Dáil Éireann Debate, Thursday - 7 April 2022
3. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on collective bargaining rights for trade unions in order to secure better pay and conditions for workers in view of his comments earlier in 2022 that workers deserve a pay rise. [18638/22]
View answerThis question is fairly straightforward. There are what could be called mixed messages from the Government. On the one hand, the Tánaiste himself is saying that workers need a pay rise but, on the other, the Head of Government is preaching wage restraint. What is the Tánaiste's view on collective bargaining rights for trade unions to allow them to secure better pay and conditions for workers in view of the comments he has made and the contradictory comments of the Taoiseach?
I thank the Deputy. I have a very clear view on this. I believe there should be pay rises. I do not say that lightly. I say that as somebody who signed off on a 3% increase in the minimum wage only a few months ago. The Minister of State, Deputy English, has also signed off on pay increases in various different sectors. Indeed, the Government has a pay deal with our own employees, public servants, to increase pay. There are two modest pay increases this year and there may well be more. However, I also believe, as does the Taoiseach, that it is a mistake to think that pay rises will solve the problem of inflation. Pay rises will not bring down the cost of living. In fact, some pay rises may even further increase the cost of living because many businesses will have to fund those pay rises by increasing what they charge their customers for goods and services. We want pay rises but not pay rises that contribute to inflation and make the situation worse. That is why we have to look at these things in the round. I refer to pay policy, what we do in terms of tax and welfare, which is another way to increase people's disposable incomes, and what we do to reduce the cost of living with regard to things like childcare, rent, healthcare and education. My concern is that we are not looking at these matters in the round and that the issue is being approached in a piecemeal manner. That is why we are engaging with employers and unions through the Labour Employer Economic Forum, LEEF, next week and talking about how we might be able to put a bit of order on this so that people do not see any pay increases swallowed up by the highest rate of tax or rising prices. That would not be to anyone's advantage.
On collective bargaining, as the Deputy knows, our system is a voluntary State system in which the State does not seek to impose a solution on the parties to a dispute but will, where appropriate, assist them in arriving at a solution. This approach has served us well for many years. Our Constitution guarantees people the right to freedom of association, that is, the right to join a trade union or any other organisation they want to. However, it does not force people to associate if they do not wish to. That is an appropriate approach.
Along with members of Viktor Orbán's Government in Hungary, the Austrian Government and a few others, the Tánaiste is a co-signatory to a letter to the Commission seeking to water down the provisions of a draft directive aimed at ensuring that at least 70% of workers are covered by collective bargaining agreements. I may have some difficulties with how the directive is written myself but I certainly would not seek to undermine it or water it down in any way, shape or form. My question was specifically on creating the conditions for trade unions to be able to bargain collectively for their members, and indeed, for trade union recognition and trade union rights.
I tend to agree with Gerry McCormack of SIPTU who, when describing the three parties in government, was very clear about it and about their attitude. He stated: "The three parties in government have a track record of supporting employer’s interests above those of workers". Naturally, workers are concerned. Specifically, in relation to collective bargaining, what are the Government's plans?
The Deputy is referring to a particular EU directive relating to both the minimum wage and collective bargaining. She was a bit selective in the countries she mentioned. The Deputy is correct to state that Austria and Hungary signed it, but so did most of the Nordic countries. Those countries are, in many ways, the exemplars in terms of labour rights, at least for people on the left, but the Deputy conveniently left them off her list. We are now happy with what is proposed by the European Union in that regard, because the concerns that we had have been allayed.
In relation to collective bargaining, I have established a high-level group under the auspices of the LEEF to examine the industrial relations landscape in Ireland. I met the independent chair of the group last month, who briefed me in detail on the important work being undertaken by its members, who are currently considering the adequacy of the existing workplace relations framework. It is in need of reform if we are going to move towards that target of 70% of people being covered by collective bargaining in some way. I expect to bring a final report to Government later this year as to how we can implement the recommendations. I am very keen that we should have agreement on this report from both the employers and the unions. That is the way it will work best. If we force people to associate, we will not get agreement.
I think the best way to do it is to create the conditions for workers to organise. That involves recognition and protection for those who are seeking to bargain collectively on behalf of their members. I have stated previously that the best way for any worker to secure a pay rise is not just to join a trade union, but to be active in his or her trade union. Is it the Tánaiste's intention to move ahead with collective bargaining rights, or is he going to wait for the directive to be transposed? We have a unique opportunity now, post pandemic. As we move out of the emergency phase of the pandemic, many workers are now looking at their situation. Now would be a unique time in the history of the State for workers to get organised and to bargain for pay rises that are vitally necessary. Is it the Tánaiste's intention to wait, or will he be moving ahead with legislation to recognise and grant collective bargaining rights?
If we can get agreement on the report and its recommendations from the unions and the major employers, I would not feel the need to wait for the directive. If we cannot get agreement, it probably makes sense to wait on the directive. I should say that we are introducing five new workers' rights this year, including the new public holiday which has now been passed into law. We are going to introduce legislation on statutory sick pay in the Dáil today. We are still working on the right to request remote working, which requires some work. We have enacted the new redundancy rights for people who were laid off during the pandemic. I will sign the statutory instruments on that quite soon and the scheme will be up and running. We have also got legislation to better protect workplace tips. That legislation has passed through the Seanad. It may well be that a sixth and seventh new workers' right will be introduced this year, one in relation to collective bargaining and another in relation to living wage, but both of those are works in progress.
