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Dáil Éireann debate -
Thursday, 31 Mar 1977

Vol. 298 No. 6

Ceisteanna—Questions. Oral Answers. - Relativity Agreement.

15.

asked the Minister for Labour if he will state in relation to the current relativity agreement when the agreement between the Construction Industry Federation and the group of unions was drawn up; if this agreement was ratified by the Labour Court and, if so, when; if he is now aware of unrest among building workers and in the building industry generally because of the Government statement of last Friday; and if he will make a statement on the matter.

The pay agreement between the Construction Industry Federation and the group of unions concerned was drawn up in June, 1976. The agreement was referred to the Labour Court by the parties on 28th July, 1976. On 5th October, 1976, the court issued an interim report on the relativity agreement which indicated that because of the circumstances peculiar to the construction industry the first phase increases proposed from 1st September, 1976, could be implemented. In their final report on the agreement which was issued on 18th February, 1977, the court found that, on the basis of a comparison of other industries, a case could not be made for an increase in pay in the construction industry, on the grounds of serious inequity, further to the increase already granted in September, 1976. The court pointed out however, that the interpretations of the national agreements given in their report were the court's own interpretations and were not authoritative. The court added that if more authoritative interpretations were required they could be sought from the Employer/Labour Conference under the relevant clauses of the national agreement.

Following a meeting of the Joint Industrial Council for the Construction Industry, held on 8th March, 1977, the council issued a statement to the effect that they were in agreement that the second phase of the relativity agreement could be implemented from 1st March, 1977, and that this decision was based on an interpretation, by the council, of clause 9 of the Interim National Agreement, 1976, and clause 10 of the 1977 national wage agreement which relate to special problems in relation to pay and conditions of employment.

In the light of this development the Government issued a statement on 10th March, 1977. The concern of the Government as expressed in the statement was that no increases additional to those allowable under the national agreement should be made without the sanction, by way of an authoritative ruling of the Employer/Labour Conference. However, in the case of the building Joint Industrial Council's decision to pay the increases, the ruling of the Employer/Labour Conference has not been sought. The action contemplated by the Government, that is, their intention to use the price variation clause in relation to Government works contracts and the house building cost index, would be taken to prevent the increases agreed by the building contractors being passed on in higher charges, where no reference for an authoritative ruling by the Employer/ Labour Conference is made.

The Construction Industry Federation referred the agreement to the Employer/ Labour Conference for a ruling—which is what the Labour Court had suggested in their report.

Seeing that this is the second time during his ministry that a pay freeze has been imposed on a certain group of workers would the Minister not agree that, rather than the Government using the big stick they threatened regarding the price variation clause and the house price position, it would have been advisable before making any such threats to have referred this to the Employer/Labour Conference for their comments and observations? Would it not have been more beneficial in creating good industrial relations at a time when they are in chaos?

I do not think the Government were waving a big stick. In fact the Government statement was saying to the parties concerned that their settlement should be the subject of an authoritative ruling by the only body able to give such a ruling, namely, the Employer/Labour Conference. That was the intent of the Government notice. The Government said if the attempt to gain that ruling was not made by the parties to the joint industrial council who had suggested these settlements, then the Government themselves would be forced to consider the steps outlined in their statement. But the force of the Government's statement is to suggest to the parties concerned here that they subject their pay settlements to the Employment/ Labour Conference, which is the authoritative body for seeing that any settlements are in accord with the national wage agreement. I am sure the Deputy would agree that that is not waving the big stick.

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