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Congress Backs New Deal

The Irish Congress of Trade Unions today (November 17) voted overwhelmingly in favour of accepting the new national deal on pay and employment rights, Towards 2016, Review & Transitional Agreement.

At a specially-convened conference in Dublin's Liberty Hall delegates representing all Congress affiliates voted 305 in favour of accepting the deal, to 36 against. Congress represents some 620,000 workers in the Republic of Ireland, the majority of whom (almost 60 percent) work in the private sector.

The new national deal provides for a six percent increase over 21 months, with a pay pause of three months applying in the private sector and an 11 month pause in the public sector.

The deal also contains important measures to combat exploitation and strengthen employment rights: a ban on the use of agency workers to replace striking workers; a change to competition law to allow freelance journalists and session musicians to bargain collectively; a commitment to restore the spirit of the 2001 and 2004 Industrial Relations' Acts (following the Supreme Court judgement in the Ryanair case, in 2005) along with new measures to ban the victimisation of trade union activists and organisers.

Welcoming the formal ratification of the deal Congress General Secretary David Begg said it was now imperative that government "deliver in full" on the key employment rights commitments and provisions that it contained.

The full version of Towards 2016, Review & Transitional Agreement can be read here.

Congress Publishes Plan to Reverse Budget Cutbacks

Congress has published a series of 10 key recommendations for government to ensure that the most damaging of the Budget cutbacks are either reversed or their impact softened.

Congress Economic Advisor Paul Sweeney said the government has "one last opportunity to correct some of the worst mistakes" of Budget 2009 through the Finance Bill, which is to be published on November 20 and which gives effect to measures contained in the budget.

Among the key recommendations are: a cut in the standard rate of VAT by 2 percent; the introduction of an economic stimulus package; reform of the income levy to ensure business and high earners pay a fair share; a reversal of the education cuts; reversal of the health cuts, particularly the abandonment of the Cervical Cancer Vaccination scheme and an extension of medical card coverage generally; the immediate termination of all property tax breaks and a reversal of the cuts to the country's equality and human rights infrastructure.

According to Mr Sweeney, Budget 2009 suffered a number of crucial failings: "There was a complete absence of vision and strategy and no evidence of a coherent plan to deal with the problems we face. Instead, government seemed to have aimed the cuts at the areas and projects they felt they could get away with.

"Children, young girls and low wage earners did not cause the current crisis. They cannot be asked to bear the burden," Mr Sweeney said.

"Where is the economic rationale behind increasing class sizes when everyone acknowledges education is the key to future growth? What sort of madness dictates we abandon a lifesaving vaccine that costs just €10 million? Minister Harney should halt the crazy co-location plan that will cost taxpayers upwards of €400 million.

"It is also obvious that is unjust to impose an income levy solely on labour. Business must also be asked to help shoulder the burden.

"Equally, all the major economies, from the US to the UK, are now looking at economic stimulus packages to breathe life back into their economies. The Irish government needs to start thinking at that level.

"The forthcoming Finance Bill is government's last opportunity to reverse the most damaging and unjust of these cuts and show that all sectors of society will shoulder an equal part of the burden.

 

10 Key Congress Recommendations

• The Income Levy was a hamfisted and foolish effort to avoid having to raise taxes. While Congress welcomes the government exemption of those on the minimum wage, it needs to ensure that people do not starting paying as soon as they earn one cent over and above that rate. Equally, Congress believes the levy should be on an escalating scale for high earners above €100,000.
• Congress is also of the belief that business must also be asked to shoulder the burden. It is not equitable to impose an income levy on labour - which already pays higher taxes - and completely exempt corporations
• Reverse the education cuts. Education spending is not a burden, but an investment in our future and the key to future growth and stability;
• Reverse and revisit some of the decisions made with regard to health spending. The abandonment of the programme of Cervical Cancer Vaccination for teenage girls is a case in point. This is both wrong and wrong-headed. Not only does this represent and potential death sentence for some, but as any medical professional will confirm preventive medicine saves money in the long-term.
• In addition, the issue of medical card coverage needs to be revisited particularly as this Heath Minister had previously committed to extending medical card coverage, not reducing it. The implications of the recent Supreme Court case on community rating must also be addressed.
• If the Minister is looking for spare funds, she should immediately abandon the destructive and costly co-location programme.
• The cuts in funding for the country's equality and human rights infrastructure were wrong and, in all likelihood, motivated by reactionary politics. It is also very likely that place Ireland in breach of our commitments under the Good Friday Agreement.
• Terminate all tax breaks around property, now.
• With the threat of deflation, action my have to be taken in a Spring Budget to stimulate the economy. If so, the stimulus package must be progressive, for it is the lower paid who will spend most of any tax benefits/reductions.
• Consideration should be given to cutting the standard rate of VAT by 2 per cent as previously suggested by Congress and to borrow more for an enhanced capital investment programme in schools, hospitals, public clinics etc.

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