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Opinion
'For those concerned about the decline in real wages, there is a solution - join a trade union'
Productivity at work is up, but we need to see decent pay rises and career progression for all workers. Trade union membership is the key to this, writes Paul Dillon.
IN MY JOB as a Trade Union Organiser, I often find myself saying “Ireland is different” when talking to colleagues who work for unions elsewhere in Europe.
Comparing Ireland with say France is like comparing apples with oranges.
In France, wages and terms and conditions at work are set down by a collective bargaining model, where workers have a voice on what happens in their jobs. Despite ongoing changes in the law, the vast majority of workers in France are covered by sectoral agreements which set standards for pay and terms and conditions at work.
According to the OCED, collective bargaining arrangements cover 98% of workers in Austria and 96% in Belgium.
Collective bargaining
In Ireland, however, the idea of setting down wages and conditions through collective bargaining is barely discussed. When the labour market is discussed at all, we generally deal with simplistic and often completely misleading debates about the public and private sector.
In reality, we have the weakest trade union recognition laws in Western Europe. Not only do we have very poor legislation for extending collective agreements, the very basis of our laws for even being part of a trade union are weak.
Incredibly, there is no legislation in place to guarantee trade union recognition in the Republic of Ireland. Even the UK, which generally is considered to have a “liberal market” approach to industrial relations, if the majority of workers want to be part of a union, a company must reach a recognition arrangement. But not here.
Legal backdrop
This legal backdrop has led to a situation where unions in Ireland are weaker than they ought to be. Our “voluntarist” approach to industrial relations is often referred to as an “opt in” system.
The problem is some employers are choosing to opt out, even when workers do want to be part of a union, as shown in the ongoing campaigning involving Mandate and Lloyds pharmacies.
We don’t hear near enough about the bread and butter issues of work-how much people are paid, what they should be paid, and how this should be regulated and managed.
Not a high wage nirvana
In truth, Ireland is not the high wage nirvana it is sometimes made out to be. TASC, the think tank for action on social change, estimate that 29% of working women are categorised as “low paid”. Our salaries are behind EU averages, despite occasional claims to the contrary from employer organisations.
In Northern Ireland, the situation is starker still. Invest NI deliberately stakes the claim that salaries in financial services in Northern Ireland are 40% below London and 30% below Dublin.
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Even within companies, there are serious divides. Take the gender pay gap in financial services, for example; Morgan McKinley estimates that the pay gap stands at 29% in the sector.
Gap between salaries and rents
The CSO evidence suggests that pay has not kept pace with increases in productivity. Meanwhile, the gap between average house prices and rents and average salaries has exploded exponentially.
House prices in Ireland were remarkably stable until the mid-90s. In 1996, the average second house in Dublin was 3 times annual earnings. By 2016, average second hand house prices were 7.5 time average annual earnings.
Consider the gap that has opened up, and you get sense what has happened to wages in Ireland. Consider also that our childcare costs are the second highest in the OCED and you get a sense of the comparative weakness of workers’ earnings in Ireland.
For those concerned about widening inequality and the decline in real wages, there is a solution – join a trade union. The research shows that unionised workplaces are better paid. Some international studies have estimated the union premium to be has high as ten per cent.
A host of other benefits
Trade union membership has a host of other benefits. For example, trade union members have the capacity to challenge outcomes in the workplace which they deem to be unfair.
Research from the Financial Services Union (FSU) shows that Performance Related Pay (PRP) is often a major cause of frustration at work. With a union at your side, you can challenge PRP outcomes. Without a union, you have no independent voice.
A route to improved terms and conditions
Even in the absence of Government will to protect and uphold standards in the workplace through sectoral agreements that are the norm elsewhere in Europe, there is hope in that trade union membership offers a route to improved pay and terms and condition.
There has recently been an upsurge in activity in previously un-unionised sectors such as Archaeology, English Language teaching and parts of the Film and TV sector which were non-union. The progress made by pilot and cabin crew in Ryanair reflects a very real change-there are now very few “no go areas” for trade unions in Ireland.
The Financial Services union has noticed an upsurge in membership, and now has members in more than 50 companies.
All of this offers cause to believe that change can happen when workers get together and seek a better deal at work. Our relatively poor legal situation for collective bargaining and trade union recognition should change, but trade union membership will still lead to better outcomes at work.
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@Bren:
Maybe they don’t care, maybe they have no idea how to solve or think outside the box regarding this crisis because its been going on for over a decade. Maybe it was a bad idea for FG to go into coalition with FF for it was FF’s fault that we are in such a mess yet here we are only a little over ten years since they destroyed the economy with a FF Minister having control over the upcoming budget, absolute madness. Micky Martin denies the bailout happened, absolute madness.
@Bren: unfortunately I have to agree with you,but is there a magic wand to solve not just this problem but also the health care problem. If any any other political party have the solution to these problems let us all know, please. I will vote them in pronto. But I’m afraid that any new government won’t have this fix. They will come with great manifestos of how they can/will solve the problems, but when push comes to shove they will roll out the usual answer, ” we didn’t create this problem, we inherited it”.
@Michael Costello: The only government parties that can use the “usual answer” as you call it are FF/FG, they inherited problems from each other as one stepped out while one stepped in again over the last 100 years.
@Frank Cauldhame: FF destroyed the economy? Someone contact the US immediately!! Never realised it was FF that brought down Lehman brothers and kickstarted a global financial crisis. They need to be held to account! Quite impressive when you think about it! The power of FF having the ability to bring down one of the biggest financial institutions in the world and plunge the world into financial depression! And I say this as someone who is not even a FF supporter. Some people in this country really have no clue what’s happening around them do they?
@Journal Commenter: We were warned by economists in 2007 that the country could not sustain the crazy tiger economy lending & spending that was happening with banks ringing customers asking them if they wanted mortgages/loans/overdrafts but Bertie Ahern told those economists to commit suicide because what they were warning us about didn’t suit FF’s narrative. Then the proverbial hit the fan.The austerity measures inflicted upon us by our EU overlords were the harshest in Europe. So if your accusing someone of not having a clue plesase take as look in the mirror.
@Frank Cauldhame: you are aware economists worldwide were warning this yes? You are aware that when they were widely ignored this gave birth to the credit default swap yes? Even if Bertie (the absolute moron that he was) decided to listen to the economists (which he should have), nothing could be done? It would have been equivalent to being warned a tsunami is going to hit the town and the shops trying to protect their building with a couple of sandbags. The financial crisis, hate to break this to you since you are so entrenched, was not FFs fault. Did they make it slightly worse than it could have been? Yes. But the difference is likely to have been immaterial. The ship had well and truly sailed so to speak.
@Frank Cauldhame: and no they weren’t the harshest in Europe, see Greece for one example and there were others. We were the most prudent at executing austerity but it wasn’t the harshest recommended. So yeah, rather than sound bites, deal in facts and I will take you more seriously.
@DGQ: Anglo and nearly all banks worldwide were “self regulated”. Aka not regulated at all. You can’t trust an industry to regulate itself. That’s clearly evident. That wasn’t a unique situation to Ireland. That was a worldwide phenomenon in the banking sector. Essentially what brought down Lehmans. Mortgage backed securities should never have been a thing. And wouldn’t have been had there been a regulator. Ireland wasn’t the founder of MBS. But yeah, that was FFs fault too. And I really don’t like FF. But I’m also not a fan of revisionist history.
@Frank Cauldhame: you’ve got me. I am Michael Martin. You cleaver boy you…. Seriously. Why am I not surprised you have no idea how the crisis started or the concept of mortgage backed securities or the creation of the credit default swap. With unquestionably intellect like that, the everyday Sherlock Holmes. Give me strength. And as I said, iv never voted FF in my life, mainly due to how planning boards operated and the shady deals involved there but I do like people to actually know what they are talking about. Same way it will be unfair to blame SF when they inevitably don’t solve the housing crisis despite promising they will do, mainly due to limitation of labour and resources. And I don’t like SF either.
@DGQ: I see “boo hoo me sob story”, no actual facts or refutation of my (factual) points. Blame FF all you want, I don’t particularly care. People find it easier to deal with their boo hoo me sob stories when they have someone to blame. That’s human psychology, I get that. I am just telling you what actually happened. Up to you if you want to keep your head buried in that sand.
@DGQ: adults who don’t have a first clue what they are talking about and then put their sob story forward as some kind of fact. No wonder the government are as poor as they currently are. I believe they are all adults too. If that is adult, please do consider me a child, happily!
@Frank Cauldhame: Fine Gael doubled the debt inherited by Fianna Fáil. Now at €230bn. But that’s not even an excuse for their failures in housing. They prioritised vulture funds over Irish people and have been slow to use public lands for affordable housing.
@Journal Commenter: FF bailed out secondary bond holders when they didn’t need to. Even in the US they won’t bail them out because as Biden says they took a rusk and that’s capitalism – the taxpayer shouldn’t have to bail them out.
Fianna Fáil wrecked the economy and Fine Gael doubled that debt.
@Christy Dolan: Gosh, you sound like a lovely person. The correct age of each party is Fianna Fail 96 years old and Fine Gael 90. Close enough to be rounded up to 100 !!! Horrible way to respond to a comment, are you always like this?
But we will have the cash for all the non Irish coming here with no ID’s from save countries through other save countries and give them all freebies galore whilst poor Irish Paddy can go swing for anything
@Mary M: his comments are valid, we do give financial assistance to undocumented asylum seekers who have the documents to board the plane, but not on arrival in the airport, We have provided financial, housing and medical supports to Ukrainians from the start of the war many of whom passed thtough safe countries to get here before quotas were decided upon. Its not racist to give facts and it does highlight some inequalities in the time frame it takes for these services to be accessed by immigrants to receive things like medical cards in a speedy manner (as seen with the rapid access seen for Ukrainian refugees)as opposed to the speed a permanent resident has to wait. The treatment of immigrants, asylum seekers and Irish citizens should be equal across the board.
@empty: Article about missing the affordable house building target, yet you choose to make the spurious claim that asylum seekers have more of a right to state supports than Irish people do. As Mary M stated, racist much?
@empty: I’ll repeat, you make the spurious claim that asylum seekers have more of a right to state supports than Irish people do. You now mention “facts and official stats” – so show me those facts and official stats. I am aware of a few modular homes that are being built for Ukranian refugees. Other than that, I’ve no idea what you’re on about
@empty: Dunno if you actually check the news much but the majority of asylum seekers and refugees coming into the country lately are currently being housed in tents. The lucky ones are crammed into hotels. Hardly an ideal existence. If that’s what your after I’m sure a tent can be arranged for you…
@empty: There is no preferential treatment. Would you like RTE to provide news reports on Irish people getting their state supports? Would that balance it out in your twisted mind?
But yet that spoofer and all round ‘failed’ Minister O’Brien will present alternative facts and state otherwise. What a shambles of a Government really and truly.
The government is committed to ensuring housing for all he says? Being someone with a child with scoliosis on a waiting list for years and now finding out the horrors that go on there and also living in unsuitable and overcrowded accommodation while on the social housing list for years I somehow don’t believe him!
They are bending over backwards to get the refugees houses and anyone who dares question that narrative is deemed far right. Don’t get me wrong what has happened in Ukraine and other worn torn places is not of their making but we should give the taxpayer preference.
@Alan Scott: the problem is, we’re giving non-taxayers preference. Irish people who never worked a day in their lives being handed houses near where the jobs are, while workers commute fir hours.
If only between 23% and 24% of the housing target has been met I’d say only between 23% to 24% of Government TDs will be returned to their seats. They have always looked after the unaffordable housing sector instead.
Mute he didnt take the 120k because he already got it s
Favourite he didnt take the 120k because he already got it s
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Sep 25th 2023, 7:07 PM
So they are not affordable homes since govt or bank buys a share that you have to start paying back after 5 years,meaning you are actually paying full price just getting a 5 year break on part of the mortgage
@he didnt take the 120k because he already got it s: wrong you don’t have to pay back after 5 years, in fact there is no need to pay until house is sold, plus there is no interest for 5 years, and after that the rate is fixed and is less than best rate available in market (ie its cheaper than any mortgage)
If they’d stop objecting to every housing proposal in Ireland, we’d all be like P Flynn, with three houses each.
Or like Gerry Adams or Pearse Doherty.
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