With the termination of the Croke Park Agreement slowly reaching its end, this article will examine the latest updates in the area. How will these updates affect you and your business?
No renegotiation. The Government are standing firm behind a deal that they did not negotiate, that is not theirs but which they have pledged publically to see out to its termination in 2014, 18 months from now.
Amid somewhat conflicting messages and a flurry of media coverage about the continuance of the Croke Park agreement and opt out clauses, Enda Kenny has unequivocally stated that there would be no attempt to alter the terms and conditions of the agreement. This on the surface of things should mean that the trade unions are being given breathing space and a pat on the head for a job well done. However, that does not mean that the situation in the public service will remain at the status quo.
While being praised from all sides for the progress so far achieved the trade unions are being given a decidedly carrot and stick type treatment. Copious public praise for the effectiveness of the deal and the level of savings to the Irish state so far has been coupled with the barely veiled threat that this progress must continue and more so as this agreement and significantly any future agreement will depend on continued reform and savings. From the language being used it is not hard to conclude that the trade unions are being gently encouraged to be flexible in their approach to further reform.
Most of the statements of promising to honour the agreement contain references to the need for continued reform of the public services. That while things were on track more still needs to be done. The government have been diligent in their efforts to ensure that the trade unions have been generously praised for their part in public service reform. With trade unions slowly but surely losing their power and influence across Europe it is more important than ever that they remain at the top table. That was the main undercurrent to most of the comments being issued from various ministers over the past few weeks, putting responsibility for the future success of the agreement firmly with the trade unions. So far the agreement has been broadly positive with the reforms having saved in the region of €1.5 billion so far. So long as this level of saving can be achieved the future looks bright for the continuance and eventual renewal of the Croke Park Agreement.
All this debate has arisen in a timely manner with the approach of a change to the expenses and allowance rates currently enforce across the public sector. Further cuts to wages are also a hot topic with the trade unions being given a way out, with the proposal of a cut in allowances and we may leave the wages alone type scenario.
However, the Government does not necessarily need the trade unions agreement with previous contentious issues being settled by the LRC. These decisions have largely seen trade unions give way in terms of sick pay, pensions and standardised working hours. Tellingly the trade unions have gone along with these decisions. It appears that industrial action is as unpalatable to the trade unions as it is to the Government.
Should savings not continue in the same stream then the new agreement which would come into force in 2014 and for which negotiations will likely soon start, is likely to be much less favourable to trade unions and likely to have a more immediate effect on public sector workers. Much better to capitulate now and hopefully forestall any harsher terms in the next agreement than to cause huge ripples in a system that the Government is insisting is working. The Government has made much of the success and change that has been achieved under the agreement so far but this has always been qualified with the stipulation that more change and a greater willingness to engage in the change is received.
All in all it appears that the posturing by Government Ministers is working in so far as significant changes are being gained in areas that simply would not have been at the table much less discussed in previous years. In the light of the current economic conditions these changes may not seem to be much but they are something. Contractual changes in working conditions are not a simple process and are often a highly emotive issue. Public servants are also voters which is something most employers do not have to deal with.
Trade unions have rarely been so unpopular and nor so vulnerable. The public service, a historical stronghold for trade unions, has now become their last refuge as fewer and fewer private sector workers join up. They need the Croke Park Agreement to be a success as much as the Government do. So the finely balanced struggle between face saving and saving the public finances continues as the Government and trade unions circle the cost of public service provision and each other.
If you have any queries in relation to the above please don’t hesitate to contact the Advice Service on 01 855 5050 and speak to one of our advisors.
