Irish Congress of Trade Unions - Social Pacts

Social Pacts

Congress enjoyed unprecedented political and economic influence over the period from 1987 to 2009 under the umbrella of Ireland's social partnership arrangements. This involved a series of seven corporatist agreements with the government and the main manufacturing/services employer body IBEC and the construction employers' lobby CIF. It was a classic European-style alliance of government, labour and capital built on six decades of voluntary employment relations regulated by state institutions such as the Labour Court.

For many years the union leaders agreed to dampen pay rises in return for regular reductions in income tax rates. They also negotiated a new system of pay determination for public service employees under the rubric of "benchmarking" using external assessment of pay scales for assorted grades.

The era of Christian democratic style corporatism also saw a dramatic fall in trade union density from 62% in 1980 to 31% in 2007 and consolidation through mergers of many affiliated trade unions. Efforts to launch recruitment and organising initiatives failed to secure adequate support from affiliated unions while attempts to secure indirect forms of union recognition through legislation collapsed after successful legal challenges and appeals by the anti-union Ryanair company.

Ireland's period of centralised 'social pacts' ended in late 2009 when the government imposed pay cuts of between 5% and 8% on public service employees. The joint-stewardship of the state's FÁS training and employment authority by Congress and IBEC and accompanied waste of public and EU funds and excessive spending on directors 'junkets' further weakened the public standing of Congress and its 'social partnership' structures.

In an assessment of the post-partnership situation, Congress general secretary David Begg prepared a strategic review paper in which he identified the increasing weakness of the Congress and individual trade unions being due to "recession and change in the balance of power with capital" as well as job cuts, poor organisation, especially in high-technology companies, and a growing rift between public and private sector employees.

On a more positive note Begg asserted that the ending of social partnership arrangements "liberates us to advocate and campaign for our own policies".