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Social Partnership.

Dáil Éireann Debate, Tuesday - 1 July 2008

Tuesday, 1 July 2008

Questions (4, 5, 6, 7, 8)

Eamon Gilmore

Question:

4 Deputy Eamon Gilmore asked the Taoiseach when he will next meet with the social partners collectively; and if he will make a statement on the matter. [14623/08]

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Caoimhghín Ó Caoláin

Question:

5 Deputy Caoimhghín Ó Caoláin asked the Taoiseach the meetings he has scheduled with trade union leaders and employers’ representatives in the context of a proposed successor to the Towards 2016 Agreement; and if he will make a statement on the matter. [15234/08]

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Enda Kenny

Question:

6 Deputy Enda Kenny asked the Taoiseach if he will report on progress in the national pay negotiations; and if he will make a statement on the matter. [17124/08]

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Enda Kenny

Question:

7 Deputy Enda Kenny asked the Taoiseach if he will report on his attendance at the IMPACT annual conference on 16 May 2008; and if he will make a statement on the matter. [19684/08]

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Arthur Morgan

Question:

8 Deputy Arthur Morgan asked the Taoiseach if he will report on his participation in talks with trade unions and employers’ organisations in the context of a proposed successor to the Towards 2016 agreement; and if he will make a statement on the matter. [25594/08]

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Oral answers (5 contributions)

I propose to take Questions Nos. 4 to 8, inclusive, together.

At the social partnership plenary meeting on 15 February 2008, the Government invited the social partners to participate in a formal review of Towards 2016, as provided for under the agreement. Given that the terms of the pay agreement for the private sector expired in March, the review process includes negotiations on a new pay round. The Irish Congress of Trade Unions held a special delegate conference on 17 April that authorised its participation in the negotiations, which then commenced on 24 April. The social partnership steering group is overseeing the review of the overall agreement. There have been several steering group meetings to date, the latest of which took place on 11 June, as well as bilateral engagements within individual social partnership pillars. These discussions will continue over the coming period.

Discussions are also underway with the parties to the pay agreement. To date, 17 meetings have taken place. These meetings included discussions on the economic scenario; a review of progress made to date on implementing Towards 2016 commitments in the area of employment rights and compliance and pensions; the regulation of employment agencies and agency workers; the legislative framework; workplace learning, education and upskilling; public sector renewal; and pay and related issues. These issues will be the subject of ongoing discussion over the coming weeks and a series of further meetings is scheduled to take place this week. In addition, the Department of Enterprise, Trade and Employment has arranged bilateral meetings with the social partners to discuss the Employment Law Compliance Bill 2008.

In setting out the priorities of my Government in the Dáil, I emphasised there is an urgency in the parties to the pay terms moving towards an agreement, since the conclusion of an appropriate agreement would support the strength and confidence of the economy in an uncertain world.

I am looking forward to working with the social partners to chart a course for the period ahead which is in line with our shared objectives, a course which reflects the realities of the situation in which we find ourselves and which enhances rather than diminishes our capacity to secure jobs and living standards for tomorrow, and for the long term.

In keeping with my wish to engage actively and constructively with the social partners, I was pleased to address the IMPACT 2008 biennial conference on 16 May. In the course of my address, I spoke about the ongoing social partnership talks, the benefits that have accrued under Towards 2016, public sector reform, decentralisation, the forum on the health sector and the referendum on the Lisbon treaty.

I addressed the annual president's dinner of IBEC on 25 June, at which I stressed the valued of the partnership process at a time of international economic difficulty. In line with long established practice the current negotiations are being conducted by officials from the relevant Departments, led by the Secretary General of my Department. The negotiations are overseen by Ministers led by myself and I am briefed in detail on their progress. As on all previous occasions the talks process can involve members of Government, including myself, when it is considered that this would be helpful. I expect such engagement to take place, as appropriate, over the coming weeks.

As the Taoiseach noted, the pay terms of the existing agreement for the private sector expired in March while that for the public sector will expire in September. We are in a situation where there should be a new agreement on pay. When does the Taoiseach expect the pay element of the talks to be concluded? Will that happen on this side of the summer holidays? I note he said there have already been 17 meetings between the parties on this issue.

I appreciate the Taoiseach cannot predict the outcome but I wish to ask him about the framework of the talks. What period of agreement is anticipated to emerge from the discussions? Has the Government formulated a pay offer as part of these talks? Can the Taoiseach indicate to the House what that might be, in general terms? Considering the non-pay elements he referred to such as agency workers, temporary workers, collective bargaining issues and issues related to employment legislation, are those matters now concluded in a way that allows for full engagement on the pay element?

We must return to this issue again. Has the Taoiseach set a time limit on a conclusion of the pay talks, if they are to conclude? Is he concerned by the statement from employers that, in certain circumstances, they might be prepared to walk away from social partnership? Does he see that as a real concern? How does he propose to bring two polarised sides together to form a basis for negotiation and conclusion? We recognise that social partnership has been of fundamental importance to industrial peace in the country and to the benefits we have seen in so many areas over the years.

Does the Taoiseach believe the issue of low pay will be dealt with as part of the current pay talks? This issue has been highlighted by Mandate, which represents many low-paid workers, for example, those in the retail sector. Does the Taoiseach accept that those low-paid workers are bearing the brunt of the rising fuel and food costs?

No pay offer has been made by the Government at this point. We are bringing the published official estimates on the performance of the economy in the first six months to the table so the social partners will be informed precisely as to what the Government regards as the short-term and medium-term prospects. Doing so will comprise an important input into the talks in an effort to determine whether we can conclude them successfully. It would be premature to do anything until that issue is addressed.

The non-pay issues are not disposed of. There has been much discussion on them and, as the Deputy knows, they formed a considerable part of the discussion on the Towards 2016 arrangements. There have been developments and the discussions continue. We will do what we can to determine whether we can solve the problems to everyone's satisfaction.

I would like to see the discussions conclude in the weeks ahead. This would constitute an important signal of determination on the part of all parties involved to provide a stable framework in a time of uncertainty and economic difficulty. This would be done with a view to maintaining jobs and inspiring public confidence in respect of how we are proceeding. Everyone acknowledges that the short-term economic outlook in Ireland has deteriorated. There are a number of difficult policy choices to be made and we must safeguard Ireland's future competitiveness in an increasingly volatile and globalising world. We must nurture an environment that continues to be conducive to investment, trade and employment growth through greater productivity and innovation.

There are a number of requirements to be considered if this challenge is to be met successfully. We must be realistic in our approach. We face a major challenge but must keep it in proportion. The strength of our economy across many sectors puts us in a different position from that in which we were when the challenges arose on the last occasion. Those engaged in the social partnership process have risen to the challenge. The lesson we learn from our economic history is that, unless necessary corrective action is taken promptly and appropriately, more painful adjustments with less scope for sensible prioritisation inevitably follow.

I will be making the point that we all need to recognise the short-term issues and that we can return to a position of economic growth as soon as the international upturn comes. We also need to make responsible and sensible decisions in the interest of job security, competitiveness and fairness to all in the circumstances in which we find ourselves.

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