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The Labour Relations Commission – Industrial relations in Ireland

Introduction

The Irish government is currently facing very difficult economic circumstances resulting from the global credit crunch, the sudden end of the domestic property boom, growing unemployment and an intense economic downturn. This puts the government under immense pressure to introduce measures to deal with the new challenges created by the current economic climate and to pull the economy out of recession.

Meanwhile, businesses are under intense strain to cuts costs to ensure survival. Cost-cutting measures have included recruitment freezes, salary cuts and redundancies. Employees have found their livelihood under threat and, not surprisingly, industrial relations have become strained. In the last year the Labour Relations Commission (LRC) has found its Conciliation Service handling increased numbers of referrals dealing with disputes over pay restructuring and redundancy.

The latest figures from Central Statistics Office (CSO) indicate that there were a total of twelve industrial disputes in 2008 compared with six in 2007. This would indicate the trend is on the rise. In 2008, the greatest numbers of referrals received by the Right Commissioners were in relation to payment of wages, an increase of 17% from 2007.

In order to keep up-to-date with current economic circumstances, the LRC continually conducts research on conflict resolution practices in the public and private sector. This enhances the quality of its output and its services and ensures the LRC meets the challenge of providing relevant conflict resolution services to a changing work environment.

History of recent industrial relations in Ireland

As was the case in many European countries, the 1970s saw disarray in Irish industrial relations with frequent disputes and strikes. These strikes affected essential services such as bus, rail, electricity supply and banking. This had a negative impact on Ireland’s image abroad as a location for foreign investment.

As a consequence of the industrial unrest, a commission was established to examine industrial relations law and structures with a view to recommending improvements. The results of the commission led to the passing of the 1990 Industrial Relations Act. The Act provided for important changes in law relating to industrial action, trade unions, picketing, secret ballots, etc., as well as to industrial relations procedures and machinery for dealing with industrial disputes.

In 1991, the Labour Relations Commission was established to hold responsibility for the conciliation process and have the general duty of improving industrial relations. Previously the Labour Court had been responsible for providing a conciliation service; the Act changed the role of the Court and re-assigned these services to the LRC. The goal was to make the Labour Court the court of last resort.

What are industrial relations?

Industrial relations refer to the relationship between management and workers, particularly groups of workers represented by a union. The quality of this relationship is known as the industrial relations climate. In the majority of workplaces, management and staff work harmoniously together so industrial relations are good or positive. However, from time to time, conflicts can arise creating a negative industrial relations climate. This can be costly for business if allowed to persist.

Interest Groups and Trade Unions

Interest groups are representative organisations of various stakeholders who try to achieve their objectives by applying pressure on other organisations and/or the government. Each group has some common interest, e.g. Irish Farmers Association (IFA). The IFA is an interest group dedicated to pursuing the interests of its members, i.e. the interests of farmers. Interest groups provide their members with information on related matters. They lobby governments and MEPs to introduce laws or measures which will benefit their particular group.

A trade union is an interest group made up of employees often from a particular industry, trade or profession. They put pressure on employers to respond to the interests of their members and to respond to issues raised by employers which affect their members. The Irish Congress of Trade Unions (ICTU) acts as the voice of all employee unions when engaging in talks with the government. Employers have their own interest group and are represented by the Irish Business Employer’s Confederation (IBEC).

Collective bargaining

Collective bargaining is the term used to describe the process whereby a group of workers negotiates with their employer on the understanding that whatever the outcome of the negotiation, the workers will decide to accept or reject that outcome on a collective basis. The normal process of collective bargaining involves a trade union negotiating on behalf of a body of workers in order to reach an agreement with an employer which will apply to all the workers concerned. Normally, the workers concerned, the members of the union, make collective decisions by secret ballot and all members are required to accept the majority decision of the workers made in that secret ballot.

National bargaining

The government meets with ICTU and IBEC and various other social partners when planning for national wage agreements. This is called national bargaining. Each party represents the interests of its particular group and tries to get the best deal possible for its members. This is how
social partnership operates. Its existence has had a positive impact on the industrial relations climate in Ireland since its first agreement back in the 1980s. National wage agreements have brought stability to the Irish economy by moderating pay increases, thereby bringing inflation under control.

What is industrial action?

Industrial action is a form of protest by workers. Workers can protest by going on strike or taking part in a go-slow, workto- rule or token stoppage. A strike means that workers refuse to work for a specific or non-specific time period, i.e. one or two days or unlimited periods of time. The aim of a strike may be to protest against working conditions, layoffs or other grievances in the hope that employers will take their concerns more seriously and accept their demands.

Industrial action may damage businesses and may affect employees through loss of pay. Productivity suffers and management/employee relations become strained. Disharmony in the workplace can lead a company to become uncompetitive and to lose its market share. It is therefore important for companies to know how to go about solving problems in the workplace whether by legislative or non-legislative methods.

Resolving industrial conflict

Industrial action should always be the last step pursued by disgruntled employees. Previous to their decision to strike, it would be best to seek a resolution to their conflict with the employer. Conflict resolution takes two forms: legislative and non-legislative.

Non-legislative is an informal way of dealing with a dispute within the workplace or with the assistance of a third-party outside a legal process. Legislative would mean taking the dispute outside of the workplace and seeking the assistance of a statutory body through a legal process i.e. a body set up by Irish law, for example the Rights Commissioner Service of the LRC.

Industrial Relations Act 1990

Non-legislative methods [Interest-Based Disputes]

Non-legislative methods do not involve legal process and they concern interest-based disputes, where the focus is on the underlying concerns of the employer, the employee(s) and their representatives. The aim is to find a resolution that is agreeable to all involved parties, sometimes with the assistance of a neutral third-party such as the LRC:

1. Discussions
   Discussions are held between management and workers with a view to finding a solution.
2. Shop steward
   The shop steward is a union member elected to represent workers in negotiations with management. The shop steward will attempt to negotiate a solution on behalf of the union.
3. Trade Union officials
   Trade union officials will meet with management to come to an agreement.
4. LRC
   Parties in dispute may seek the services of the LRC Conciliation Service or in some cases the Rights Commissioner Service.

Legislative methods [Rights-Based Disputes]

Legislative methods involve some type of legal process and concern rights-based disputes, where the focus is on employees’ rights under employment legislation:

1. Rights Commissioner
   Rights Commissioners investigate disputes under a range of employment laws. Commissioners investigate claims mostly by individuals or small groups of workers.
2. Equality Tribunal
   The Equality Tribunal is an independent body set up by law to investigate or mediate complaints of discrimination. The Equality Tribunal may be asked to appoint an Equality Officer to provide an arbitration service or an Equality Mediation Officer to provide a mediation service. Such cases are always rights-based.
3. Employment Appeals Tribunal (EAT)
   The Employment Appeals Tribunal (EAT) is an independent body, established under legislation, which allows individuals to bring cases relating to infringements of certain employment rights under a number of employment laws. Some decisions arising from Rights Commissioners’ cases can be appealed to the EAT.
4. Labour Court
   The Labour Court is the court of last resort in industrial disputes of interest and is the appellate body in some rights-based disputes.

Unfair Dismissal Acts 1977-2005

The Act states that all dismissals are unfair unless justified on certain grounds other than capability, competence or qualifications. It is therefore up to the employer to justify any dismissal. Employees can take their complaint to the Rights Commissioner. The number of cases dealt with by the Rights Commissioner under the Act rose from 1,038 in 2007 to 1,566 in 2008 representing an increase of 34%.

Industrial Relations Act 1990

The Industrial Relations Act 1990 is important because it introduced changes which were deemed necessary to improve the industrial relations climate in Ireland. The number of complaints under this legislation increased from 1,182 in 2007 to 1,470 in 2008, which represents an increase of 20%.

How the LRC helps resolve conflict

The LRC was established under section 24 of the Industrial Relations Act, 1990. Its mission is to “promote the development and improvement of Irish industrial relations policies, procedures and practices through the provision of appropriate, timely and effective services to employers, trade unions and employees".

The LRC carries out this mission by providing the following services:

• an industrial relations Conciliation Service
• an industrial relations Advisory Service
• a Rights Commissioner Service
• assistance to Joint Labour Committees and Joint Industrial Councils in the exercise of their functions and
• a workplace Mediation Service.

The LRC undertakes other activities relating to the improvement of industrial relations practices including:

• the review and monitoring of industrial relations developments;
• the preparation, in consultation with the social partners, of codes of practice relevant to industrial relations;
• industrial relations research and publications and
• the organisation of seminars and conferences on industrial relations and human resource management issues.

The LRC in action

Health Service Executive – Psychiatric Nurses

The Psychiatric Nurses Association and the Services, Industrial, Professional and Technical Union (SIPTU) commenced industrial action in pursuit of their claim for the introduction of a compensation scheme for psychiatric nurses injured in the course of their duties. The industrial action included a ban on overtime and members working their rostered hours only. The LRC invited the parties to exploratory talks and after lengthy negotiations over four days, tabled proposals to both sides.

The planned escalation of industrial action was deferred to allow the proposals to be considered by the Executive Committees of both unions. The proposals were accepted by both unions and the industrial action ended.

Irish Aviation Authority/Air Traffic Control Officers Dispute

A withdrawal of overtime working by air traffic control officers threatened disruption to flights in and out of and across Ireland. Following an offer of assistance by the LRC, normal working resumed and a meeting to discuss the issues in dispute was then arranged.

Dispute Resolved at FÁS Tallaght Training Centre

A dispute at the Tallaght training centre operated by FÁS led to a work stoppage. The dispute concerned proposed work practices for general assistants represented by SIPTU at the facility. Following intervention by the LRC, the dispute was resolved and the threat of further action has gone.

Conclusion

The Labour Relations Commission is focusing its attention on how best to assist employers, unions and workers to weather the current economic and fiscal storm. Since the establishment of the LRC, the economic environment of Ireland has changed completely. Therefore, the challenge for the future will be to strive to meet the ever-changing demands of Ireland’s workplace. Looking back at its impressive conflict resolution record, it is clear that the LRC has the ‘know how’ and structures in place to deal effectively with conflict resolution.

Glossary

Arbitration: Where the settlement of a dispute is sent before a third party for adjudication. Parties to the dispute agree in advance whether the decision of the arbitrator will be binding or not.
Social partnerships: A co-operative approach by the country’s main stakeholders to tackle the economic problems of the state in a manner beneficial to all.

Student activity

1. Working in groups of three, come up with the best possible definition for each of the following terms: Industrial relations, collective bargaining, social partnership and industrial action.
2. In pairs or groups of three, create a poster showing the non-legislative and legislative methods of conflict resolution in the workplace. Hint: show the steps involved as a ladder or a staircase.
3. Evaluate the role of interest groups and trade unions.
4. Briefly outline the terms of the Industrial Relations Act 1990 and the Unfair Dismissal Acts 1977–2005.
5. Discuss the current economic climate with particular reference to conflict in the workplace.
6. In groups of three, create a presentation which shows the circumstances which led to the Labour Relations Commission being set up. Hint: do some research on industrial relations disputes in the 1970s and 1980s.