Collective Bargaining and REAs Back on the Agenda

Peninsula Team

September 24 2013

1.         Introduction Industrial relations law has been undergoing a bit of an overhaul in the last 6 years with seminal High Court and Supreme Court decisions resulting in JLCs/EROs and REAs being rendered unconstitutional and a further Supreme Court decision striking an almost fatal blow on the right to collective bargaining Ireland. This week, however, Tánaiste Eamon Gilmore has firmly put REAs and collective bargaining back on the agenda. 2.         Collective Bargaining The Industrial Relations (Amendment) Act 2002 when introduced really strengthened the hand of trade unions and employees in setting up collective bargaining rights in a workplace. However, this mechanism was severely undermined in 2007 by the landmark decision of the Supreme Court in Ryanair -v- The Labour Court [2007] I.E.S.C. 6 where it was decided, in a dispute between IMPACT and Ryanair, that “it is not in dispute that as a matter of law Ryanair is perfectly entitled not to deal with trade unions nor can a law be passed compelling it to do so”. This decision led to uproar among trade unions and resulted in IMPACT taking the matter further to the International Labour Organisation (ILO). THE ILO did not find Ireland in breach of any international rules on collective bargaining but did state that it would await the outcome of an Irish Government review of our existing collective bargaining rules. With Tánaiste Eamon Gilmore’s announcement, we may expect to see the result of this Department of Jobs, Enterprise and Innovation led consultation process by November of this year. Peninsula was heavily involved in this consultation process and did make a formal submission and met with the DJEI in April 2013 on the matter. If you wish to express your views then please do not hesitate to contact us at [email protected]. The Tánaiste said that there was a commitment in the Programme for Government to legislate for collective bargaining. He said the DJEI was working on proposals and once this occurs this year they would then proceed to draft legislation on that basis. Asked whether the legislation would be passed in the anniversary year of the 1913 Lockout, Tánaiste Gilmore noted that there had never been a commitment to do so this year, but rather in the lifetime of the Government. He went on to state that he thought it was significant that the Government was taking steps to bring forward legislation in 1913 which has a huge resonance for the trade union movement. 2.         Registered Employment Agreements (REAs) Mr Gilmore also said that work was being carried out in the DJEI on proposals to reinstate the REA wage-setting mechanisms. The REA system which governed pay and conditions for around 200,000 lower paid workers was struck down by the Supreme Court last May. Mr Gilmore said Minister Richard Bruton had already made it clear that the Government would address the issue. He noted that the Supreme decision had to be responded to but unfortunately did not give any clear indications as to when this would occur. This isn’t surprising as the issue of REAs is inherently more complex than that of collective bargaining. In terms of collective bargaining, we are reforming a system which has not been found unconstitutional and as such a few tweaks and changes is all that is likely to occur. However, in terms of REAs, the Government must navigate a legal minefield while at the same time seeking to balance the interests of both employer and employee/trade union alike. Employers should seek advice from Peninsula Business Services if they have any question on collective bargaining or REAs or indeed if you simply wish to just express your views on the above. Please phone the 24 Hour Advice Service on 01 855 50 50 and one of our experienced advisors will be happy to assist.

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