trade union recognition

Gunnigle & O’Sullivan, SASE 2006

Trade Union Recognition in Ireland

SASE 2006, Trier

Patrick Gunnigle & Michelle O’Sullivan,

University of Limerick


Introduction

• Union decline since early 1980s• Linked to structural changes in employment,

MNCs, increased employer opposition • Irish trade union strategies at stemming decline

– a) merger activity b) increased resources in organising c) legislation

• Focus of presentation is on legislation


Structure of Presentation

• Pattern of union membership & density in Ireland

• Traditional routes to union recognition• New legislation

– Background– Content

• Analysis of operation of legislation• Findings & Conclusion


Union Membership/Density

• Increase in membership – 432,900 in 1994 to over 521,400 in 2004; (20%

rise)

• Decline in density – 45.8% in 1994 and 34.6% 2004 (11 percentage

points drop)

• Comparatively, density in Ireland can be ranked as being “middle to low”


Sectoral unionisation

• Public sector – 70-80%• Private sector – 21-30%• 1994-2004:

– biggest drops in construction, transport, storage and communications and other production industries

– But these had higher density in 2004 than the private services sectors.

– Sectors with the lowest union density• services sub-sectors like hotels and restaurants, ‘other

services’ and agriculture.


Traditional Routes to Union Recognition

1) Industrial action2) Dispute referred to Labour Court under Industrial

Relations Acts 1969-1990• What is Labour Court?

– State dispute resolution body– Labour Court almost always recommended union

recognition– But compliance with Labour Court recommendations in

union recognition cases low• 30% compared with 75% in other cases


Background to New Legislation

• Trade union body ICTU lobbied the social partners for legislation

• ‘High-level Group’ established with reps of govt depts, employers, unions, IDA Ireland (responsible for attracting FDI)


New Legislation

• Code of Practice in Voluntary Dispute Resolution

• Industrial Relations (Amendment) Act 2001• Cases only about terms and conditions of

employment & the dispute resolution & disciplinary procedures

• Explicitly excludes arrangements for collective bargaining


Amended legislation

• Trade unions unhappy with operation of legislation– Amendment sought

• 2004– Ant-victimisation Code of Practice

– Industrial Relations (Miscellaneous Provisions) Act 2004

– Shortened procedures; set overall time frame of 26 weeks


Stages in Process

• Phase 1: ‘Voluntary stage’– Where negotiating arrangements not in

place in a company, union can submit referral to the Labour Relations Commission

• Phase 2: ‘Fallback mechanism’– If no resolution found, union can submit a

case to the Labour Court under Act– Preliminary hearing: criteria fulfilled?– If yes, Court investigates & issues

recommendation


Stages in Process

• Phase 3– Case unresolved after

recommendation – union can submit case for Labour Court determination

• Phase 4– If determination not implemented,

enforcement order from Circuit Court


Operation of Legislation

1. How many cases referred under Phase 1 (LRC) & Phase 2 (Labour Court)?

2. How many Labour Court determinations have been issued?

3. Are unions using the new legislation or older legislation?

4. Are unions targeting particular sectors?5. Are MNCs affected by legislation?


Phase 1: Referrals to LRC to June 2005

Cases completed 55 (50%)

Company did not engage with process

24 (22%)

Cases ongoing 20 (18%)

Refferal withdrawn by union

10 (9%)

Total 109


Phase 1: Cases Completed by LRC to June 2005

Issues referred to Labour Court

37 (67%)

All issues resolved at LRC

13 (24%)

Collective bargining negotiated

5 (9%)

Total 55


Phase 2: Cases heard by Labour Court, 2002-2006

Year No. of cases No. of companies

2002 3 3

2003 9 8

2004 23 20

2005 45 34

2006 19 17

Total 99 82 (69 companies)


Phase 2: Recommendations & Determinations

Year No. of recommendations

No. of binding determinations

2002 3 0

2003 6 0

2004 20 2

2005 29 13

2006 14 4

Total 72 19


Traditional Route: Cases under Industrial Relations Acts 1969/90Year No. of cases

2002 3

2003 11

2004 2

2005 4

2006 2


Sectoral breakdown of cases under new procedures

• Manufacturing: 28 cases– Pharmaceuticals, building materials, food

• Services: 39 cases– Retail, nursing homes, telecommunications,

transport, waste, crèches, printing


Multi-national Influence on New Legislation

• Research has noted the increasing embeddedness of MNC influence in Irish business system

• IDA & American Chamber of Commerce– vocal on potential negative effects on FDI of

European style woks council or statutory union recognition

• Result: no statutory union recognition


Effects of Legislation on Multi-nationals

• Two opposing hypotheses1) non-union multinational investors

were misled– procedures could dissuade foreign

investors


Effects of Legislation on Multi-nationals

2) Little impact on the non-union sector

• Unions targeting relatively low paying indigenous firms rather than the larger multinationals

• unions unable to gain a foothold which would allow them to process a case for recognition


Cases against Irish & MNC companies

Country of Origin Percentage of Cases

Ireland 63.6%

US 15%

UK 7.5%

Other EU 7.5%

Outside EU & US 3%

Unknown 3%


Has legislation deterred FDI?

• UNCTAD World Investment Report 2004

• 1998– Average FDI $8,579m– 1.2% of global total

• 2003– Average FDI $25,497m– 4.6% of global total


Effects on MNCs?

• 33% of cases are against MNCs– MNCs not immune from legislation– Unions targeting Irish & MNCs– But legislation not a strong deterrent of FDI

• Neither hypothesis is fully supported


Summary of Findings

• Limited no. of cases settled in Phase 1• Greater reliance on Phase 2• No. of binding determinations low• Unions more satisfied after legislation was

amended– Before amendment: increased use of traditional route– After amendment: increased use of new procedures– Some support for previous research reporting

dissatisfaction of unions with 2001 Act


Summary of Findings

• Now: traditional legislation almost abandoned

• Unions targeting particular sectors: mixture of ‘low hanging fruit’ & MNCs


Conclusion

• Unclear as yet if legislation will affect union density

• Employers unhappy with recent Labour Court decisions – may instigate change in future

• Further research: – Unions’ resource requirement for taking cases

– Integration of union strategies

– Examine effects of cases on union membership at enterprise level

trade union recognition

Career

union recognition cases

effects of legislation

trade union recognition

recommendation union

introduction union

older legislation

cases year

recommended union recognition