Conflict increases in the public sector

In 1999 and early 2000, there has been an increase in industrial conflict in the Irish public sector. This conflict is linked to the fact that worker expectations have increased in the context of a "booming economy. The uncertainty surrounding the commercialisation and deregulation of parts of the public sector is also fuelling conflict. As a result of these tensions, Ireland's new national agreement, the Programme for Prosperity and Fairness (PPF) is likely to come under mounting pressure in the coming months. "

Figures for the incidence of industrial disputes in Ireland between 1987 and 1998 show that there was a sharp decline in strike activity. The total number of working days lost through industrial action in 1998 was 37,374, which is the lowest figure since records began in 1922. This is in stark contrast to the period between 1964 and 1986 when there was a high level of strike activity. In 1979, a total of 1,464,952 working days were lost, which was the second-highest figure since records began. In 1999, there was a small increase in strike activity, albeit from a historically low level, as 215,587 working days were lost. This was the highest figure since 1990, when 222,916 days were lost. A nurses' strike, which resulted in the loss of 175,000 working days, accounted for much of this. Since then, conflict has spread to other parts of the public sector, and this increasing conflict is examined below.

The recent context of industrial conflict

Successive national agreements and the various formal and informal dispute-resolution mechanisms played an important part in sustaining industrial peace between 1987 and 1998, although other factors were also crucial, such as the impact of intensified economic competition and a shift in the balance of power at the workplace. A central feature of national agreements has been a concern by the government and the social partners to prevent, contain and resolve overt industrial conflict and to promote consensual industrial relations. To this end, the workload and scope of activities of the formal state institutions for dispute resolution - the Labour Relations Commission (LRC) and the Labour Court- have increased significantly. The LRC provides a conciliation and advisory service, while one of the duties of the Labour Court is to attempt to resolve disputes that remain unresolved by the LRC. The Court issues recommendations, which are not legally binding, on the basis of submissions made by employer and employee representatives.

The latest national agreement, the Programme for Prosperity and Fairness (PPF), which was endorsed by the social partners at the end of March 2000 (IE0003149F), can be perceived as a means of attempting to institutionalise conflict and promote consensus in a context of rising expectations. The PPF is already coming under some strain, however, primarily because of rising conflict in the public sector. Despite the fact that strike figures for the Irish economy as a whole are very low in historical terms, there have undoubtedly been growing tensions in the public sector. Indeed, public sector conflict has been perhaps the most intractable issue in Irish industrial relations in recent times (IE9909292N). This is inextricably linked to the fact that the ongoing "economic boom" is fuelling "rising expectations" amongst workers, who expect a fair share of the rewards while the boom lasts. Alongside these rising expectations, conflict has also been provoked by the increased "commercialisation" of some areas of the public sector, and a related concern by workers to protect or improve their pay and terms and conditions of employment. Furthermore, industrial relations across much of the public sector have historically been quite adversarial.

Recent examples of public sector conflict

Nurses

The nine-day strike by 27,000 nurses' strike that began on 19 October 1999 was a stark illustration of the tensions surrounding public sector conflict (IE9910297N). It constituted a major test of strength between the government and the nursing unions. The key issue for the nurses was their bid to enhance both their pay and professional status to a level that they felt was commensurate with their qualifications and the demands of their work. The government, for its part, was fearful that further concessions would provoke "knock-on" pay claims elsewhere in the public sector. To this end, the government was quite resolute in its determination to face down the nurses, partly to dissuade other public sector workers from pressing their own claims. In the end the strike was called off after nine days, with the nurses having secured concessions that slightly exceeded what they had already been offered following a Labour Court recommendation (IE9912202N).

Teachers

In the aftermath of the nurses' strike the Government had hoped that the provisions contained in the PPF - a 15% pay increase over 33 months; a one-off 3% "catch-up award" for teachers and civil servants to reflect the fact that, as so-called "early-settlers" under the previous agreement, their pay fell behind other public sector groups; and plans for a new pay "benchmarking" body to facilitate comparisons with private sector pay - would help to resolve the problem of pay relativities and restore stability to public service pay. This now looks doubtful given that considerable tensions remain within the education sector. One of the three teaching unions, the Association of Secondary Teachers, Ireland (ASTI), has argued that the combined 18% pay rise and catch-up award provided for by the PPF is inadequate (IE0003149F). It is particularly unhappy with the 3% catch-up award. There is a feeling that the relative living standards of teachers are slipping in comparison with other workers in a booming economy. As a result, ASTI is seeking a wage increase similar to that which the government conceded to the nurses in 1999. It recently lodged a "go-it-alone" 30% pay claim, which the government rejected because it is determined to keep the lid on public sector pay, especially as the PPF has only just been endorsed. ASTI is now faced with the choice of accepting the terms of the PPF or rejecting it. The latter choice increases the possibility that the union will ballot its members to engage in some form of industrial action later in 2000, thereby heralding a confrontation with the Government.

CIE

Córas Iompair Éireann (CIE) is the semi-state company responsible for public transport in Ireland. CIE consists of three separate entities: Iarnród Éireann (Irish rail), Dublin Bus, and Bus Éireann. Industrial relations at the company have historically been adversarial, and largely remain so today. A low-trust "them and us" culture is still deeply embedded. The company has historically been underfunded by successive governments, and is also characterised by low basic rates of pay, which have forced employees to increase their earnings through long working hours and substantial amounts of overtime. There is a high degree of uncertainty and resistance amongst the workforce in relation to the fact that the company is going through a major process of change, incorporating cost reductions and the introduction of new work practices. In tandem with EU measures to liberalise European transport systems, change has been influenced by the government's intention to restructure CIE.

Industrial relations have historically been quite conflictual at Iarnród Éireann. The Irish Locomotive Driver's Association (ILDA) has been involved in a number of unofficial disputes in recent years. The first action of the then National Locomotive Drivers' Committees (NLDC) was a one-day stoppage on 12 July 1998 over pay and working conditions. The drivers' militancy has been fuelled by growing resentment against the long unsocial hours that they have to work to earn what they see as a decent income. At the time of the dispute, basic pay was IEP 13,878 per year, though average earnings were IEP 26,500 per year for a 55-hour week, as a result of substantial levels of overtime. Unofficial action, in the form of mass sick leave by train drivers (called the "chu-chu flu"), also occurred in November 1998 (IE9812267N). The action appears to have been a demonstration of industrial muscle connected with dissatisfaction with the slow progress of the Iarnród Éireann viability plan talks. In addition to the unofficial action by ILDA, there was also an official one-day strike on 16 December 1999. The strike was called by the Services Industrial Professional and Technical Union (SIPTU) after drivers rejected a management proposal to amalgamate two depots at Dublin's main terminus. The train drivers' grievances were eventually resolved after a Labour Court recommendation was accepted, that incorporates increases in basic rates of pay, reduced working hours and overtime, and increased employee flexibility.

The resolution of the mainline train drivers' dispute did not bring an end to conflict in the company however. SIPTU track-maintenance operatives have recently engaged in unofficial industrial action because of a dispute over proposals to increase basic pay to compensate for a reduction in overtime and increased flexibility. The unions were seeking a 30% increase in basic pay to alleviate the problem of low pay and long hours. Following a Labour Court recommendation, a deal was eventually reached, which provides for a phased implementation of substantial basic weekly pay increases, reduced working hours and overtime, and increased flexibility.

There was also an official three-day strike at the end of March 2000 by drivers from Dublin Bus over a 20% pay claim. The strike coincided with unofficial action by Iarnród Éireann track-maintenance workers (see above) and Bus Éireann drivers. The combined effect was to bring the national public transport system to a virtual standstill. The main issue in the dispute was the extent to which workers were prepared to concede cost and efficiency savings in return for pay increases. In the end, an "interim settlement" was reached following talks chaired by the LRC, which consisted of an 8.5% pay increase in return for IEP 4.5 million in cost efficiencies. An informal working group of industrial relations experts has been charged with identifying the further cost savings that will be required to fund the remainder of the 20% claim. The group is due to report by 1 May 2000. A big issue will be the contracting out of services, which could produce "efficiency" savings of IEP 4 million. This roughly constitutes the full amount required to increase bus drivers' pay by 20%. The unions are highly suspicious of contracting out, however, as they view it as a potential vehicle for wider privatisation.

Electricity Supply Board

The uncertainty surrounding the terms for the deregulation of the electricity supply market has provoked a degree of tension and mistrust at the Electricity Supply Board (ESB). This comes at a time when the second largest union in ESB, the ESB Officers Association, has lodged a 16.5% pay claim in a climate of mounting pay expectations, which could have "knock-on" effects across the company.

Commentary

As noted above, here was a sharp decline in strike activity during the period 1987-98, with an all-time low reached in 1998. The series of national agreements and the various formal and informal dispute-resolution mechanisms have played a key role in sustaining industrial peace; although other factors have also been significant, such as the impact of intensified competition and a shift in the balance of power at the workplace. Since 1999, however, there has been a small, but nonetheless significant, increase in the incidence of conflict, although at present it is predominantly confined to the public sector.

The increase in conflict in the public sector is linked to the rise in worker expectations in the context of Ireland's economic boom. Workers expect to receive what they perceive to be a fair share of the proceeds of economic growth before the boom eventually recedes. These feelings have been particularly strong amongst nurses and CIE workers, whose basic rates of pay have traditionally been very low. The uncertainty surrounding changes associated with increased commercialisation and deregulation is also provoking mistrust and conflict. These factors are exacerbated by the traditionally adversarial industrial relations in many public sector organisations. As a result of these tensions, the new national agreement, the PPF, endorsed as recently as March 2000, is already coming under pressure. The ongoing conflict at CIE, together with rising pay expectations amongst ESB workers, and the possibility of a confrontation between the government and the ASTI teachers' union, means that the durability of the PPF is likely to be tested in the months ahead. There is a possibility that there could be a "chain reaction" of pay claims across the public sector if workers perceive that it is feasible to secure larger pay increases through industrial action than those offered by the PPF. In a new context of rising expectations, and a tightening labour market edging towards full employment, it remains to be seen whether the pressures on the PPF can be channelled and contained to maintain "relative industrial peace". In this regard, the Labour Relations Commission and the Labour Court will continue to play a pivotal role, as will the dispute-resolution skills of the small informal group of industrial relations experts associated with the Irish Congress of Trade Unions (ICTU) and the Irish Business and Employers Confederation (IBEC). (Tony Dobbins, UCD)