Two European decisions this weekend will be of particular note to employers and observers in Ireland. The first being the determination from the European Committee of Social Rights and the second being the recent Swiss referendum on minimum wage reform.
Whilst neither decision is likely to overly impact on employers here, it is worth looking at these issues in the wider context, those being minimum wage issues, and industrial relations issues.
Background of Garda Complaint to European Committee
In June 2012, the Association of Garda Sergeants and Inspectors (AGSI) lodged a ‘complaint‘ through the European Confederation of Police (EuroCOP) against Ireland’s implementation of the European Social Charter. This Charter guarantees the fundamental social and economic rights of all individuals in their daily lives.
Ireland signed the Charter on 4th November 2000 and it came into force for Ireland on 1st Jan 2001. AGSI complained that Ireland was in breach of several ‘Rights’ of citizens set out within the European Social Charter and most particularly that it does not allow AGSI to enjoy trade union rights including:
- Article 5 – The right to organise
- Article 6 – The right to bargain collectively
- Article 21 – The right to information and consultation
In short, AGSI complained that members of An Garda Síochána were banned from establishing trade unions, and from affiliating with the Irish Congress of Trade Unions. The union complained that their members were provided with ‘insufficient access to pay agreement discussions, denied access to the Labour Relations Commission and the Labour Court and denied the right to take collective action’.
The Committee concluded that the complaint was admissible under Articles 5 and 6 of the European Social Charter (the Charter).
Decision from European Committee
The 15 member Committee of Experts held that the prohibition on the AGSI joining the Irish Congress Trade Unions (ICTU) was a violation of Article 5 of the Charter. The Committee went further and determined that Ireland is also in violation of Article 6.2 of the Charter on the grounds that it restricted access of police representative associations to pay negotiations.
AGSI said this ‘vindicates their view’ that successive Ministers for Justice who denied AGSI its right to affiliate to the ICTU were ‘incorrect’ in their decisions.
The fundamental fear is that if a country’s police force was to go on strike it could have potentially damaging effects to the society overall. Those who campaigned on behalf of the Gardai state that it is normal in member states to have a Police Union and this has not negatively impacted those countries at all.
Swiss Referendum
The Swiss held a referendum on Saturday to establish the national minimum wage of the equivalent of €18.00 per hour (Switzerland currently has no minimum wage, but the median hourly wage is about 33 francs (£21.99) an hour).
Switzerland is famous for high costs of living and arguments in favour of the change rationalised the increase to cover the cost of living. The idea of creating the world's highest minimum wage was criticised by government and business leaders as likely to drive Switzerland's high costs even higher.
Voters sided with the government and the referendum was rejected in 24 of 26 cantons. The Organisation for Economic Cooperation and Development, which adjusts figures for spending power, lists the highest current minimum wage as Luxembourg's at £6.33 an hour, followed by France at £6.30, Australia at £6.07, Belgium at £5.92, and the Netherlands at £5.63. Adjusted for its high prices, the OECD said Switzerland's wage proposal would have represented about £8.32 an hour based on a 42-hour work week.
Irish Impact
As discussed it is unlikely that this will directly impact employers in Ireland however the trend can hardly be ignored that unions are once again pushing hard to increase the wages of those they represent. This week alone there is planned industrial action for Aer Lingus cabin staff over conditions.
Employers must ensure that they are not pressured into wage increases they cannot afford. If a company is able to afford to ease the purse strings somewhat then potentially consider some other forms of benefits for the employees, such as additional annual leave, time off, sickness benefits or pension contributions. These can be less expensive than a blanket increase in wages and can be something than can be tailored to suit individual finances rather than across the board increases.
In our new economy we are more connected than ever with the events happening in other countries, and with Europe having direct influence in Ireland decisions and trends happening elsewhere are likely to have a knock on effect in some regard. It is important we be mindful of this and not dismiss it.
