Most human resources directors want new national deal

A survey of over 100 human resources directors in multinationals operating in Ireland and in indigenous Irish firms, published in May 2002, shows substantial support for a new social partnership agreement when the current Programme for Prosperity and Fairness (PPF) expires at the end of 2002.

A study carried out by Behaviour and Attitudes Marketing Research on behalf of the Irish branch of the Chartered Institute for Personnel and Development (CIPD), published in May 2002, finds that 85% of human resources directors in multinational companies operating in Ireland and 81% of directors in Irish-owned firms are either mainly or totally in favour of a new national social partnership agreement to succeed the Programme for Prosperity and Fairness (PPF) (IE0003149F), which expires at the end of 2002. Of the 100 human resources directors surveyed, 67% are employed in foreign-based multinational firms while the remaining 33% are in indigenous firms. The survey indicates, however, that the indigenous companies are particularly concerned about spiraling wage costs.

The CIPD findings follow recent criticism leveled at the PPF pay agreement by the Irish Business and Employers Confederation (IBEC) (IE0204202N). However, although IBEC said that its members were disappointed with the PPF, its own survey found that 80% would back a new agreement - if the terms were right.

In the CIPD survey, the key reasons cited for maintaining social partnership were that:

• it has worked well in the past;

• it allows companies to set budgets;

• it allows for planning and control; and

• it provides a structure and guidelines for pay development.

While the majority of human resources directors surveyed favour a new agreement, many believe that it will be very difficult to negotiate one. Human resources directors in multinationals feel that such an agreement would be 'very difficult' to negotiate, while their counterparts in Irish-owned firms believe that it would be 'fairly difficult'.

Michael McDonnell, the director of CIPD in Ireland, said that while the human resources 'community' wanted to stick with the concept of partnership, there was a high degree of doubt about its ability to deliver: 'Human resources directors recognise the value of social partnership to the country as a whole in the past. Against that, it has not delivered to the extent that it might have been expected in recent years.'