The seventh social partnership agreement, titled Towards 2016 was concluded in June 2006 with pay terms due to run to early 2008. These provide for cumulative wage increases set at 10.4pc over a 27-month period with minor adjustments for those earning less than €400 a week. The pay and policy pact also includes increased enforcement measures for employment protection and compliance with established labour standards. Its aspirational social and welfare provisions are built around a loose ten-year social democratic-style commitment towards improved provision of welfare and state services.
The trades unions, through the Irish Congress of Trades Unions, voted in early September 2006, by 242 to 84 votes, to accept the agreement with its largest nursing (INO) and retail (Mandate)unions opting not to participate in the vote. On the same day the IBEC employers' union also announced its acceptance of "Towards 2016".
The second stage of "Towards 2016" pay terms were agreed in September 2008 and accepted in an ICTU delegate ballot by 305 votes in favour to 36 against in November. Unions which had previously opposed or abstained from the pay agreements adopted a much more supportive stance in the face of rapidly rising unemployment and deteriorating public finances. Unite, the British-based amalgamation of the ATGWU and Amicus trades unions, provided the main opposition.
The second stage pay terms provided a 6% pay increase over a 21-month period, payable in two stages, following a three-month pay freeze in the private sector and an 11-month pay freeze in the public service. The terms were accepted by IBEC, the main employers' union, on the same day but the Construction Industry Federation(CIF)withheld consent as it had sought a 12-month pay freeze for employees in construction.
The terms also include an additional 0.5% wage rise for those earning less than €11 an hour and maintains the inability-to-pay provisions for companies in financial or trading difficulties.
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