ROBERT BALLAGH MAY DAY BEWARE: EU ON RIVERA & KAHLO FEATURE COMPETITIVENESS PACT PAGE 23 » PAGE 8 » PAGE 7 » Vol. 10 No.4 May 2011 ISSN 0791-458X WAGES UNDER THREAT FROM EU/IMFBy FRANK CONNOLLY here is growing concern among trade unionists that The Minister has stated that he intends to publish the obsolete provisions and inflexibilities” in the wage setting the statutory protection mechanisms which set the report after it is considered by the Government and that dis- mechanisms which would have to be addressed. He also wage levels for more than 300,000 Irish workers could cussions will take place with the European Commission on its warned that the changes to the Joint Labour Committees and be dismantled. For decades, Joint Labour Committees, main findings “in line with the provisions in the EU-IMF pro- Registered Employment Agreements would apply generally T involving unions and employers, have set out the gramme.” rather than only to new entrants. Employment Regulation Orders (ERO’s) which regulate wages “It is proposed to have early discussions with the European “There are real grounds for concern that the wage setting for mainly low paid workers. The ERO’s and Registered Commission services on the main findings of the review, in mechanisms will be dismantled and that the previous govern- Employment Agreements (REA’s) set wage levels in the con- line with the provisions of the EU-IMF programme,” he told ment had indeed discussed their complete elimination with struction, retail, catering, security, hotel and tourism sectors of the Dáil on Thursday (5th May). the IMF,” said SIPTU General President, Jack O’Connor. the economy. The Minister added that arising from those discussions he “In December the IMF staff report referred to a ‘review Under the terms of the Memorandum of Understanding would present a “time-bound” comprehensive action plan to with a view to elimination’ of the wage setting mechanisms. It (MOU) negotiated with the EU/ECB/IMF Troika in December the Troika by the end of September. This plan, he said, would is widely suspected that the previous government had accept- the Fianna Fáil led government agreed to review the statutory follow up on the report’s recommendations, setting out pro- ed this outcome which would be an unprecedented assault on wage setting mechanisms. The chairman of the Labour Court, posals for any legislative action that might be necessary to give the wages of more than 300,000 already low paid workers.” Kevin Duffy, and UCD economist, Dr Frank Walsh, submitted effect to the reform measures. He said he had yet to receive a response from Fianna Fáil their findings to the Minister for Enterprise and Employment, The minister said that the terms of reference for the review leader, Michael Martin, to a request he made last month for clar- Richard Bruton, at the end of April. set by the previous government had referred to “anomalies, ification on the commitments given to the IMF on this issue. Continued P2 2 Liberty MAY 2011 News In this month’s Liberty Contract cleaners issue Home helps protest – Page 3 May Day call to Organise! Boots workers – Page 4 Building a Viking longboat – Page 5 By ETHEL BUCKLEY EU plan to push down wages exposed - Page 7 Contract cleaner Lucia Fay stole the show at this year’s May Day May Day reports – Page 8-9 rally in Dublin with an impassioned call to workers to organise in Economy - Page 10-11 response to the current threat to Employment Regulation Orders. Niall Crowley on income inequality – Page 12 Lucia, who was the opening speaker at the rally, gave a rousing Connolly Shoes – Page 13 speech showing no sign of nerves in what was her first public speaking engagement. She attended the rally David Begg on skills – Page 14 as part of a large, colourful and noisy contingent from the Fair Deal Magdalene Laundry scandal – Page 15 for Cleaners Campaign. Lucia told of her experience in Susan O’Keefe – Page 16 building a union at her place of work with the support of SIPTU Diary of a Southside TD – Page 17 Organisers and the difference it has made to her and her colleagues at Greencore sell-off – Page 18 Beaumont Hospital. “We strengthened in numbers week after week, formed a work- Liberty View – Page 19 place committee, and asked man- agement to address our concerns. Cuban revolutionary’s visit – Page 20-21 When they didn’t take our request seriously, we decided to make them Dáil Notes – Page 22 listen-we took a ballot for strike action. And you know what? They Robert Ballagh on the Rivera and Kahlo exhibition listened,” Lucia said. – Page 23 Lucia then went on to outline the new threat to low paid workers Photo: Lucia Fay Fair Hotels – Page 24-25 contained in the review of sectoral wage agreements. Her message was the bankers and the developers and the Labour Party to stand “shoulder clear, particularly with regard to their friends in the legal profession to shoulder” with low paid workers SIPTU’s Belfast history – Page 26 protecting existing payments for the Celtic Tiger never called to our in defence of ERO’s and concluded weekend working. Reminding the door. He by-passed us on his way to with a clarion call to all to organise International news – Page 27 audience that the basic hourly rate the Galway Tent! That little extra we to build a better future for all work- for cleaners set by the ERO is only get for working on a Sunday, a day ers: Noel Kilfeather obituary – Page 28 €9.50 per hour she declared to when we should be spending time “So Comrades lets enjoy this May tumultuous applause; with our families, currently ensures Day celebration, let’s prepare for Know Your Rights – Page 29 “We didn’t cause this crisis and we still have food on our plates the the battle ahead, and above all let’s we shouldn’t be the ones to pay for following Friday” Organise!” She then called on SIPTU and the Book reviews – Page 30 it. Our rate of pay is already too low. You see unlike the politicians, and trade union movement as well as Sport – Page 31 Liberty is dedicated to providing a platform for progressive news and views. Wages under threat from EU/IMF If you have any ideas for articles or comments please contact: Continued from P1 [email protected] The Labour Party has since succeed- dent, Nicolas Sarkozy. the country the whole exercise is to ed in securing a commitment in the The Pact envisages a depression dismantle the threshold of decency Programme for Government to of wage levels across the EU and that this statutory infrastructure retain the statutory wage protection seeks to give the EU commission represents so as to facilitate the col- infrastructure much to the annoy- power over wage bargaining process- lapse of pay levels in the economy Liberty is published by the ance of employers group, Ibec. es in individual member states. in accordance with the objectives of Services, Industrial, Professional & Technical Union, Liberty Hall, Dublin 1 Ibec had called for the abolition Addressing trade unionists in the so called Competitiveness Pact,” SIPTU General President, Jack O’Connor of the ERO’s, a reform of the REA’s Dublin on Wednesday (4th May) Jack O’Connor said. Vice President, Patricia King and the retention of the cut to the European Trade Union Congress In parallel with these develop- General Secretary, Joe O’Flynn minimum wage, which the new gov- economist, Ronald Janssen, said ments a High Court decision is Production: SIPTU Communications Department, Liberty Hall, Dublin 1 ernment has promised will be that the Pact sought to “depress pending on a case taken by the Fast Tel: 01 8588217 reversed. Ibec also criticised as “one wages” by enacting into EU law a Food Alliance challenging the legiti- Email: [email protected] of the most objectionable aspects of process whereby the lower wages of macy of the current ERO in the SIPTU Head of Communications, Frank Connolly Journalist: Scott Millar the JLC system: the retention of the a ‘competitor’ EU state would set a catering industry on both procedur- Design: Sonia Slevin (SIPTU) casting vote by the chairman of a benchmark for the pay levels of al and constitutional grounds. & Joe Mitchell (Brazier Media) JLC.” neighbouring countries. Another four court challenges to the Publications Assistant, Deirdre Price Administrative Assistant, Karen Hackett The threat to wage levels across “It is vitally important to under- ERO’s and REA’s are also underway Produced, designed, edited and the economy is compounded by the stand that the threat to wage levels and may influence the printed by trade union labour details emerging in the EU is not limited to the 300,000 plus Governments proposed action plan. Printed and distributed by Competitiveness Pact which is being workers who are directly in the fir- The Irish Times, City West, Dublin. promoted by German chancellor, ing line. Apart from cutting the pay Angela Merkel and French presi- of the most vulnerable workers in Liberty 3 News MAY 2011 Dáil protest at New look threat to Home SIPTU website Help services HOME Help services are in danger “We believe this will impact on of being privatised and the terms our members’ terms and conditions and conditions of union members and that it is a clear attempt to are also under threat, SIPTU has drive down wages and conditions.” claimed. The union has called on all its Information on the tender is not members in the Home Help sector – available to the public yet the as well as their clients, families and process will determine how hun- those who want to see quality serv- dreds of millions of tax payers’ euro ices for the elderly and vulnerable is spent.