Mr. Owen Reidy:

We appreciate the invitation to this hearing on the transposition of the adequate minimum wages directive. My colleague, Mr Ger Gibbons, and I look forward to engaging with the committee on what is necessary to fulfil Ireland's obligations in respect of the transposition of this especially important directive.

Congress has been centrally involved in the development and negotiation of this directive through our active participation in the European Trade Union Confederation, ETUC. We see this legislation as the most significant and progressive to emerge from the European Union in a generation and, if transposed and implemented as intended, to be potentially transformative and enormously beneficial for industrial relations in Ireland.

The aim of the directive is to improve "living [standards] and working conditions." It sets the "promotion of collective bargaining on wage-setting" as a fundamental way to achieve this. "Collective bargaining" is cited 34 times, hence its centrality to transposition and implementation.

To give effect to the directive properly we need to see a key fundamental change of culture. The Irish State has been, at best, a passive, disinterested bystander on collective bargaining and, at worst, has facilitated its denial to many. The directive now obliges the state to "promote collective bargaining". Therefore, the State and all its agencies need to become advocates and enablers of collective bargaining. An all-of-government approach is needed, with a clear and consistent policy focus.

Article 4 places several obligations on member states to promote collective bargaining. The aim is twofold here, both to facilitate the exercise of the right of workers to collective bargaining and to increase collective bargaining coverage. The member state is therefore obliged to promote the building and strengthening of the capacity of social partners to engage in collective bargaining; encourage meaningful and informed negotiations between the social partners on an equal footing, with access to appropriate information to conduct collective bargaining; protect workers engaging in collective bargaining and their trade union representatives from acts of discrimination in respect of their employment when participating in collective bargaining, or seeking to; and protect unions and employers engaging in collective bargaining from interference by each other in their establishment and functioning.

Trade union density, or membership, in Ireland currently stands at around 22%, just over one in five. Coverage, that is, the number covered by collective agreement, is around 34%. In stark contrast, density for employer representative bodies is 70%. The lower union density is not because workers do not wish to access collective bargaining. On the contrary, it is because of the inbuilt imbalance in Government policies. Representativeness and adequate representativeness are issues the State must address in transposition.

Unlike in many parts of Europe, workers in Ireland have no right to access and engage in collective bargaining. This is particularly acute and problematic in the private sector. When unions organise a group of workers in an employment, whether it is 30%, 60% or 90%, those workers have no right to engage in collective bargaining. Therefore, we must use the power of persuasion to persuade the employer it is a good thing to negotiate with a union or, should that fail, fall back on the persuasion of power and take industrial and-or strike action. Is this really the best Ireland can do in 2024? Transposition requires the State to address this inequity.

Research shows there is a powerful appetite among workers to access unions and collective bargaining. The 2021 "Union Voice in Ireland" paper by Professor John Geary and Dr. Maria Belizon of UCD found that 44% of all workers not in a union and 67% of young workers, those aged 16-24 years, want to join and take part in collective bargaining. Electoral support among those who profess to support each party represented on this committee supports collective bargaining. We conducted research two years ago through Ireland Thinks which showed that 69% of Fine Gael voters are well disposed to collective bargaining, 72% of Fianna Fáil, 80% of Sinn Féin, 83% of Labour, 87% of Green Party and as high as 98% of People Before Profit–Solidarity. That speaks volumes on where the electorate is at on this issue.

The directive provides the tools to address the power imbalance in State policy and to remove an employer's veto on the right of his or her workers to access collective bargaining with a union. The directive is very clear that collective bargaining takes place with unions, not other entities.

Recital 24 provides that included among the steps member states can take to promote collective bargaining are measures easing access of trade union representatives to workers. Given the enormous disparity in density statistics cited above, we must ensure this happens. If one of the aims is to increase coverage, this can only occur by an increase in collective bargaining in general but especially at sectoral level. For this to happen, workers who want this need access to unions and unions to workers. How can we have constructive, meaningful and informed negotiations on an equal footing where both parties have access to appropriate information to carry out their functions in respect of collective bargaining on wage setting if unions cannot access workers who want to engage in collective bargaining or if employers refuse to engage, despite the fact a union represents a portion of their workers?

We therefore need legislation that promotes collective bargaining in general but particularly at sectoral level; that provides a roadmap for unions to seek to engage in collective bargaining with an employer where it is not the traditional practice of the employer to engage, provided the union can verify it represents an agreed percentage of workers in each grade, group or category; that provides relevant penalties, following due process and procedures involving both the WRC and Labour Court, that encourage such employers to engage in collective bargaining; that protects trade union representatives from dismissal or unfavourable treatment at work due to their role; that provides that a designated trade union representative in each employment is provided by the employer with the comprehensive necessary means to conduct his or her functions, and I am happy to outline later what those look like; that provides that an employer will not penalise a worker on the grounds of trade union membership or activity; and that provides sufficient and dissuasive sanction equivalent to five years' remuneration should the worker be dismissed or subject to unfavourable treatment for trade union activity. We do this in the protected disclosures legislation, so why not for workplace representatives? We also need to seriously look at public procurement as a lever and tool to promote collective bargaining. Why should taxpayers' moneys go to firms that deny their workers access to collective bargaining, should they want it?

Regarding the provisions concerning statutory minimum wages such as the national minimum wage, NMW, we need to look at issues such as the procedures for setting an adequate NMW; the involvement of social partners in setting the NMW; variations such as reduced rates for younger workers and deductions; workers currently excluded, for example, apprentices; and enforcement, infringements and penalties.

We have much work to do to transpose the directive. We have urged the Department of Enterprise, Trade and Employment to commence discussions with the social partners next month.

Further to transposition we need to consider the suite of "enabling conditions" regarding collective bargaining and an action plan. We see the Doherty high-level group report forming part of such a first action plan. That report has yet to be fully legislated for and we urge the Department conclude that process without further delay. We would be happy to take any questions.