Sir, - Both Jim Power, chief economist with the Bank of Ireland, and your correspondent Padraig Yeates (Opinion, October 18th) commented negatively on the continuation of consensus pay bargaining. Their remarks contrasted the old centralised model with its free market predecessor and unimaginatively failed to allow for the prospect of a third way.
Mr Power did one good service in debunking the myth that employers universally favour consensus agreements. The fact is that they were all for consensus when the economy was in crisis and there was nothing to distribute. Now, in the midst of plenty, they want to revert to a market approach because it will inevitably ensure the distribution of the benefits of growth in favour of the most powerful and wealthiest interests in society, including the banks. As a representative of workers in the Midlands area - which has suffered most severely from factory closures and job losses over the past few years - I am only too well aware of the volatility of the Celtic Tiger. The situation calls for the application of more imagination in the development of a formula around which to construct the future.
In the light of the ongoing exposures of public scandals and the degree by which the economy has outgrown the predictions on which P2000 was based, the key issue to be confronted is that of equity and fairness in the workplace and in society. The challenge facing the Government and others in positions of influence is that of constructing a framework to serve these objectives. The current poverty of imagination restricting the alternatives to old-style, rigid pay agreements or the working of market forces is not equal to this task.
Today's challenge calls for the development of a new model which would have to provide for substantial pay increases, a fair share in profits, flat-rate increases for the low-paid, real tax reform and a social contract addressing housing, health care and the other key concerns of the majority of our people.
Our nurses are on strike today due to the failure of our Government to act proactively long ago. Worse threatens unless the Government launches an initiative to construct a new consensus formula. It would make a good start by starting negotiations to agree early implementation of a special pay increase to take account of the degree by which economic growth has surpassed the most optimistic predictions when P2000 was negotiated. - Yours, etc., Jack O'Connor,
Regional Secretary, SIPTU, Midlands and South- East, Unity Hall, Tullamore, Co Offaly.