The Government appears to have been caught off guard by the depth and the range of opposition to the new Working Time Bill which, among other matters, proposes a maximum 48 hour working week. In endorsing the EU directive on which the legislation is based the Government was clearly well motivated it wanted to give Irish workers the same kind of rights' that are already in place in many EU states.
There was also a clear political imperative to support both the spirit and the letter of the EU directive. Ireland has a strong record as one of the most pro European states in the Union; any decision to avail of the opt out from sections of the directive - as Britain has done could, arguably, have reduced Ireland's stock in Brussels.
That said, the concerns that have been raised about the supposed "inflexibility" of the new legislation are serious and difficult to refute. In his now famous letter - subsequently "withdrawn" in what one might call suspicious circumstances - the IDA chief executive, Mr Kieran McGowan, alerted a Dail committee to the practical implications. Mr McGowan went to the heart of the matter the new legislation could, he wrote, create an image of Britain as being more "company friendly" than Ireland. The response of the US Chamber of Commerce, which represents more than 400 US companies here, was even more dramatic the Bill, it said, was the single most negative change in Ireland's flexible working environment in some 20 years. And it could damage Ireland's competitive advantages.
All of this has raised legitimate questions about the wisdom of the Government decision not to avail of the voluntary opt out clause available under the directive - whereby employees can volunteer to work more than the maximum 48 hours per week. In response to the concerns of industry, the Government has now proposed an important amendment under which the 48 hour limit will be phased in over three years.
It has also proposed a working party, comprised of both union and employer representatives, to monitor any potential problems. The Minister for Enterprise and Employment, Mr Bruton, is expected to tell a press conference today that the Government is acutely conscious of the concerns raised by industry, although no further amendments are apparently planned.
In all of this, there is a sense that the Government wants to be all things to all men. It wants to be seen to be sensitive to the needs of industry but it is also reluctant to burn any bridges with the trade unions - or with Brussels. But this is an issue on which the Government will find it difficult to duck and weave.
The Minister of State for Labour Affairs, Ms Eithne Fitzgerald, has claimed that only 2 per cent of the workforce will be affected by the new legislation - but the views now emerging from industry tell a different story.
Indeed, if it is the case, as Mr McGowan suggests, that the legislation seriously damages Irish competitiveness, the Government has no alternative but to amend it. This is not to make a case for a normal working week in excess of 48 hours or for a return to Dickensian like working conditions. The Government's task is to strike the right balance between the needs of the workers and the needs of industry. The Working Time Bill is, clearly, a praiseworthy attempt to strike this balance but the Government must also be alive to the harsh realities of the marketplace.