Minister for Business & Employment Seeking Collective Bargaining Laws By Year End

Peninsula Team

August 27 2014

Collective bargaining has been on the agenda since the current Government came into power, and with this year marking the centenary of the 1914 lockout, employee unions were always likely to push to have Collective Bargaining to the fore in 2014. On 06 August 2014, the Minister for Business & Employment, Ged Nash T.D., – from the Labour party – has said that he is working to have legislation on collective bargaining rights enacted by the end of this year.

Minister Nash said this legislation would significantly strengthen the rights of workers in companies that refuse to engage in collective bargaining while also giving, for the first time, statutory protection to guard against the victimisation of workers in such companies.

The Bill is currently being drafted with the expectation that the new legislation will be in place by the end of 2014. Cabinet approved the drafting of such legislation in mid-May. The Minister said that “the introduction of new collective bargaining legislation will fulfil an important commitment under the Programme for Government. The Bill that I am working on will amend the Industrial Relations (Amendment) Act 2001. For employees, it will significantly enhance their ability to negotiate their working conditions. For employers, it will provide certainty in managing their workplaces in the years ahead. These measures were the subject of a detailed consultation process with all key stakeholders. Once agreed, the legislation will proceed through the Oireachtas during the autumn, where I look forward to constructive engagement and inputs from all parties. Taken together with other important reforms such as the reintroduction of a Joint Labour Committee system; the proposals to re-establish a constitutionally robust Registered Employment Agreements regime; the establishment of the Low Pay Commission, and the initiative to modernise the workplace relations mechanisms in Ireland this demonstrates a commitment by the Labour Party to fairness at work and a progressive employment agenda.”

We have outlined previously the current legislative position on Collective Bargaining in Ireland, as well as that of the EU, which can be accessed at the following link - http://bit.ly/1r4W950.

The Irish Position: the “Ryanair Case”

Any such legislation will have to heavily bear in mind the well-known 2007 ‘Ryanair case’. In that case Ryanair were seeking to challenge a decision of the Labour Court which required Ryanair to engage in collective bargaining on foot of the Industrial Relations (Amendment) Act 2001. Ryanair brought the matter all the way to the Supreme Court and successfully had the Labour Court ruling overturned, with the Supreme Court stating that any such legislation needed to “be given a proportionate and constitutional interpretation so as not unreasonably to encroach on Ryanair’s right to operate a non-unionised company”.

The EU Position

As it stands, the Irish position above appears to be quite out of sync with the EU approach. In Demir and Baykara -v- Turkey the European Court of Human Rights recognised that the European Convention of Human Rights (ECHR) contained a right to collectively bargain under Article 11. Furthermore, the Charter of Fundamental Rights of the European Union which was introduced into Irish law contains a similar provision as Article 11 of the ECHR. Given that Irish law needs to be compatible with the ECHR and the Charter it is difficult to see how the current Irish position can remain the same. We will wait and see what comes of such legislation, but one thing is certain, that as much as employee unions will push hard to have legislation introduced, Employer unions will work equally as hard to ensure their right to non-recognition of Unions is retained.

Conclusion

The Bill is expected to be enacted into law by the end of 2014. If any employers wish to discuss the impact this will have on them then please contact the 24 Hour Advice Service on 01 855 50 50 where one or our experienced HR experts will be on hand to assist you with your query.  

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