Talks on a national partnership programme have begun to take shape following weeks of deadlock over demands by the trade union movement for new procedures and practices governing conditions of employment and pay.
But while discussions on the outsourcing of work and the protection of Irish employees have inched forward, sharp disagreements remain on the need for a strengthening of labour law. And the parties have not got around to the issue of pay increases thus far.
Flexibility and innovation in the economy are hugely important in today's rapidly changing world. But people are naturally resistant to change. It will take careful planning and a lot of detailed explanation to convince those directly affected that their long-term interests are best served by alterations and innovations in work practices. For that to happen, the Government will have to put flesh on the bones of its proposals for life-long education, for special redundancy provisions and for a continuous retraining of the workforce. Only by offering alternative skills and a broader range of job opportunities will employees be encouraged to accept the need for change.
Minister for Enterprise and Employment Micheál Martin has made the point that the pursuit of competitiveness in a low-cost global environment does not mean that wages cannot rise. It does, however, require an increase in productivity. And we will have to harness scientific advances and innovative practices in order to secure that objective. Moving up the value-added chain is a Government priority. It has begun to encourage research and development, while investing in infrastructure and transport. Progress has, however, been slow.
Disclosure that an ESB sub-contractor was paying less than the minimum rate to migrant workers has formed a backdrop for the Government to propose an increase in the number of labour inspectors, along with the level of fines for such offences. The employers' body, Ibec has accepted the need for such provisions. But it remains opposed to legislation that would establish a "going rate" for particular work. While defending the right of its members to engage in "outsourcing", it may accept a mechanism that would prevent experienced Irish workers being directly replaced by cheaper foreign labour. Where such redundancies are being deliberately created, the Labour Court may be asked to arbitrate.
There are major shortcomings in the social partnership model. And both trade unions and employers are anxious to secure modifications. Reform is also required within the public service. In seeking to restructure the process, however, all parties should be wary of destroying it.