Ireland – Developments in social partner organisations: employer organisations
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This contribution on developments in employer organisations from the Irish national centre summarises the situation in Ireland as of June 2009. Employer organisations have had to adapt to changing circumstances and offer members a much greater variety of services – notably in relation to advice on employment law.
QUESTIONNAIRE
1. National ‘peak’ employer organisations
1.1 Please list all the national ‘peak’ employer organisations in your country (see the background note for definitions of ‘employer organisation’ and ‘national peak employer organisation’ and for the private/public scope of this study). For each organisation, give a brief summary of
The national ‘peak’ employer organisations in Ireland are:
- the Irish Business and Employers Confederation (IBEC) (which is by far the largest employer representative body in Ireland);
- Small Firms Association;
- the Chamber of Commerce Ireland (CCI);
- the American Chamber of Commerce;
- the Irish Small and Medium Enterprises Association (ISME).
a) its constituency
- IBEC. IBEC is the national umbrella representative organisation for business and employers in Ireland, and it has a multiplicity of company members. Its membership base is regionally, industrially and structurally diverse. IBEC’s members come from a wide range of sectors and associations, from electronics/ICT, pharmaceuticals, to forestry, finance to clothing, food and drink to music, and all points in between. In fact, there are about 50 sector associations and federations within IBEC, each responsible for its own activities and ultimately reporting to an IBEC Director. Membership embraces small, medium, and large enterprises.
- SFA: The Small Firms Association (SFA) (an independent affiliate within IBEC) is a national organisation exclusively representing the needs of small enterprises (i.e. those employing less than 50 employees) in Ireland.
- ISME: ISME also represents SME’s, and competes with the SFA for members.
- CCI: The Chamber of Commerce Ireland, directly and through its lower-level chamber of commerce members, represents all types of company across different sectors.
- AMCHAM Ireland: The American Chamber of Commerce in Ireland exclusively represents many American multinationals with operations in Ireland.
b) its membership structure
IBEC has both. For example, the Small Firms Association (SFA) (which represents small firms) is an affiliate of IBEC, and IBEC represents companies individually.
Membership of the SFA consists of individual companies.
Membership of ISME consists of individual companies.
Membership of the Chamber of Commerce Ireland consists of both lower-level chambers of commerce across Ireland as well as individual companies.
Membership of the American Chamber of Commerce consists of individual companies.
c) its size
i) IBEC
IBEC has two main types of direct affiliate groupings. There are standard members, who are entitled to services provided centrally. There are also comprehensive members who are part of sectoral associations. As well as direct affiliates, there are also a substantial number of indirect affiliates. All affiliates have to pay an affiliation fee, the level of which is dependent upon the level of service provided.
IBEC directly represents the interests of over 4,000 direct affiliates from all sectors of economic and commercial activity. Total membership, including indirect members, is approximately 7,500 organisations.
ii) The SFA claims to represent 8,000 small firm members.iii) ISME claims to represent in excess of 8,500 SME members.iv) CCI claims to represent 60 member chambers representing over 13,000 businesses throughout the island of Ireland.v) The American Chamber of Commerce represents the interests of approximately 570 US firms in Ireland, encompassing nearly 100,000 employees.
d) its nature
All the ‘peak’ employer organisations listed above would represent affiliates interests in both labour market matters and ‘other business interests’.
1.2 What changes have there been since the start of 2003 in the structure of national ‘peak’ employer organisations? Please indicate reasons for any changes noted.
One change worth noting in Ireland since the start of 2003 in the structure of national peak employer organisations is that a major company, Independent News and Media (INM), disaffiliated from IBEC at the start of 2009.
1.3 What is the collective bargaining role of each peak organisation listed in 1.1? Has there been any change in this area since the start of 2003 and, if so, why?
i) IBEC.
IBEC engages directly in collective bargaining with unions, coordinates the bargaining activities of affiliated lower-level members, and provides assistance and advice on lower-level bargaining to its affiliates.
In all, IBEC represents its members on over 80 different organisations, institutions and committees. It represents business interests to government, state agencies, trade unions, other national interest groups, and the general public. The representative role of IBEC occurs at four levels, local, sectoral, national and European.
IBEC directly assists its members by acting on their behalf in collective bargaining negotiations at a local, industry, national, and European level. As a social partner in national level negotiations, IBEC makes representations to the Government on behalf of its affiliated members on issues of industrial relations, social policy, trade, economics, and taxation. Since 1987, IBEC’s role in national level bargaining has served to increase their representative role at national level, thereby providing them with a significant input into social and economic policy.
IBEC participates in many consultative and State bodies. For instance, it is involved in a number of Working Groups under national agreements. It also nominates members of the Labour Relations Commission, and employer members of the Labour Court are appointed by the Minister for Enterprise, Trade and Employment on the nomination of IBEC. Furthermore, IBEC also has an influence on numerous other consultative bodies such as Joint Labour Committees (JLCs), the National Economic and Social Council (NESC), the National Economic and Social Forum (NESF), and the National Centre for Partnership and Performance (NCPP).
Although industry level collective bargaining has decreased in Ireland, it is still practised in certain sectors, such as printing, and clothing and footwear. Sectoral representation occurs through IBEC’s independent sectoral associations.
At the local level, representation consists of involvement on behalf of affiliated members in third party processes of conciliation, mediation and arbitration. IBEC is also involved in local negotiations in member companies, although this has been diluted by the predominance of national level collective bargaining from 1987 onwards. Nevertheless, IBEC fulfils a number of important representative roles at local level. These roles incorporate the co-ordination of policies on pay and employment issues, establishing general guidelines for affiliated employers, supplying information and expert personnel during the course of negotiations. Therefore, IBEC essentially plays a supportive and co-ordinating role in local level negotiations.
Finally, since the passing of the Single European Act in 1987, the European dimension of IBEC’s role has increased considerably. As part of this role, IBEC has provided policy inputs to BusinessEurope (formerly UNICE) on a range of issues, including competition and trade and social policy. IBEC has its own European office in Brussels, the Irish Business Bureau (IBB), through which it works on behalf of Irish employers at European level.
ii) SFA.
The SFA engages directly in collective bargaining with unions at national level. It also provides advice and assistance to members at local level on industrial relations and labour market issues, but does not engage directly in local level collective bargaining.
iii) ISME.
The primary role of ISME is to represent the interests of its members to government, government bodies and other major organisations, at various levels. It has also devised a range of group services to help small firms, and it organises regular regional business briefing sessions and management development workshops.
ISME does not participate in national level collective bargaining, although it has applied to join the social partnership process on a number of occasions. This issue has proved to be controversial. Given the strained relationship between the two organisations, IBEC is apparently unwilling to allow ISME to participate in national agreements, and this has irked ISME. ISME was offered a ‘secondary’ role in the process, but refused, and it has continued to intensively lobby for a more influential role. It argues that big business and its representative (IBEC) are opposed to its participation in social partnership. ISME believe that at present, the interests of small firms are mediated through big business, and are inadequately represented at the highest levels.
ISME is also concerned that it does not have adequate representativeness at a European level. IBEC (and BusinessEurope) have been opposed to UEAPME’s (and thus ISME’s) attempt to acquire full representation rights in the European social dialogue negotiations.
Relatively few of ISME’s affiliates are unionised, so its overall role in collective bargaining is very limited. However, it does offer members assistance and information on employment and labour market issues.
iv). Chamber of Commerce Ireland.
The main objectives of the CCI is to promote Irish business, encourage foreign trade, foster investment in Ireland, issue certificates of origin and represent its members’ interest with government and semi-state organisations. It promotes this agenda through participation in national level bargaining. Its perspective is one of ensuring that the negotiations are reflective of the business community as a whole. The CCI is involved in a number of Working Groups under partnership agreements, and has a role on consultative bodies, such as the NESC and the NESF.
The CCI does not directly engage in collective bargaining at lower levels, but provides advice to members on industrial relations issues.
v) American Chamber of Commerce.
The American Chamber of Commerce does not directly engage in collective bargaining with trade unions at any level, and many of its affiliates are non-union. The American Chamber provides advice and assistance to members on industrial relations and labour market issues, and is active in lobbying Government to promote a business environment that is attractive to all companies engaged in trade and commerce between the US and Ireland. Given the significance of American inward investment for the Irish economy, the US Chamber of Commerce has become an increasingly powerful lobby group in Ireland, and, because of this, is able to exert significant influence on Government policy. For instance, its opposition to mandatory trade union recognition is well known.
1.4 What involvement does each of the peak organisations listed in 1.1 have in tripartite and/or bipartite consultations? Has there been any change in this area since the start of 2003 and, if so, why?
See 1.3 above.
- IBEC, in particular, has extensive involvement in a wide range of formal and informal tripartite and bipartite bodies.
- The SFA, often through IBEC, would also have a role on some tripartite/bipartite bodies.
- Due to the fact that it is outside the national social partnership framework, ISME has a very limited role on tripartite/bipartite bodies/consultative processes.
- CCI has a role on some tripartite/bipartite bodies/consultative processes.
- The American Chamber of Commerce would not be directly involved on tri-partite/bi-partite bodies. But, significantly, it and its key member companies have a powerful formal/informal ‘behind the scenes’ role in relation to consultative processes – in terms of lobbying/influencing the Government on industrial relations and labour market policies.
1.5 What, briefly, is the role of each of the peak organisations listed in 1.1, other than in the areas referred to in 1.3 and 1.4? Has there been any change in this area since the start of 2003 and, if so, why?
See 1.3 and 1.4 above for description of each peak organisations role.
Since 2003, peak employer organisations have increased the provision of expert advice to affiliates. Employment law, for example, is a notable area where employer organisations have expanded the range of services and advice to affiliates. Employers have had to grapple with an increasingly complex variety of employment law in Ireland.
A significant development in the role of the Chamber of Commerce Ireland (CCI) occurred in 2005. From 2005, an ‘insurance policy’ against employment law decisions in the courts was offered for the first time in the Ireland, though a new employment consultancy service. The service, offered by the CCI as ‘ChambersHR’, includes information and representation as well as indemnification against employment awards. It appears to be a significant challenge to the services provided by other employer bodies, particularly IBEC. Up until that point, the CCI had largely confined itself to lobbying on business issues. However, with the ‘ChambersHR’ service, the CCI gave real intent of entering the market for employer representation services.
1.6 Is there any evidence of change since 2003 in the composition of the leaderships of the organisations listed in 1.1, in terms of the representation of women, people from ethnic minorities, nationals of other countries etc.
There are some signs that women are more likely to be in leadership positions in employer organisations since 2003. Overall, however, the top positions in these organisations remain male dominated. There is no sign of ethnic minorities securing a leadership role in employer organisations.
Joanne Richardson has been the CEO of the American Chamber of Commerce Ireland since 2001. In May 2009, Kildare businesswoman, Eilis Quinlan, became new ISME Chairman. As of June 2009, IBEC is in the process of replacing its outgoing secretary-general. It is understood that the likely front-runners are men.
2. Sectoral employer organisations
2.1 Please give a brief summary of the sectoral structure of employer representation in your country (see the background note for definition of ‘sectoral employer organisation’).
Sectoral employer organisations are only found in certain sectors in Ireland, notably construction and hotels. Employers in other sectors are primarily represented by ‘peak’ level associations, primarily IBEC. The main national sectoral employer organisations that fit the criteria in the background note are the Construction Industry Federation (CIF) and the Irish Hotels Federation (IHF).
CIF: The Construction Industry Federation (CIF) represents and serves over 3,000 members covering businesses in all areas of the Irish construction industry through a network of 13 Branches in 3 Regions in Ireland and through its 37 Sectoral Associations. The 13 branches represent members at local level throughout Ireland. Branch members and dedicated regional staff deal with issues affecting their localities and regions. They contribute to national policies through representation on the Federations Executive Body. The 37 Associations represent general contracting, house building and specialist firms in Ireland's construction industry providing a forum for members to develop initiatives and deal with problems affecting each sector of the industry. The CIF’s affiliated membership is estimated to constitute about 75 per cent of all workers in privately owned construction firms.
The CIF is essentially an industry-based association dealing with both trade/commercial matters and industrial relations affecting the construction industry. It has an input at national level through its participation in social partnership agreements.
IHF: Founded in 1937, the Irish Hotels Federation (IHF) is the national organisation of the hotel and guesthouse industry in Ireland. The primary functions of the Federation are to promote and defend the interests of its members. The IHF represents almost 1,000 hotels and guesthouses nationwide, employing over 57,000 people.
2.2 What changes have there been since the start of 2003 in the structure of sectoral employer organisations? Please indicate reasons for any changes noted.
No major structural changes to speak of.
2.3 What is the collective bargaining role of national sectoral employer organisations?
The CIF: Yes, the CIF engages directly in collective bargaining with trade unions, coordinates the bargaining activity of affiliated companies, and provides advice and assistance to affiliates. The principal services provided by the Construction Industry Federation are: general industrial relations services, such as monitoring and handling industrial relations on all large construction sites, dealing with any matters referred to it by member organisations, representing members at conciliation and arbitration, and providing relevant information and advice to affiliates. It also represents its members in negotiations at a national level. In addition, it operates group training and safety schemes. The CIF also assists its members in negotiations at industry and local level, and is represented on a variety of consultative bodies at a national, regional and industry level, including NESC, NESF and FAS. The CIF is affiliated to FIEC at a European level.
The IHF: The majority of IHF members are non-union and the IHF does not engage directly in collective bargaining with trade unions. However, it does provide industrial relations assistance and advice to affiliates. Its main industrial relations role relates to the Joint Labour Committee (JLC) which sets minimum pay and conditions for the hotel industry. Significantly, in early 2008 the IHF lodged a legal challenge to the constitutionality of legislation under which Joint Labour Committee and the Labour Court set minimum pay levels, and the specific procedures used to establish rates for much of the hotel sector. In a settlement reached out of court, the Labour Court agreed to quash an order it had made that set the wages and working of some 25,000 hotel workers.
2.4 Has there been any change in the collective bargaining role of national sectoral employer organisations since the start of 2003. Please indicate reasons for any changes noted.
Yes. At the end of 2008, the Construction Industry Federation (CIF) rejected the terms of the new national wage deal (called the ‘Transitional Agreement’), making it the first employer organisation to reject a national deal since Ireland’s social partnership process began in 1987. As well as rejecting the national wage deal, the CIF Executive mandated the organisation to lodge a claim for a 10% reduction in pay rates, which unions have opposed.
Also, see 2.3 above: the IHF lodged a constitutional challenge to the Joint Labour Committee (JLC) system setting minimum pay and conditions.
2.5 Briefly, aside from bargaining, what other roles do national sectoral employer organisations play? Has there been any change in this area since the start of 2003 and, if so, why?
See 2.3 above. The CIF is involved in a variety of bipartite/tripartite consultative bodies, it lobbies Government, and also provides advice to affiliates. The CIF rejected the current national wage agreement, but has not developed a new role as such to compensate for this.
2.6 Is there any evidence of change since 2003 in the composition of the leaderships of sectoral employer organisations, in terms of the representation of women, people from ethnic minorities, nationals of other countries etc.
No evidence of this.
3. Other employer organisations
3.1 Are there other levels of employer organisation (other than national peak organisations and national sectoral organisations) that have an important role in industrial relations in your country? Examples might include regional or province-level organisations, either sectoral or cross-sectoral. If so, please give brief details of their structure and role and indicate if there has been any change since the start of 2003.
No.
3.2 Have any innovative forms of employer organisation developed in recent years, which represent employers on non-traditional lines (ie, not purely based on sectoral or geographical considerations)? If so, please give details and reasons.
No.
Commentary
There have been some significant changes in employer organisations in Ireland since 2003. Employer organisations have had to adapt to changing circumstances and offer affiliates a much greater variety of services – notably in relation to advice on employment law, which has become more complex since 2003. For the most part, however, the intervening years have seen a continuation of changes already in train prior to 2003. Membership of employer organisations is often seen as a useful barometer of management’s approach to industrial relations. In the past, membership was traditionally associated with the pluralist model of collective industrial relations: namely, the presence in companies of trade unions and formal collective bargaining arrangements. However, in recent times (predating 2003), the decline in union density, growth of the non-unionised private sector (notably in newly opened ‘greenfield sites’), and the accompanying utilisation of individualist human resource management type practices, has meant that some companies may perceive membership of an employer organisation (a collective union of employers) to be incompatible with an individualist approach to employee management.
Tony Dobbins, CISC NUI Galway