The Irish model of social partnership is less effective at tackling inequality than most of its European counterparts, according to a new University of Limerick study, writes Padraig Yeates, Industry and Employment Correspondent.
What success has been achieved can be attributed in large part to extremely high levels of economic growth, fuelled by foreign investment, and has little international relevance, the authors suggest.
The "absence of a strong left-wing party competing for exclusive power" is also identified as a factor inhibiting greater equity in how wealth is shared. "Irrespective of rhetoric, redistributive policies are not to the fore in Irish political life."
The study, by Mr Thomas Turner and Mr Joe Wallace of the department of personnel and employment relations at Limerick University, challenges many of the basic assumptions attributed to the Irish model.
In The Irish Model of Social Partnership: Achievements and Limitations they say the new generation of national agreements since 1987 "exhibits low levels of social solidarity, and thus lies closer to the liberal end of the corporatist sector rather than the Scandinavian model".
Compared with other states, the authors say, wage disparities have increased in Ireland since 1987 and the percentage of low paid workers has risen. At the same time social welfare and health expenditure have decreased as a proportion of GDP.
Ironically, the study identifies the fact that most unions are affiliated to one organisation, the Irish Congress of Trade Unions, as a major defect in the system. Far from pressing for a real redistribution of resources, "maintenance of differentials can be as important as any solidaristic policies" for the ICTU. This also explains the emphasis on percentage pay increases in wage agreements, which benefit the higher-paid most.
The authors argue that significant improvements in the living standards of many workers are not due to conscious redistributive policies but the increased opportunities created by a booming economy. Increased opportunities for promotion to managerial, technical and professional positions are given as one example.
Within Europe the Irish model is regarded as a "beggar thy neighbour" strategy with "the potential for other states to be drawn into a race of best bad practices". Much of the success of the Irish economy is based on massive US investment. This is of "questionable" relevance to other EU economies.
The study is to be published later this year as part of a major review of "Irish Employee Relations in the New Economy". It is edited by Mr Turner and Mr Daryl Dart and published by Blackhall Publishing.