Social Partnership in Ireland
In the mid-1980s Ireland suffered from a severe economic recession. Public finances were out of control with the national debt at about 140% of GNP. Falling growth rates were leading to record levels of unemployment. The Irish Congress of Trade Unions proposed a way forward based on agreement between the Government and the other Social Partners. The aim was, through a national consensus, to plot a way out of our economic difficulties. A "Programme for National Recovery" was agreed. It was a three year agreement which provided for wage increases limited to 2% per annum. In return for wage moderation there were a series of measures to stimulate employment, to broaden the tax base to permit lower taxation of workers' earnings and commitments to improve social protections.
This pact and successive national agreements were highly successful and are credited with being the major factor in the transformation of the Irish economy which became the fastest growing economy in the OECD.
Subsequently, five further three-year pacts were agreed, each building on the success of the previous and attempting more ambitious targets for economic growth; investment in education and health care; social inclusion and action to promote enterprise and employment through the maintenance of an innovative and competitive business environment.
Towards 2016
Towards 2016 is the current agreement and was ratified by the affiliated unions of Congress on September 5th 2006. Unlike it's predecessors, it is a 10-year agreement with an initial 27-month pay phase. The deal contains a number of important provisions in relation to the protection of labour standards and preventing exploitation and also in the areas of social policy
In relation to pay, a deal worth 10 percent over the initial 27 months was agreed. This was be structured as follows:
- 3%c over 6 months
- 2% over 9 months
- 2.5% over 6 months
- 2.5% over 6 months
For low paid workers (those on €10.25 or below), there was an additional 0.5 percent payable in phase two.
Talks commenced in April 2008 on a review of the agreement. See the Partnership Update section for further details.
Agreements to date have been as follows:
| Programme | Period | |
|---|---|---|
| Programme for National Recovery (PNR) | 1987 to 1990 | |
| Programme for Economic and Social Progress (PESP) | 1990 to 1993 | |
| Programme for Competitiveness and Work (PCW) | 1994 to 1996 | |
| Partnership 2000 | 1997 to 2000 | |
| Programme for Prosperity and Fairness (PPF) | 2000 to 2003 | |
| Sustaining Progress | 2003 to 2005 | |
| Towards 2016 | 2006 to 2015 | |