - tion over struction industry may make it more bearing brunt publisher difficult to secure money that is TAOISEACH Brian Cowen has been accused of over the last 12 years.” In the speech, Mr Cowen Johnston owed. using “woolly words” following his appeal to the emphasised the qualities he claimed the Irish Press’s plans Irish people’s sense of solidarity in facing down people would need to show in order to deal with to centralise the economic crisis. the recession. production Extent of NI fuel He called on business and community to pull He said: “The one thing that characterises of its stable of papers. poverty revealed together but warned the standard of living was their success is their self-belief. The move A HOME Energy Conservation likely to fall by 10 to 12 per cent over the next “If we decide to wallow in the sea of doubt do will see sub Authority report has revealed North - few years. not be surprised if we remain in the turbulent editors being ern Ireland has the highest rate of fuel The comments, made in an unscripted address waters that we are in today. made redun - poverty in the UK. lasting 17 minutes at a Dublin Chamber of Com - “We cannot say that suddenly we lost our dant after it Despite efforts by the Housing Ex - merce dinner on Februrary 5, were well received entrepreneurial can-do spirit that has brought us was revealed by the 300 business people at the function. to where we are today.” the subbing ecutive to improve energy efficiency in opertion of a its housing stock, the group warned He was given a standing ovation after finishing Underlining the difficulties that lie ahead, he number of this was not enough to deal with the his speech. said the task that now faced the government was titles - in - problem of fuel poverty which affects But reacting to what was said, SIPTU chief Jack “jobs, jobs, jobs”. cluding the 226,00 households in the North. O’Connor noted the Taoiseach’s stated desire to He added: “The profound changes that are hap - Donegal De - The report’s authors pointed out maintain the social partnership process, which he pening in the global economy mean that we won’t mocrat and that since May last year, coal prices said was “OK as far as it goes”. revert to the high rates of growth but we can Belfast He added: “However, despite all the woolly evert to growth more quickly if we stick together NewsLetter have risen by a quarter and gas prices - will trans - by 28pc in the same month followed words about ‘working together’, the fact of the as a community.” fer to a sin - by another 19.2pc hike last October. matter is that the only people he has inflicted Other points in the speech included: gle centre in Electricity costs shot up by 14pc in pain upon in last Tuesday’s announcement are G The need to cut labour costs as well as Craigavon. July and again by 33.3pc in October. those who have to work for others for a living, invest in infrastructure, education and research NUJ fear 31 The authors stated: “In 2001 only while not a cent is required of the wealthy. and development, positions around 20,000 households of incomes “It will require a great deal more than woolly G The importance of social partnership, and could be lost words to maintain social cohesion during the dif - G The need to recognise the benefits that in the between £10k to £15k were in fuel process. poverty whereas by 2006 this had tre - ficult times that lie ahead as a result of the gov - flowed from EU membership. He said: “Our bled to over 61,000.” ernment’s gross mismanagement of the economy future is in Europe for all its faults.”

20 UNION POST S February 2009 CONSTRUCTION Bob Doyle, last Irish Ombudsman courts vow Brigadista, dies at 92 on pensions PENSIONS Ombudsman Paul Kenny has served notice on bosses who take contributions from workers but fail to pay into pension schemes, they will be pursued through the court system. It’s claimed the vast majority of cases where this happens involves small construction firms. Employees in the building trade who are over 20 should be part of the Con - struction Workers' Pension Scheme. The employer pays in 4.2pc of wages and workers have 2.8pc deducted from their wages. Mr Kenny – who received 101 complaints on the issue last year – said the usual excuse deployed by offending firms was cashflow, but added that they then often used solicitors to ob - struct his work. He said: "Often you get complaints from people who have been working for four or five years, and the pension contribution have been coming out of their wages but you find that no pen - sion contributions have been paid. "The money was deducted during the boom years when these guys (builders) were making pots of money, but the money has never being paid into the pensions scheme."

BOB Doyle, Ireland’s last Spanish captured with 140 other volunteers Civil War brigadista has died, aged by Mussolini’s Black Arrow division. 92. Released in February 1939 in a 57 died in The Dublin-born veteran left- prisoner swap, Doyle later served in winger first fought fascism in the the Merchant Marine during the guise of General O’Duffy’s workplace Blueshirts on the streets of Dublin war before settling in London in the 1930s. where he continued his political ac - He had joined the local IRA but tivism into his 90s. accidents claimed his only activities were His autobiography Brigadista: An blowing up statues and other “relics Irishman’s Fight Against Fascism of British imperalism”. last year was published in 2006. FIGURES released by the Health and Safety Doyle later became involved with Doyle, who worked most of his Authority have revealed 57 people died last the Republican Congress before the life as a printer, was honoured in a year in workplace accidents in the Republic. attack on the Spanish Republic More than 90pc of victims were men and prompted him “to do his bit”. march through central Dublin on February 14. Family members took more than half of the fatalities were in agri - He signed up with the British bat - culture (21) and construction (11). the indefatigable fighter’s ashes to talion and fought at the Battle of The statistics, contained in CSO’s Quar - Belchite in March 1938 before being Ireland for the event. terly National Household Survey, also showed that more than 50,000 employees were injured with about 20,000 needing more than four days off work as a result. Workplace accidents cost the exchequer about €2 billion a year. Walsh: Cut pay by fifth HSA chief executive Martin O’Halloran especially welcomed anecdotal evidence of a FARMERS have demanded a 20pc the swingeing move was the loss cultural change in the construction sector cut in the minimum wage to re - of a substantial number of jobs. regarding work safety. store competitiveness and get the However, he told delegates He told the Irish Times: “It’s no longer con - economy moving. at the IFA annual general sidered ‘unmacho’ for guys to wear helmets, Calling for salaries to be slashed meeting the government high-viz vests, gloves, eye protection and so at all levels, Irish Farmers' Associ - shouldn’t come looking for on. It takes a long time to change these ation president Padraig Walshe cuts from farmers themselves. attitudes but it’s becoming the norm now.” warned the only alternative to Wages call: Padraig Walshe

February 2009 S UNION POST 21 VIEW POINT ICTU Assistant General Secretary PETER BUNTING argues that investment not cuts is the only way for Northern Ireland to fight its way out of recession Expand, invest and organise THE economy of Northern Ireland is now in a proposed that the Executive should request banks commercial visitors. The 2009 ICTU Biennial recession that will last at least two more years, and building societies for a moratorium in house Delegate Conference was due to be held in Belfast according to every economic pundit. foreclosures for one year and the creation of a this year, but lack of support means that instead, The most conservative estimate is that unem - Workers’ Protection Fund, modelled on the exist - the BDC is being hosted in Kerry, which will profit ployment will reach 50,000 by early 2010, especially ing Pension Protection Fund, which can ensure from an estimated £3 million into its local economy in construction, manufacturing, retail and services. early payments of redundancy pay and other at the expense of Belfast’s. Northern Ireland is protected to some degree, monies due to workers made redundant, rather To fund such a publicly-owned conference centre, by the existence of an efficient public sector, whose than waiting for months for redundancy payments using vacant land such as at the Lough Shore, a levy workforce is now the backbone of our economy, as happens too often when companies enter of £1 for every hotel room booking in the Belfast ensuring that demand for products and services receivership. area could subvent what would be a vital boost for from our delicate private sector continues. The NI Executive has been urged by ICTU to Belfast’s tourism and hospitality industry. The greatest threat to our long-term prospects frontload some of the £12 billion remaining of the We can also invest in our future prosperity by is the fatalism of some who call for cuts to our pub - strategic infrastructure investment and support engaging in large-scale programmes to properly

lic services, and the unwillingness of banks construction jobs. insulate housing. It is estimated that 400,000 homes to act as responsible citizens Congress is arguing that these pub - are energy-inefficient.

instead of gatekeepers of their lic procurement contracts should A fraction of those homes being lagged would share options. Best outcome is adapt EU guidelines which allow provide substantial employment as well as improv - This global recession will re - for these projects to employ ing the fiscal and environmental values of those quire global answers, such as a strong p“ ublic and upskill the long-term properties. President Obama’s stimulus sector & vibrant unemployed and school This is the most opportune time to invest in package, and perhaps even in - “ leavers. research and development into the green ternational financial regulation private sector There should also be a crite - technologies for which there is a massive global in the shape of a ‘Tobin Tax’ on complementing rion whereby local suppliers can market. If we can hold on to our most talented international bond and share be used to supply basic building graduates and our skilled manufacturing base, we dealing. Locally, there is much that each other equipment, from bricks to bulldoz - could transform the shape of our private sector. can be done to protect and stimu - ers. This is not protectionism. This is Property and retail formed the base of the late our economy. investment. Such steps are also necessary ‘boom’ which as just passed. At the first meeting with the First and in the light of the ceasing of credit from banks, We need a more long-term strategy for the Deputy First Ministers last October, the NI Com - which is forcing several viable enterprises to the development of a prosperous private sector pro - mittee made a series of positive proposals aimed wall. Regional and national government (and pub - portionate to the population. For too long, the at alleviating the stress and strain of the looming lic opinion) must press the banks to start lending so private sector was too small because it thought too recession. businesses can invest. small. These have been followed up with further meet - In the light of the cancellation of the Maze The best outcome in the aftermath of this down - ings, and the NI Executive has adopted some national stadium project, the Belfast area is still in turn would be a strong public sector and vibrant Congress suggestions to stimulate the economy, need of a substantial conference centre, to private sector complementing and supporting each especially in the construction sector. ICTU stimulate a sustainable stream of tourist and other and all of society. IBOA urges state plan for banking THE IBOA has called for a comprehen - land. Unfortunately, as a result of a direction of Irish banking”. Mr Broder - sive state plan for the Irish banking in number of factors – but chiefly the sin - ick called for an independent audit of the wake of a recent series of blows to gular pursuit of short-term paper prof - the circumstances leading to the crisis the industry. its for shareholders rather than the at Anglo-Irish Bank as well as a “root General secretary Larry Broderick building of sustainable value in the and branch” review of the regulatory claimed this was necessary to “provide long-term – Irish banking is ill equipped framework governing financial services. clarity” and allay uncertainty about the to discharge that responsibility.” He also warned the government to sector’s future and comes after the While supporting government efforts, take “whatever action is necessary” to move to fully nationalise Anglo Irish he said now was the time “to provide prevent the acquisition of AIB and Bank. clarity for the citizens, for the taxpay - Bank of Ireland by private equity com - He said: “The banking sector should ers, for the customers, for the share - panies who would seek “to maximise be playing a pivotal role in the efforts holders and for all the employees asset values at the expense of cus - to promote economic recovery in Ire - working in the sector, as to the future tomers and workforce”.

22 UNION POST S February 2009 NEWS BRIEFS Solidarity EU directive to limit docs’ working hours DESPITE a 2004 EU directive on curbing unsafe work practices, some junior doctors are still doing pact must shifts of 36 hours or more, it has been revealed. A review by the Department of health found an August 2007 directive that a junior doctor’s work - ing week should not exceed 56 hours has proven difficult to implement. be agreed Dr Cillian Twomey, a medic from Cork who chairs the National Implementation Group which tested new rosters, said some members of staff were working shifts of "up to 36 hours in dura - tion… and sometimes longer" but underlined the fact that from August a new phase of the directive will limit the working week to 48 hours. He told the Irish Independent: "Clearly periods on duty will have to be of much shorter duration." The report highlighted the need for a cultural shift to change the way junior doctors' working hours have been organised as well as the employ - ment of more senior consultants.

Mind games: O’Connor USDAW welcomes £500m jobs boost SIPTU chief Jack O’Connor has warned our society.” Mr O’Connor claimed “the that unless the government, bosses and big players” in financial services had SHOPWORKERS union USDAW have welcomed the UK government’s announcement of a £500 mil - financial elite face up to the need for a played “a key role” in creating the global lion investment in getting the longer-term unem - social solidarity pact, there is “every economic crisis. possibility” the situation could spiral ployed back to work. He added:“At the very least [they] “dramatically out of control” in the com - From April, Jobcentre Plus can award firms up to should have the decency to refrain from ing weeks. £2,500 for every person they recruit and train who commenting and frightening people. It is He made his comments after has been out of work for over six months. precisely this reign of psychological Goodbody Stockbrokers issued a report General secretary John Hannett called the meas - on February 16 arguing for cuts in wel - terror waged on PAYE workers that has ures to encourage firms to recruit staff “very good fare spending in response to their pre - contributed so much to undermining news” and said it represented type of “decisive diction that the economy will contract consumer confidence.” action” needed to turn around the economy.] by six per cent over the next year. He said forging a social solidarity pact Admitting that some high-profile names such as Woolworths and MFI had gone to the wall, he Mr O’Connor said he “dismayed” by was the only to get out of the current added: “At the same time, many of the very big the conclusions drawn by the report’s crisis. retailers are reporting good sales figures. authors. Mr O’Connor added: "It is neither equi - “USDAW is calling on all retailers not to rush in He added: “It is appalling that people table nor financially sustainable to place and make redundancies when most of the retail threatened with unemployment and in the entire burden on the PAYE sector, sector will survive the current economic difficul - many cases with the loss of their homes including those joining the ranks of the ties.” and occupational pension entitlements unemployed. as well, can expect nothing better from the elite of the financial services “Unless the concept of a pact is industry than the suggestion that their grasped within the next few days, and meagre social welfare benefit may be certainly at the latest within a few THE NEW DEAL reduced. weeks, there is every possibility that the PAGES 28/29 “And all this while not one additional situation will escalate dramatically out cent has been raised from the wealthy in of control.” ‘Malingering’ claims blasted BUSINESS group ISME has blasted some GPs having “an ATM mentality”, Mr Fielding said: for issuing sickness certificates “like snuff at a “It is also quite obvious, based on the survey wake” and blamed them for tacitly condoning results, that unauthorised absences are being “malingering”. tacitly condoned by the medical profession.” Chief executive Mark Fielding claimed a IMO GP Committee chairman Dr Ronan survey of 750 companies carried out by the Boland claimed Mr Fielding misunderstood the organisation had found 83 per cent of absen - role of the family doctor. teeism was due to what he called “feigned illness or malingering”. He said: “My role is not to manage the pres - The claims were rubbished by The Irish ence or absence of employees. Medical Organisation who dubbed the findings “The key to managing inappropriate absence Off the mark: Fielding “misguided and mischievous”. Blaming GPs for from work lies with the employer.”

February 2009 S UNION POST 23 POLITICS SIPTU claims divide and conquer bid won’t work SIPTU has claimed the government is attempting to drive a wedge be - tween public and private sector workers. Blasting the move as “irresponsi - ble” and an “insult” to workers, Marie Butler, the union’s branch Union vows jobs organiser in Waterford, claimed it was part of a “smoke screen” to hide the government’s “rich and famous friends”. fight at SR Technics She said: “It is an insult to workers everywhere that some in the gov - SIPTU Branch Organiser Pat Ward has vowed to "We made it clear we were not there to dis - ernment believe the public sector do his “utmost” to try and save jobs during the cuss redundancies, that generations of workers pension levy is OK, because private 30-day consultation period following the in North Dublin had depended on the aviation sector workers are losing their announcement of 1,135 lay-offs at troubled air - industry for a livelihood, the decision to close jobs. craft maintenance firm SR Technics. was wrong and that we would use the 30 days “What the government didn’t say He made the comments on February 12 after consultation period to do our utmost to save the was that taking €1.4 billion out the meeting with company CEO Bernd Kessler and jobs." pay packets of public sector workers other senior managers at the North Dublin plant. However, Bernd Kessler - who had also met is going to put even more private Later, he claimed shock had turned to anger Tanaiste Mary Coughlin last week - was pes - sector workers out of jobs, because among workers at the plant. simistic that staff pay cuts or shorter working there will be less money being spent SIPTU is to meet with Tanaiste Mary Coughlin hours would halt the closure and said it was “not in the local economy.” to press home the need to preserve jobs at the something we would consider”. She claimed that workers were specialist facility. He also pointed to the loss of major contracts “not stupid” and that they Mr Ward added: “If this vital in recent months, the high cost of operating in knew they were being used industry is lost now, it will never re - Ireland and staff costs 20 per cent above “what

to drive through “a cost- turn to Ireland.” the market is willing to pay”.

cutting agenda”. It is the rich who The Swiss-based company has Mr Kessler added: “We all need to realise this Ms Butler added: blamed the global downturn in is not a crisis that will go away in one or two “The rich and have squandered the aviation industry for the years. It will have a significant and lasting impact famous, who have our wealth a“ nd put closure as well as its intention on the airline industry for many years.” squandered our wealth “ to move away from mainte - SIPTU’s Dermot O’Loughlin called on the gov - and put our livelihoods our livelihoods in nance to other areas. ernment to step in to save jobs rather than sitting in jeopardy, are the real jeopardy Some 200 SR Technics em - “idly by”. villains, not workers on ployees in Cork are not af - Pointing out that government already had a 25 decent pay and condi - Marie Butler fected by the move. per cent stake in Aer Lingus, he said: “We’re call - tions who pay their taxes, Mr Ward said: "We pointed out ing on them to step in right away, no taskforce, no struggle to meet mortgage we had been through crises before messing about, just put this business back on repayments and their other daily with FLS and Team Aer Lingus but manage - track,” living expenses. ment had always been prepared to roll up their He added: “They can see fit to put €7 billion “it’s time for the selfish rich and sleeves with us and tackle the issues. We said we into banks and they can’t see fit to try and survive famous to pay up.” were prepared to do so again and asked them to a company that is truly Irish in its nature and join us in saving the plant. workforce.”

CIF chief’s remarks blasted

CIF chief Tom Parlon has accused Consumers’ bers because Ireland offered higher rates of Association vice-chair Michael Kilcoyne of pay and better working conditions. making "sweeping, inaccurate and hugely dam - But ICTU chairman Noel Dowling hit back at aging comments" about the exploitation of the one-time PD deputy claiming he had a Polish workers. “brass neck” attacking Mr Kilcoyne on the Mr Kilcoyne, who is also a SIPTU official, same day a builder in his former constituency claimed Ireland's reputation had been dam - was ordered to hand over €92,968.36 in unpaid aged by the way some unscrupulous contrac - wages to seven Polish workers tors treated non-nationals. He said: "Tom Parlon is absolutely convinced He added that some building sites in Poland he can bluff his way through and deny the had shown their disgust by putting up ‘No widespread exploitation that is taking place. Irish’ signs. Mr Parlon countered by claiming "Mr Parlon would be better off working in ‘Brass neck’: Tom Parlon workers from Poland came here in large num - partnership with us to clean up the industry.”

24 UNION POST S February 2009 NEWS BRIEFS INO ‘solidarity’ after EGSA help for workers facing redundancy THE Northern Ireland-based Educational Guidance Oz wildfires tragedy Service for Adults has put together a special help package for workers facing redundancy. EGSA, which has built up close partnerships with many trade unions over the years, wants to high - light services it can provide to employees through their workplace or on an individual basis. Its staff specialise in helping people update skills, gain qualifications and explore new career options. Guidance chief Becca Vaughan said: “People facing job losses may find it difficult to get new employ - ment in the short term. “But if, through our support, they’re motivated to improve their skills and qualifications, they’re much more likely to find a job once the worst of this crisis is over.” For more information, contact EGSA on 0845 602 6632 or online at www.connect2 learn.org.uk or at www.egsa.org.uk

Support for recession hit families welcomed ICTU Assistant General Secretary Peter Bunting has voiced support for new measures going through Stormont which will assist families in need. He said:“The Executive is showing it is taking seriously the needs of those who are most vulner - able in the economic downturn. “In a series of meetings with the First Minister and Deputy First Minister, Congress representa - tives pressed ministers to take urgent action on fuel poverty, social housing, job protection and speeding THE Irish Nurses Organisation has imagine that the health services are up government infrastructure contracts to boost sent a message of support to their extremely stressed in dealing with the construction sector. counterparts in Victoria affected by the many burns and injuries that “We particularly welcome the intention to drive last week’s wildfires that claimed have inevitably taken place but loan sharks out of business, as we welcome calls more than 200 lives. have not been captured by the from the First Minister and Deputy First Minister General secretary Liam Doran media coverage. In that context we for banks and building societies to assist their cus - wrote to the Victoria Branch of the would like you to convey tomers who are finding it difficult to pay their to all of your members Australian Nursing Federation mortgages.” our best wishes, at this expressing “support and solidarity time, and we sincerely ... in the light of the very great hope that all of you will tragedy”. find the strength to deal He added: “We have seen exten - mags with this terrible emer - sive coverage of the terrible loss of gency in the days ahead.” life in recent days and I would journals MEDIA Support: Liam Doran BRAZIER press/pr [email protected]

Fury over Civil Service pay bungle BELFAST-based civil servants angered at not day and it said I was getting nothing.” having received their wages have staged a NIPSA chief John Corey voiced his support demonstration at the offices of a private for the protest and said the union had no payroll contractor. confidence in HR Connect. The January 28 picket outside the HR He claimed that although the privatised Connect offices in the city centre came after a contract costs taxpayers £465 million, it was similar series of payment errors in December failing to cover the basics and ensure all civil sparked fears as many as 250 employees faced service staff received their correct pay. a dismal Christmas. Mr Corey added: “This is the third time this One CSA worker told one newspaper she did has happened. We are calling for a full exami - not know how she was going to survive on her nation of every case where there is a failure to zero pay packet. She said: “I should get around pay the correct pay and a full independent Review call: John Corey £979 per month, but I got my wage slip yester - review of this whole contract.”

February 2009 S UNION POST 25 VIEW POINT Unite Regional Secretary JIMMY KELLY reflects on the dignity in crisis of Waterford Crystal workers who have already given so much over so many years The glass struggle

WORKERS at Waterford Crystal have dealt with voted 40 years of their life to what was always support from big business, from local shops and no less than nine restructurings over the last two more than just a job were left reeling waiting on from people from every walk of life has helped to decades. These have seen a reduction in staff an envelope to say whether they were one of the keep up the optimism that Waterford will survive from 3,500 employees in the 1980s to the cur - lucky few who would be asked to go to work on this darkest of days. rent level of 650. Monday. The sit-in is an expression of the passion which They have adapted and accommodated changes Private security staff were used to try to workers feel for where they work and what they in work practices to suit an ever changing busi - secure the plant, an action which was out of char - do. There has been no rioting in the streets, no ness climate. acter with how negotiations had been completed damage to the work which they have created, Up until Friday, January 30 they had done so up to that point and which made a tense situation nothing but dignity. The workers have no need to with the longer term in mind. even worse. apologise for asking that respect be shown to Waterford Crystal as a business has remained The workers got through that though and the them. profitable down the years. The skill and endeav - sit-in which has taken place since has been con - There are complex issues to be dealt with but our of one of the most committed group of ducted in an atmosphere of quiet determination. primary among them is for the receiver to con - workers in the country has maintained high stan - The fight to protect a long term future for clude a deal which will get craftsmen and cutters dards which have in turn held up the high quality Waterford Crystal is one which encompasses back to producing crystal in Waterford. of the product. everybody in the city. The support which has The talks which have continued throughout As representatives of the work - come from local residents, small busi - with Unite, government, ICTU, the receiver and

force, Unite had held constructive nesses and friends and family has the potential new owners are moving along at a talks with all those who ex - been humbling. pace which might have been slower were it not

pressed a willingness to invest There has been Many of those who have ex - for the protests which the workers at Waterford in keeping manufacturing at pressed their views to a world - no rioting in the have undertaken. We are hopeful of a positive the home and heart of the “ wide audience have done so brand in the City of Water - streets, no damage calmly, with a real feeling for a conclusion. “ These are difficult and turbulent times but ford. to work they job that was always much Since the start of the year more than a way to fill each Waterford Crystal has overcome those in the in public, and over a longer created, nothing eight-hour shift. past and will do so again, given the opportunity. period of time in private, gov - but dignity Workers have been criticised To use a sporting analogy, form is temporary ernment and potential investors, for staging the sit-in. Their actions but class is permanent and the class embodied by as well as the Irish Congress of have been criticised as reflecting the production of the world’s finest crystal from Trade Unions had worked their way to a poorly on Ireland as a place to invest. within Ireland is something of which we should all point at which it looked like the company could The suggestion is that those who have put be proud and willing to support. be bought out of receivership as a going concern. their lives into Waterford Crystal should just ac - With the right marketing, the right imagination The closure of the plant that last Friday in Janu - cept that a lottery of letters should determine and an inevitable improvement over time in world ary was a bolt from the blue. It could have been a whether they have jobs to go to or not. economic fortunes, Waterford Crystal will survive fatal one. The manner in which the decision was Irish workers, and many Irish employers have and thrive. Last year Waterford sales in the US taken without any notice to Unite or to workers expressed their grave disappointment in how the totalled €180 million. The market remains, as was disgraceful. Men and women who had de - closure of the plant was handled. The offers of does the spirit to service it.

26 UNION POST S February 2009 Quiet determination: The market remains as does the spirit to serve it... Waterford Crystal workers during their sit-in

Unite leaders in challenge to G20 UNITE chiefs Derek Simpson and Tony Wood - be no going back to business as usual. Govern - ley have issued a message backing the TUC- ments, business and international institutions organised march for jobs, justice and climate have followed a model of financial deregulation through London on March 28. that has encouraged short-term profits, insta - In a joint letter, they set out a series of bility and an economy fuelled by ever-increas - demands to world leaders in advance of the ing debt, both financial and environmental. G20 summit in the English capital on April 2. “We need Unite members and activists from These include: around the country to come to London and G Jobs - decent jobs & public services for all show that our union will fight for a just, fair G Justice - end global poverty and inequality and sustainable world in order to get through G Climate - build a green economy the current recession.” They said: “We are taking a lead in sending a For more information check out the Unite G20 call: Tony Woodley message to the global leaders that there can website at www.unitetheunion.com/g20demo

February 2009 S UNION POST 27 Peace rally: Leading trade unionists Patricia McKeown, John Corey and Peter Bunting were among those who led the protest 5,000 at ICTU protest rally over Gaza

THE Irish Congress of Trade Unions has called for change in Israeli government policy. She said: “I was a boycott of Israeli goods as part of a drive to se - brought up to stand up for the oppressed and to cure a peace settlement in the Middle East. distinguish right from wrong. It is not anti-Jewish to It follows a surge of outrage worldwide at the oppose what is happening in Gaza.” recent Israeli military offensive in which more than Nobel Peace Prize winner Mairead Corrigan 1,300 Palestinians – most of them civilians – died. Maguire made an emotional appeal on behalf of the A peace rally, organised by the Northern Ireland children of Gaza and ICTU President Patricia Committee of ICTU, was held in Belfast city centre McKeown called for a boycott of Israeli products as at the height of the onslaught on the Gaza Strip on a means of exerting pressure on the Israeli gov - January 14. ernment. More than 5,000 people marched to the City Speaking after the event NIPSA chief John Corey Hall where they were addressed by a number of called it “heartening” to see the public’s response senior trade unionists, churchmen and activists. to the trade union movement’s call to stand up for ICTU assistant general secretary Peter Bunting Protest: Section of 5,000-strong crowd the people of Gaza. also spoke at the rally. Israel and those western political powers complicit He said: “No one can fail to be moved at the sight He questioned why some local politicans had at - in their actions.” of such widespread, wanton and unjustified violence tempted to portray the Palestinian/Israeli conflict Calling for economic action against the Israeli that has been visited on the population of Gaza. as a mirror image of the North’s own sectarian “People from every spectrum of Northern Irish government, he claimed people could use their difficulties. society have come together to express their soli - “collective clout” as “ethical consumers” in the Mr Bunting said people in Northern Ireland had darity with a defenceless people in the face of to get over viewing complex international issues struggle for justice for Palestinians. He added: “The naked and overwhelming superior military might. “through the prism of our own sectarianised poli - actions we have witnessed in Gaza this week make “It is essential that we maintain this unity and tics”. the case for economic pressure more vividly than keep up the pressure for an immediate ceasefire He added: “It is our humanity which is affronted any words that I can say.” Sue Pentel, speaking on and for a long term and just solution to the by the images from in and around Gaza, not our behalf of Jews For Justice For Palestine, called for a Israeli/Palestinian conflict.” ICTU’s sanctions drive narrow identities in divided Belfast.” Mr Bunting emphasised the protest was not directed against the Israeli people. Holocaust Memorial Day marked He said: “We are here today not to criticise the ICTU assistant general secretary The theme of this year’s Holo - people of Israel, many of whom are our comrades Peter Bunting has attended an caust Memorial Day is “Stand Up to for peace and justice. event commemorating victims of Hatred”, and The Braid hosted the “We act in solidarity with the Nazi genocide as well as other exhibition The Kindertransport the Israeli workers, Israeli gross abuses of human rights. Journey: Memory into History. human rights groups, Israeli The event at The Braid, Bally - The exhibition telling the story of military refusniks, and the mena Town Hall Museum and Arts how 10,000 Jewish children were Israeli physican groups – Centre saw a moving presentation moved from Germany to Britain in groups such as Breaking the by Dr Susanna Kokkonen, director 1938 by their parents, most of Silence and B’tselem. of the Christian Friends of Yad whom later perished in the death “This protest is against the Vashem. camps. actions of the government of Call: Patricia McKeown

28 UNION POST S February 2009 BREADLINE Nearly 100,000 Northern kids live in poverty ALMOST 100,000 children in Northern Ireland are still living in deprivation, government figures have revealed. The data follows on from research carried out by the UN Committee on the Rights of the Child last year which showed that one in five children and young persons was living in “persistent poverty” in the North – a rate more than double the UK average. However, figures from the Office of the First and Deputy First Minister showed a drop of 39,000 in the number of children living in “relative poverty” - gauged on households with a below average income - since 1998/99. According to the 2006/07 estimate, Civilian targets: Young victim of Israeli Defence Forces’ bombing onslaught about 96,000 children fell into this cat - egory. There was also a drop of 82,000 in the number of children living in absolute poverty since 1999. By 2007, about 12 per cent – or 52,600 kids – were in this group. Patricia Lewsley, the Northern Ireland Commissioner for Children and 5,000 at ICTU protest rally over Gaza Young People, expressed fears that the figures were put together at a time of is on the back of a report compiled after a trade to 80 per cent, to see people having to get up at relative prosperity and before the union delegation, led by Patricia McKeown, visited three in the morning, and virtually sleep outside the impact of the global downturn hit the the strife-torn region in late 2007. the army controlled crossings in order to get into Northern Ireland economy. Speaking at a launch of the policy at the Long work - that's something we didn't expect to see." She said: “These are not stories from Gallery at Stormont in Belfast, Ms McKeown said During the visit, group met trade unionists and the 19th century, but are stories of real she was “profoundly shocked” by conditions she politicians in Israel as well as Hamas political lead - children and families I have met. observed in the occupied territories. ers. At the time, they also called on Hamas to end “While I welcome that there has been She added: "I didn't expect the denial of human its rocket attacks on Israel. some progress, according to the figures rights and the discrimination to be so evident and Ms McKeown said ICTU was pushing for inter - released by government, it is too little. to be an obvious part of daily life. national action on the issue with talks already And I am concerned that these statis - "To see unemployment on the West Bank rising under way with trade unions in Britain and the US. tics were compiled before the current economic downturn.” ‘Largesse’ shown to banks blasted TEEU and SIPTU blast A TEACHERS union has contrasted the government’s move to take Anglo Irish Bank into public owner - ministers’ ESB comments ship with the savage budget cut - THE Technical Engineering and Electrical Union has committed by ESB workers was that they accepted backs in education. hit back at government ministers over comments a pay hike negotiated through the social partner - INTO general secretary John Carr made regarding the awarding of a 3.5 per cent pay ship process last year. claimed schools were told last year rise to ESB workers. Meanwhile, Greg Ennis, SIPTU branch organiser by the Republic’s Education Minister TEEU general secretary designate Eamon Devoy at the ESB, also lashed “recent negative ministerial Batt O’Keeffe public finances were said: “The depiction of ESB workers as greedy, comments”. in such a state that teaching jobs uncaring and somehow responsible for the crisis Justice Minister Dermot Ahern had called the de - had to be axed, and funds for books we are in says more about the bankruptcy of cision to award the pay rise “crass in the extreme”. and computers slashed. government policies than the realities ordinary Hitting back, Mr Ennis pointed out that such He fumed: “Now his government working people are facing.” comments were hypocritical and at odds with the with the stroke of a pen can find bil - He claimed the union had delivered “pay moder - pay provisions under the national pay agreement. lions to bail out a failed bank. Some ation and industrial peace” for more than 20 years He said: “On how many more occasions will this of this money is education funding through social partnership which helped create a government demonstrate its capacity to attack the the Education Minister took out of thriving economy. working class in this country? cash-strapped primary schools.” But added: “At the first signs of trouble some “Surely government ministers should be direct - Mr Carr added government penny government ministers seem happy to walk away ing their focus to addressing the current cata - pinching on funding primary educa - from the process, along with IBEC and the CIF. strophic situation caused by the greedy, but tion stood in stark contrast to the “It started with a witch-hunt against public ser - powerful minority, rather than berating those who “largesse available to the golden cir - cle”. vants. Now the attack has moved on to ESB work - have already put their shoulder to the wheel to ers. Who will be next?” He said the only “sin” make the ESB the profitable company that it is.”

February 2009 S UNION POST 29 AGENDA ECONOMY The new deal Economist PAUL SWEENEY argues it’s time to stop playing Russian roulette with casino capitalism and opt for a Keynesian-style stimulus package

UNEMPLOYMENT may be heading for 450,000 goat. But it was the bankers and developers, their should be more careful in what they wish for in and for the first time ever, there is no place to go. professional advisors and economists who ‘pimped public spending cuts, as they might now have to pay The emigration ‘safety valve’ is closed. This crisis is up’ the boom. their own bills. different to anything we have experienced before. They almost destroyed what is still fundamentally Similarly, the IFA demands a 20 per cent cut in Therefore, the solution must go far deeper than a sound economy and government policy greatly wages. Yet public subsidies and price supports to simply addressing the public finances. This explains assisted. No wonder people are angry. Irish farmers under CAP are equal to their total the Social Solidarity approach taken by Congress in Today’s bust would not be so bad if, during the net incomes annually. negotiations with Government, primarily our insis - boom, the government had taken its foot off the Some 118,000 farmers will have received a stag - tence that the cost of any adjustment is shared growth accelerator and not reduced taxes so much gering €53bn in CAP subsidies by 2013. across all of society. - we pay virtually the lowest income taxes in the They cannot talk of competitiveness. They bite We require a fundamental realignment of our developed world, have the lowest taxes on corpo - the hand that feeds, pun intended. economy and society. rate profits and none on property. Over €1.5bn a year could be saved in cutting sub - And if/when we resolve the crisis there can be In addition, it would have helped if they had con - sidies to business, farmers and investors - overnight. no return to business as usual for Corporate served revenue and been far more vigilant on We have also heard unsubstantiated claims that Ireland: for the banks, builders and government financial regulation. labour costs are a big problem, this being the basis policies that combined to bring our economy to its Credit would have been tighter, thus the boom in arguing for big cuts in all employees’ pay. knees. would have been reduced and the bust would have It is asserted that ‘we’ are paying ourselves too This global mess was generated by privatised, been less dramatic. much, as if we are all uniformly well paid. deregulated and ultra-free markets. All countries, Had direct taxes not been cut so much, we For professors of economics on €150,000 to including Ireland, must now abandon this redundant would now have a big pile of cash to maintain pub - €170,000, this is correct. For dentists, solicitors, ac - economic model. lic services. But government chose the US way, countants and medical consultants, many business - However, ongoing commentary from of de-regulation and privatisation. people and some farmers, it is correct.

many Irish economists demon - Further privatisation would be But it is not correct for average workers. Two- strates that most are still wedded folly. Selling productive family silver thirds of the workforce earn less than €44,000.

to neo-classical economics, ad - The market is not in a bad market would be naïve Conservative economists do not seem capable of hering faithfully to the theory in the extreme. distinguishing between differing incomes and of ‘efficient markets’. working... i“ t was These are key, Irish-con - wealth. As the table shows, the cost of employing But the world moves on. not eve“n working trolled companies that deliver the average Irish worker is 22nd from a list of the The market is not working. It vital services and profits. We world’s 30 richest countries. was not even working when it when it appeared privatised a highly profitable, LABOUR COST $ appeared to be booming. to be booming debt-free, heavily investing Eir - COUNTRY In fact, areas of the ‘market’ com and the result - on prices, 1 Germany 59,526 2 Belgium now need public subsidies to func - services and broadband - has been 57,141 3 Austria 56,630 tion. disastrous. 4 United Kingdom 56,612 And when the market comes out of On the positive side, the NTMA currently 5 Luxembourg 54,000 rehab, it must be fundamentally reformed and learn holds borrowings of more than €21bn in cash. Thus, 6 Norway 52,048 to operate under greater public oversight, or we Ireland will not be forced to borrow for a while, at 7 Netherlands 51,828 will have learned nothing. prevailing premium rates. 8 France 50,260 Contrary to myth, ‘markets’ are always shaped by The net National Debt to GDP ratio is now only 9 Sweden 48,763 man-made rules. 20 per cent. 10 Switzerland 48,489 Some of us warned against the buccaneering, tax Congress has accepted that the country is in a 11 Japan 46,916 cutting, free-spending, pro-cyclical policies of double crisis with both the banks and tax revenue 12 Korea 46,604 Charlie McCreevy, when Minster for Finance, and in freefall. Thus cuts in public spending will have to 13 Finland 45,302 the huge subsidies to property investors. be made BUT only if the pain is shared. 14 United States 44,347 These actions greatly inflated the bubble and Conservative economists simplistically advocate 15 Greece 44,304 16 Austria 42,579 exacerbated the bust. cutting public sector pay - some evenD weraenkt Stiom cpuston, Unite 17 Denmark 41,252 It seems we had “too much privacy and not social welfare and fuel allowance! But there are re - 18 Canada 38,627 enough enterprise”, as Noel Browne famously gressive state subsidies we should target. 19 Iceland 38,232 remarked. For example, over €3bn in tax has been lost in 20 Italy 36,692 Several businessmen who built up fine firms have ‘incentives’ to wealthy investors in area-based prop - 21 Spain 36,329 been found playing casino capitalism with vast sums erty schemes alone, with some €473m foregone in 22 Ireland 34,379 of money, borrowed from ‘friendly banks’. 2006. 23 New Zealand 29,037 New laws are urgently necessary on financial dis - More importantly, Ireland runs a massive but 24 Portugal 27,453 closure, on unlimited companies, on regulation, and hugely unreported Corporate Welfare Programme, 25 Czech Republic 23,604 especially on corporate governance. Ireland has to with billions given to the enterprise sector annu - 26 Hungary 21,552 shift rapidly from Boston to Berlin: from the Anglo ally, in tax breaks, incentives and subsidies, all of 27 Turkey 20,182 ‘shareholder value’ system, to the European ‘stake - which is run by a vast network of public servants 28 Poland 19,847 holder’ model. who deliver free services to the sector: IDA Ire - 29 Slovak Republic 18,215 30 Mexico To find solutions, we must learn from history. land, Forfas, Enterprise Ireland, SFADCo, Udaras, 11,766 Source: Country submissions; OECD Economic Outlook, 2007 Some argue we should not look back and scape - Teagasc and BIM are but a few examples. Businesses

30 UNION POST S February 2009 NEWS BRIEFS

CIE corporate box move is slammed A CHORUS of cat-calls has greeted CIE’s ac - ceptance of a corporate box in part payment from the Lansdowne Road Stadium Develop - ment Company. The criticism comes as the transport firm announced a radical series of cuts which could see 600 jobs lost at Dublin Bus and Bus Eireann over the next year. Unions at CIE have slammed the plan. One official told the Irish Independent: "They certainly won't be unemployed people or pensioners or schoolkids who get in there. "The fact CIE is continuing to have corpo - rate entertainment when its job should be to provide public transport for ordinary people is incredible. “I'm glad CIE is being paid to facilitate the stadium but it should be in a form to boost services and deliver something to staff and the travelling public." Executive to rule on Liberty Hall Mk II A STUNNING new design for a replacement for Liberty Hall will be put to SIPTU's execu - tive later this month. It is thought planning permis - sion for the project will be sought It is clear that total labour costs are way below wards for bad behaviour, and concrete measures to as early as next month with work those of the UK, Germany and other Eurozone help those threatened with repossession. put out to tender next year. counties. The loss of cost competitiveness is due Other key issues are: better regulation, curbing SIPTU general secretary Joe to the strong euro, not pay levels. executive remuneration, progressive health care re - O'Flynn is reported to be "very Competitiveness is a very complex issue and form; a Green Deal for renewable technology and pleased" with the design put for - involves far more than costs, either labour costs or a National Recovery Bond. ward by Dublin-based architect even unit labour costs. Yet our productivity is In an article in October last year, I called for a Des McMahon, who has worked amongst the highest in the world and has risen at new public/private paradigm. We have it today, with in the past on the redevelopment Pleased: O’Flynn over three times the average rate in the Eurozone the public sector bailing out the private banks, the of Croke Park and the Hugh Lane for the last decade. car industry and Irish business Gallery extension. A further major flaw in the con - seeking even more subsidies be - The original building brief envisages a tower servative argument on pay cuts is STIMULUS cause of the working of the ‘effi - which will double the floor space from about that they will automatically trans - cient market’ in currencies. 5,500 square metres to 11,000 square metres late into overall lower costs and PACKAGE While a dependent private sec - and include an auditorium, a sky deck cafe and will not lower consumer demand. tor is not what I had envisaged, union heritage centre. That is untrue. G Tax increases for blaming public sector employees Congress is seeking a major the better-off for the crisis is wrong. Keynesian-style stimulus package. It has deep roots in the private G €150k ruling for We accept the need for an adjust - End to tax sector, but was combined with shelters Bulmers workers ment in the public finances, with major errors in public policy, in its CIDER workers at Bulmers were cheered by a progressive public sector reform G Investment in failed system of regulation, massive Labour Court ruling last month that will see and tax increases for the well-off, education regressive subsidies and pro-cycli - them sharing a €150,000 payout. action on tax exiles, a termination cal economic policies. This follows plans to axe a company bus of tax shelters and a broadening of G Action on tax But it is unfettered capitalism and exiles service that ferried employees to and from the the tax base. ultra-free markets that lie at the firm’s Clonmel plant. We seek increased investment root of this deep crisis. G Flexicurity SIPTU, Unite and TEEU opposed the move in education, our key competitive And yet it is the ‘state’ so reviled arguing the bus was a "condition of employ - G advantage, with a national No Reforms of by the neoliberals that has come to ment.” Bulmers bosses claimed the €100,000 banking system Child Left Behind programme for their rescue. annual cost of the transport was unsustainable. all pre-school children, which will To solve this major crisis, all will G Deadlock followed a conciliation conference create thousands of jobs. Better regulation have to contribute, according to of finance system at the Labour Relations Commission and the Above all what any agreed plan their means. issue was taken to the Labour Court. must do is protect existing jobs G Progressive This includes cuts in the vast The court said it did not see the shuttle and maximise employment levels. healthcare reform array of subsidies to the enterprise service as a condition of employment “as the We propose reshaping our so - sector, to banks, to corporates, to term is normally understood” but ruled that it cial welfare system around the G National Recovery investors, to wealthy farmers, with Bond should continue for the next three months. concept of Flexicurity, along with the well-off digging deepest. A lump sum of €150,000 will be divided a jobs scheme for vulnerable firms, G Renewable energy There can be no more ‘business among “those affected by the discontinuance" as unemployment soars. Congress and technology as usual’. in compensation for the eventual ending of the wants real bank reform, not re - service.

February 2009 S UNION POST 31 SIPTU tribute to Larkin IMO may ballot on SIPTU general secretary Joe O’Flynn nell Street, he said: “The right to or - has called for an end to discrimina - ganise and be represented by a trade industrial action tion against trade unionists in the union when times are tough is denied THE Irish Medical Organisation will ballot its workplace. to tens of thousands of workers. junior hospital doctors on industrial action, if He made his call at a special cere - “A hundred years after Jim Larkin the HSE forges ahead with plans to slash mony on January 31 to mark the founded our union and 98 years after overtime and allowances. hundredth anniversary of the found - workers were batoned off this very The body said the changes - under which ing of SIPTU’s forerunner, the Irish street for demanding the right to mandatory unpaid meal breaks will be Transport and General Workers trade union recognition we are still introduced and training grants ended - are in Union by legendary activist Jim fighting for it. breach of current agreements. Larkin. "While tens of thousands of trade IMO chief Dr Martin Daly dubbed it “a Mr O'Flynn claimed that union activists in the decades devastating attack” on the 3,000 junior many Irish people were still since have come together to hospital doctors it represents. fighting for the right to be champion the rights of ordinary Health bosses claim they have taken the represented on the shop working people, it was Jim Larkin measures to cut junior doctors' hours to an floor. whose vision gave them the means average of 48 hours a week to comply with Addressing the gathering at to do so.” the EU directive on working time which Larkin’s statue on O’Con - comes into effect in August Visionary: Jim Larkin

A€ GR9OU0P of, fo0rme0r em0ploy eeps ofa a hyotelo thatubtu ildfingo wasr re pBossesased flrolmy mamnagemuent bny its hceoive intdeividulal pwaymenots orf bketweeenr €7s 00 and went into liquidation are to receive a payout of landlord. The company that operated the hotel €13,000. €90,000. went into liquidation a few months later in Octo - Former porter Thomas Metcalfe told one The 35 workers who used to staff the Ballymun ber. reporter: “I’m pleased this whole ordeal is over at hotel took a case to the Rights Commissioner SIPTU organiser Miriam Hamilton said staff were last. We were treated terrribly and we had to move following the non-payment of money owed to forced to leave the premises with only enough time mountains to get what was owed to us. them. to collect their belongings. "Our union made sure that everything possible The Ballymun Plaza Hotel closed last April and She added: "Their employer refused to pay any was done to get us the money owed and at last it its employees were let go without notice after the of the wages owed." The group are expecting to re - seems like it was worth the wait.” THERE IS A BETTER, FAIRER WAY SATURDAY FEB 21 MARCH & RALLY SETTING OFF FROM PARNELL SQ @ 2 PM

32 UNION POST S February 2009