Taoiseach calls for 10-year national agreement

A new phase of social partnership was signalled yesterday by Taoiseach Bertie Ahern when he called for a 10-year national agreement…

A new phase of social partnership was signalled yesterday by Taoiseach Bertie Ahern when he called for a 10-year national agreement at the opening of talks at Dublin Castle, writes Chris Dooley, Industry and Employment Correspondent.

He indicated that he supported the radical overhaul of existing partnership structures called for earlier this week by the Irish Congress of Trade Unions (Ictu).

A consensus is now emerging between employers, unions and the Government that the traditional three-year partnership deals should be abandoned in favour of longer-term strategies.

But there is significant disagreement over how long the pay element of any new national agreement should run, with Ictu calling for pay rates to be negotiated at two-year intervals.

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Employers want a three-year pay deal and Mr Ahern supported their stance yesterday. Negotiations on a successor to Sustaining Progress are set to begin in earnest on Monday after yesterday's formal opening session.

Representatives of employer bodies, trade unions, farm organisations and the community and voluntary sector, who comprise the four social partnership "pillars", attended the meeting with the Taoiseach and senior Ministers.

Mr Ahern said he wished to propose that the approach to negotiations be based on the shared vision of Ireland proposed recently by the National Economic and Social Council (NESC).

"Specifically, I believe that we should consider agreeing a 10-year framework for our social partnership process so that it can be aligned with, and contribute to, the development and implementation of this longer-term agenda.

"The continuity and momentum of such a longer-term agreement would, of itself, make for a greater degree of confidence and delivery."

The proposal echoes Ictu's call for a long-term agreement based on the NESC report published in December. The report was prepared by representatives of all the social partners and represents their "shared understanding" of the state of the economy and society as well as the challenges to be addressed.

It called for a shift away from the focus on economic growth and job creation which has dominated previous national agreements, towards a more sophisticated approach which looks at productivity and the quality of jobs being generated.

Employer bodies including Ibec would also accept a longer-term agreement, but there is little common ground between them and unions on key issues.

In particular, they oppose Ictu's call for tighter labour market regulation to combat a "race to the bottom" in employment standards. Ibec says a flexible labour market is "essential" if Ireland is to remain an attractive location for inward investment.

The employment standards issue is set to dominate the early stages of talks, before the parties move on to other issues including pay. They hope to conclude a deal within six weeks.

The Irish Farmers' Association used the opening of talks to highlight concerns over the EU Nitrates Directive, which requires farmers to limit their use of fertilisers. It is threatening to withdraw from the talks unless the rules are amended.

Speaking for the community and voluntary pillar, Cori Justice Commission spokesman Fr Seán Healy said Ireland's economic success had provided a "moment of great opportunity".

"A national agreement cannot have credibility in the wider society if it fails to address situations such as the fact that one in every five people has an income equivalent to less than €200 a week," he said.