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UNITYUNITYUNITYUNITYUNITYUNITYUNITY

MARCH& RALLY FEB 21 PARNELL SQ @ 2PM

THOUSANDS of people will converge on thestreets of Dublin on February 21 to voicetheir anger at the government’s failure torespond fairly to the current crisis and itsattempt to shift the burden on to theshoulders of working people.

The demonstration has been organised byCongress as the first step in what has been

described as a “a rolling campaign ofaction” to put fairness back on the

agenda and ensure governmentintroduces measures that willsee all sectors contribute to

resolving the crisis. Congress has drawn upan alternative vision to the ‘slash and burn’approach adopted by the current coalition.

It involves a 10-point programme ofregeneration and contains proposals onprotecting jobs, saving people’s homes andgetting the unemployed back to work.

Last night, David Begg, left, said: “Govern-ment needs to understand that any plan theyarrive at must be underscored by the principleof fairness.

“Working people will not be the scapegoatshere.”

SPECIAL EDITIONNION POSTU

FEBRUARY 2009

PUBLISHED IN ASSOCIATIONWITH THE IRISH CONGRESS OF TRADE UNIONSTHE

2 UNION POST � February 2009

A BETTERWAY

Neoliberal ideology has self-destructed

THIS is not the first time we havefaced a crisis and it almost certainlywill not be the last. But on thisoccasion the collapse of the Irisheconomy has been echoed bycollapse on a global scale.

When one of Wall Street’s mosthallowed names – Lehman Brothers– collapsed on September 22, 2008,it became clear that the superstruc-ture of an entire world order fell toearth with it.The era of the unfettered

free market was dead. Theonly problem is that certainelements in this country –primarily those who benefitedmost from the old world order– have not yet grasped thissimple truth.

The US has grasped it: GeorgeBush carried out the single greatestwave of nationalisations in US his-tory and President Obama’s elec-tion was a massive rejection of thatold order.

And all across Europe, govern-ments of right, left or centre haverecognised the same reality: thatlight regulation, poor oversight, badenforcement and a perverse bonussystem which prioritises short termgain over long term good, has noplace in the modern world.

The neoliberal ideology that wasgiven full expression by Thatcherand Reagan has self-destructed andnow threatens to take the globaleconomy with it.

Unfortunately, this country seemsbe in thrall to slow learners in bothgovernment and business, thosewho cling to the desperate hopethat after a few rounds of ‘cuts’ theeconomy will return to rude health

and it will be business as usual.Their ideas hark back to the

1980s and their outdated politicalagenda is largely the same: letworking people bear the brunt, ei-ther through lower wages or re-duced public services – less publictransport, closed hospital wards,larger classes for the youngest andno help for those with specialneeds.Let us be very clear: there

can be no more business asusual, those days are over andit is time political and busi-ness leaders grasped this veryobvious fact.

Let us also be very clear that theirold failed agenda will neither work,nor be accepted by the Irish tradeunion movement.

The employers have in effectwalked away from the pay deal ne-gotiated in September, but have yetto explain why individual companiescould not have utilised the verysophisticated ‘inability to pay’ mech-anism built into the agreement.

Curiously, they have also failed toexplain why many large companieshave already paid the deal, or com-mitted to doing so.

Their stance has been effectivelyendorsed by Government.

Thus, what we are seeing is noth-ing less than a campaign againstwages and living standards, an at-tempt to drive down wages in amistaken belief it will make theeconomy competitive again.

It won’t – it will (and already has)terrorise people into not spending.

The result? Less goods bought,more outlets closed, more jobs lost.

This course of action has the

UNION POST was produced by Brazier Mediafor the Irish Congress of Trade Unions

Timeline... fromvote to crisis talks

Congress Plan forNational Recovery

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10

Death of lastIrish Brigadista

ICTU boycottcall over Gaza

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An end to casinocapitalism 30

Northern Ireland CommitteeIrish Congress of Trades Unions4-6 Donegall Street PlaceBelfast BT1 2FNNorthern IrelandTel: 02890 247940Fax: 02890 246898Email: [email protected]: www.ictuni.org

Irish Congress ofTrade Unions31/32 Parnell SquareDublin 1IrelandTel: +353 1 8897777Fax: +353 1 8872012Email: [email protected]

DESIGNED & EDITED BY BRAZIER MEDIAEmail: [email protected]

UNION POST

“

David BeggGeneral Secretary

3February 2009 � UNION POST

ICTUVIEWA FAIRERWAY

and now threatens to take the global economywith it

potential to send us into a down-ward, deflationary spiral from whichit could take decades to recover.

And people under severe financialpressure are then forced to watchthe spectre of billions in tax rev-enue being handed over to the

same top bank executives thatcrashed their own banks, the sametop executives that have difficultysurviving on a weekly wage thatequals what most would earn in ayear. If people are angry, it is be-cause they feel they are being made

fools of. Congress believes thatviable national recovery requiresgenuine national effort and under-standing and a genuine sharing ofthe burden.We believe that there is a

better, fairer way. “


SIDELINES

UNIVERSITY lecturers have vowed toresist any bid to cut pay or changeconditions as individual third level in-stitutions struggle to deal with cur-tailed budgets.

The Irish Federation of UniversityTeachers warned that any changes tocore pay and conditions had to benegotiated nationally.

General secretary Mike Jenningssaid:“Whether it is attempts to with-hold pay increments, non-filling ofvacancies, or seeking not to renewcontracts, nothing can be imposed bycollege managers.”

He added: “But we will gladly sitdown and negotiate with the HigherEducation Authority or the Depart-ment of Education to deal with any ofthese questions on a national basis.”

IFUT vow toresist pay cuts

THE president of the Irish Society ofChartered Physiotherapists hasclaimed graduates in the professionare forced to work in fast food outletsbecause they can’t find positionswithin the health service.

Annette Shanahan, speaking to theOireachtas health committee on Janu-ary 28, said this was despite patientshaving to wait up to a year for physio-therapy.

She claimed graduates were work-ing in jobs “from care assistants toBurger King”.

According to figures presented tothe committee, only 16 per cent werein permanent employment.

Ms Shanahan added: “It’s totallyinadequate when we know that peo-ple need our services.”

‘McJobs’ for outof work physios

HEALTH service unions have called onthe HSE not to put in place a plan torestrict recruitment without furtherconsultation.

The proposals include a morato-rium on outside recruitment foradmin posts and a ban on fillingapproved vacancies until alternativesfor redeployment and reassignmenthave been looked at.

Impact’s Kevin Callinan claimed thefreeze breaches existing agreements.

In a letter to HSE chiefs, he said theproposals were in breach of obliga-tions to inform and consult with staffrepresentatives, as clarified by theLabour Court.

He added that it also ran counter tothe terms of Towards 2016.

HSE jobs freezeplan is blasted

MAJOR in-frastructureprojects inNorthernIreland areto get£1.4bn infunding inthe comingyear, it hasbeen re-vealed.StormontFinance Min-ister NigelDodds said atotal of £3bnwould bespent overthe next twoyears.Mr Doddsadded: "Ithink it's ab-solutely crit-ical at a timewhen thingsare difficult."It will notonly buildgood infra-structureand goodpublic serv-ices, but alsokeep peoplein worknow."

Cork dockershave votedto accept aredundancypackagewhich willradicallychange theway theportsidefacility doesbusiness.In a state-ment Portbosses saidSIPTU hadaccepted thedeal underthe terms ofa LabourCourt agree-ment tomodernisedock work-ing.The agree-ment will re-sult in 93redundanciesin the casuallabour force.

BITESCash boostannounced

Cork Portjobs to go

Sept – National wage agreement brokered.Workers getincreases of six per cent phased in over 21 months.Athree-month pay pause for those in the private sectorand 11 months for public sector employees was alsoagreed. Low-paid workers receive an extra 0.5 per cent.

Nov 17 – ICTU special delegate conferenceat Dublin’s Liberty Hall accepts nationalwage agreement. Delegates vote 305 infavour of deal with 36 against.

Nov 17 – SIPTU chief Jack O’Connor claimed any em-ployer who reneged on agreement was guilty of“national sabotage” and called on the government to

withhold state contracts from those that do. CIF presi-dent Tom Parlon hits back accusing SIPTU of blackmail-ing construction companies.

Nov 17 – Business group ISME calls on gov-ernment to suspend deal in interests ofwider economy. Chief executive Mark Field-ing claims firms must have a “sus-tained pay freeze” to “trade outof” their current difficulties.

Nov 17 – Employers group IBEC ac-cept agreement “as the best thatcan be achieved at national level".Director Turlough O’Sullivan saidthey had agreed “with caution”but added that thedocument provided “a flexibleframework… in these extremelydifficult times”.

Nov 22 – Fine Gael calls for acomplete freeze on public sectorpay for 12 months at its conferencein Wexford. Leader Enda Kenny told dele-gates: “The country cannot afford the na-tional pay deal…If we want to be masters ofour own destiny, we have to control ourspending and ensure we regain our competi-tiveness.” SIPTU president Jack O'Connorblasted the call and dubbed it “the same old,same old” from Fine Gael, attacking workersto shore up profits.

Nov 24 – Technical, Engineering and Electrical Uniongeneral secretary Owen Wills warned of nationwide ac-tion against bosses who renege on regional employ-ment agreements. He told delegates at the union’sbiennial conference:“It may be necessary to have a na-

tional strike in solidarity with the ballot for industrialaction by our members in the electrical contracting in-dustry.”

Nov 26 – CIF rejects national pay agreementand seeks 10 per cent pay cut across thesector, affecting more than 200,000 workers.Director general Tom Parlon said: “The bot-tom line is the industry cannot afford thedeal.” SIPTU chief Jack O’Connor dubsmove “unbelievably short sighted” andclaimed it was ironic the employers whobenefited most from the Celtic Tiger shouldbe the first to renege on the agreement.

Owen Wills of the TEEU describes the deci-sion as “an unparalleled act of betrayal” andcalls on the Government to take actionagainst CIF members.

Dec 4 – Brian Lenihan tells RTE’s Morning Ireland pro-gramme “nothing can be ruled out” regarding a review

of the national pay deal and asked all partiesto “reflect” on the difficult conditions

facing the economy.He added:“I am saying to people

that we are living beyond ourmeans and we have to face up tothat.We won't be able to com-pete if we don't.” But adding toa seeming confusion of opinionswithin government,TanaisteMary Coughlan tells the Dail:

“On the issue of the national paydeal, it is not up for

negotiations, but there is constant in-teraction between all members of the

government and social partners.” The follow-ing day she is accused by Enda Kenny of sending out“conflicting messages”.

Dec 4 – ICTU denies holding any discussionswith the government or Taoiseach “that inany way involved amending, deferring, alter-ing, suspending or changing the pay andworkplace rights deal recently concludedbetween unions, government and employ-ers”.

Dec 4 – Invoking the “inability to pay” clause containedin the national pay agreement, CIF issues claim over 10per cent pay cut to eight unions – including SIPTU,Unite, the TEEU, Batu and UCATT.

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Struggle to

Firms who renegeon agreement areguilty of national

sabotage

““

Deal endorsed: Union delegates vote to accept the national wage agreement

Jack O’Connor


Dec 4 – Irish Daily Mirror reports 20 jobslost every hour in the past month as unem-ployment hits a 12-year high with 16,900more people on the live register which nowtotals 227,200.

Dec 5 – SIPTU’s Jack O'Connor calls on the govern-ment to exclude construction bosses from publicprocurement projects after what he described as the“most savage attack on building workers since the1930s”.The union also seeks action from the govern-ment to bail out mortgage holders who lose their jobsthrough slapping a moratorium on their repayments forup to two years.

Dec 12 – ISME chief Mark Fielding calls paydeal “utter lunacy” in face of falling inflationfigures.

Dec 13 – Finance Minister Brian Lenihan tells Dail theoverall contraction in the economy over the next 12months will be three to four per cent.

Dec 15 – Taoiseach Brian Cowen says thegovernment will not change the terms of thepay deal for public servants without discus-sions under the social partnership process.

Dec 16 – Mr Cowen meets with social partners atGovernment Buildings. He informs them that a fall in taxrevenues means €3.5 billion will have to be borrowedand forecasts “difficult times ahead”. Hinting at a reviewof the pay agreement, he later tells the Dail:“I have re-fused to isolate the pay issues from all the other issues.All government expenditure has to be looked at in thatcontext.”

Dec 17 – Labour leader Eamon Gilmore callsthe government's handling of the economicsituation downright incompetent.

Dec 23 – Impact general secretary Peter McLoone says:“This current crisis has not arisen because the earningsof the vast majority of those in employment are toohigh and it follows that a reduction in incomes will notresolve this crisis.”

Jan 5 – Exchequer returns show a tax short-fall of €8bn for 2008. Speaking on RTERadio's This Week, Mr Cowen claimed deci-sive action was needed to address problemsin public finances. He predicted that without“corrective action” the deficit could shootup to €20bn by 2010.

Jan 8 – Dell announces the loss of 1,900 jobs at itsLimerick plant, as the computer giant moves productionto Poland. Dell products make up at least 5.5 per centof Irish exports and two per cent of GDP.

Jan 10 – Impact and SIPTU promise “hugecampaign of resistance” and vow to fight“tooth and nail” plans by Finance MinisterBrian Lenihan to cut public sector pay byfive per cent. SIPTU’s Jack O’Connor saidunions were prepared to show leadershipover what he called “truly horrendous” pub-lic finances as long as the burden was sharedacross all sectors of society. But he under-lined that a unilateral cut in pay would meanthat workers and those on low incomes“carry the burden” before adding “thatwon’t wash”.

Jan 10 – Impact chief Peter McLoone said his union waswilling within the context of social partnership to iden-tify and implement savings as well as improving publicservice flexibility and responsiveness. However, hewarned that any attempt to impose pay cuts would

mean the government tearing up the Towards 2016transitional agreement and abandoning social partner-ship as a means of dealing with the crisis. He added:“Ido not have, will not get and will not seek a mandate forpay cuts from our members.”

Jan 10 – Finance Minister Brian Lenihanclaimed public revenues were too dependenton taxation, but added: “It is essential thatwe broaden our tax base as well as pruningour expenditure.”

Jan 12 - ICTU general secretary David Begg warns of adeepening “deflationary spiral” if government cuts back

on wages. Speaking on RTE's This Week, he called for “asensible compromise” between cuts in public servicesand pay, tax changes, and the length of time “over whichall of this is done”.

Jan 13 – Some 200 economists attend a con-ference titled Responding to the Crisis atUCD. Prof Karl Whelan told delegates a cutin public sector pay alone would not “comeclose to solving the crisis”. He said too manycommentators had concentrated on whatthey saw as the "bloated public sector",adding that the average public sectorworker was not the “overpaid paper pusherof public imagination” but a garda, nurse orteacher. At the same conference, economistColm McCarthy, who heads up the govern-ment task force dubbed An Bord Snip Nua,said a regular tax on residential propertywould be a more stable source of taxation.He also mooted the sell-off of state assets,including Bord Gais, ESB and the 25 per centstake in Aer Lingus.

Jan 13 – Public Service Executive Union chief Dan Mur-phy warns of IMF intervention in the crisis if the gov-ernment is unable to bring public finances back undercontrol. He said:“The IMF’s normal prescription involvesmass dismissals from the public service without com-pensation and pay cuts for the remainder, along withcuts in pensions.” Mr Murphy also claimed unions wereprepared to be constructive,“provided no unilateral ac-tions are taken that would render our co-operation im-possible”.

Jan 13 – The Irish Nurses Organisation re-veals it is seeking legal advice on any gov-ernment move to cut its members' pay.Deputy general secretary Dave Hughes said:

“There is a lot of hot air being spoken aboutpublic service reductions in pay but the lawon the matter is it cannot happen withoutthe consent of the individual.” INO generalsecretary Liam Doran added: “The executivefeels it would be counterproductive, defla-tionary and wholly unfair to ask any nurseor midwife who is already overworked andoften working in overcrowded and difficultenvironments to consider any reduction intheir already poor levels of pay.”

Jan 13 – The INTO condemns what it call a “declarationof war” on the public service by government and cer-

tain right wing commentators. General secretary JohnCarr said:“Unfair and unwarranted attacks on the pub-lic service will only make the prospect of finding agree-ment on a national recovery plan more difficult.”

Jan 14 – Speaking during his trade visit toJapan, Mr Cowen said he wouldn’t hesitateto take tough decisions if no agreement isreached with unions and employers overpublic-sector pay. He added: “We’ll takewhatever decisions are necessary. That'swhat we have to do in the interests of thecountry.” Back in Ireland, Justice MinisterDermot Ahern added: “We have to cut ourcloth to meet our measure.”

Jan 14 – ICTU tells the government it will not engage inany process based solely on cuts in pay and public serv-ices. The position is set out in a formal submission onthe government's economic recovery programme.

Jan 15 – Edna Kenny, right, claims the gov-ernment “deliberatelyand consciously”walked the coun-try into an eco-nomic morass.He added: “Weare now losingthe equivalentof five Dellsevery month.”

Jan 15 – Teachingunions

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broker a fair deal

Get the message: Workers staged a sit-in at crisis-hit Waterford Crystal plant

CONTINUES PAGE 6


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vow to fight pay cuts “by all necessary means”. INTOgeneral secretary John Carr attacked what he called a“declaration of war” on the public service and said suchattacks were offensive and demoralising to hard-workingpublic servants. He added:“Rather than continuallyscapegoat public servants, government must move toprotect essential services like education and ensure thatcontributions to recovery are made by those with themeans to do so.”

Jan 15 – Employers group IBEC call for radi-cal reform of public sector pensions. Thiswould involve a “fundamental repositioning”of current arrangements. It said this shouldinvolve a move away from a defined benefitscheme – under which the size of the payout

is guaranteed – towards a defined contribu-tion scheme for new entrants, under whichthe employee would bear the risk of anyshortfall. Director Brendan McGintyclaimed it was time to take difficultdecisions. Impact accused IBEC ofexploiting the recession todrive down the value of bothpublic and private pensions,while Labour Party leaderEamon Gilmore blasted theemployers group for pursu-ing “an old and bitteragenda”.

Jan 16 – ICTU urges the governmentto renationalise Eircom to boostbroadband provision – just one of sev-eral ideas contained in a submission docu-ment to the government on dealing with the

crisis.Among other sugges-tions was the setting

up of a “nationalrecovery bond”scheme as well asa move awayfrom spendingtaxes – such asVAT – towardsdirect taxation.

Jan 18 – BrianLinehan, defends

the decision tonationalise Anglo

Irish Bank claimingthere would have

been “cata-strophicconse-

quences” for banking in Ireland if it had beenpermitted to fail. SIPTU boss Jack O'Connortells the Irish Independent that whateverdeal emerges cannot be about to "what de-gree workers are going to be screwed".

Jan 19 – INO general secretary Liam Doran blasts at-tempts by IBEC and ISME to attack public sector work-ers’ pay and pensions as “opportunistic, antagonistic andunwarranted”.

Jan 22 – Social and Family Affairs MinisterMary Hanafin tells The Irish Times at least€400 million extra will be needed to meetthe rising cost of unemployment benefit,taking the total spending on social welfare

to more than €20 billion.

Jan 23 – Commenting on the continuing focus fromsome quarters on public sector pay and pensions, Jack

O’Connor said: "This quick-fix solution isbeing promoted by the same people who

created the problem by making aquick buck over the last years.”

Jan 24 – Reflecting tradeunion anger over IBEC’scall for a 12-month payfreeze in the private sec-tor, Impact general sec-retary Peter McLoone

claimed its mask hadslipped to reveal the real

intention behind attacks onpublic servants’ pay and pen-

sions. He said IBEC was “exploit-ing the recession to drive down

incomes across the economy”. ICTU chiefDavid Begg described the IBEC ploy as a“hand grenade in the talks process” and saidit confirmed the view that the overall objec-tive of business interests was not just to re-duce the pay bill in the public sector, but tosecure “a competitive devaluation of wagesin the broader economy as an alternative tocurrency variation”.

Jan 25 – Speaking on RTE, Justice Minister DermotAhern speaks of the need to broaden the tax base. Headds:“One of the aspects that could be looked at is, forinstance, the second homes.There are plenty of peoplein this country who had the money over the good yearsto buy second houses.”

Jan 26 – Ulster Bank Group announces theloss of 750 jobs. The First Active brand inthe south of Ireland is to be phased out and

merged with Ulster Bank branches.

Jan 26 – At a meeting of Fianna Fail backbenchers andsenators, Brian Cowen outlines details of a five-year“stablisation plan” involving cuts of €15bn.These breakdown to €2bn in 2009, a further €2bn in 2010, rising to€4bn in 2011, a further €4bn in 2012, and €3.5bn in2013.

Jan 26 – ICTU seeks a redrafting of an initialprotocol document drawn up by governmentofficials, claiming it is“too vague”. Unionswant a broadening of the tax base includinga new 48 per cent tax band, a new propertytax on second or “trophy” homes, curbs onexecutive pay and restrictions on tax breaks.

Jan 27 – There is a more positive reaction from tradeunions to a redrafted framework document withsources claiming that a “social solidarity pact” is startingto take shape with an emphasis as much on taxation ason public spending cuts.

Jan 27 - Congress general secretary DavidBegg formally rejects demands by employersto defer the current pay deal as well as an“indefinite delay” to a rise in minimum payrates. He warns IBEC in a letter that if theyproceed to “detach” from the process it willmake the formation of any form of socialsolidarity pact “very difficult”.

Jan 28 – ICTU executive council approves Frameworkfor Stabilisation, Social Solidarity and Economic Renewaldocument as a basis for talks. Social partners agree onthe need to progressively reduce the level of Exchequerborrowing to below three per cent by 2013.The docu-ment outlines that this should come about through amix of spending cuts and tax rises. It says that all sectorsof society should contribute to the recovery pro-gramme. However, it adds that the most vulnerable –the low paid, unemployed and social welfare recipients –should be insulated against the worst effects of the re-cession.

Jan 30 – Unions press for changes to the taxcode to "ensure the burden of adjustment tothe new economic conditions is borne bythose most able to do so". ICTU general sec-retary David Begg also calls for a “demon-stration” by the government that taxchanges will happen this year, preferablythrough a mini-Budget. However, speakingfrom the World Economic Forum in Davos,Brian Cowen signals such changes may nothappen until after the Commission on Taxa-tion reports later in the year.

Feb 1 – SIPTU president Jack O’Connor claims agree-ment is contingent on the better off contributing in linewith their ability to do so. Unite’s national secretaryJerry Shanahan flags up the issue of pension protection,while IBEC chief Turlough O’Sullivan claims businesseswere bleeding and profits “a thing of the past”.The Sunday Business Post reveals Department of Fi-nance tax receipts for January down between 13 and 15per cent on same period last year – a decline of €600million.

Feb 2 – ICTU’s David Begg said unions wouldhave questions to answer if they came out ofthe talks with nothing on pensions at a timewhen the National Pension Reserve Fundhad been used to recapitalise the banks. Headded: “I do not think that you could credi-bly explain it [to the public].”

Feb 2 - Minister for Health Mary Harney said she didnot want to confirm nor deny reports the governmentwas considering cutting the early childcare supplement.Meanwhile, figures from the Department of Enterprise,Trade and Employment’s redundancy payments divisionrevealed a record number of redundancies last month –143 per cent higher than in the same month last year. In

Struggle to broker a fair dealFrom page 5

IBEC ploy todrive down wages

is a handgrenade in thetalks process

““

David Begg

Working it out: ICTU executive council approved framework document on Jan 28


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total, 6,708 people were made redundant with the serv-ices sector hardest hit.

Feb 3 – Negotiations break down at 4am.ICTU chief David Begg told RTE the talkshad “just run out of road”. He said there hadbeen a number of important social policy is-sues, including pensions, that negotiatorshad “been trying to crack”, adding “pullingall the strings together was a formidabletask and ran out of time in the end”. On thequestion of public pay sector cuts, he de-scribed the figures involved as “punitive”.The pensions levy would have involved de-ductions of between €2,250 for staff on€40,000 to €4,750 for those on €60,000. Per-sonnel on €100,000 per year would havefaced deductions of €8,750. Mr Begg added:“There would have been a revolution againstthem.”

Feb 3 - In a statement,Taoiseach Brian Cowen ex-presses regret at the failure of the economic recoveryplan talks but praises the sincerity of those who tookpart.

Feb 3 - Labour Finance spokesperson JoanBurton described the breakdown as “theworst of both worlds” and criticised lastweek’s framework document for having “al-most no specifics in it”. IBEC director gen-eral Turlough O’Sullivan said it was “greatpity” the process had not secured an agree-ment, and called for decisive action from thegovernment “to make sure our external rep-utation is protected”.

Feb 3 – Brian Cowen tells the Dail the Cabinet hasagreed to press on with the new pension levy claiming itwould save €1.4 billion on the public pay service bill.Defending the cuts he said the government had beenguided by “principles of fairness and prudence in makingthese tough decisions”. Fine Gael leader Enda Kenny de-scribed the plan as a “€2 billion sticking plaster” for agaping wound that had not been treated at its root.Labour leader Eamon Gilmore claimed the net effectwas that nurses and gardai on modest incomes of€45,000, who were already paying €5,000,would be asked to pay an additional€3,375. He added:“They will want toknow,‘Why are they paying this for?’”Impact claimed the failure to agreemeasures to protect lower paidworkers, or secure a bigger contri-bution from business and the bet-ter off, made the announcement“extremely difficult” for ordinaryworkers to swallow. SIPTU chiefJack O’Connor said that he regrettedthe failure to reach agreement on a so-cial solidarity pact. He added:“Regrettablyworking people once again are expected tocarry the entire burden of a crisis created bythose at the top of society.”

Feb 4 – At a press conference in Dublin ICTUchief David Begg claimed the missing ingre-dient in the government’s proposed cuts wasfairness. He said that if the union could nota secure a re-engagement on morefavourable terms, “we would have to con-sider a campaign against the government”,adding, “We're not going to be rolled overby anybody in that process, no matter whathappens”. Mr Begg said ICTU would alsoseek to convene a full executive councilmeeting to discuss future strategy at which“all options” would be on the table.

Feb 4 - Frank Fahey, chairman of the Oireachtas trans-port committee, claims Dublin Bus has gone for "thesoft option" in cutting jobs. Frank Fahey made his com-ments to Dublin Bus supremo Joe Meagher and Bus

Eireann CEO Tim Smith who had just made a presenta-tion to the committee on plans to shed 290 jobs atDublin Bus and 320 positions at Bus Eireann.

Feb 8 – Environment Minister John Gormleysaid executive pay would have to be slashedif the state uses taxpayers’ money to shoreup the banks.

Feb 8 – Impact general secretary Peter McLooneclaimed that while unions wanted to effectively opposethe unfair public service levy they also wanted to main-tain a focus on employment, pensions and economic re-covery. He said:“A big part of the anger among publicservants comes from the fact that workers alone havebeen singled out to make sacrifices while top executives

and the wealthy have not been asked to make any tangi-ble contribution.”

Feb 8 - About 800 staff working in privatehospitals in Dublin are to ballot on industrial

action over the payment of the firstphase of the national pay agree-

ment. SIPTU’s health sectororganiser Paul Bell claimed

some profitable privatehospitals felt they didnot have to pay pay rise.He added: “We cannotaccept private hospitalsprofiteering from thesituation by not paying

their employees the 3.5per cent and thereby

making bigger profits to re-ward shareholders.”

Feb 9 – INO general secretary Liam Doranclaims all options will be considered in forcing a govern-ment rethink on what he called the “unfair, unjust andindefensible” pensions levy. Meanwhile, Health MinisterMary Harney said it was not unreasonable to introducea pension contribution. She added:“The view was takenthat we should start introducing a pension contribution,given the huge benefits that are attracted to having aguaranteed pension in today’s environment”.

Feb 9 – SIPTU chief Jack O’Connor warns ofindustrial action “on a dramatic scale” andwould involve much more than “just walksaround town”. He also accused governmentof being party to an agenda with bosses todrive down wages.

Feb 9 – Labour leader Eamon Gilmore claimed therewas an “orgy of scapegoating” against public sectorworkers. He added:“Setting worker against worker is anold stratagem, used by establishments down the genera-

tions and I find it as unacceptable now as I would havewhen Catholic and Protestant workers were set againsteach other in Belfast in the 1920s.”

Feb 10 - Fianna Fail senator Jim Walsh callsfor a swingeing cut in public sector salariesand jobs claiming there was a divide devel-oping between public and private sectors. Hecalled for salaries to be slashed by at least 10per cent along with a 15 per cent reductionin the number of public sector workers, con-centrating on those who were “not perform-ing”.

Feb 11 - ICTU announces it has drafteda 10-point programme dubbing it a “fair”

plan for economic recovery. The document outlineshow issues of competitiveness, taxation, consumer con-fidence and employment rights could be dealt with. It ar-gues for a third rate of tax for the higher paid and saysproperty tax should only apply to second homes. Con-gress also called for a national rally to be staged inDublin on Saturday February 21.

Feb 11 - SIPTU leader Jack O’Connor claimsgovernment and bosses’ failure to honourthe national pay deal “will inevitably resultin sustained campaigns of industrial action”.

Feb 13 - Irish Times MRBI poll reports a collapse in sup-port for Fianna Fail with Labour forging ahead of themfor the first time ever. Support for Fine Gael alsoslipped.

Feb 14 - SIPTU general secretary JackO’Connor calls the levy proposals a deliber-ate attempt to lower wages as a substitutefor devaluing the currency. Meanwhile,Defence Minister Willie O’Dea claimed therewould be no fundamentalchanges to the levyplans.

Feb 15 - Impact generalsecretary DenisRohan claims publicservants are readyto play their part inany economic re-covery process, butinsists they want anymeasures to be fair.

There isan orgy of

scapegoatingworkers in public

sector

““

Eamon Gilmore

Points north: Eamon Gilmore’s Labour Party is ahead of Fianna Fail in MRBI poll

Poll boost:Labour’s JoanBurton


1. The Challenge

We are experiencing the most profound globaleconomic crisis in seventy years. In addition tothe effects of an international financial and bank-ing crisis and a worldwide recession, the Irisheconomy is suffering from the aftermath of alarge housing and construction boom and a lossof cost competitiveness after a period of sus-tained growth.

This is being exacerbated by the decline in thevalue of Sterling relative to the Euro which isplacing extreme pressure on Ireland’s base of ex-porting companies.

While the uncertainty about international de-velopments makes predictions difficult, Irelandnow faces the prospect of:� a reduction of up to 10% in national incomeover the 2008-10 period� a loss of more than 120,000 jobs over 2009and 2010� an increase in unemployment to more than10%� tax revenues in 2008 more than €8 billionbelow expectations, and a further fall projected in2009, creating an unsustainable Exchequer deficit� without further adjustments, a General Gov-ernment Deficit in the range of 11% to 12% ofGDP for each year up to 2013

There are in fact significant downside risks tothese projections including:� a steeper or more prolonged downturn in ourmain trading partners� the possibility that global financial marketproblems deepen or persist for some time� further exchange rate appreciation� a further decline in international and domesticconfidence and investment

Although the pace and scale of the economiccrisis is unprecedented, making a full analysis ofthe causes and implications for global and domes-tic policies difficult at this time, the Governmentand Social Partners agree that urgent and radicalaction is required to restore stability to the pub-lic finances, to maximise short-term economic ac-tivity and employment and to improvecompetitiveness.

Failure to implement radical decisions has thepotential to erode national and international con-fidence in the Irish economy with profound risksfor all sectors of Irish society.

This document therefore sets out a frameworkwithin which the Government and Social Part-ners have agreed to develop a Pact for Stabilisa-tion, Solidarity and Economic Renewal.

2. Shared response through partnership

As Social Partnership was central to Ireland’seconomic resurgence starting with the Pro-

gramme for National Recovery in 1987, the Gov-ernment and Social Partners believe that a similarapproach now, based on an equitable approach totackling the problems facing the country, will helpus find a way through current difficulties and sup-port internal and external confidence.

In developing a Pact, the Government and So-cial Partners are fully committed to an approachin which all sectors of society contribute in ac-cordance with their ability to do so, and con-versely the most vulnerable, low paid,unemployed and social welfare recipients are in-sulated against the worst effects of recession.

The Government and Social Partners believethat by making the correct decisions now, andcommitting to working together through the fur-ther difficult challenges which lie ahead, we candeliver reforms which allow us to still realise ourshared goals for Irish society, most recently out-lined in Towards 2016, while also laying the foun-dations for sustainable economic recovery.

3. Stabilising the Public Finances

The Government and Social Partners are agreedon the necessity to progressively reduce the levelof Exchequer borrowing over the next five yearsin order to reduce the General GovernmentDeficit to below 3% by 2013 through an appro-priate combination of expenditure and taxationadjustments.Public Expenditure

The adjustment to be achieved through reduc-tions in expenditure will be based on the follow-ing criteria:� ensuring a fair and equitable spread of the bur-den of adjustment� maximising the level of sustainable employ-ment� solidarity with those now losing their jobs� maintaining high-priority public investments� careful forward priority planning� increased efficiency, effectiveness and a focuson outcomes

The scale of the necessary adjustment requires

scrutiny of all areas of public expenditure includ-ing agreeing measures on how to constraingrowth in public sector pay and pension costs.Taxation

The adjustment to be achieved through furthertaxation measures will be informed by the follow-ing principles:� Changes to be fair and equitable with a higherproportion falling on higher incomes while min-imising distortionary effects between differentforms of tax� Support the productive sector of the economyto keep Ireland competitive� Ensuring that tax expenditures are fully evi-dence-based� Broaden the tax base and make changes thatare straight forward, easily understood and easyto administer� Additional progressive tax measures consistentwith the social solidarity approachAdditionally, given the urgency of the situationand the role that taxation will have to play inbringing stability back to the public finances, theGovernment is asking the Commission on Taxa-tion to identify appropriate options to raise taxrevenue and to complete its report by Septem-ber 2009.An Equitable Approach

The Government and Social Partners believethat support for these adjustments will bestrengthened by measures which demonstratethat the burden is being shared equitably acrosssociety. This includes:� the need to ensure that moderation in respectof executive remuneration is seen to contributemeaningfully to the adjustment required� that those who benefited most from the eco-nomic boom shouldmake a particular contribution to the adjustmentrequiredDelivering the FiscalStabilisation Framework

The Government and Social Partners agreethat a credible response to the fiscal situation re-quires a further adjustment at this stage of theorder of €2 billion in 2009.

BRIEFING

IN EARLY January, Congress met with Taoiseach Brian Cowen andsenior Government officials to discuss how the unfolding economicmight be tackled.

Congress proposed the establishment of a Social Solidarity Pact,where the burden was shared across all sectors. Congress subsequentlysubmitted a range of detailed proposals on what might be contained in aSocial Solidarity Pact.

On January 28, following intense negotiations between Government,Congress and the employers, agreement was reached on the principlesthat would underlie any new national deal, along with the key issues itwould address.

Draft Framework for aSocial Solidarity and


In addition to this immediate adjustment re-quired in 2009, the Government and Social Part-ners commit to working together under the Pactto support the further adjustments required toreduce the General Government Deficit below3% over the remainder of the five year period.

4. Short-term Stabilisationof the Economy

Given the severity of the short-term economiccrisis facing the country, a range of measures willbe undertaken as part of the Pact to stabilise theeconomy and minimise negative social impacts.

In order to maximise economic activity andemployment in the short- term, the Governmentwill:� provide a fiscal stimulus in 2009 and 2010 bymaintaining capital investment at a high level byboth international and historical standards� re-prioritise this capital expenditure in 2009and 2010 in order to support labour-intensive ac-tivities where possible� bring forward further proposals to support en-terprises during this extremely difficult period,recognising in particular the pressures arisingfrom currency movements, and thereby supportthose in vulnerable employments� act quickly to improve competitiveness includ-ing increasing competition across the economyand reforming price regulation in areas such asenergy

It is recognised that stabilising the financial andbanking sector is essential to secure a bankingsystem which is fit for purpose.

Accordingly, Government action will seek to:� assist those who get into difficulties with theirmortgages; in early 2009 a new statutory Codeof Practice in relation to mortgage arrears andhome repossessions will be brought forward, andthe mortgage interest scheme will be reviewed� maximise the flow of credit to the enterprisesector and ensure early introduction of a code ofpractice on business lending� introduce controls on the remuneration of

senior executives, in accordance with the recom-mendations of the independent committee estab-lished by the Minister for Finance, including therequirement that bonuses are measurably linkedto reductions in guarantee charges, reduction inexcessive risk taking and encouraging the longterm sustainability of the institution� maximise sustainable employment in the sec-tor

Recognising that unemployment will rise signifi-cantly in the period ahead, the Government andSocial Partners will work together to maximiseemployment and help those who lose their jobsby:� designing a flexicurity approach appropriate toIrish conditions which keeps people workingwhere feasible and equips people to return toemployment as quickly as possible by maximisingthe availability and impact of education, upskillingand training supports� redeploying resources to ensure efficient andtimely delivery of direct State supports to thosewho lose their jobs including social welfare pay-ments, redundancy payments and payments toworkers n cases of insolvent companies

The Government and Social Partners will ad-dress the serious and urgent difficulties facing pri-vate sector pension schemes.

5. Work together toimplement a reform agenda

The Pact will set out a short-term agenda to ad-dress the economic crisis facing the country. Indoing so, the Government and Social Partners ac-knowledge that reform and change across manyareas of economic and social life need to be pri-oritised to ensure that Ireland emerges from thecrisis as quickly as possible.

However the Government and Social Partnerscommit to working together on the following pri-ority issues in the period ahead, within theagreed fiscal stability framework set out above:(i) to implement an agenda for enterprise andcompetitiveness based on the Framework for

Sustainable Economic Renewal: Building Ireland’sSmart Economy including:� building on strengths in the Agriculture, Fish-eries and Food sectors� developing the ideas economy with intensifiedR&D activity and greater commercialisation ofthe output of that research� supporting the manufacturing sector� encouraging entrepreneurship and businessstart-ups� pursuing opportunities to expand the servicessector, in particular international services� realising the long-term potential of the tourismsector� improving trade, investment and tourism linkswith new and fast- developing markets� pursuing opportunities in the Green Enter-prise sector, including in the area of energy effi-ciency(ii) to develop a new approach to upskilling andreskilling those in employment and those outsidethe labour market; we will convene a Jobs andSkills Summit in March 2009 to devise innovativeapproaches to maintenance of employment, cre-ation of new employment and early and activeengagement with those losing their jobs; we willalso seek to maximise eligible support from theEuropean Globalisation Adjustment Fund for ini-tiatives to support those who are made redun-dant(iii) to ensure that sheltered sectors of the econ-omy, including professional services, bear theirfull share of the burden of adjustment(iv) to implement the employment rights provi-sions in the Towards 2016 Transitional Agreement(v) to deliver measurable public service reformto improve the efficiency and quality of publicservices, based on the Government’s Statementon Transforming the Public Service published in2008(vi) to continue implementation of the HealthService Reform Programme, including utilising theHealth Forum under Towards 2016(vii) to finalise a comprehensive framework forfuture pension policy which responds to the chal-lenges facing the Irish pensions system in theyears ahead(viii) to ensure our approach to regulation, ac-countability and corporate governance delivers asustainable society and economy

6. Conclusion

The Government and Social Partners commit towork intensively over the immediate periodahead to develop specific measures to finalise andthen implement a Pact based on this framework.

28 January 2009

Pact for Stabilisation,Economic Renewal...


CONGRESS has consistently advocated theadoption of a Social Solidarity Pact as a betterand fairer route to national recovery.

On January 28, Congress, Government and theemployers settled on an outline FrameworkAgreement, which was to provide a basis formore detailed discussions on a National RecoveryPlan.

The Framework committed all parties to a planin which “all sectors of society contribute inaccordance with their ability to do so, and… themost vulnerable, low paid, unemployed and socialwelfare recipients are insulated against the worsteffects of recession.”

But Government failed to follow through onthis commitment, which envisaged no less than acoherent response to all of the major issues fac-ing working families.

They resorted instead to a narrow focus on thepublic finances – without seeking a contributionfrom the wealthy.

Their intent is to achieve a competitive devalu-ation of wages across the economy, as we are nolonger in a position to devalue the currency.Ironically, a currency devaluation would be moreequitable, as it would reduce living standards foreveryone, not just workers.

Congress remains committed to the concept ofa Social Solidarity Pact and here we present 10key initiatives that we believe must form part ofsuch plan or agreement.

Our preferred option is to engage with all par-ties on these initiatives but if that is not possible,we will embark upon a major campaign to achievea change in policy, commencing with nationwidedemonstrations on February 21.

1Protecting jobs andtackling unemployment

Our social welfare system must be radically al-tered and integrated with skills enhancement, ed-ucation and training. In a number of Europeancountries, unemployed workers are guaranteedincomes of 80 percent of salary for two years,conditional on their participation in extensivetraining and upskilling. Employers are also assistedto identify alternatives to redundancy, such asshort term working weeks and other arrange-ments.

A similar scheme, modified for Irish conditions,could be funded by amalgamating current expen-diture on benefits with additional funding fromthe Public Capital Programme (PCP). This ap-proach should be complemented by reprioritisingthe PCP to support job protection and labour in-tensive activities.

2The bank system andthe public interest

The Bank Recapitalisation Programme involveshanding over €7 billion of public money, from thePension Reserve Fund, to the same people whopresided over the collapse.Their refusal to foregoenormous personal salaries and bonuses speaksvolumes about their contempt for the taxpayer.That €7 billion must not disappear into a blackhole and only one consideration – the public in-terest – should inform Government decisions onthis crucial matter. And given all that hasemerged about the conduct of senior bank exec-

utives, we require a complete overhaul of Corpo-rate Governance and clear indications thatwrongdoing will be punished. Support for thebanking system should be conditional on:

� Public control, either through Recapitalisa-tion or Nationalisation;

� A legally-enforceable obligation to providesupport for innovation and development in theeconomy, along with credit and support for busi-ness cash flow, where it can be shown that it iscritical to job protection or creation;

� Replace all top executives responsible forthe crisis, in the relevant banks;

� Remuneration from all sources for those atthe top must be capped;

� Three year moratorium on home reposses-sions, where people cannot pay due to redun-dancy or unfair dismissal.

3Competitiveness

In addition to the absence of a properly func-tioning banking system, the most immediatethreat to our competitiveness comes from theweakness of Sterling, not wage rates.This ac-counts for about two thirds of the deteriorationin recent months.

Energy prices must be reduced and the onlyimpediment to this is the nonsensical regulatory

regime that has pushed prices higher to ensureprivate generating companies make a profit. Cou-pled with the failure of our broadband infrastruc-ture - following the privatisation of Eircom - thisdemonstrates the critical importance of strategicstate intervention in the economy.

Our cost of living in Ireland is some 20 percentabove the European average. Failure to passthrough gains from a weakened Sterling and highprofessional fees are an unjustifiable drag on com-petitiveness.

4The ‘payagreement

Congress continues to adhere to the SocialPartnership agreement. The Government, CIFand IBEC have now, in effect, reneged on the paydeal they negotiated in September 2008. Yet, sig-nificant numbers of private sector companieshave paid the first phase of that deal and othershave committed to doing so. No credible reasonhas been advanced to explain why the ‘inability topay’ clause has not been utilised.

This is no less than a campaign against wages, asan alternative to a currency devaluation, to pro-mote competitiveness. But the state of the globaleconomy is such that wage devaluation is unlikelyto have much impact on exports, whereas it will

BRIEFING 10 POINT PROGRAMME


seriously depress domestic demand.Ultimately no incomes policy can have credibil-

ity unless the remuneration of senior companyexecutives is curtailed, as has happened in the US.

5Fairnessand taxation

The Framework Agreement includes commit-ments to fair and progressive taxation measures.But Government must spell out what this meansin practice. How much of the €2bn shortfall willbe carried by the wealthiest in the country? Webelieve the following reforms should be intro-duced:

� Income from all sources – capital and labour- must be taxed the same;

� Tax exiles must stay away if they don’t wantto be taxed here;

� Tax shelters without a proven economic gainshould be abolished;

� A property tax should apply to propertyother than the principal private residence;

� The levy on high earners (above €100k)should be graded upwards significantly;

�A new rate of income tax at 48 percent forhigh income earners;

� Abolish hospital co-location, with its gener-ous tax breaks for developers.

6Restoringconsumer confidence

The property boom encouraged unsustainablelevels of credit and spending. This has now beenreversed and people are frightened to spend. Thisfear is paralysing the economy as people are wor-ried about unemployment, pensions and repos-session of their homes. As almost half our GDPcomes from consumer spending, this has enor-mous implications. It undermines employmentand jeopardises the survival of businesses. Thestate also loses out on tax revenue.

It is imperative that people’s fears are ad-dressed. The failed policies of letting the wealthyoff the hook, while forcing working families payfor the crisis, has already led to a slump in con-sumption unparalleled elsewhere in Europe. Re-tail sales in Ireland have been falling at an annualrate of 8 percent, as compared with the EU aver-age of one to two percent. RecentVAT increaseshave exacerbated the problem.

Policy to date has been almost exclusively de-flationary in practice. Surely the most sensible op-tion is to stimulate the economy, rather thandampen spending and growth? To this end, all par-ties must now return to the negotiating table toagree a resolution of the situation on the Na-tional Pay Agreement, to provide people withsome confidence for the future.

There isa better,fairer wayCongress Plan forNational Recovery

7Public service‘pension levy’

We acknowledge there is a crisis in the publicfinances. Government must return to the Frame-work Agreement of January 28.This recognisedthe necessity for radical measures to bring thepublic finances under control, on the basis of allsides contributing in accordance with their abilityto do so. Until that happens there can be no sus-tainable plan for national recovery.

The so-called ‘Public Service Pension Levy’ is acrude and unfair instrument. As currently struc-tured it is a straightforward pay cut. It has no re-gard for ability to pay. Indeed, some people onlower incomes pay proportionately more thanthose on higher pay. Apart from seeking totackle the public finances without charging thewealthy a cent, it is also part of a strategy to drivedown wages across the economy.

Workers did not create the problem, but willcontribute to resolving it - as long as the wealthyalso contribute. The problem with the coursecurrently being pursued by Government and em-ployers’ organisations is that the weakest suffer,while the wealthy contribute nothing.

8Pensions

Private sector pensions are in crisis and thereis increasing doubt about the long term viabilityof many funds. Government cannot stand by andallow people to emerge with nothing, havingworked and contributed to a fund for perhaps 40years. Waterford Crystal is a case in point.

Congress wants the National Pension ReserveFund to be used as a Pension Protection Fund –which EU law requires us to establish. It has notescaped people’s notice that there is official reluc-tance to use it for this purpose and none whatso-ever when it comes to propping up the banks.

Other innovations suggested by Congress in-clude a state backed annuity and the possibilitythat private pension funds could have the optionof voluntarily surrendering their assets to thestate, in return for a certain level of guaranteedpension.

9Employmentrights legislation

In Towards 2016 Government committed toenacting a programme of legislation to protectthe rights of all workers in the context of EU en-largement. The aim is to stop exploitation ofworkers regardless of nationality. Recent eventsin the UK demonstrate the need to get this legis-lation enacted quickly.

10Restoringconsumer confidence

It is clear that people are anxious to contributeto national recovery.This spirit could be chan-nelled positively by establishing a National Recov-ery Bond. While we have enough borrowings forthe immediate future, the state will presumablyneed to borrow more next year. With the cost ofthis borrowing increasing, a domestic NationalRecovery Bond could save the exchequer a lot ofmoney. It could also be targeted at specific sec-tors such as school building or public transport,so people could see tangible gains

NIPSA has published a landmark report on the useof Private Finance Initiative/Public Private Partner-ships in Northern Ireland.

The union commissioned the independent re-view from the University of Edinburgh’s Centre forInternational Public Health Policy.

It found that Northern Ireland faces a staggering£10 billion plus bill in unitary charges for PFI/PPPcontracts if Executive ministers stick with currentinvestment policies.

The research also found that critically,when localcompanies are facing meltdown and workers un-employment, the current set up channels work tolarge overseas companies at the expense of localproviders.

The report concludes the time is rightfor an independent review of capital in-vestment policy in Northern Irelandand recommends an immediate mora-torium on the use of PFI/PPP until thereview is completed.

Speaking at the launch of the reportProfessor Allyson Pollock, widely re-spected as an expert authority onPFI/PPP issues in the UK, saidthe team’s research con-firmed there was no cred-

ible base to support the current policies. She said:"Our report shows that the economic case forusing PFI/PPP in Northern Ireland is extremelyweak, and is becoming weaker still as the relativecost of private finance increases due to the finan-cial crisis.

“At the same time, with public sector ac-counting rules due to change, the so-called additionality advantage ofPFI/PPP is being eroded, under-mining the Northern Ireland Ex-ecutive’s central rationale forthe policy.

“This is therefore an appro-priate time for a full, inde-

pendent inquiry and, inthe meantime, amoratorium on theuse of private financefor current projects.

“For the inquiry to be success-ful, it will require the publication of allPFI/PPP contracts and financial models,

so that value for money can be properlyevaluated." NIPSA general secretary

John Corey strongly welcomed the report and in-sisted it provided “compelling” evidence for a fun-damental change of policy.

He said:“NIPSA has campaigned against the useof PFI and PPP for the provision of essential publicservice infrastructure and public services.We have

never been convinced that these procure-ment routes provide taxpayers with

value for money.“We have also been deeplyconcerned that in the longerterm massive unitary chargesfor PFI/PPP projects wouldleave Northern Ireland shortof public funding for essentialservices.“The publication of this inde-

pendent and rigorous reportanalysing the current and future

PFI/PPP commitments for NorthernIreland provides a compelling case for a fun-

damental review of the Northern Ireland Execu-tive’s policy on future public service procurement.”

NIPSA has forwarded copies of the report to allministers andAssembly committees urging them toimpose the moratorium on further use ofPFI/PPPs

Put brakesonPFIs/PPPscall


We have neverbeen convinced

these procurementroutes provide

value for money

““

PRIVATISATION

John Corey

Inquiry call: John Corey

�� The use of public privatepartnerships in NorthernIreland has dramatically in-creased since the late 90s.As of March 2008, contractsfor 35 PPP projects hadbeen signed, representingprivate financing of £1.29billion. A further 13 proj-ects, with a capital value of£1.94 billion, are now beingnegotiated with private sec-tor bidders and are due tosign before 2012.�� Private finance creates apublic debt. The public bod-ies involved in PPPs have topay annual payments to theprivate sector over a longperiod, often 30 years. Thefuture payments onschemes signed to dateamount to some £4.7 bil-lion. As the projects cur-

rently in negotiation aresigned off, the liabilities ac-cruing to PPP contracts inNorthern Ireland will rise tomore than £10 billion.

�� Different rationales havebeen used to support PPPin Northern Ireland. Thefirst devolved administra-tion regarded PPP as ameans of generating “addi-tional” investment. How-ever, this rationale wasbroadened during directrule, when PPP (by now the“preferred” method forcapital investment) wasembraced as part of widermeasures to reduce the sizeof the public sector.

�� In fact, neither rationaleis valid. The “additionality”of private finance is illusory

– an accounting anomalywhich distorts financing de-cisions. Similarly, the notionthat PPP can help to rebal-ance the economy is a mis-conception. This is a policythat will channel work tolarge, overseas companiesat the expense of domesticproviders, curtailing privatesector growth.�� In reality, the legitimacyof PPP stands or falls on itscost-efficiency credentials:i.e. whether the policy isbetter value than alterna-tives, such as direct borrow-ing. The evidence showsfinance costs are higher forthe private sector, and this,combined with an excessiverate of return on capital,has led to very high costsfor the public authorities

involved in contracts.

�� These costs are increasingfor new schemes due to thefinancial crisis, which haseliminated bonds - thecheapest source of privatefinance - and increased themargins on bank finance.

�� New accounting regula-tions will address theanomaly whereby debtraised through a privatesector intermediary is notrecorded on the public sec-tor’s balance sheet. Thiswill remove the central at-traction of PPP for the po-litical parties of NorthernIreland. With devolution re-stored, there is a clear needfor a full, independent re-view of capital investmentpolicy in Northern Ireland.

INFOFILE: Public Private Partnerships


THE NATIONAL Bus and RailUnion has called for thugs who at-tack bus drivers to be jailed and toface heavy fines.

It follows an incident on January 3when a Dublin Bus driver was as-saulted and his bus hijacked.

The driver, a Chinese national,suffered a hand injury and severebruising when he was dragged offhis vehicle on Cork Street andbeaten up. NBRU official John Mc-Grane called for "a zero-tolerancepolicy" when drivers are targeted.

He said: "The Minister for Justiceand the Minister for Transport needto put some sort of policy in place.

“Too often these people are justdealt with by the Garda juvenile liaison officer and the cases don’tgo through the courts.

“There needs to be heavy finesand custodial sentences.”

Zero tolerance call for bus thugs

THE Teachers Union of Ireland hasexpressed fears a generation ofschool leavers will become “the disappeared” of the educationalsystem in the Republic.

It follows the ending ofthe ESRI School LeaversSurvey, which in the pasthas provided invaluable in-formation on charting stu-dents’ progress through theschool system.

TUI president Don Ryanclaimed it was “absolutely vital” tomonitor every child in the systemto find ways of combating drop out rates.

He added: “There is now a severerisk that there will be an informa-tion deficit on the progress and fateof these marginalised young people,who will then in every sense be-come ‘the disappeared’ of Irish edu-cation.”

‘Disappeared’ fearsover end of survey

NEWSBRIEFS

Vital role: Ryan

NIPSA has defended civil servants following com-ments by two members of the House of Lords.

Lord Laird had raised the issue of what he called“danger money” being paid to 1,500 civil servantsin the Northern Ireland Office – a sum of £5.50per week gross.

But NIPSA general secretary John Corey coun-tered that the payment was in fact not dangermoney but part of civil servants’ agreed terms and

conditions. He told the BBC: “Civil service staffqualify for a small environmental allowance to takeaccount of the particular circumstances of theirworkplace and the physical conditions in whichthey carry out their duties.”

Civil Service employees working in prisons, po-lice stations and other law and order functions havequalified for the payment since the 1970s.

NIPSA also slammed Trade Minister Lord Digby

Jones’ stated view that many civil servants “frankly,deserved the sack” and that the job could be doneby half as many employees.

Mr Corey joined UK-based PCS union chiefMark Serwotka in labelling the Peer’s views “nar-row minded, naïve and insulting”.

Mr Corey added: “Clearly in his 16 months as aminister Lord Jones didn’t learn much about theCivil Service and what it does.”

NIPSA blasts Civil Service comments

MESOTHELIOMA support groups in the UK havecalled on the British government to fund a nationalcentre for asbestos-related diseases.

Currently almost all cash raised for research intothis form of cancer comes from families and friendsof sufferers.

British-based support groups have praised theAustralian government for giving $6.2 million to setup a research centre at the Concord Hospital inSydney which opened last month.

Now they want the UK government to do thesame and they’re planning to raise awareness of thedesperate need for funding on Action Mesothe-lioma Day on February 27.

The disease, caused by exposure to airborne as-bestos, kills more than 2,000 people in the UKalone each year.

Consultant thoracic surgeon John Edwards, whochairs the British Mesothelioma Interest Group,said: “Patients and their carers do not want thecompensation - they want their lives back.

“Industry does not want to pay the compensa-tion. Government does not want to pay the

benefits. Researchers are desperate for funds to de-velop life saving treatments - mesothelioma is farand away the least researched of the top 20 cancersin the UK.

“Funding for a UK centre is a priority. Such an in-stitution would encourage collaboration betweencurrent and future researchers and stimulate transnational research to generate future treatments toprolong and save lives."

Liz Darlison, a consultant nurse who works in thefield, added: “For too long mesothelioma victims'plight has been overlooked and under researched.

“Mesothelioma is a global public health disaster,wealthy countries with a high incidence of the dis-ease must work together to improve outcomes.

“We have the networks available for us to col-laborate internationally but need government sup-port and secured funding to enable us to moveforward."

A series of events are being across the UK onFebruary 27. Check out www.asbestosforum.org for details.

Mesothelioma:‘Funding’s vital’

UNION POST � February 200914

NEW figures have revealed Northern Ireland washit last year by its largest annual hike in unem-ployment ever recorded as Stormont’s EconomyMinister Arlene Foster warned the North couldnot expect to escape “unscathed” from the globaleconomic downturn.

Government returns showed the number ofdole claimants went up by 2,200 to 38,400 in January – a similar figure to that recorded in December.

The increase over the year to January - at14,700 - was higher than the UK average.

The annual percentage increase was 62pc, thehighest since the claimant count began in January1971.

Up to 80 per cent of the annual increase occurred in the last six months. Ms Foster said:

Record unemploymentrise in Northern Ireland

Full access to education vitalIMPACT general secretary Peter McLoone hasexpressed alarm that cuts have already begunto affect education provision.

He made his comments at a seminar onequality and disadvantage in education organised by the union.

Speaking before the breakdown of talks involving the social partners, Mr McLooneclaimed the most vulnerable had to be protected when dealing with the economicdownturn.

He said: “This means maintaining the levelof service you already provide; protecting the

standards that you have all worked hard toachieve. We should hope for nothing less thanthat, but continue to be ambitious.”

Barnardos chief Fergus Finlay also spoke andflagged up the huge role education system hadnot only in dealing with the causes of poverty,but also in ending child poverty.

He blasted the opportunity squandered innot setting up a pre-school education systemduring the boom years of the Celtic Tiger.

Mr Finlay said: “There is little doubt thathigh-quality intervention at an early stagedoes a lot to tear down barriers.”

jOBS

SOLDIERS have called for assurancesthey will not be asked to break strikesif the public sector is hit byindustrial action.

Pdforra, the groupwhich representsDefence Forcespersonnel, askedfor clarificationfrom Defence Minis-ter Willie O'Dea.

General secre-tary GerryRooney said sol-diers had

been used in the past to break a num-ber of disputes, including those byambulance and bus workers.

Claiming that Defence Forces per-sonnel were firmly against the pen-sion levy, he added: “It will bemorally wrong for soldiers to be ordered to break strikes arising fromthis imposition."

In reply to a question in the Dail onFebruary 4, Mr O’Dea said: "DefenceForces may be called on to contribute

to maintaining vital services intimes of industrial action.”

Gerry Rooney

Alarm: Peter McLoone

Defence Forces body: We don’twant to be used to break strikesMID-ranking gardai have strongly

rejected government pay plans.The Association of Garda Ser-

geants and Inspectors said its mem-bers were furious they are beingmade to carry the can for errorsmade by major financial institutions.

General secretary Joe Dirwanclaimed many officers were facinghefty cuts in their wages - an aver-age €100 a week - and would beforced into debt.

The AGSI, which has already out-lined its opposition to the move in aletter to the Taoiseach, are to studythe levy legislation before workingout a strategy.

Gardai lash levy

“Last month showed another sharp increase inthe registered unemployed and the increase overthe last six months has been particularly marked.

“It is clear the local economy, in line with otherUK regions, is facing very immediate economicpressures.

“Northern Ireland cannot expect to emergeunscathed from the global downturn, however, weare working to limit its detrimental impact.”

FIGURES published last month show the numberof people unemployed in the Republic has morethan doubled in some counties in the last year.

The grim statistics revealed that the number ofpeople on the live register in Cavan, Monaghan,

Laois, Meath and Kidare has shot up by morethan 100 per cent over the past 12 months.Meath was the leading unemployment blackspot, with nearly 8,220 people on the dolecompared with less than 3,900 in January 2008.

The number of those unemployed in the Kildare, Meath and Wicklow region as a wholerose by 15.5 per cent last month.

The Central Statistics Office figures showed327,861 were claiming jobseeker’s benefit or allowance.

CSO results also flag up how unemploymentrates among non-Irish nationals is growing at afaster rate than among Irish-born workers.

Non-nationals now make up almost one in fiveof those signing on the live register.

Stats grim south of border...

EEXXPPAANNDD,, IINNVVEESSTT AANNDD OORRGGAANNIISSEE TTOO BBEEAATT RREECCEESSSSIIOONN PAGE 20

Clarification: Willie O’Dea

ROYAL Mail has denied they plan toscrap 16,000 jobs across the UK undera massive restructuring plan.

Bosses are to hold talks with tradeunions next month in a bid to “mod-ernise” the business in the face ofwhat it terms increased competition.

According to the CommunicationWorkers’ Union, which representsabout 3,000 Royal Mail staff in North-ern Ireland, the cost-cutting aspect ofthe plan will see 10 per cent savingsacross the group.

The postal group has already writ-ten to some workers setting out op-tions including offers of voluntaryredundancy or part-time work.

CWU deputy secretary Dave Wardsaid: “Royal Mail is pushing for an arbitrary 10 per cent cost saving foroffices across the country.

“This is not agreed by the CWU andcould have ahuge impacton both joblosses and areduction off u l l - t i m ejobs to part-time jobs.”

Describingthe move asbeing a panicm e a s u r ethat wouldhit services,he added: “This decision comes afterprofits in Royal Mail have soared,which brings into further question thenecessity of these cost-cutting quo-tas.”

CWU’s Northern Ireland SecretaryLaurence Huston said there had beenno talks locally with postal bossesabout the planned cuts.

He told one newspaper: “We aredisappointed that this has been re-ported before Royal Mail has evenmet with the unions.

“We are left in limbo, this is a con-cerning time for workers.”

The Royal Mail has denied it hasplans to cut 16,000 jobs.

A spokesperson said: “We have noplans for 16,000 job cuts and while weare trying to cut costs, it is about cen-tral costs and overheads and certainlynot about our frontline people.”

The Royal Mail employs around180,000 staff, mainly in its postal division.

Jobs fearover RoyalMail plan torestructure

Impact services: Dave Ward

JJOOBBSS TTIIMMEELLIINNEEPAGE 19

LABOUR Affairs Minister Billy Kelleher has calledfor a "realistic" review of the minimum wage, warn-ing it could hit the creation of new jobs.

He claimed new economic realities had to betaken into account and pointed out

that Ireland had the secondhighest minimum wage – at€8.65 – in Europe.

In particular he highlightedthe "huge pressures" on thetourism sector with increasedlay-offs among hotel workers.

Kelleher's ministerial colleague Mary Harney alsoweighed in on the issue.

She warned that many small restaurants werebeing affected finding it difficult for them to make areturn on the wage levels they have to pay.

Ms Harney described the current minimum – lastincreased in July 2007 – as “the floor” upon whichall other wages were based, adding, “in some places,twice that level is paid, for example, on a Sunday toall levels of employees.”

She claimed jobs were being put at risk and calledfor “pragmatism” on setting a rate.

Minimum pay warnings

FRENCH unions have hailed a one-day strike on January 29 as “thebiggest workers’ protest in 20years”.

Dubbed ‘Black Thursday’, unionsclaimed up to 2.5 million peopletook part in the demos – at least300,000 in a massive show ofstrength in Paris. Angry chants

filled the Place de la Bastille – po-tent symbol of the French Revolu-tion – as opinion polls showedthree-quarters of the public sup-ported the action.

CFDT union chief FrancoisChereque said: “We have not seenaction on this scale for twodecades. It is a cry of anger.”

Bastille stormed again

February 2009 � UNION POST 15

Harney: Wages warning


THERE IS A BETTER, FAIRER WAY


THERE is nothing more soul-destroying than thedole queue, nothing more likely to dishearten anddull the spirit than the prospect of ‘signing-on’.

Unemployment has a corrosive effect on individ-uals, families, wider society and, or course, theeconomy.

The higher the number out of work, the greaterand more widespread the damage.

Faced with the possibility of some 450,000 unemployed by year’s end, we need to engage insome very creative and innovative thinking if we areto prevent a downturn shape-shifting into a full-blown socio-economic crisis, the implications ofwhich we cannot even yet conceive.

As Congress has repeatedly stressed, the firstand foremost priority must be to protect existing jobs and maximise employmentlevels generally.

We should take this opportu-nity to fundamentally overhauland reshape our Social Welfaresystem, which was originallydesigned to ensure mass un-employment did not evolveinto mass destitution and, even-tually, social upheaval.

That model is no longer appro-priate in a globalised economy andcertainly not for the Smart Economyproposed by government.

Congress believes we look to Denmark for ex-ample.

Here, a system known as Flexicurity has helpedmaintain one of the lowest unemployment ratesand highest job satisfaction levels in Europe.

As the term suggests, it is a system designed tobalance the competing needs of flexibility for employers and security for employees.

Danish workers facing redundancy must be giventhree months notice – in Ireland it could be a matter of days.

In addition, redundant workers are guaranteed80 per cent of their salary for 48 months and theyare provided with training to equip them with themost up to date skills, relevant to their job.

This facilitates job transitions by providing stabil-ity, income security and an opportunity to improveemployability.

Implicit in this model is an awareness of the social and economic damage done by consigningpeople to the dole queue - a waste of time, moneyand peoples’ lives.

Crucially, Flexicurity overturns the traditional‘welfare’ paradigm by focusing on the skills and em-ployability of the person, as opposed to protectionof the job.

If the last decade has taught us anything, it is thattechnological churn will ultimately render all exist-ing jobs superfluous, while simultaneously creatingnew opportunities and therefore new employment.

And it is the recognition of this trend whichmakes Flexicurity a central component

of any new or even smart economy. Equally, by removing the gen-uine terror induced by thethreat of unemployment, thesystem incentivises people tocontinually upskill and retrain.

In countries, such as Ireland,that adhere to the traditional

‘welfare’ paradigm, the reverseis true.Someone on the average indus-

trial wage, who becomes redundanttoday, faces losing close to 75 per cent of

their income. Nothing can prepare you for this shock. Once on the dole they will be expected, not to

live, but to exist on €200 per week. Indeed a family of four will be forced to survive

on just €15 per day. Debts mount. The family homeis threatened. Homeless numbers rise.

And, of course, the longer a person is on thedole, the lower the chance of ever regaining mean-ingful employment.

It will be impossible to build any plan for nationalrecovery on such a foundation.

It will also prove impossible to work our waythrough recession if we continue to fail in matchingrhetoric to reality, in terms of training and skills.

For example, only a quarter of those currently atwork in this economy aged over 35 have a thirdlevel qualification. I recently heard an unemployedconstruction worker point out that he desperatelywanted to learn new skills, as opposed to ‘sitting’ onthe dole. But every state agency he contacted toldhim there was no money.

His despair and frustration were palpable. Howcan this make sense?

The lack of training provision for workers, particularly those on non-standard contracts is endemic and access to personal skills enhancementremains outside the grasp of the majority.

With a handful of honourable exceptions, employers have consistently failed to provide train-ing for workers.

Most other EU countries have introduced lawsrequiring employers to support employees learn-ing through paid leave, or to spend a percentage ofannual payroll on training.

Of course, the sceptics will point to Denmark’srelatively high taxes and higher public spending.

A simple answer is to point straight back to Ire-land’s now bankrupt low-tax economy, poor publicservices and rapidly growing unemployment.

It might also be worth pointing out that ‘high taxDenmark’ regularly outstrips the low tax modelsin the international competitiveness stakes.

The construction of a Flexicurity model in Ire-land would take time and cost money. But such aproject must be seen as a major investment in ourworkforce, skills’ base and social cohesion.

Ironically, the one point of consensus that hasemerged in recent months centred on the necessity to continue capital spending and maintaininvestment, despite the economic gloom.

Bridges, roads and rail are important in the econ-omy, but they don’t spend money, buy produce, paytax and create wealth.

Surely our national skills base demands and requires the same priority.

If we cling to the traditional welfare paradigm, itis almost certain that we will be condemned to repeat the many mistakes of our past. And thatdoes not bear thinking about.

Congress Policy Officer ESTHER LYNCH argues there is an alternative to thedamage inflicted on individuals and society by unemployment... it’s called Flexicurity

On the payroll ...not the dole

VIEWPOINT

Flexicurity is designed to

balance competingneeds of flexibilty

and security

““

July 2008 � THE BRAZIER 19

JOBS TIMELINE...JOBS TIMELINE...JOBSJan 8 – Dell announces the loss of almost 1,200jobs at its Limerick plant, as the computer gi-ants moves production to Poland. The remain-ing 1,100 Dell staff will primarily work inproduct development, engineering and logistics,focused on supporting overseas manufacturing.The cuts are not set to affect the 1,300 market-ing and sales staff at Dell's Cherrywood plant insouth Dublin. Dell products make up at least 5.5per cent of Irish exports and two per cent ofGDP.

Jan 8 – Blaming “market conditions”, engineering firm CoAntrim-based FG Wilson announced today that it was shed-ding 260 jobs at its three sites in the county. The firm laidoff more than 180 workers employed through a local re-cruitment agency before Christmas.

Jan 8 - Up to 150 workers are laid off for atleast a month the Fintec plant in Ballygawley.Bosses at Fintec, which manufactures construc-tion equipment, expressed confidence staffwould return after the lay off.

Jan 10 – Supervalu store in Kilkeel, Co Down, is to close atend of January with loss of 30 jobs. South Down MP EddieMcGrady describes it as “a devastating blow”.

Jan 12 – Asda announces it will create at least400 new jobs when it opens a flagship storeoutside Antrim.

Jan 13 – Usdaw welcomes jobs boosts in the retail sectoracross the UK. Tesco is creating 10,000 positions, Morrisonsover 5,000, Sainsbury’s up to 4,000 and Iceland 2,500 jobs.

Jan 14 – Dublin Bus announces a restructuringplan to reduce its fleet of 950 buses by 120 andcut 290 jobs from its staff of 3,500. Dublin Busbranch president Tony Fallon, after meetingwith management, said they would formulate aresponse to the proposals but made it clear theunion “will not accept compulsory redundan-cies”.

Jan 16 – German-owned car components company Kostalseeks 300 voluntary redundancies from its workforce - 200at its plant in Abbeyfeale, Co Limerick and 100 more in Mal-low, Co Cork. It is also seeking to introduce short-timeworking for all employees until the end of March.

Jan 20 - Bus Eireann informs its 2,700 staff it islooking to cut 320 jobs and reduce its fleet by150 vehicles, blaming a “challenging economicenvironment”. A pay freeze is also announced.SIPTU sectoral organiser Willie Noone said theannouncement, which contained no detailsabout where the jobs were to be axed or buswithdrawn, had created “an air of uncertainty”affecting “every employee, every commuterand every community in the country”.

Jan 20 - GE Money announces 100 compulsory redundan-cies at its Dublin and Shannon operations. This follows asimilar jobs cut in the second half of last year. IBOA generalsecretary Larry Broderick dubbed management handling ofthe situation “appalling” describing as “alarming” their “cava-lier attitude to industrial relations norms”.

Jan 21 - Superquinn confirms it will shed 400jobs nationwide and close its Dundalk store.This means the grocery chain will shed 12pc ofits staff. Management said it would also belooking for remaining staff to agree more flexi-ble terms and conditions.

Jan 22 - The Galmoy zinc-lead mine in Co Kilkenny willclose in May two years earlier than planned, with the loss of200 jobs. Canadian firm Lundin Mining Corporation, whichowns the works, said the closure is due to the sharp dropin zinc prices. SIPTU regional organiser Dennis Hynes said“It’s very disappointing. The workers are very fraught now. Alot of these people have been there for years and will find itvery hard. At least if this had happened four orfive years ago there wassome chance of gettinganother job, but withwhat's happening now,that's gone. They're goingout into a vacuum,there's nothing there.”

Jan 22 – Car partsmaker Montupet isto axe 40 jobs at itsplant at Dunmurry,

outside Belfast. The cuts follow an extendedChristmas break and the cutting of jobs at itsDerry-based Calcast subsidiary in November.

Jan 22 – Brokerage firm Prestige Insurance Holdings is tocreate 40 jobs at a new facility in Jennymount Business Parkin North Belfast.

Jan 23 – About 80 jobs are to go by the end ofMarch at Kildare County Council after councilchiefs announced they would not be renewingcontracts.

Jan 23 – Britvic’s Irish division announces it is to shed 145jobs over the next year as part of a restructuring pro-gramme. The losses will primarily affect the firm’s logistics,finance, IT and sales sections and will reduce Britvic’s Irishworkforce from 940 to about 800.

Jan 26 – Ulster Bank Group announces the lossof 750 jobs. The First Active brand in the southof Ireland is to be phased out and merged withUlster Bank branches. IBOA, which represents4,000 staff in Ulster Bank, and SIPTU, whichrepresents 360 staff in First Active, issues ajoint condemnation of the proposed cuts.

Jan 27 – Co Tyrone engineering firm Power-screen announces the loss of 90 jobs. The com-

pany cut 70 jobs in December and blamed on afall off in orders. Workers at Seagate Technol-ogy have been asked to take a 10pc pay cut.

Jan 28 – Retail giant Asda is to create 7,000 jobs across theUK. About 800 of the new positions will go to NorthernIreland. The company is currently seeking planning permis-sion for new stores in Larne, Belfast and at the JunctionOne complex outside Antrim.

Jan 29 – Newry-based Software consultancyfirm First Derivatives is to create 150 jobs inNorthern Ireland.

Jan 29 – Belfast hotel TenSquare hopes to create 75 newjobs if plans for a new expansion of its Donegall SquareSouth site are approved.

Jan 29 – Sandwich chain Subway announces it isto create 400 jobs across Northern Ireland overthe next two years.

Feb 1 – Vista Primary Care Campus is to create 120 jobs ata new purpose-built in Naas, Co Kildare.

Feb 1 - US firm Melcut Cutting Tools Ltd an-nounces it is setting up shop in Co Clare

with the creation of 50 jobs.

Feb 2 - A hundred jobs are to be created over thenext two years with the expansion of online taxagency taxback.com at its centres in Cork, Dublinand Kilkenny.

Feb 5 - 90 staff are to go over the com-ing year at Pobal, a not-for-profit firmthat manages programmes on behalf ofthe government and EU. Pobal chiefDenis Leamey said 52 out of 270 staff

had so far volunteered for redundancy.

Feb 5 – Aviation firm Bombardier in Belfast announces a further 300 job losses among sub-contractors, while an-other 300 full-time staff are to be made redundant at moblemanufacturer Ericsson’s Dublin plant. The lay-offs will takeplace over the next 18 months.

Feb 5 – Co Monaghan-based forklift makerCombilift is to shed 34 jobs from its total work-force of 230.

Feb 5 – Ryanair says it is to cut services at Shannon Airportand shed 100 jobs in the process. Airline chief MichaelO’Leary blamed “insane and suicidal” 10 euro travel tax forfall in passenger numbers in the west.

Feb 5 – Grain company Drummonds announcesthe loss of 44 jobs with the closure of itsbranches at Clonee, Navan, Kells, Drogheda,Ardee and Knockbridge.

Feb 5 – Home entertainment chain Chartbusters is to close17 of its stores with the loss of 60 jobs.

Feb 6 – 70 jobs go as production ceases at theNN Euroball plant in Kilkenny.

Feb 6- Reports that US banking giant Merrill Lynch is toshed 31 staff from its Irish HQ in Dublin.

Feb 6 – The Carlton Hotel Group announces itwas stepping in to rescue Castletroy Park Hotelin Limerick. The hotel closed last week with theloss of 130 jobs.

Feb 6 – A total of 93 dockers are to lose their jobs at thePort of Cork following an agreement on the modernisationof work practices.

Feb 7 – Co Armagh-based pharmaceutical firmAlmac is to create 99 full time and 28 tempo-rary posts. More than 90pc of the permanentjobs are for graduates with scientists particu-larly sought after.

Feb 7 – Fears grow for an unspecified number of jobs at theRoyal Mail in Northern Ireland following announcement ofa massive UK-wide modernising programme.

Feb 9 – Food group Glanbia is looking for 210redundancies across its operation as part of a€16m cost-cutting plan announced last month.

Feb 9 – SIPTU confirms layoff talks involving nearly 500workers at Banta RR Donnelly have begun. The plant’s facil-ity at Raheen, Limerick, provided services to Dell. It’sthought the firm is preparing to transfer its service to Lodzin Poland.

Feb 10 - SIPTU warns that up to 1,000 local authority staff on temporary contracts couldbe let go.

Feb 12 - Swiss-based aircraft maintenance firm SR Technicsis to shut its operation at Dublin Airport with the loss of1,135 jobs. Chief Executive Bernd Kessler said the manage-ment were aware of the “personal implications of the clo-sure to our staff in Dublin”. A Unite spokesman describedthe news as a “devastating blow”. Meanwhile, Ryanair alsoannounces it is to get rid of 200 positions including pilots,cabin crew and engineers.

Feb 12 - Workers at three of Tuam’s biggestemployers - Transitions Optical, Valeo andLogstrup - are told they are to go on three-dayand four-day working weeks.

Feb 12 - Tesco announces it is to create 250 new jobs inColeraine as planners give the green light to expansionplans at its current store in the Co Antrim town.

Feb 12 - Steam Global Services Inc in Derryconfirms it has put 150 employees on protec-tive notice following the end of some of its localcontracts with Logica.

Feb 16 - The National Bus & Rail Union revaled it has re-ceived an overwhelming mandate for industrial action up toand including strike action over the lay-offs at Bus Eireannand Dublin Bus.

Feb 16 - More than 150 former employeesprotested outside food firm Swissco’s Little Is-land plant in Cork. Swissco closed in Decemberwith staff receiving only statutory redundancy.


TAOISEACH Brian Cowen has been accused ofusing “woolly words” following his appeal to theIrish people’s sense of solidarity in facing downthe economic crisis.

He called on business and community to pulltogether but warned the standard of living waslikely to fall by 10 to 12 per cent over the nextfew years.

The comments, made in an unscripted addresslasting 17 minutes at a Dublin Chamber of Com-merce dinner on Februrary 5, were well receivedby the 300 business people at the function.

He was given a standing ovation after finishinghis speech.

But reacting to what was said, SIPTU chief JackO’Connor noted the Taoiseach’s stated desire tomaintain the social partnership process, which hesaid was “OK as far as it goes”.

He added: “However, despite all the woollywords about ‘working together’, the fact of thematter is that the only people he has inflictedpain upon in last Tuesday’s announcement arethose who have to work for others for a living,while not a cent is required of the wealthy.

“It will require a great deal more than woollywords to maintain social cohesion during the dif-ficult times that lie ahead as a result of the gov-ernment’s gross mismanagement of the economy

over the last 12 years.” In the speech, Mr Cowenemphasised the qualities he claimed the Irishpeople would need to show in order to deal withthe recession.

He said: “The one thing that characterisestheir success is their self-belief.

“If we decide to wallow in the sea of doubt donot be surprised if we remain in the turbulentwaters that we are in today.

“We cannot say that suddenly we lost our entrepreneurial can-do spirit that has brought usto where we are today.”

Underlining the difficulties that lie ahead, hesaid the task that now faced the government was“jobs, jobs, jobs”.

He added: “The profound changes that are hap-pening in the global economy mean that we won’trevert to the high rates of growth but we can evert to growth more quickly if we stick togetheras a community.”

Other points in the speech included:� The need to cut labour costs as well as

invest in infrastructure, education and researchand development,

� The importance of social partnership, and� The need to recognise the benefits that

flowed from EU membership. He said: “Our future is in Europe for all its faults.”

Woolly wordswon’t changefact workersbearing brunt

SIDELINES

TAXI drivers are demanding Trans-port Minister Noel Dempey slaps athree-year moratorium on the issuingof new licences.

Cabbies claim their livelihoods areunder threat from an influx of new-comers entering the industry as wellas a sharp drop in business from cash-strapped firms.

Organiser Jim Waldron said: "Dri-vers are staying on an extra couple ofhours a night trying to get an extrafew quid. There's going to be a tragedywith someone falling asleep at thewheel.”

Figures released by the Commis-sion for Taxi Regulation show a totalof 25,695 Small Public Service Vehiclelicences were issued in 2007. By 2008this had jumped to 27,429.

Cabbies call forlicences action

COMPLAINTS to the Pensions Ombudsman rose by 43pc last yearwith the construction industry facinga particular hike in numbers.

Pensions Ombudsman Paul Kennyclaimed that in 2008 his office dealtwith 101 complaints – up from 35 in2007.

According to Mr Kenny, many com-plainants came from eastern Europe.

He said with the rising number ofredundancies in the sector, moreworkers have been examining theirentitlements, only to realise these havenot been put in place.

Mr Kenny pointed out the growingnumber of liquidations in the con-struction industry may make it more difficult to secure money that is owed.

Pension gripesshoot up 43pc

A HOME Energy Conservation Authority report has revealed North-ern Ireland has the highest rate of fuelpoverty in the UK.

Despite efforts by the Housing Ex-ecutive to improve energy efficiency inits housing stock, the group warnedthis was not enough to deal with theproblem of fuel poverty which affects226,00 households in the North.

The report’s authors pointed outthat since May last year, coal priceshave risen by a quarter and gas pricesby 28pc in the same month followedby another 19.2pc hike last October.

Electricity costs shot up by 14pc inJuly and again by 33.3pc in October.

The authors stated: “In 2001 onlyaround 20,000 households of incomesbetween £10k to £15k were in fuelpoverty whereas by 2006 this had tre-bled to over 61,000.”

Extent of NI fuelpoverty revealed

DUBLIN Busdrivers haveaccused Coal-tion partnersthe Greens ofhypocrisy.They claimthe party hasstood by asthe transportfirm with-draws 120 ve-hicles from itsfleet andaxes 290 jobs.Angry driverswaving plac-ards staged aprotest out-side of theparty’s HQon February2. Protest or-ganiser OwenMcCormacksaid: “Wedidn’t expecta whole lotout of FiannaFail regardingpublic trans-port, but it isa core Greenpolicy.”

Journalistsat the DerryJournal areto ballot onindustrial ac-tion overpublisherJohnstonPress’s plansto centraliseproductionof its stableof papers.The movewill see subeditors beingmade redun-dant after itwas revealedthe subbingopertion of anumber oftitles - in-cluding theDonegal De-mocrat andBelfastNewsLetter- will trans-fer to a sin-gle centre inCraigavon.NUJ fear 31positionscould be lostin theprocess.

BITESDrivers blastGreen Party

Fears 31 subsjobs could go

COWEN SPEECH

Talking shop: Brian Cowen at Congress last year. His speech to the Dublin Chamberof Commerce earlier this month drew a more robust response from trade unionists


CONSTRUCTION

PENSIONS Ombudsman Paul Kennyhas served notice on bosses who takecontributions from workers but fail topay into pension schemes, they will bepursued through the court system.

It’s claimed the vast majority ofcases where this happens involvessmall construction firms.

Employees in the building trade whoare over 20 should be part of the Con-struction Workers' Pension Scheme.

The employer pays in 4.2pc of wagesand workers have 2.8pc deducted fromtheir wages.

Mr Kenny – who received 101 complaints on the issue last year – saidthe usual excuse deployed by offendingfirms was cashflow, but added thatthey then often used solicitors to ob-struct his work.

He said: "Often you get complaintsfrom people who have been workingfor four or five years, and the pensioncontribution have been coming out oftheir wages but you find that no pen-sion contributions have been paid.

"The money was deducted during theboom years when these guys (builders)were making pots of money, but themoney has never being paid into thepensions scheme."

57 died inworkplace accidentslast yearFIGURES released by the Health and SafetyAuthority have revealed 57 people died lastyear in workplace accidents in the Republic.

More than 90pc of victims were men andmore than half of the fatalities were in agri-culture (21) and construction (11).

The statistics, contained in CSO’s Quar-terly National Household Survey, alsoshowed that more than 50,000 employeeswere injured with about 20,000 needingmore than four days off work as a result.

Workplace accidents cost the exchequerabout €2 billion a year.

HSA chief executive Martin O’Halloran especially welcomed anecdotal evidence of acultural change in the construction sector regarding work safety.

He told the Irish Times: “It’s no longer con-sidered ‘unmacho’ for guys to wear helmets,high-viz vests, gloves, eye protection and soon. It takes a long time to change these attitudes but it’s becoming the norm now.”

Ombudsmancourts vow on pensions

BOB Doyle, Ireland’s last SpanishCivil War brigadista has died, aged92.

The Dublin-born veteran left-winger first fought fascism in theguise of General O’Duffy’sBlueshirts on the streets of Dublinin the 1930s.

He had joined the local IRA butclaimed his only activities wereblowing up statues and other “relicsof British imperalism”.

Doyle later became involved withthe Republican Congress before theattack on the Spanish Republicprompted him “to do his bit”.

He signed up with the British bat-talion and fought at the Battle ofBelchite in March 1938 before being

captured with 140 other volunteersby Mussolini’s Black Arrow division.

Released in February 1939 in aprisoner swap, Doyle later served inthe Merchant Marine during thewar before settling in Londonwhere he continued his political ac-tivism into his 90s.

His autobiography Brigadista: AnIrishman’s Fight Against Fascismwas published in 2006.

Doyle, who worked most of hislife as a printer, was honoured in amarch through central Dublin onFebruary 14. Family members tookthe indefatigable fighter’s ashes toIreland for the event.

Bob Doyle, last IrishBrigadista, dies at 92

FARMERS have demanded a 20pccut in the minimum wage to re-store competitiveness and get theeconomy moving.

Calling for salaries to be slashedat all levels, Irish Farmers' Associ-ation president Padraig Walshewarned the only alternative to

the swingeing move was the lossof a substantial number of jobs.

However, he told delegatesat the IFA annual generalmeeting the governmentshouldn’t come looking for

cuts from farmers themselves.

Walsh: Cut pay by fifth

Wages call: Padraig Walshe


IBOA urges state plan for bankingTHE IBOA has called for a comprehen-sive state plan for the Irish banking inthe wake of a recent series of blows tothe industry.

General secretary Larry Broderickclaimed this was necessary to “provideclarity” and allay uncertainty about thesector’s future and comes after themove to fully nationalise Anglo IrishBank.

He said: “The banking sector shouldbe playing a pivotal role in the effortsto promote economic recovery in Ire-

land. Unfortunately, as a result of anumber of factors – but chiefly the sin-gular pursuit of short-term paper prof-its for shareholders rather than thebuilding of sustainable value in thelong-term – Irish banking is ill equippedto discharge that responsibility.”

While supporting government efforts,he said now was the time “to provideclarity for the citizens, for the taxpay-ers, for the customers, for the share-holders and for all the employeesworking in the sector, as to the future

direction of Irish banking”. Mr Broder-ick called for an independent audit ofthe circumstances leading to the crisisat Anglo-Irish Bank as well as a “rootand branch” review of the regulatoryframework governing financial services.

He also warned the government totake “whatever action is necessary” toprevent the acquisition of AIB andBank of Ireland by private equity com-panies who would seek “to maximiseasset values at the expense of cus-tomers and workforce”.

Expand, investand organiseTHE economy of Northern Ireland is now in a recession that will last at least two more years, according to every economic pundit.

The most conservative estimate is that unem-ployment will reach 50,000 by early 2010, especiallyin construction, manufacturing, retail and services.

Northern Ireland is protected to some degree,by the existence of an efficient public sector, whoseworkforce is now the backbone of our economy,ensuring that demand for products and servicesfrom our delicate private sector continues.

The greatest threat to our long-term prospectsis the fatalism of some who call for cuts to our pub-lic services, and the unwillingness of banksto act as responsible citizens instead of gatekeepers of theirshare options.

This global recession will re-quire global answers, such asPresident Obama’s stimuluspackage, and perhaps even in-ternational financial regulationin the shape of a ‘Tobin Tax’ oninternational bond and sharedealing. Locally, there is much thatcan be done to protect and stimu-late our economy.

At the first meeting with the First andDeputy First Ministers last October, the NI Com-mittee made a series of positive proposals aimedat alleviating the stress and strain of the loomingrecession.

These have been followed up with further meet-ings, and the NI Executive has adopted some Congress suggestions to stimulate the economy, especially in the construction sector. ICTU

proposed that the Executive should request banksand building societies for a moratorium in houseforeclosures for one year and the creation of aWorkers’ Protection Fund, modelled on the exist-ing Pension Protection Fund, which can ensureearly payments of redundancy pay and othermonies due to workers made redundant, ratherthan waiting for months for redundancy paymentsas happens too often when companies enter receivership.

The NI Executive has been urged by ICTU tofrontload some of the £12 billion remaining of thestrategic infrastructure investment and support

construction jobs. Congress is arguing that these pub-lic procurement contracts should

adapt EU guidelines which allowfor these projects to employand upskill the long-term unemployed and schoolleavers.

There should also be a crite-rion whereby local suppliers can

be used to supply basic buildingequipment, from bricks to bulldoz-

ers. This is not protectionism. This isinvestment. Such steps are also necessary

in the light of the ceasing of credit from banks,which is forcing several viable enterprises to thewall. Regional and national government (and pub-lic opinion) must press the banks to start lending sobusinesses can invest.

In the light of the cancellation of the Maze national stadium project, the Belfast area is still inneed of a substantial conference centre, to stimulate a sustainable stream of tourist and

commercial visitors. The 2009 ICTU Biennial Delegate Conference was due to be held in Belfastthis year, but lack of support means that instead,the BDC is being hosted in Kerry, which will profitfrom an estimated £3 million into its local economyat the expense of Belfast’s.

To fund such a publicly-owned conference centre,using vacant land such as at the Lough Shore, a levyof £1 for every hotel room booking in the Belfastarea could subvent what would be a vital boost forBelfast’s tourism and hospitality industry.

We can also invest in our future prosperity byengaging in large-scale programmes to properly insulate housing. It is estimated that 400,000 homesare energy-inefficient.

A fraction of those homes being lagged wouldprovide substantial employment as well as improv-ing the fiscal and environmental values of thoseproperties.

This is the most opportune time to invest in research and development into the green technologies for which there is a massive globalmarket. If we can hold on to our most talentedgraduates and our skilled manufacturing base, wecould transform the shape of our private sector.

Property and retail formed the base of the‘boom’ which as just passed.

We need a more long-term strategy for the development of a prosperous private sector pro-portionate to the population. For too long, the private sector was too small because it thought toosmall.

The best outcome in the aftermath of this down-turn would be a strong public sector and vibrantprivate sector complementing and supporting eachother and all of society.

ICTU Assistant General Secretary PETER BUNTING argues that investmentnot cuts is the only way for Northern Ireland to fight its way out of recession

VIEWPOINT

Best outcome is a strong public

sector & vibrantprivate sector

complementingeach other

““


‘Malingering’ claims blastedBUSINESS group ISME has blasted some GPsfor issuing sickness certificates “like snuff at awake” and blamed them for tacitly condoning“malingering”.

Chief executive Mark Fielding claimed a survey of 750 companies carried out by the organisation had found 83 per cent of absen-teeism was due to what he called “feignedillness or malingering”.

The claims were rubbished by The Irish Medical Organisation who dubbed the findings“misguided and mischievous”. Blaming GPs for

having “an ATM mentality”, Mr Fielding said:“It is also quite obvious, based on the surveyresults, that unauthorised absences are beingtacitly condoned by the medical profession.”

IMO GP Committee chairman Dr RonanBoland claimed Mr Fielding misunderstood therole of the family doctor.

He said: “My role is not to manage the pres-ence or absence of employees.

“The key to managing inappropriate absencefrom work lies with the employer.”Off the mark: Fielding

DESPITE a 2004 EU directive on curbing unsafework practices, some junior doctors are still doingshifts of 36 hours or more, it has been revealed.

A review by the Department of health found anAugust 2007 directive that a junior doctor’s work-ing week should not exceed 56 hours has provendifficult to implement.

Dr Cillian Twomey, a medic from Cork whochairs the National Implementation Group whichtested new rosters, said some members of staffwere working shifts of "up to 36 hours in dura-tion… and sometimes longer" but underlined thefact that from August a new phase of the directivewill limit the working week to 48 hours.

He told the Irish Independent: "Clearly periodson duty will have to be of much shorter duration."

The report highlighted the need for a culturalshift to change the way junior doctors' workinghours have been organised as well as the employ-ment of more senior consultants.

SHOPWORKERS union USDAW have welcomedthe UK government’s announcement of a £500 mil-lion investment in getting the longer-term unem-ployed back to work.

From April, Jobcentre Plus can award firms up to£2,500 for every person they recruit and train whohas been out of work for over six months.

General secretary John Hannett called the meas-ures to encourage firms to recruit staff “very goodnews” and said it represented type of “decisive action” needed to turn around the economy.]

Admitting that some high-profile names such asWoolworths and MFI had gone to the wall, headded: “At the same time, many of the very big retailers are reporting good sales figures.

“USDAW is calling on all retailers not to rush inand make redundancies when most of the retailsector will survive the current economic difficul-ties.”

EU directive to limitdocs’ working hours

USDAW welcomes£500m jobs boost

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TTHHEE NNEEWW DDEEAALLPAGES 28/29

SIPTU chief Jack O’Connor has warnedthat unless the government, bosses andfinancial elite face up to the need for asocial solidarity pact, there is “everypossibility” the situation could spiral“dramatically out of control” in the com-ing weeks.

He made his comments after Goodbody Stockbrokers issued a reporton February 16 arguing for cuts in wel-fare spending in response to their pre-diction that the economy will contractby six per cent over the next year.

Mr O’Connor said he “dismayed” bythe conclusions drawn by the report’sauthors.

He added: “It is appalling that peoplethreatened with unemployment and inmany cases with the loss of their homesand occupational pension entitlementsas well, can expect nothing better fromthe elite of the financial services industry than the suggestion that theirmeagre social welfare benefit may bereduced.

“And all this while not one additionalcent has been raised from the wealthy in

our society.” Mr O’Connor claimed “thebig players” in financial services hadplayed “a key role” in creating the globaleconomic crisis.

He added:“At the very least [they]should have the decency to refrain fromcommenting and frightening people. It isprecisely this reign of psychological terror waged on PAYE workers that hascontributed so much to underminingconsumer confidence.”

He said forging a social solidarity pactwas the only to get out of the currentcrisis.

Mr O’Connor added: "It is neither equi-table nor financially sustainable to placethe entire burden on the PAYE sector,including those joining the ranks of theunemployed.

“Unless the concept of a pact isgrasped within the next few days, andcertainly at the latest within a fewweeks, there is every possibility that thesituation will escalate dramatically outof control.”

Solidaritypact mustbe agreed

Mind games: O’Connor


CIF chief’s remarks blastedCIF chief Tom Parlon has accused Consumers’Association vice-chair Michael Kilcoyne ofmaking "sweeping, inaccurate and hugely dam-aging comments" about the exploitation ofPolish workers.

Mr Kilcoyne, who is also a SIPTU official,claimed Ireland's reputation had been dam-aged by the way some unscrupulous contrac-tors treated non-nationals.

He added that some building sites in Polandhad shown their disgust by putting up ‘NoIrish’ signs. Mr Parlon countered by claimingworkers from Poland came here in large num-

bers because Ireland offered higher rates ofpay and better working conditions.

But ICTU chairman Noel Dowling hit back atthe one-time PD deputy claiming he had a“brass neck” attacking Mr Kilcoyne on thesame day a builder in his former constituencywas ordered to hand over €92,968.36 in unpaidwages to seven Polish workers

He said: "Tom Parlon is absolutely convincedhe can bluff his way through and deny thewidespread exploitation that is taking place.

"Mr Parlon would be better off working inpartnership with us to clean up the industry.”‘Brass neck’: Tom Parlon

SIPTU has claimed the governmentis attempting to drive a wedge be-tween public and private sectorworkers.

Blasting the move as “irresponsi-ble” and an “insult” to workers,Marie Butler, the union’s branch organiser in Waterford, claimed itwas part of a “smoke screen” to hidethe government’s “rich and famousfriends”.

She said: “It is an insult to workerseverywhere that some in the gov-ernment believe the public sectorpension levy is OK, because privatesector workers are losing their jobs.

“What the government didn’t saywas that taking €1.4 billion out thepay packets of public sector workersis going to put even more privatesector workers out of jobs, becausethere will be less money being spentin the local economy.”

She claimed that workers were“not stupid” and that theyknew they were being usedto drive through “a cost-cutting agenda”.

Ms Butler added:“The rich and famous, who havesquandered our wealthand put our livelihoodsin jeopardy, are the realvillains, not workers ondecent pay and condi-tions who pay their taxes,struggle to meet mortgage repayments and their other dailyliving expenses.

“it’s time for the selfish rich andfamous to pay up.”

SIPTU claimsdivide andconquer bidwon’t work

POLITICS

Union vows jobs fight at SR TechnicsSIPTU Branch Organiser Pat Ward has vowed todo his “utmost” to try and save jobs during the30-day consultation period following the announcement of 1,135 lay-offs at troubled air-craft maintenance firm SR Technics.

He made the comments on February 12 aftermeeting with company CEO Bernd Kessler andother senior managers at the North Dublin plant.

Later, he claimed shock had turned to angeramong workers at the plant.

SIPTU is to meet with Tanaiste Mary Coughlinto press home the need to preserve jobs at thespecialist facility.

Mr Ward added: “If this vital industry is lost now, it will never re-

turn to Ireland.”The Swiss-based company has

blamed the global downturn inthe aviation industry for theclosure as well as its intentionto move away from mainte-nance to other areas.

Some 200 SR Technics em-ployees in Cork are not af-

fected by the move.Mr Ward said: "We pointed out

we had been through crises beforewith FLS and Team Aer Lingus but manage-

ment had always been prepared to roll up theirsleeves with us and tackle the issues. We said wewere prepared to do so again and asked them tojoin us in saving the plant.

"We made it clear we were not there to dis-cuss redundancies, that generations of workersin North Dublin had depended on the aviationindustry for a livelihood, the decision to closewas wrong and that we would use the 30 daysconsultation period to do our utmost to save thejobs."

However, Bernd Kessler - who had also metTanaiste Mary Coughlin last week - was pes-simistic that staff pay cuts or shorter workinghours would halt the closure and said it was “notsomething we would consider”.

He also pointed to the loss of major contractsin recent months, the high cost of operating inIreland and staff costs 20 per cent above “whatthe market is willing to pay”.

Mr Kessler added: “We all need to realise thisis not a crisis that will go away in one or twoyears. It will have a significant and lasting impacton the airline industry for many years.”

SIPTU’s Dermot O’Loughlin called on the gov-ernment to step in to save jobs rather than sitting“idly by”.

Pointing out that government already had a 25per cent stake in Aer Lingus, he said: “We’re call-ing on them to step in right away, no taskforce, nomessing about, just put this business back ontrack,”

He added: “They can see fit to put €7 billioninto banks and they can’t see fit to try and survivea company that is truly Irish in its nature andworkforce.”

It is the rich whohave squandered

our wealth and putour livelihoods in

jeopardy

“

“

Marie Butler


Fury over Civil Service pay bungleBELFAST-based civil servants angered at nothaving received their wages have staged ademonstration at the offices of a private payroll contractor.

The January 28 picket outside the HR Connect offices in the city centre came after asimilar series of payment errors in Decembersparked fears as many as 250 employees faceda dismal Christmas.

One CSA worker told one newspaper she didnot know how she was going to survive on herzero pay packet. She said: “I should get around£979 per month, but I got my wage slip yester-

day and it said I was getting nothing.”NIPSA chief John Corey voiced his support

for the protest and said the union had no confidence in HR Connect.

He claimed that although the privatised contract costs taxpayers £465 million, it wasfailing to cover the basics and ensure all civilservice staff received their correct pay.

Mr Corey added: “This is the third time thishas happened. We are calling for a full exami-nation of every case where there is a failure topay the correct pay and a full independent review of this whole contract.”Review call: John Corey

THE Northern Ireland-based Educational GuidanceService for Adults has put together a special helppackage for workers facing redundancy.

EGSA, which has built up close partnerships withmany trade unions over the years, wants to high-light services it can provide to employees throughtheir workplace or on an individual basis.

Its staff specialise in helping people update skills,gain qualifications and explore new career options.

Guidance chief Becca Vaughan said: “People facingjob losses may find it difficult to get new employ-ment in the short term.

“But if, through our support, they’re motivatedto improve their skills and qualifications, they’remuch more likely to find a job once the worst ofthis crisis is over.”

For more information, contact EGSA on 0845602 6632 or online at www.connect2learn.org.uk or at www.egsa.org.uk

ICTU Assistant General Secretary Peter Buntinghas voiced support for new measures goingthrough Stormont which will assist families in need.

He said:“The Executive is showing it is taking seriously the needs of those who are most vulner-able in the economic downturn.

“In a series of meetings with the First Ministerand Deputy First Minister, Congress representa-tives pressed ministers to take urgent action on fuelpoverty, social housing, job protection and speedingup government infrastructure contracts to boostthe construction sector.

“We particularly welcome the intention to driveloan sharks out of business, as we welcome callsfrom the First Minister and Deputy First Ministerfor banks and building societies to assist their cus-tomers who are finding it difficult to pay theirmortgages.”

EGSA help for workersfacing redundancy

Support for recessionhit families welcomed

NEWSBRIEFS

BBRRAAZZIIEERRmagsjournalspress/pr

THE Irish Nurses Organisation hassent a message of support to theircounterparts in Victoria affected bylast week’s wildfires that claimedmore than 200 lives.

General secretary Liam Doranwrote to the Victoria Branch of theAustralian Nursing Federation expressing “support and solidarity... in the light of the very greattragedy”.

He added: “We have seen exten-sive coverage of the terrible loss oflife in recent days and I would

imagine that the health services areextremely stressed in dealing withthe many burns and injuries thathave inevitably taken place buthave not been captured by themedia coverage. In that context wewould like you to conveyto all of your membersour best wishes, at thistime, and we sincerelyhope that all of you willfind the strength to dealwith this terrible emer-gency in the days ahead.”

Support: Liam Doran [email protected]

INO ‘solidarity’ afterOz wildfires tragedy


The glass struggleWORKERS at Waterford Crystal have dealt withno less than nine restructurings over the last twodecades. These have seen a reduction in stafffrom 3,500 employees in the 1980s to the cur-rent level of 650.

They have adapted and accommodated changesin work practices to suit an ever changing busi-ness climate.

Up until Friday, January 30 they had done sowith the longer term in mind.

Waterford Crystal as a business has remainedprofitable down the years. The skill and endeav-our of one of the most committed group ofworkers in the country has maintained high stan-dards which have in turn held up the high qualityof the product.

As representatives of the work-force, Unite had held constructivetalks with all those who ex-pressed a willingness to investin keeping manufacturing atthe home and heart of thebrand in the City of Water-ford.

Since the start of the yearin public, and over a longerperiod of time in private, gov-ernment and potential investors,as well as the Irish Congress ofTrade Unions had worked their way to apoint at which it looked like the company couldbe bought out of receivership as a going concern.

The closure of the plant that last Friday in Janu-ary was a bolt from the blue. It could have been afatal one. The manner in which the decision wastaken without any notice to Unite or to workerswas disgraceful. Men and women who had de-

voted 40 years of their life to what was alwaysmore than just a job were left reeling waiting onan envelope to say whether they were one of thelucky few who would be asked to go to work onMonday.

Private security staff were used to try to secure the plant, an action which was out of char-acter with how negotiations had been completedup to that point and which made a tense situationeven worse.

The workers got through that though and thesit-in which has taken place since has been con-ducted in an atmosphere of quiet determination.The fight to protect a long term future for Waterford Crystal is one which encompasses

everybody in the city. The support which hascome from local residents, small busi-

nesses and friends and family hasbeen humbling.

Many of those who have ex-pressed their views to a world-wide audience have done socalmly, with a real feeling for ajob that was always muchmore than a way to fill each

eight-hour shift.Workers have been criticised

for staging the sit-in. Their actionshave been criticised as reflecting

poorly on Ireland as a place to invest.The suggestion is that those who have put

their lives into Waterford Crystal should just ac-cept that a lottery of letters should determinewhether they have jobs to go to or not.

Irish workers, and many Irish employers haveexpressed their grave disappointment in how theclosure of the plant was handled. The offers of

support from big business, from local shops andfrom people from every walk of life has helped tokeep up the optimism that Waterford will survivethis darkest of days.

The sit-in is an expression of the passion whichworkers feel for where they work and what theydo. There has been no rioting in the streets, nodamage to the work which they have created,nothing but dignity. The workers have no need toapologise for asking that respect be shown tothem.

There are complex issues to be dealt with butprimary among them is for the receiver to con-clude a deal which will get craftsmen and cuttersback to producing crystal in Waterford.

The talks which have continued throughoutwith Unite, government, ICTU, the receiver andthe potential new owners are moving along at apace which might have been slower were it notfor the protests which the workers at Waterfordhave undertaken. We are hopeful of a positiveconclusion.

These are difficult and turbulent times but Waterford Crystal has overcome those in thepast and will do so again, given the opportunity.

To use a sporting analogy, form is temporarybut class is permanent and the class embodied bythe production of the world’s finest crystal fromwithin Ireland is something of which we should allbe proud and willing to support.

With the right marketing, the right imaginationand an inevitable improvement over time in worldeconomic fortunes, Waterford Crystal will surviveand thrive. Last year Waterford sales in the UStotalled €180 million. The market remains, asdoes the spirit to service it.

Unite Regional Secretary JIMMY KELLY reflects on the dignity in crisis of Waterford Crystal workers who have already given so much over so many years

VIEWPOINT

There has been no rioting in the

streets, no damageto work they

created, nothing but dignity

“

“


Unite leaders in challenge to G20UNITE chiefs Derek Simpson and Tony Wood-ley have issued a message backing the TUC-organised march for jobs, justice and climatethrough London on March 28.

In a joint letter, they set out a series of demands to world leaders in advance of theG20 summit in the English capital on April 2.

These include:�� Jobs - decent jobs & public services for all�� Justice - end global poverty and inequality�� Climate - build a green economyThey said: “We are taking a lead in sending a

message to the global leaders that there can

be no going back to business as usual. Govern-ments, business and international institutionshave followed a model of financial deregulationthat has encouraged short-term profits, insta-bility and an economy fuelled by ever-increas-ing debt, both financial and environmental.

“We need Unite members and activists fromaround the country to come to London andshow that our union will fight for a just, fairand sustainable world in order to get throughthe current recession.”

For more information check out the Unitewebsite at www.unitetheunion.com/g20demoG20 call: Tony Woodley

Quiet determination: The market remains as does the spirit to serve it... Waterford Crystal workers during their sit-in


THE Irish Congress of Trade Unions has called fora boycott of Israeli goods as part of a drive to se-cure a peace settlement in the Middle East.

It follows a surge of outrage worldwide at therecent Israeli military offensive in which more than1,300 Palestinians – most of them civilians – died.

A peace rally, organised by the Northern IrelandCommittee of ICTU, was held in Belfast city centreat the height of the onslaught on the Gaza Strip onJanuary 14.

More than 5,000 people marched to the CityHall where they were addressed by a number ofsenior trade unionists, churchmen and activists.

ICTU assistant general secretary Peter Buntingalso spoke at the rally.

He questioned why some local politicans had at-tempted to portray the Palestinian/Israeli conflictas a mirror image of the North’s own sectarian difficulties.

Mr Bunting said people in Northern Ireland hadto get over viewing complex international issues“through the prism of our own sectarianised poli-tics”.

He added: “It is our humanity which is affrontedby the images from in and around Gaza, not ournarrow identities in divided Belfast.”

Mr Bunting emphasised the protest was not directed against the Israeli people.

He said: “We are here today not to criticise thepeople of Israel, many of whom are our comrades

for peace and justice. “We act in solidarity with

the Israeli workers, Israelihuman rights groups, Israelimilitary refusniks, and the Israeli physican groups –groups such as Breaking theSilence and B’tselem.“This protest is against theactions of the government of

Israel and those western political powers complicitin their actions.”

Calling for economic action against the Israeligovernment, he claimed people could use their“collective clout” as “ethical consumers” in thestruggle for justice for Palestinians. He added: “Theactions we have witnessed in Gaza this week makethe case for economic pressure more vividly thanany words that I can say.” Sue Pentel, speaking onbehalf of Jews For Justice For Palestine, called for a

change in Israeli government policy. She said: “I wasbrought up to stand up for the oppressed and todistinguish right from wrong. It is not anti-Jewish tooppose what is happening in Gaza.”

Nobel Peace Prize winner Mairead CorriganMaguire made an emotional appeal on behalf of thechildren of Gaza and ICTU President Patricia McKeown called for a boycott of Israeli products asa means of exerting pressure on the Israeli gov-ernment.

Speaking after the event NIPSA chief John Coreycalled it “heartening” to see the public’s responseto the trade union movement’s call to stand up forthe people of Gaza.

He said: “No one can fail to be moved at the sightof such widespread, wanton and unjustified violencethat has been visited on the population of Gaza.

“People from every spectrum of Northern Irishsociety have come together to express their soli-darity with a defenceless people in the face ofnaked and overwhelming superior military might.

“It is essential that we maintain this unity andkeep up the pressure for an immediate ceasefireand for a long term and just solution to the Israeli/Palestinian conflict.” ICTU’s sanctions drive

5,000 at ICTU protest rally over Gaza

ICTU assistant general secretaryPeter Bunting has attended anevent commemorating victims ofthe Nazi genocide as well as othergross abuses of human rights.

The event at The Braid, Bally-mena Town Hall Museum and ArtsCentre saw a moving presentationby Dr Susanna Kokkonen, directorof the Christian Friends of YadVashem.

The theme of this year’s Holo-caust Memorial Day is “Stand Up toHatred”, and The Braid hosted theexhibition The KindertransportJourney: Memory into History.

The exhibition telling the story ofhow 10,000 Jewish children weremoved from Germany to Britain in1938 by their parents, most ofwhom later perished in the deathcamps.

Holocaust Memorial Day marked

Protest: Section of 5,000-strong crowd

Peace rally: Leading trade unionists Patricia McKeown, John Corey and Peter Bunting were among those who led the protest

Call: Patricia McKeown


‘Largesse’ shownto banks blastedA TEACHERS union has contrastedthe government’s move to takeAnglo Irish Bank into public owner-ship with the savage budget cut-backs in education.

INTO general secretary John Carrclaimed schools were told last yearby the Republic’s Education MinisterBatt O’Keeffe public finances werein such a state that teaching jobshad to be axed, and funds for booksand computers slashed.

He fumed: “Now his governmentwith the stroke of a pen can find bil-lions to bail out a failed bank. Someof this money is education fundingthe Education Minister took out ofcash-strapped primary schools.”

Mr Carr added government pennypinching on funding primary educa-tion stood in stark contrast to the“largesse available to the golden cir-cle”.

THE Technical Engineering and Electrical Union hashit back at government ministers over commentsmade regarding the awarding of a 3.5 per cent payrise to ESB workers.

TEEU general secretary designate Eamon Devoysaid: “The depiction of ESB workers as greedy, uncaring and somehow responsible for the crisiswe are in says more about the bankruptcy of government policies than the realities ordinaryworking people are facing.”

He claimed the union had delivered “pay moder-ation and industrial peace” for more than 20 yearsthrough social partnership which helped create athriving economy.

But added: “At the first signs of trouble somegovernment ministers seem happy to walk awayfrom the process, along with IBEC and the CIF.

“It started with a witch-hunt against public ser-vants. Now the attack has moved on to ESB work-ers. Who will be next?” He said the only “sin”

committed by ESB workers was that they accepteda pay hike negotiated through the social partner-ship process last year.

Meanwhile, Greg Ennis, SIPTU branch organiserat the ESB, also lashed “recent negative ministerialcomments”.

Justice Minister Dermot Ahern had called the de-cision to award the pay rise “crass in the extreme”.

Hitting back, Mr Ennis pointed out that suchcomments were hypocritical and at odds with thepay provisions under the national pay agreement.

He said: “On how many more occasions will thisgovernment demonstrate its capacity to attack theworking class in this country?

“Surely government ministers should be direct-ing their focus to addressing the current cata-strophic situation caused by the greedy, butpowerful minority, rather than berating those whohave already put their shoulder to the wheel tomake the ESB the profitable company that it is.”

TEEU and SIPTU blastministers’ ESB comments

BREADLINE

ALMOST 100,000 children in NorthernIreland are still living in deprivation,government figures have revealed.

The data follows on from researchcarried out by the UN Committee onthe Rights of the Child last year whichshowed that one in five children andyoung persons was living in “persistentpoverty” in the North – a rate morethan double the UK average.

However, figures from the Office ofthe First and Deputy First Ministershowed a drop of 39,000 in the numberof children living in “relative poverty” -gauged on households with a below average income - since 1998/99.

According to the 2006/07 estimate,about 96,000 children fell into this cat-egory.

There was also a drop of 82,000 in thenumber of children living in absolutepoverty since 1999. By 2007, about 12per cent – or 52,600 kids – were in thisgroup.

Patricia Lewsley, the Northern Ireland Commissioner for Children andYoung People, expressed fears that thefigures were put together at a time ofrelative prosperity and before the impact of the global downturn hit theNorthern Ireland economy.

She said: “These are not stories fromthe 19th century, but are stories of realchildren and families I have met.

“While I welcome that there has beensome progress, according to the figuresreleased by government, it is too little.And I am concerned that these statis-tics were compiled before the currenteconomic downturn.”

Nearly 100,000Northern kidslive in poverty

is on the back of a report compiled after a tradeunion delegation, led by Patricia McKeown, visitedthe strife-torn region in late 2007.

Speaking at a launch of the policy at the LongGallery at Stormont in Belfast, Ms McKeown saidshe was “profoundly shocked” by conditions sheobserved in the occupied territories.

She added: "I didn't expect the denial of humanrights and the discrimination to be so evident andto be an obvious part of daily life.

"To see unemployment on the West Bank rising

to 80 per cent, to see people having to get up atthree in the morning, and virtually sleep outside thethe army controlled crossings in order to get intowork - that's something we didn't expect to see."

During the visit, group met trade unionists andpoliticians in Israel as well as Hamas political lead-ers. At the time, they also called on Hamas to endits rocket attacks on Israel.

Ms McKeown said ICTU was pushing for inter-national action on the issue with talks alreadyunder way with trade unions in Britain and the US.

5,000 at ICTU protest rally over GazaCivilian targets: Young victim of Israeli Defence Forces’ bombing onslaught

UNEMPLOYMENT may be heading for 450,000and for the first time ever, there is no place to go.The emigration ‘safety valve’ is closed. This crisis isdifferent to anything we have experienced before.

Therefore, the solution must go far deeper thansimply addressing the public finances. This explainsthe Social Solidarity approach taken by Congress innegotiations with Government, primarily our insis-tence that the cost of any adjustment is sharedacross all of society.

We require a fundamental realignment of oureconomy and society.

And if/when we resolve the crisis there can beno return to business as usual for Corporate Ireland: for the banks, builders and governmentpolicies that combined to bring our economy to itsknees.

This global mess was generated by privatised,deregulated and ultra-free markets. All countries,including Ireland, must now abandon this redundanteconomic model.

However, ongoing commentary frommany Irish economists demon-strates that most are still weddedto neo-classical economics, ad-hering faithfully to the theoryof ‘efficient markets’.

But the world moves on.The market is not working. Itwas not even working when itappeared to be booming.

In fact, areas of the ‘market’now need public subsidies to func-tion.

And when the market comes out ofrehab, it must be fundamentally reformed and learnto operate under greater public oversight, or wewill have learned nothing.

Contrary to myth, ‘markets’ are always shaped byman-made rules.

Some of us warned against the buccaneering, taxcutting, free-spending, pro-cyclical policies of Charlie McCreevy, when Minster for Finance, andthe huge subsidies to property investors.

These actions greatly inflated the bubble and exacerbated the bust.

It seems we had “too much privacy and notenough enterprise”, as Noel Browne famously remarked.

Several businessmen who built up fine firms havebeen found playing casino capitalism with vast sumsof money, borrowed from ‘friendly banks’.

New laws are urgently necessary on financial dis-closure, on unlimited companies, on regulation, andespecially on corporate governance. Ireland has toshift rapidly from Boston to Berlin: from the Anglo‘shareholder value’ system, to the European ‘stake-holder’ model.

To find solutions, we must learn from history.Some argue we should not look back and scape-

goat. But it was the bankers and developers, theirprofessional advisors and economists who ‘pimpedup’ the boom.

They almost destroyed what is still fundamentallya sound economy and government policy greatlyassisted. No wonder people are angry.

Today’s bust would not be so bad if, during theboom, the government had taken its foot off thegrowth accelerator and not reduced taxes so much- we pay virtually the lowest income taxes in thedeveloped world, have the lowest taxes on corpo-rate profits and none on property.

In addition, it would have helped if they had con-served revenue and been far more vigilant on financial regulation.

Credit would have been tighter, thus the boomwould have been reduced and the bust would havebeen less dramatic.

Had direct taxes not been cut so much, wewould now have a big pile of cash to maintain pub-

lic services. But government chose the US way,of de-regulation and privatisation.

Further privatisation would befolly. Selling productive family silver

in a bad market would be naïvein the extreme.

These are key, Irish-con-trolled companies that delivervital services and profits. Weprivatised a highly profitable,

debt-free, heavily investing Eir-com and the result - on prices,

services and broadband - has beendisastrous.

On the positive side, the NTMA currentlyholds borrowings of more than €21bn in cash. Thus,Ireland will not be forced to borrow for a while, atprevailing premium rates.

The net National Debt to GDP ratio is now only20 per cent.

Congress has accepted that the country is in adouble crisis with both the banks and tax revenuein freefall. Thus cuts in public spending will have tobe made BUT only if the pain is shared.

Conservative economists simplistically advocatecutting public sector pay - some even want to cutsocial welfare and fuel allowance! But there are re-gressive state subsidies we should target.

For example, over €3bn in tax has been lost in‘incentives’ to wealthy investors in area-based prop-erty schemes alone, with some €473m foregone in2006.

More importantly, Ireland runs a massive buthugely unreported Corporate Welfare Programme,with billions given to the enterprise sector annu-ally, in tax breaks, incentives and subsidies, all ofwhich is run by a vast network of public servantswho deliver free services to the sector: IDA Ire-land, Forfas, Enterprise Ireland, SFADCo, Udaras,Teagasc and BIM are but a few examples. Businesses

should be more careful in what they wish for inpublic spending cuts, as they might now have to paytheir own bills.

Similarly, the IFA demands a 20 per cent cut inwages. Yet public subsidies and price supports toIrish farmers under CAP are equal to their totalnet incomes annually.

Some 118,000 farmers will have received a stag-gering €53bn in CAP subsidies by 2013.

They cannot talk of competitiveness. They bitethe hand that feeds, pun intended.

Over €1.5bn a year could be saved in cutting sub-sidies to business, farmers and investors - overnight.

We have also heard unsubstantiated claims thatlabour costs are a big problem, this being the basisin arguing for big cuts in all employees’ pay.

It is asserted that ‘we’ are paying ourselves toomuch, as if we are all uniformly well paid.

For professors of economics on €150,000 to€170,000, this is correct. For dentists, solicitors, ac-countants and medical consultants, many business-people and some farmers, it is correct.

But it is not correct for average workers. Two-thirds of the workforce earn less than €44,000.Conservative economists do not seem capable ofdistinguishing between differing incomes andwealth. As the table shows, the cost of employingthe average Irish worker is 22nd from a list of theworld’s 30 richest countries.

The new dealEconomist PAUL SWEENEY argues it’s time to stop playing Russian roulettewith casino capitalism and opt for a Keynesian-style stimulus package


AGENDA

The market is notworking... it was

not even workingwhen it appeared

to be booming

““

ECONOMY

Derek Simpson, Unite

COUNTRY LABOUR COST $

1 Germany 59,526

2 Belgium 57,141

3 Austria 56,630

4 United Kingdom 56,612

5 Luxembourg 54,000

6 Norway 52,048

7 Netherlands 51,828

8 France 50,260

9 Sweden 48,763

10 Switzerland 48,489

11 Japan 46,916 12 Korea 46,604

13 Finland 45,302

14 United States 44,347

15 Greece 44,304

16 Austria 42,579

17 Denmark 41,252

18 Canada 38,627

19 Iceland 38,232

20 Italy 36,692

21 Spain 36,329

22 Ireland 34,379

23 New Zealand 29,037

24 Portugal 27,453

25 Czech Republic 23,604

26 Hungary 21,552

27 Turkey 20,182

28 Poland 19,847

29 Slovak Republic 18,215

30 Mexico 11,766

Source: Country submissions; OECD Economic Outlook, 2007


A CHORUS of cat-calls has greeted CIE’s ac-ceptance of a corporate box in part paymentfrom the Lansdowne Road Stadium Develop-ment Company.

The criticism comes as the transport firmannounced a radical series of cuts which couldsee 600 jobs lost at Dublin Bus and Bus Eireann over the next year.

Unions at CIE have slammed the plan. One official told the Irish Independent:

"They certainly won't be unemployed peopleor pensioners or schoolkids who get in there.

"The fact CIE is continuing to have corpo-rate entertainment when its job should be toprovide public transport for ordinary peopleis incredible.

“I'm glad CIE is being paid to facilitate thestadium but it should be in a form to boostservices and deliver something to staff and thetravelling public."

CIE corporate boxmove is slammed

A STUNNING new design for a replacementfor Liberty Hall will be put to SIPTU's execu-tive later this month.

It is thought planning permis-sion for the project will be soughtas early as next month with workput out to tender next year.

SIPTU general secretary JoeO'Flynn is reported to be "verypleased" with the design put for-ward by Dublin-based architectDes McMahon, who has workedin the past on the redevelopmentof Croke Park and the Hugh LaneGallery extension.

The original building brief envisages a towerwhich will double the floor space from about5,500 square metres to 11,000 square metresand include an auditorium, a sky deck cafe andunion heritage centre.

Executive to rule onLiberty Hall Mk II

CIDER workers at Bulmers were cheered by aLabour Court ruling last month that will seethem sharing a €150,000 payout.

This follows plans to axe a company busservice that ferried employees to and from thefirm’s Clonmel plant.

SIPTU, Unite and TEEU opposed the movearguing the bus was a "condition of employ-ment.” Bulmers bosses claimed the €100,000annual cost of the transport was unsustainable.

Deadlock followed a conciliation conferenceat the Labour Relations Commission and theissue was taken to the Labour Court.

The court said it did not see the shuttleservice as a condition of employment “as theterm is normally understood” but ruled that itshould continue for the next three months.

A lump sum of €150,000 will be dividedamong “those affected by the discontinuance"in compensation for the eventual ending of theservice.

€150k ruling for Bulmers workers

NEWSBRIEFS

Pleased: O’Flynn

It is clear that total labour costs are way belowthose of the UK, Germany and other Eurozonecounties. The loss of cost competitiveness is dueto the strong euro, not pay levels.

Competitiveness is a very complex issue and involves far more than costs, either labour costs oreven unit labour costs. Yet our productivity isamongst the highest in the world and has risen atover three times the average rate in the Eurozonefor the last decade.

A further major flaw in the con-servative argument on pay cuts isthat they will automatically trans-late into overall lower costs andwill not lower consumer demand.That is untrue.

Congress is seeking a majorKeynesian-style stimulus package.We accept the need for an adjust-ment in the public finances, withprogressive public sector reformand tax increases for the well-off,action on tax exiles, a terminationof tax shelters and a broadening ofthe tax base.

We seek increased investmentin education, our key competitiveadvantage, with a national NoChild Left Behind programme forall pre-school children, which willcreate thousands of jobs.

Above all what any agreed planmust do is protect existing jobsand maximise employment levels.

We propose reshaping our so-cial welfare system around theconcept of Flexicurity, along witha jobs scheme for vulnerable firms,as unemployment soars. Congresswants real bank reform, not re-

wards for bad behaviour, and concrete measures tohelp those threatened with repossession.

Other key issues are: better regulation, curbingexecutive remuneration, progressive health care re-form; a Green Deal for renewable technology anda National Recovery Bond.

In an article in October last year, I called for anew public/private paradigm. We have it today, withthe public sector bailing out the private banks, the

car industry and Irish businessseeking even more subsidies be-cause of the working of the ‘effi-cient market’ in currencies.

While a dependent private sec-tor is not what I had envisaged,blaming public sector employeesfor the crisis is wrong.

It has deep roots in the privatesector, but was combined withmajor errors in public policy, in itsfailed system of regulation, massiveregressive subsidies and pro-cycli-cal economic policies.

But it is unfettered capitalism andultra-free markets that lie at theroot of this deep crisis.

And yet it is the ‘state’ so reviledby the neoliberals that has come totheir rescue.

To solve this major crisis, all willhave to contribute, according totheir means.

This includes cuts in the vastarray of subsidies to the enterprisesector, to banks, to corporates, toinvestors, to wealthy farmers, withthe well-off digging deepest.

There can be no more ‘businessas usual’.

�� Tax increases forthe better-off

�� End to tax shelters

�� Investment in education

�� Action on tax exiles

�� Flexicurity

�� Reforms of banking system

�� Better regulationof finance system

�� Progressivehealthcare reform

�� National RecoveryBond

�� Renewable energyand technology

STIMULUSPACKAGE


A GROUP of former employees of a hotel thatwent into liquidation are to receive a payout of€90,000.

The 35 workers who used to staff the Ballymunhotel took a case to the Rights Commissioner following the non-payment of money owed tothem.

The Ballymun Plaza Hotel closed last April andits employees were let go without notice after the

building was repossessed from management by itslandlord. The company that operated the hotelwent into liquidation a few months later in Octo-ber.

SIPTU organiser Miriam Hamilton said staff wereforced to leave the premises with only enough timeto collect their belongings.

She added: "Their employer refused to pay anyof the wages owed." The group are expecting to re-

ceive individual payments of between €700 and€13,000.

Former porter Thomas Metcalfe told one reporter: “I’m pleased this whole ordeal is over atlast. We were treated terrribly and we had to movemountains to get what was owed to us.

"Our union made sure that everything possiblewas done to get us the money owed and at last itseems like it was worth the wait.”

€90,000 payout for Ballymun hotel workers

SIPTU tribute to LarkinSIPTU general secretary Joe O’Flynnhas called for an end to discrimina-tion against trade unionists in theworkplace.

He made his call at a special cere-mony on January 31 to mark thehundredth anniversary of the found-ing of SIPTU’s forerunner, the IrishTransport and General WorkersUnion by legendary activist JimLarkin.

Mr O'Flynn claimed thatmany Irish people were stillfighting for the right to berepresented on the shopfloor.

Addressing the gathering atLarkin’s statue on O’Con-

nell Street, he said: “The right to or-ganise and be represented by a tradeunion when times are tough is deniedto tens of thousands of workers.

“A hundred years after Jim Larkinfounded our union and 98 years afterworkers were batoned off this verystreet for demanding the right totrade union recognition we are stillfighting for it.

"While tens of thousands of tradeunion activists in the decades

since have come together tochampion the rights of ordinary

working people, it was Jim Larkinwhose vision gave them the means

to do so.”

Visionary: Jim Larkin

IMO may ballot onindustrial actionTHE Irish Medical Organisation will ballot itsjunior hospital doctors on industrial action, ifthe HSE forges ahead with plans to slashovertime and allowances.

The body said the changes - under whichmandatory unpaid meal breaks will be introduced and training grants ended - are inbreach of current agreements.

IMO chief Dr Martin Daly dubbed it “adevastating attack” on the 3,000 junior hospital doctors it represents.

Health bosses claim they have taken themeasures to cut junior doctors' hours to anaverage of 48 hours a week to comply withthe EU directive on working time whichcomes into effect in August

MARCH & RALLYSATURDAY FEB 21THERE IS A BETTER, FAIRER WAY

SETTING OFF FROM PARNELL SQ @ 2PM

specialedition february2009 unity - congress › download › pdf › union_post_web_32.pdf · nov...

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