Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Article 4 of the EU directive on adequate minimum wages, promotion of collective bargaining on wage setting, aims to promote collective bargaining on wages in all member states. The directive requires member states in which the collective bargaining coverage rate is less than 80% to provide “for a framework of enabling conditions for collective bargaining” and to publish an action plan to promote collective bargaining. The 80% threshold is an indicator triggering the publication of an action plan and not a mandatory target to be reached. Last year, my Department participated in the expert group on the transposition of the directive that was established by the European Commission. The group met eight times and adopted its final report in November. The group's report is clear that the design of the framework of enabling conditions and the content of the action plan is entirely up to member states in consultation with social partners. According to the EU expert group report, the action plan should be published by the end of 2025.

My Department, through the permanent representation to the EU in Brussels, is now engaging with other member states to share best practice with regard to the development of the action plans. I had a productive and constructive discussion with the social partners on this issue at the LEEF subgroup on employment and enterprise on 25 January. It has been agreed to establish a technical working group with the social partners and officials from my Department which will examine what elements might be appropriate for Ireland’s action plan. It is expected this group will hold its first meeting next month. The work of the LEEF subgroup on collective bargaining, chaired by the Minister of State, Deputy Richmond, which is exploring mechanisms to encourage greater collective bargaining coverage in Ireland, will also be an important input to our action plan.

It is in train. We do not have to have the action plan until the end of 2025, but it is hoped we will be able to shape it long before then.

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