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Dáil Éireann debate -
Wednesday, 28 Jun 1950

Vol. 122 No. 2

Trade Union Bill, 1950—Second and Subsequent Stages.

I move that the Bill be now read a Second Time. The Trade Union Act of 1941 made it unlawful for any body of persons, with certain specific exceptions, to carry on negotiations for the fixing of wages or other conditions of employment without a negotiation licence issued under the Act. For the first time, trade unions engaging in such negotiations were required to make and maintain large deposits with the High Court. This is a condition of the grant of a negotiation licence and the amount of the deposits depends on the numerical strength of the trade union concerned. The scale of deposits is laid down in the Schedule to the Act. Where the number of members does not exceed 500 the amount prescribed is £1,000; the appropriate sum for a trade union having 1,000 members is £1,400 and the scale gradually ascends to a maximum of £10,000 for the largest organisations.

It was foreseen in 1941, that, on account of the prevailing abnormal conditions, some of the Irish trade unions would be unable to make the full deposit specified by the Schedule to the Act and it was, therefore, deemed necessary to make provision for a variation of the requirements in favour of such cases. Accordingly, Section 8 of the Act conferred the necessary power to grant temporary relief to trade unions registered in this State where it was established in any particular case that, on account of abnormal conditions referable to the war, undue hardship would ensue if the trade union were compelled to make and keep with the High Court the full deposit. This relief extended to a maximum of 75 per cent. of the sum mentioned in the Schedule but the power to grant it was exercisable only while the Emergency Powers Act, 1939, was in force.

Reduction Orders in pursuance of the provisions of this section had been made in several cases. These Orders, however, would have expired on the 2nd September, 1947, and the trade unions concerned would then have been required, under the Act of 1941, to raise their deposits to the appropriate sum mentioned in the Schedule. Moreover, since the repeal of the Emergency Powers Act, any trade union applying for a negotiation licence would have been required to make and maintain the full deposit whatever its circumstances might be.

After discussions with the representatives of the trade unions organisations, it was decided that the circumstances which necessitated the relieving provisions in the Act of 1941 had not materially changed, and that the withdrawal of the concession, at any time, would impose hardship and in some cases might have the effect of disqualifying trade unions from holding negotiation licences already granted. Accordingly, the Trade Union Act, 1947, was introduced and enacted. It repealed Section 8 of the Act of 1941 and re-enacted its main provisions for a period of 12 months as from 9th July, 1947. The Trade Union Act, 1948, extended these provisions for a further period of 12 months as from the 9th July, 1948.

As the circumstances which necessitated these relieving provisions still existed in 1949, the Trade Union Act, 1949, was enacted in order to continue these reliefs up to 8th July, 1950. It is now considered desirable to continue to meet the difficulties of the Irish trade unions, of which 25 have received reduction Orders, and I am satisfied that there is a case for the extension of this concession. The Bill, accordingly, continues the relieving provisions for a further 12 months, that is, to the 8th July, 1951. The question of a further extension after that date will be closely examined in the light of the circumstances and conditions then obtaining.

The power taken in the Trade Union Act to permit by ministerial Order a reduction in the deposit required by trade unions was related to the circumstances prevailing at the time the Act was passed, circumstances which caused disorganisation in various trades and reduced the revenues of some unions or caused unnecessary charges on their funds. These circumstances have passed; they passed with the ending of the emergency. If there are, however, other circumstances affecting some of the smaller unions which appear to require that the power should be retained permanently or that the main provisions of the Trade Union Act should be modified, then I think the Government should consider making these changes by permanent legislation rather than by an annual Bill of this kind.

I agree, however, that it is probably not desirable to introduce permanent legislation at this stage. We are aware from announcements which have appeared in the Press that discussions may take place between the trade union congresses which may result in proposals for the reorganisation of the trade union movement, a reorganisation apart altogether from the current issue of British versus Irish unions. If any proposals for reorganisation are likely to emerge from these discussions, then it is probably desirable to leave the existing law relating to trade unions unchanged until it can be reconsidered in the light of these proposals.

The device of requiring a union to make a deposit with the High Court for the purpose of getting a negotiating licence was, of course, designed to restrict if not prevent the unnecessary duplication of trade unions or the formation of what are called splinter unions. In so far as that is the main purpose of the device, the amount of the deposit is not of very great importance and, in fact, it would be possible to consider other methods of getting the same results apart from this device of a High Court deposit.

I think it would be desirable if the Parliamentary Secretary were to intimate now, in view of these probable discussions, the willingness of the Government to consider the introduction here of any legislation which might be required to implement the agreed proposals for trade union reorganisation which most responsible trade union leaders recognise to be necessary and which from the viewpoint of the Government and the Dáil would be a considerable improvement in present circumstances.

There is among some trade unionists a reluctance to contemplate legislative restrictions of any kind upon trade union development but I think that it is now generally recognised that if any scheme agreed among the leaders of trade unions is to be made fully operative, some legal backing may be necessary for it and it might help towards the successful outcome of these discussions if the Parliamentary Secretary intimated generally his willingness to submit here any legislative proposals which were required.

The matters to which the Deputy refers were considered when this legislation was being drafted and, in fact, legislation for a longer period was originally contemplated, not exactly a permanent measure but one which would have extended the period for longer than a year. The discussions to which the Deputy has referred then appeared likely and an announcement was made that these discussions would take place and it was considered in those circumstances more desirable to continue the existing legislation for a period of one year and to consider in the light of the possible outcome of these discussions any legislation which might be necessary.

I think I can give the House an assurance that if the trade unions make representations to the Government those representations will be considered fully and that in the light of whatever arrangements may result from these discussions legislation would be drafted, but I think it is premature at this stage to indicate any type of legislation until the discussions have concluded. In the circumstances, I think it is desirable that the reductions which have been granted should be continued for a further 12 months. It is, of course, quite likely, if discussions between the Trade Union Congress and the Congress of Irish Unions result in agreement that many of these trade union Orders will no longer be necessary.

Question put and agreed to.
Bill passed through Committee, reported without amendment, received for final consideration and passed.

All I want to say is that the Parliamentary Secretary would be very wise in not introducing legislation without the consent of the trade unions of the country.

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