Labour costs are a key factor in determining competitiveness. After years of moderate growth, labour costs have started to increase at a much faster rate than in previous years. It should be a shared challenge for Government, employers and trade unions to ensure that the interaction between wages, prices and productivity levels is sustainable and enhances both competitiveness and living standards. Consumer prices have remained at low levels in Ireland for the past nine years with the overall cost of living still the same as it was in 2008. Inflation picked up in 2018 to 0.7% (HICP) and for 2019 the average inflation rate was 1.1% (HICP). Forecasted inflation (HICP) for 2020 will still only b

The Board of the Workplace Relations Commission (WRC) is required to review the performance of the Commission over the previous year against its Key Performance Indicators and produce a programme of activities for the following year. Stratis has reviewed key aspects of the WRC Work Programme for 2020 on which we have some observations. We should recall that the primary purpose of the WRC is to provide services to “help to maintain industrial relations stability, mediate and adjudicate in individual disputes, raise awareness of and improve industrial and employment relations generally, promote, monitor and enforce compliance with employment standards and provides recourse for people who feel

During 2020 the new Government when it takes office will be engaging with Public Sector Unions on a successor to the Public Sector Stability Agreement (PSSA) 2018-2020. The PSSA has been under pressure over deals on ‘pay restoration’ for up to 60,000 teachers, nurses, Gardaí and public sector workers hired since 2011 at a cost of an additional €200m+. The resolution of the nurses dispute in 2019 over pay and recruitment and retention difficulties resulted in a 21-month deal which has been estimated by the Department of Health and the HSE to have cost a further €149m. Doctors, Teachers, the Defence Forces and the broader public service all have issues they want resolved. Those talks will be a

The next Programme for Government will likely see a significant legislative focus on a range of employment issues in the areas of flexible working, pensions and even collective bargaining rights. (a) On pensions, the State Pension and retirement age featured significantly in the campaign with the main political parties making commitments about the level of the State Pension and increasing the age at which it becomes payable. Fianna Fáil made significant commitments to protect Defined Benefit pensions and stated that “…We will legislate to ensure no solvent company can wind up their pension without permission from the pension authority.” The party promised to establish a commission on pension

In recent days the potential for a coronavirus outbreak has grown and it is prudent for employers to consider what actions may be taken in their workplaces in relation to this risk materialising. Employers are reminded that they have obligations under the Safety, Health and Welfare at Work Act 2005 to ensure the health, safety and welfare of their employees and to provide a safe place of work. Employers may: Carry out a risk assessment to understand the likelihood of employees contracting the virus, which will depend on factors such as the nature and size of the business and locations at which people are expected to work. Need to consider whether employees have recently travelled to or are i

On the 19.02.20, Brendan McGinty, Managing Partner of Stratis Consulting had the privilege of participating in a discussion on “The Emergence of the Independent Contractor” at the NRF Annual Conference 2020, 'Beyond All Limits'. The following are some of the key points that were addressed. In September 2019, Minister for Employment Affairs and Social Protection, Regina Doherty T.D. announced as part of a new "Compliance and Anti-Fraud Strategy 2019-2023" the intention to place a renewed focus on social welfare fraud and on bogus self-employment. This has also occurred against a backdrop of assertions by the ICTU that bogus self-employment was estimated to cost the exchequer up to up to €250m

Several campaigns by trade unions, and in particular Public Sector Trade Unions, with the support of environmental groups are evident in the promotion of a four-day week. Proponents have argued that it could have a positive impact on the environment as it would likely result in less pollution from commuting, as well as help families in terms of arranging childcare. Excessive working hours can of course put a strain on health and productivity and therefore should be discouraged. However, reducing the number of working hours may also have repercussions on workers’ productivity. This in turns reduces competitiveness of the businesses and consequently adversely affects the economic growth. Any

In our most recent “Client Update” we provided an update and review of the IR and ER landscape. Over the next few weeks we’ll share our thoughts on some of the key issues. Next up we look at “Proposed Gender Pay Gap Legislation?”. Gender Pay Gap Bills At present, there are two bills on gender pay gap reporting before the Oireachtas. However, it is likely that only one of these will be finally enacted into law – namely, the Gender Pay Gap Information Bill. The Gender Pay Gap Information Bill The Bill is at the early stages of the legislative process and will be subject to further amendments. The Gender Pay Gap Information Bill proposes to initially require publication of gender pay data in bo

In our most recent “Client Update” we provided an update and review of the IR and ER landscape. Over the next few weeks we’ll share our thoughts on some of the key issues. Next up we look at “Is there tentative interest in a new national social dialogue?”. Emergence of a Greater Shared Interest The emergence of a greater shared interest expressed by some business and union leaders in exploring possibilities for genuine collaboration on issues of national importance is potentially significant. Whilst these remarks took place on quite different platforms by Danny McCoy, CEO of Ibec in September and the Fórsa General Secretary Kevin Callinan in October, it is also the case that nationally, a ke

In our most recent “Client Update” we provided an update and review of the IR and ER landscape. Over the next few weeks we’ll share our thoughts on some of the key issues. First up we look at “Employers need to challenge escalating pay costs”. Over Recent Years… Over recent years trade unions have persisted with so called ‘pattern bargaining’, where a headline settlement is promoted and is followed by other firms within a sector. Usually this is driven by a strategy of seeking to secure baseline pay deals, without productivity concessions, which they see as appropriate for separate discussion – ‘two tier bargaining’. Driving Costs… Employers are now concerned that this unmanaged ‘two tier ba