Social partners expected to endorse Programme for Prosperity and Fairness

After concluding their negotiations on a proposed three-year national agreement - the "Programme for Prosperity and Fairness" - in February 2000, Ireland's social partners are expected to endorse it formally by 23 March.

Following negotiations involving employers, trade unions, the government, farming interests and the voluntary and community sector (IE9911146F), a proposed three-year Programme for Prosperity and Fairness (PPF) was agreed on 7 February 2000. If accepted by trade union and employers in March, the new agreement will replace the current Partnership 2000 (IE9702103F), thus continuing the pattern of three-year national programmes which have been in place since 1987. Irish Congress of Trade Union (ICTU) delegates are to meet on 23 March to make their formal decision, while the general council of the Irish Business and Employers Confederation (IBEC) is also to meet around the same time.

The central component of the PPF is a 33-month pay agreement which involves a minimum 15% pay rise (15.75% on a cumulative basis) for all employees as follows: 5.5% for the first 12 months; 5.5% for the next 12 months and 4.0% for the last nine months. For historical reasons, there will be different starting dates in the private and public sectors. There are to be minimum "flat-rate" increases of: IEP 12 in respect of the first year's payment; IEP 11 for year two; and IEP 9 for the final nine months of the pay agreement. This means that the lower paid will secure a higher overall increase than the basic 15% rise available to all employees.

In addition, as previously agreed (IE9907140F), a statutory minimum wage is to be introduced from 1 April 2000. The initial rate will be IEP 4.40 per hour, increasing to IEP 4.70 on 1 July 2001 and to IEP 5.00 from 1 October 2002.

There is to be a separate "catch-up" pay award worth 3% for specific groups of public servants, payable from October 2000 (IE0002206N). These groups - such as lower-, middle- and higher-ranking civil servants and teachers - concluded agreement on their 3% local bargaining increase allowable under Partnership 2000 at an early stage in that agreement. However, they subsequently fell behind groups like nurses and gardai (the police) in relativity terms (IE9909292N). Public servants have also agreed to the establishment of a new "benchmarking" body to allow them to seek comparisons of their pay and conditions with similar groups in the private sector.

There is a separate clause allowing for voluntary negotiations at local level under the heading of "partnership", which can include negotiations on issues such as work organisation and new forms of financial involvement. A similar clause allowed for a limited degree of pay variation and innovation under Partnership 2000 (IE0001204F).

With regard to industrial peace, the Labour Court has been given a new role in deciding what constitutes a breach of the wage agreement: "Where a dispute arises as to what constitutes a breach of the agreement, that will be referred to the Labour Court and the parties shall agree to comply with its findings."

Finally, the tax commitment entered into by the government under PPF will involve IEP 1.5 billion in tax cuts over the next three national budgets, involving a projected additional average increase of 10% in take-home pay.