PROGRAMME FOR COMPETITIVENESS AND WORK
| IRELAND |
| PROGRAMME FOR COMPETITIVENESS AND
WORK |
The Programme for Competitiveness and Work is the three-year national agreement, concluded between the Social Partners in February 1994, which succeeds the Programme for Economic and Social Progress (PESP). During the final months of the PESP, there was considerable doubt as to whether a further agreement would be reached: the Irish Congress of Trade Unions , for a number of reasons, was not entirely in favour of entering into negotiations. There was some scepticism about the willingness or ability of the Government to fulfil its commitments under national agreement, particularly in relation to the public sector. However, this scepticism was not of the same degree as at the end of the National Understandings period in 1981; and in addition, the economic situation, with low inflation and a very high level of unemployment, meant that many trade unions and their members would not have been in a particularly strong position if faced with local bargaining.
In the event, negotiations commenced between ICTU, the Irish Business and Employers' Confederation , the Government and the farmers' associations in early 1994, resulting in the Programme for Competitiveness and Work. This is another three-year agreement, to commence on the expiry of the pay agreement under the PESP in each individual employment or industry except where agreed at local level. As with previous such agreements, pay increases over a period of three years are provided for, with specified minimum increased for low-paid workers. These are defined as those for whom the agreement would result in pay rises of less than ¥3.50 per week in the second and third phase (there are no special provisions for those on low pay in the first phase). This agreement, unlike the PNR and the PESP, contains different pay provisions for workers in the public service (not including semi-state bodies ). The agreement also includes ability to pay clauses, similarly to its predecessors. In the private sector, workers will receive 8 per cent. staged over the three years -as ever, the pay rises under the agreement are to be implemented through local negotiation, so in theory there is scope for some workers to receive less. The pay rises for the private sector are as follows: 2 per cent. in the first year, an additional 2.5 per cent. in the second year, and in the third year 2.5 per cent. for the first six months, with a further 1 per cent. for the second six months. This would appear to be providing for the possibility of higher inflation.
In the public service, the total pay rise provided for over the three years is also 8 per cent., but the staging is very different. There is a five-month pay pause, at the end of which the pay terms for the first year of the Programme will apply. For the first and second years the increase is 2 per cent. in each year, and then 1< per cent. for four months, an additional 1½ per cent. for the next three months, and finally a further 1 per cent. for the next six months. The agreement thus expires in June 1997 for public sector workers. Provision also exists within the public service for special minima for low-paid workers. In addition, there are outstanding claims in relation to public service workers left over from the PESP. The PESP contained a clause relating to local bargaining, which provided for increases of up to 3 per cent.; public sector workers had not received these increases, and the Programme for Competitiveness and Work provides for these increases to be paid, with the condition that there should be regard to the need for flexibility and change, and that there should be offsetting of the increase in terms of savings and an improved quality of service.
It was estimated, after the agreement was concluded, that pay rises in the public sector would be in excess of inflation for the lifetime of the agreement.
Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.