Industrial Relations & Collective Bargaining Reform - Q&A

Peninsula Team

May 29 2014

The Minister for Jobs, Enterprise, and Innovation, Richard Bruton TD has now secured Cabinet approval to reform the Industrial Relations (Amendment) Act 2001. WHY DOES THE INDUSTRIAL RELATIONS SYSTEM NEED REFORM? The proposals for reform of the legislation are in fulfillment of the Programme for Government Commitment to legislate for an improved and modernised industrial relations framework that will provide more clarity for employers and more effectiveness for workers. In 2012 the International Labour Organisation (ILO) issued its report in response to a complaint referred to it by ICTU and IMPACT arising from the 2007 Ryanair Supreme Court judgment. As part of the Government’s response to the ILO Report, it indicated that these matters would be addressed in the context of the Programme for Government commitment. WHAT DOES THIS REFORM MEAN? The proposals seek to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgments of the European Court of Human Rights. DOES THIS MEAN I WILL HAVE TO RECOGNISE TRADE UNIONS? No, Minister Bruton said that with this reform we will retain our voluntary system of industrial relations, but also ensure that where there is no collective bargaining, there will be a system that ensures workers can air problems about remuneration, terms and conditions and have these determined based on those in similar companies and not be victimised for doing so. WHAT WILL THE PROPOSALS RECOMMEND? The main provisions include:

  • A definition of what constitutes Collective Bargaining

“For the purposes of this Act, collective bargaining comprises voluntary engagements or negotiations between any employer or employers’ organisation on the one hand and a trade union of workers or excepted body on the other, with the object of reaching agreement regarding working conditions or terms of employment or non-employment of workers.”

  • Provisions to help the Labour Court identify if internal bargaining bodies are genuinely independent of their employer

The Court shall have regard to the extent to which the body is independent and not under the domination and control of the employer or trade union of employers with which it engages or negotiates, in terms of its establishment, functioning and administration. The Court shall take into account;

  • The manner of election of employees;
  • The frequency of elections of employees;
  • Any financing or resourcing of the body beyond de minimus logistical support; and
  • The length of time the body has been in existence and any prior collective bargaining between the employer and the body.

 

  • Bring clarity to the requirements to be met by a Trade Union advancing a claim under the Act

When referring the matter to the Labour Court the following process will apply: A statement made under the Statutory Declarations Act 1938 by the General Secretary or equivalent of the trade(s) unions concerned, setting out

  • the number of its members;
  • period of membership in the group;
  • grade or category to which the trade dispute refers; and
  • who are party to the trade dispute.

 

  • Set out policies and principles for the Labour Court to follow when assessing those workers’ terms and conditions

When examining the terms and conditions of any employer the Labour Court will take into account:

  • The totality of remuneration and of terms and conditions of employment, and
  • Comparators (both internal and external), where available, which will comprise both unionised and non-unionised employers.
  • In addition, in making any recommendation or determination under this Act, the Labour Court shall have regard to the sustainability of the employer’s business in the long-term.
  • New provisions to ensure cases dealt with are ones where the numbers of workers are not insignificant
  • Provisions to ensure remuneration, terms and conditions are looked at in their totality
  • Provisions to limit the frequency of reassessment of the same issues

The Labour Court shall not admit an application by a group, grade, or category of worker to which the trade disputes applies where the Court has made a recommendation or determination in relation to the same group, grade or category of worker in respect of the same employer in the previous 18 months.

  • An explicit prohibition on the use by employers of inducements (financial or otherwise) designed specifically to have staff forego collective representation by a trade union
  • Enhanced protection for workers who may feel that they are being victimised for exercising their rights in this regard by way of interim relief in the case of dismissal

The legislation will enhance protection for victimisation of individuals who are victimised as a result of invoking through the trade union, or acting as witness, comparator for the provisions of the 2001/2004 acts. This protection will be provided by way of allowing interim relief to be applied for in the Circuit Court in circumstances where a dismissal is being challenged on the grounds of unfairness arising from an individual believing that he/she is being victimised. Where such relief is granted the case itself will be dealt with by the Adjudicator arm of the Workplace Relations Commission that is to be established in the near future.  

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