Set out below is a copy of the Briefing Notes agreed by the Irish Congress of Trade Unions this week.  The content of the Briefing Notes will be used by the representatives of Congress who are attending the Social Partnership discussions with the Government.  It was further agreed that any issues emerging during the discussions between the Social Partners would be considered by the National Executive Council of Congress in advance of any decisions being taken.

Establishing a Social Solidarity Pact

Congress Briefing Notes

1. Congress fully recognises the very serious nature of the problems facing the country and the likely implications, if these problems are not dealt with.

2. Congress firmly believes that only a concerted national initiative is capable of meeting the challenges that we face and confirms that the trade union movement is ready to play a full part in any such process.

3. In this context, Congress has proposed the establishment of a Social Solidarity Pact, which is informed by the principles of fairness and equity. It has four key priorities:

- Reflate the Economy and Maximise Employment
- Get Credit Flowing Again
- Stablise the Public Finances
- Address Competitiveness, in a holistic fashion

4. It is imperative that the cost of any agreed programme of adjustment is shared across society. It must be fair and it must be seen to be fair. There is no other sustainable way to deal with the problems that confront us.

5. We will play no part in any process that is designed simply to cut wages and services and shift the entire burden, or a major portion of the burden, onto the shoulders of working people. Apart from being unjust, this could propel the economy into a deflationary spiral and turn a recession into a depression.

6. With regard to stabilising the public finances Congress believes it would be possible to realise this goal through a plan that balances the components of pay, pensions, expenditure, borrowing and tax, along with the timescale for achieving savings.

7. The failed ‘slash and burn’ politics of yesteryear will not resolve the problem. Any agreed solution will require creative and innovative thinking.

8. There must be recognition that the ideology of the ‘free market’ has led us to this impasse and is now defunct. The world is undergoing significant political and economic change, from which Ireland cannot be exempt. 

Congress has also proposed a number of very specific measures, such as:

- the establishment of a National Recovery Bond, which members of the public could contribute to and would assist Government in raising funds
- examine either raising the top rate of tax for high earners, to 48 percent, or introduce a new rate at that figure for those earning a multiple of average industrial earnings
- introduce a tax on property other than the family home, or so-called ‘trophy homes’
- A National Jobs Scheme to maximise the number of people that can remain at work and to further ensure that they are equipped to become sufficiently adaptable to new processes within their existing industries, or to take up other opportunities
- Reshape the Social Welfare system to focus on skills development and establish a national Flexicurity System
- Strategic intervention in uncompetitive areas of the economy, such as broadband, where Ireland suffers a competitive deficit
- Invest in a pre-school, early development education programme for all children under three and establish a National Childcare Network
- Establish a Primary Health Care Network
- Invest in Pubic Transport, a School Building programme, Social Housing and Home Insulation
- Establish a new Corporate Governance Regulatory regime
- End all business tax breaks and incentives that do not generate a clear and sufficient return for the taxpayer. It is time to end Corporate Welfare
- New safeguards to ensure people are better protected from repossession

Irish Congress of Trade Unions
January 2009