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3 SIPTU Annual Reports 2011/2012 Contents Foreword by Jack O’Connor 5 Membership and Organisation 9 SIPTU College 14 Education Awards 16 - Membership Information and Support Centre 17 Premises 21 SIPTU Membership Services 22 IDEAS Institute 23 Information Technology 25 The Six Counties of Northern Ireland 27 Economic Developments 31 Wage trends and national agreements 47 Changes in Sick Pay Schemes and other Working Conditions 2011-2012 50 Divisional Reports 65 Equality 119 Campaigns 125 Retired Members 133 Pensions 135 Communications Department 137 1913 Committee 145 Appendix 1: Financial Statements 151 Appendix 2: Staff Salaries 170 ANNUALREPORT 3 SEP STANLEY_Layout 1 03/09/2013 17:10 Page 3

Contents - siptu.ie€¦ · Contents Foreword by Jack O ... prolonged stagnation interspersed by recurring false dawns such as that experienced in Japan for more than two decades

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Page 1: Contents - siptu.ie€¦ · Contents Foreword by Jack O ... prolonged stagnation interspersed by recurring false dawns such as that experienced in Japan for more than two decades

3SIPTU • Annual Reports 2011/2012

Contents

Foreword by Jack O’Connor 5

Membership and Organisation 9

SIPTU College 14

Education Awards 16 -

Membership Information and Support Centre 17

Premises 21

SIPTU Membership Services 22

IDEAS Institute 23

Information Technology 25

The Six Counties of Northern Ireland 27

Economic Developments 31

Wage trends and national agreements 47

Changes in Sick Pay Schemes and other Working Conditions 2011-2012 50

Divisional Reports 65

Equality 119

Campaigns 125

Retired Members 133

Pensions 135

Communications Department 137

1913 Committee 145

Appendix 1: Financial Statements 151

Appendix 2: Staff Salaries 170

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4 SIPTU • Annual Report 2011/2012

Dublin Metropolitan Policebreak up a union rally onDublin's Sackville Street,August 1913.

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SIPTU • Annual Report 2011/2012 5

Conference 2013 is takingplace one hundred years sincethe first attempt to smash ourUnion in the Great Dublin Lockout. Once again we are living through an extraordinarymoment in the history of ourCountry and indeed of widerhumanity. The threat of a returnto the Great Depression of the1930s and its appalling out-come still lurks menacingly inthe shadows. Yet it is a time ofunprecedented potential fornew possibilities.

We are now more than five years into the most seriouscrisis experienced by the capitalist system globallysince the aftermath of the Wall Street crash in 1929. At best, the United States and the developing world are displaying some tentative indications of recovery – albeit the slowest since the Great Depression.

Meanwhile, Europe languishes in the doldrums still immersed in the quagmire of an insane one-sided austerity strategy, entailing a simultaneous contractionof fiscal policy across the Eurozone, driven at the behest of those at the top of the Continent’s bankingsystem.

The devastating results of that experiment are nowclear for all to see. Unemployment in the zone stands at its highest since the 1950s. An increasing number of countries are succumbing to the vicious cycle of collapsing domestic demand, growing unemploymentand rapidly declining levels of investment, as one element feeds the other in an endlessly descendingspiral. As always, in these circumstances, the young,the less skilled and the less well-off suffer the most serious consequences. This, in turn, feeds xenophobicnationalism, and the growing spectre of a re-emergentultra-right once more haunts the landscape of the oldContinent. The relative certainty of the democratic system does not seem as assured anymore. How couldit when democratically elected governments have already been side-lined in the pursuit of austerity andinternal devaluation? Lived experience has cruelly exposed the fallacy of this bankrupt recipe. Even thetheoretical basis for it has turned out to be erroneous.(This was set out in a paper circulated by the interna-tionally respected economists, Carmen Reinhart andKenneth Rogoff early in 2010 entitled “Growth in a timeof Debt”. Essentially, it argued that countries with debtratios in excess of 90% of GDP effectively cannot grow.Earlier this year they had to admit that they had seriously erred in their computations.) So not only doesit not work in practice, but it doesn’t work in theory either.

The best case outcome for the strategy is one of prolonged stagnation interspersed by recurring falsedawns such as that experienced in Japan for more thantwo decades. Indeed, we may be entering one currently.We were here before in the global Great Depressionwhich extended from 1873 to 1896 and which ultimately served as the countdown to the First WorldWar. Ironically, it too was preceded by a dramatic expansion of trade, growth and globalisation whichlasted from 1848 to 1873. That period was also characterised by blind faith in the myth of the perfectmarket with its accompanying expectations of exponential growth.

Over the past few months rational analysts on all sideshave been queuing up to abandon the sinking onesided austerity ship. Of course the malign agenda stillhas its adherents, although diminishing in number.

They cling to the relative stabilisation inEuropean sovereignbond yields over theyear to July 2013 asevidence of success.However, this has agreat deal more to dowith the assurancesoffered by the European CentralBank than the per-formance of the realeconomies them-selves. The Eurozone

entered its sixth successive quarter of decline in Q1 2013,having contracted by 1.5% since Q4 2011. Q2 resulted inan anaemic 0.3% growth which is being heralded as “theend of the Recession”.

Ironically, the capacity of the same European CentralBank to offer assurance to the bond buyers lies in thesustainability of the economies of northern and centralEurope. These are the countries that have placed socialsolidarity, equality and respect for collective bargainingrights at the core of their economic and social policiessince the 1950s.

Both jurisdictions on this island have served in differentways as mini laboratories forthe one-sided austerity strat-egy. In the case of the Repub-lic it has been compoundedby a sustained and deter-mined effort to effect a manu-factured internal devaluationdesigned to drive down thecost of labour.

SIPTU General President Jack O’Connor

Both jurisdictions on this island haveserved in different ways as mini-laboratories for the one-sided austeritystrategy.

Foreword by Jack O’Connor

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The policies of the Tory/Lib Dem Government in theUnited Kingdom have been manifestly evident in the six counties of Northern Ireland. The decision to slashthe block grant by £4bn over four years is aggravatingdecline and impacting severely on the most vulnerable.There has been a significant rise in unemployment lev-els since the crisis struck in 2008. The number of peo-ple in paid employment has fallen from 730,000 to693,500. Youth unemployment now stands at 25%.This reckless policy threatens to jeopardise the PeaceProcess.

The Republic, along with the “Bailout Countries” andthe Baltics, has suffered the biggest fall in GDP and inemployment in any developed country since the GreatDepression. The problem has been accentuated by therecipe which has been so assiduously applied at thebehest of the EU/ECB/IMF Troika.

Since the crisis unfolded the budgetary consolidationhas taken out €28bn, the equivalent of 18% of GDP –all to cut the fiscal deficit by about €6bn. Unemploy-ment stands at more than 13.5%, (30% among theyoung), despite the revival of emigration, at levels un-paralleled since the immediate post famine period.

The decline in household domestic consumption con-tinues and it is likely to remain stagnant for the fore-seeable period, while Government spending continuesto contract. Between the start of 2008 and the secondquarter of 2012 the domestic economy fell by a cata-strophic 23%.

Throughout, the Trade Union movement has argued fora demand led approach and a longer adjustment pe-riod. As far back as February 2009 Congress launcheda ten-point plan for “A Better Fairer Way”. Days of ac-tion were called on 6th December 2008 (70,000turned out against education cuts), 21st February2009 (100,000 turned out to oppose austerity), 6thNovember 2009 (100,000 turned out in a pre-budget

demonstration), 24th November 2009 (Day of Action in the public service), 27th November 2010 (100,000turned out in Dublin in a pre-budget demonstration),24th November 2012 (20,000 turned out behind thebanner of the Dublin Council of Trade Unions) and 9thFebruary 2013 (100,000 turned out across six loca-tions to demand a deal on bank debt). The Establish-ment’s line, orchestrated through a wall to wallcampaign across the media supporting “short termpain for long term gain”, won out. Now more than fiveyears later the devastating consequences are there forall to see.

We in the Trade Union movement have been obliged tofall back on a rear-guard strategy in the face of massivejob destruction, unemployment, emigration and debtentrapment. This has entailed the development ofsuch fortifications as we have been able to build, in-cluding the Private Sector Protocol, the Croke ParkAgreement and its successor, the Haddington RoadAgreement, as well as a political intervention to headoff the prospect of a single party monopoly Fine Gael

government, or onedependent on a hand-ful of right wing inde-pendents. Parallelwith this we havesought to promote thedevelopment of a do-mestic “off balancesheet stimulus plan”of €7bn-€9bn fundedthrough the NationalPensions ReserveFund, monies incen-tivised from privatepension schemes, re-

cycled profits of the commercial state companies andloans from the European Investment Bank, with a viewto creating thousands of jobs. In July 2012 the Govern-ment announced a €2.25bn initiative which, while wel-come, fell far short of that which we believe to benecessary or possible.

Recently the Government decided to deploy the remain-ing €6bn in the National Pensions Reserve Fund to aStrategic Investment Fund – a good decision but whyhas it taken so long?

Despite all the despondency a moment of opportunitybeckons. Europe and Ireland have arrived at a “Y” onthe road. The purveyors of the one sided austerity strat-egy will seek to use the recent GDP figures to buttresstheir position, but the austerity experiment has patentlyfailed. It will not facilitate the generation of jobs andgrowth in the large stressed economies of Southern Eu-rope to enable them to manage their debt and maintainpolitical stability in the longer term. In the absence of apolicy change, it will ultimately result in the collapse ofthe euro, or the demise of the democratic system in anumber of countries or both. This reality has alreadybeen virtually acknowledged by the President of the EUCommission and many political leaders including someon the centre-right. Even its most fervent adherents

6

Thousands of people march in Dublin City centre on 24th November2012 against austerity measures. The march was organised by theDublin Council of Trade Unions. Photo: Photocall Ireland.

Between the start of 2008 and thesecond quarter of2012 the domesticeconomy fell by acatastrophic 23%.

SIPTU • Annual Report 2011/2012

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SIPTU • Annual Report 2011/2012 7

cannot ignore the relative success of the alternative ap-proach which has been followed by the Obama adminis-tration in the United States supported by the FederalReserve Bank, despite the opposition of the hard rightin that country.

Increasingly, opinion is shifting in favour of a greateremphasis on research, development and innovation.However, there are no indications of the major fiscalstimulus initiative on a European scale that is critical toany sustained recovery.

This will continue to be resisted by the German Govern-ment and a few others until the consequences comeflocking home to roost on the order books of their man-ufacturers. The new mantra entails virtually completereliance on growth through the other leg of the recipe –“labour market reform”.

This is not about major or imaginative skills conversionprogrammes underwritten by progressive social securitysupport or integrating education and training with in-dustry and the real economy. It is much more about afull frontal attack on the gains of more than half a cen-tury of trade union work, undermining wage protectionmechanisms and the collective bargaining infrastruc-ture, weakening the right to Freedom of Association it-self.

Rear-guard strategies are fair enough. However they areinevitably doomed to failure unless they are framed inthe context of a correct understanding of the prevailingcircumstances. Ultimately, their onlyvalue is to serve as, hold-ing exercises on aroadmap to a better fu-ture. The current condi-tions present a challengeof historic proportions tothe Trade Union and theLabour Movement in Ire-land and in Europe.

It is a moment of oppor-tunity and equally ofmenacing threat on thesame scale as the mid-1930s and in the initialyears of the twentieth century. We must refashion ourMovement as well as our outlook and attitudes to equipworking people to influence the architecture of the fu-ture.

Budget 2014 offers the Government of the Republic adegree of flexibility on its policy approach, albeit lim-ited, that it has not had since coming into office. TheEU/ECB/IMF Troika programme still looms large on thelandscape with the global financial markets in the back-ground.

The co-ordinated contraction across an entire continenttowards what is now a completely subjective and irra-tional 3% deficit target is the worst possible responseimaginable to the most dramatic demand side crisis

since the Great Depression. However, we have little al-ternative other than to go along with it, for the moment.Failure to comply with the remainder of the “consolida-tion” not only runs the gauntlet of the imposition ofpenalties by the Commission but more seriously couldendanger the prospects of emerging from the “bailout”.Failure to regain sovereignty would entail seeking an-other “bailout”, which would inevitably be accompanied

by penal conditions. They would dictate the rate atwhich we would reduce our 122% debt to GDP ratio andthe way we would dismantle what remains of our publicservices and increase taxation to do it. Nevertheless,there is scope as to how the remainder of the adjust-ment is to be achieved. We can continue with cruel aus-terity or accomplish it through the adoption of growthfriendly policies as recommended by the IMF (in itsninth review of our programme).

Based on the research of the Nevin Institute and to-gether with others within Congress we have workedhard to promote such a strategy designed to get to the3% deficit target by the end of 2015 without inflictingfurther misery on our society. This is achievable througha combination of the breathing space afforded by thepromissory note deal, an “off balance sheet stimulus

package” and a tax contribu-tion of about €1bn from thebetter off.

It is about cutting unemploy-ment instead of jobs, pay andwelfare and offering a bea-con of hope to our belea-guered society. However, wecannot allow it to suffer the

Over 100,000 people joined street protests in Dublin and other Irishcities on the 2nd February 2013 to voice their anger at the huge costof the Irish bank bailout. Joining the protest was 19-year-old CiaraFitzachary. Photo: Photocall Ireland.The current

conditions presenta challenge of historic proportionsto the Trade Unionand the LabourMovement in Ireland and in Europe.

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8 SIPTU • Annual Report 2011/2012

same fate as the “Ten Point Plan” which was publishedin February 2009. Union members and working peopleand indeed our society cannot endure another fiveyears of misery only to be proved correct in the end.This presents a major challenge to all of us in SIPTU, tothe Trade Union Movement and to all who believe them-selves to be on the Left politically, to abandon sectariancomfort zones to coalesce and mobilise around thesecoherent and tangible demands.

Parallel with this we must continue our journey to buildan Organising Union across the island. It is extremelydifficult to advance the project in the context of a rear-guard strategy, which is not generally understood andtoo often portrayed as compliant acquiescence.

The reality is that we underestimated the scale of thetask and progress has been painfully slow. Our Indus-trial Divisions were launched in the autumn of 2010. By Conference 2011 we thought we could accomplishwhat we saw as a five-year project in three. Now weknow it is a much greater undertaking than we origi-nally envisaged. However, failure is not an option andwe have no alternative but to redouble our efforts.

Simultaneously, along with others, we are working to re-fashion Congress. This entails developing a Federalas distinct from a Confederal structure, creating sec-toral institutions to co-ordinate collective bargainingand organising, supported by a properly funded NERI, anew Workers’ College and a much more effective com-munications capability. This is the minimum necessaryto afford working people a capacity to influence the ar-chitecture of the future. The Trade Union Movementhas also arrived at a “Y” on the road. Either it fulfills itsobligation to cast out in a new direction, offering an at-tainable, egalitarian vision for all, organising to achieveit and building alliances and coalitions with other pro-gressive people in civil society, or it will gradually fadeaway.

Devoid of a wider societal mission, the Trade UnionMovement is condemned to an ignominious retreat toperdition via shallow functionalism. Today’s narrowTrade Union vocationalism is becoming the mirrorimage reflection of pre-1880s functionalism, reflectingall the interests, prejudices and values of the dominantsocial class. The ultimate effect of such a dereliction ofduty would be to allow those whose only concern is theaccumulation of profit, to the exclusion of every socialand human consideration, total control of the design ofthe future.

Meanwhile we must continue to do the day job but do itbetter. We must be at the forefront of the battle forskills enhancement and innovation, working with em-ployers and Government where it is possible to do so.In this regard a number of important initiatives are un-derway in our Manufacturing Division, working in con-junction with the IDEAS Institute.

However, as always the problem is to achieve the scaleto make a difference given our limited resources. Si-multaneously, we must pragmatically develop agree-ments across industrial sectors, prioritising standardsand quality of service to shore up pay and terms of em-ployment. Our Services Division has made progress inthis regard, particularly in Security and Contract Clean-ing.

In parallel with this we are developing a new sectoralstructure to tackle growing exploitation and exclusion inthe cultural and artistic fields. In the Construction in-dustry, it’s a case of back to basics in the light of theSupreme Court’s dismissal of the Registered Employ-ment Agreement infrastructure. This traditionally of-fered some element of regulation, upholding standardsas well as pay and conditions, in an industry notoriouslysusceptible to the free for all culture.

All aspects of this work require the development ofstronger and more effective linkages with the TradeUnion Movement across Europe. Some progress isbeing made in this regard in our Manufacturing, Services, Utilities and Construction Divisions.

William Martin Murphy and the employers of Dublin did not succeed in smashing our Union in 1913. Thousands of working men and women, many of whom were not even members at all, stood togetherwith Larkin and Connolly. Thanks to their courage, theirsolidarity and the support offered by thousands ofworkers organised in the British Trade Union Congress,they preserved the right to organise. However, subse-quent events determined that their egalitarian aspira-tions, rooted in the notion of collective solidarity and apolity of the primacy of the common good, would notprevail in the Ireland which ultimately emerged.

Public policy in both jurisdictions has always been de-termined by the interests of the few at the top of soci-ety and the dynamics of individual greed. This isreflected dramatically in the continuous denial of alegal right to collective bargaining in the Republic – one of only three states in the EU to do so.

It is an outlook which has resulted in the failure to develop a culture of innovation and the prioritisation ofspeculation instead, which has landed the Republic inits third major existential crisis in sixty years.

The old model has failed spectacularly. As the custodi-ans of the legacy of the heroic men and women of1913 our task is to forge a Trade Union and LabourMovement capable of playing a leading role in the de-velopment of the new one!

In solidarity

Jack O’ConnorGeneral President

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9SIPTU • Annual Reports 2011/2012

IntroductionThe Annual Reports on SIPTU’sactivities during 2011 and 2012can provide only a summary ofkey events in the work and development of the Union.

While the Reports endeavour toprovide as much information aspracticable, it would not be possible to provide a comprehen-sive report on all the activitiesundertaken by the Union’smembers, voluntary representa-

tives and staff during the period. Readers seeking moredetailed information are invited to consult the reports ofthe Sections, Sectors or the Divisions concerned.

The work undertaken by the Union during 2011 and2012 and its many achievements in protecting and advancing the interests of its members and their families was made possible by the individual commitment and collective voluntary participation of very many members of the Union.

Central to all of this was the day-to-day involvement of the Union’s Shop Stewards, Section CommitteeMembers and Activists in all areas of the Union’s organisation who, with the support of the Union’s staff,steered the Union through a challenging period in theeconomic and social history of the island of Ireland andthrough the internal organisational restructuring of the Union. While individual contributions are rarelyitemised in these reports, they are nevertheless vital to the achievements of the Union and are very muchappreciated.

Membership

The financial membership of the Union at the end of2011 was 170,232 and 158,529 at the end 2012. The decline in membership resulted mainly from Union members falling victim to developments in the economy resulting in job losses and non-replacement policies of employers. Nevertheless, the effective decline in employment on union membership was offset to some extent by the organising initiatives undertaken by individual sectors, and the work of the Strategic Organising Department.

During 2010, the Union’s membership began the transition from branches and regions to sectors and divisions.

Financial Membership by Division at the end of 2011Health 42,245Manufacturing 37,611Public Administration and Community 35,553Services 34,096Utilities and Construction 20,727

Financial Membership by Division at the end of 2012Health 39,844Manufacturing 34,709Public Administration and Community 31,801Services 32,402Utilities and Construction 19,773

Summary Overview of Union Finances 2011 and 2012

Contributions from members in 2012 was €33,520,291compared with €36,075,996 in 2011. Expenditure in 2012 was €31,412,044 compared with€31,230,908 in 2011. The loss of almost €2.55 million in members’ contributions was offset by closermanagement of all areas of expenditure and the optimisation of technological potential. The co-operationof the activists and staff in maintaining the financial resources of the Union for use in defending the inter-ests of the members from attacks on their pay and conditions is acknowledged and appreciated.

The fixed assets in the Consolidated Balance SheetRevenue Account for the yearended 31st December 2012were €16,047,463 comparedwith €16,197,344 in 2011.These assets are deployed atvarious locations throughoutIreland and are used for the

direct benefit of the members. When current assetsand current liabilities are accounted for, the net assetsat the end of 2012 were valued at €47,473,678.

The financial accounts for each of the two years reflectthe attention paid by the National Trustees, the National Executive Council and the National ExecutiveOfficers to the financial management of the Union onbehalf of the Union’s members. The accounts also

Membership & Organisation

SIPTU General SecretaryJoe O’Flynn

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reflect the commitment and contribution of the ShopStewards, activists and staff to ensuring that the organ-ising and representation work of the Union was under-taken as cost effectively as possible at every level inthe Union.

The audited accounts of the Union for the period underreview are set out in Appendix No. 1.

HSE/Skills programmeIn March 2011, a sub-committee of the Trustees ofSIPTU published a detailed report based on all the information available to it in relation to the HSE Skills training programme. The report included detailsobtained from the ‘SIPTU Health and Local AuthorityLevy Fund’ (known as the ‘Levy Fund’) account whichwas used to administer funds expended during theSkills training programme between 1998 and 2009.Since the issues surrounding this fund emerged in mid-2010 SIPTU has established that the ‘Levy Fund’was not a SIPTU account, the grants which wentthrough the account were not received by SIPTU and itwas not audited by SIPTU. The Trustee’s report foundthat significant amounts of public money were not prop-erly accounted for.

At a hearing of the Public Accounts Committee (PAC) on 15th December 2011, reference was made by an auditor of the Health Service Executive to two payments of €190,000 alleged to have been made tothe Levy Fund which was not accounted for. The unionconducted a separate inquiry into this claim. In fact, no such payments were recorded as havingbeen received into the Levy Fund Account. Due to the serious nature of the allegations, the matter was referred to the Fraud Squad which agreed to investigate the matter on behalf of the union. The union also requested that the Comptroller and Auditor General (C&AG) would conduct a full investigationinto all of the financial transactions of the HSE Skillstraining programme and its connection with SIPTU.

The C&AG agreed to undertake this investigation andfrom February 2012, the union co-operated fully in furnishing all details including all bank records at itsdisposal to the C&AG to assist him in his work whichwas due for completion in early 2013. An appearance bySIPTU general secretary Joe O’Flynn at the PAC wasscheduled to take place in the late Spring or early sum-mer of 2013 for a detailed hearing on the findings ofthe C&AG report.

While a lot of good work was done under the Skills programme, there were aspects which the union couldnot support, such as the setting up of an unauthorisedaccount bearing the union’s name and the lack ofproper oversight of the spending of public monies. The

union has addressed this matter by way of rule changeand a complete review of its Corporate Governance pro-cedures which have been updated to satisfy currentstandards and best practice.

ActivistsDuring 2011 and 2012 the Union continued to rely on its approximately 9,000 activists in organising andrepresenting members in the private, public and community sectors. Activists made vital contributions to the interests of union members through their activities as Shop Stewards, Section Committees,Safety Committees/European Works Councils Repre-sentatives, Pension Trustees, Worker Directors, Retired Members Section, the Equality Sub-Committee,District Committees, Sector Committees and Divisional Committees.

The Union continued to develop its communications information system and with the installation of activists’mobile phone numbers and e-mail addresses onto theUnion’s membership information system, and with thedevelopment of the website, communications with activists has been improved very significantly. At the end of 2012, the Union was making extensive use ofelectronic communications with activists, keeping them up-to-date on developments.

Building Industrial LeverageOver the past two years SIPTU has begun the greatesttransformation in its history in order to become an organising union. Significant progress has been madeand lessons learnt that ensure a greater participatoryrole for shop stewards and other union activists.

A major aspect of the programme has been updatingthe data basis to improve communications with members, so that SIPTU now has direct contact with almost 80 per cent of activists electronically. The restructuring process has strengthened the capacity ofindustrial sectors to carry out the three primary func-tions of each division:

1) Collective Bargaining2) Density Building3) Activist Development

Individual queries, representation in grievance/disciplinary procedures and Legal Rights Matters are being dealt with by a specialist Department, MISC(Membership, Information and Support Centre), and otheradministrative functions undertaken by the formerBranches were centralised, freeing up Industrial Staffto focus on the new Sectors. This was particularlytimely as the economic collapse resulted in the loss of

SIPTU • Annual Reports 2011/201210

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SIPTU • Annual Reports 2011/2012 11

thousands of our members’ jobs and severe pressureon the pay and conditions of those still employed,which meant slower than anticipated progress inachieving our objectives.

Nevertheless, significant progress was made in establishing who the activists are, how the Union communicates and interacts with them in their employments and then establishing the opportunitiesfor growth within existing employments. In the process,SIPTU is also establishing where the gaps and short-falls exist within each sector and how best to addressthese.

This will facilitate the building of a powerful industrialUnion within each sector where we represent workers.Indeed, the tasks of improving communications, identifying activists and shortcomings in our organisationare inter-related activities at the very core of the workbeing undertaken by SIPTU’s reconfigured Sectors andDivisions.

Over the coming years the lessons learnt in the transformation process will be applied to accelerate the Restructuring Process. This will involve Divisional Organisers working with Sector Organisers to stream-line functions, review progress and produce plans to advance the strength of the union in each area of the economy where it represents workers.

StaffThe Union continues, even with a reduction in the financial membership, to direct its resources to organising. As can be seen from the figures on staffing,there is an increase in the numbers of staff who di-rectly engage with the membership.

The Internship Programme which is designed to up skilladministrative staff to the grade of Organiser continuesto be very successful with 5 Administrative Staff com-pleting the course.

Staff Numbers and Grades During the period 2011-2012 the Union continued to deploy staff throughout the organisation, as required,to organise and support members. The number of staffand grades at the end of each year was as follows.

Grade 31/12/2011 31/12/2012

National Executive Officers 3 3

Divisional Organisers/Departmental Heads 13 12

Sector Organisers 26 28

Industrial Organisers/Tutors/Researchers/Industrial Engineers/Lead Organisers/IT 58 55

Assistant Industrial Organisers/Organisers 78 88

PA Grades 9 8

Location Based Organisers 10 10

Administrative & Clerical Staff 110 101

Porters 9 9______ ______

316 314

Staff DevelopmentAs previously reported, Staff Development continues tobe a central part of of the training and up skilling ofstaff. The introduction of new internal communicationsand systems, along with an extension of the electronicnetwork throughout the staff, was supported by on-going training and familiarisation with the data andprocess requirements of the new structures. Staff con-tinued to update and enhance their competencies andthe National Executive Council maintained the schemeto support staff in externally accredited courses consis-tent with the needs of the Union and the personal de-velopment of the staff. Staff who participate in externalcourses in their own time are to be commended andare acknowledged with thanks by the Union.

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12 SIPTU • Annual Reports 2011/2012

Membership 2011

Health DivisionSectors MembershipAmbulance 972Health Professionals 4,363Nursing 5,380Support Grades 31,531

Manufacturing DivisionSectors MembershipAgri-Business, Dairy & Meat 7,975Agriculture, Food & Drink 5,701Electronics and Engineering 6,736Industrial Production 6,041Pharmaceuticals, Chemicals & Medical Devices 11,157

Public Administration &Community DivisionSectors MembershipCommunity 9,720 Education 6,444Local Authorities 14,274State Agencies 5,115

Services DivisionSectors MembershipHotels, Catering, Arts, Entertainment & Related 7,952Insurance & Finance, Print & Media & Related 6,751Security & Contract Cleaning 8,906Wholesale & Retail Distribution 10,487

Utilities & Construction DivisionSectors MembershipAviation 4,407Construction 7,269Energy 2,659Transport 6,392

Membership 2012

Health DivisionSectors MembershipAmbulance 926Health Professionals 4,071Nursing 4,826Support Grades 30,021

Manufacturing DivisionSectors MembershipAgriculture, Ingredients, Food & Drink 12,746Electronics and EngineeringIndustrial Production 10,305Pharmaceuticals, Chemicals & Medical Devices 11,658

Public Administration & Community DivisionSectors MembershipCommunity 8,558 Education 5,866Local Authorities 12,867State Agencies 4,510

Services DivisionSectors MembershipHotels, Catering 5,555Insurance & Finance, Print Media & Related 6,056Security & Contract Cleaning 8,952Wholesale & Retail Distribution 9,948Arts & Culture 1,891

Utilities & Construction DivisionSectors MembershipAviation 4,516Construction 6,879Energy 2,305Transport 6,073

The financial membership at the end of 2012 was 158,529.

At the end of 2012, the members and staff in the Divisions and Sectors were being supported by the newlyestablished Membership Information & Support Centre,the Legal Rights Unit, the enlarged and renamed Strategic Organising Department, the Policy Department,the Communications Department, the newly centralisedFinance and Administration Function, the InfrastructureDepartment and SIPTU College.

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13SIPTU • Annual Report 2011/2012

Dublin Metropolitan Policebreak up a union rally onDublin's Sackville Street,August 1913

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Photo:

Photo:

SIPTU College in its operation and function has beenworking the new structures of the Union over the pasttwo years, as part of the process of transforming it intoan ‘Organising Union’ where an essential change hasbeen from a Branch to a Sector based structure.

SIPTU College contains three back-up support functions (i) Education and Training, (ii) Industrial Engineering and (iii) Occupational Safety and Health.

Education and Training Following the ratification/accreditation of SIPTU College as a second and third level institution, staff developed a range of new courses at FETAC level 5 andHETAC level 6 courses (Certificate and Higher Certifi-cate Level). All of these were developed and deliveredat SIPTU College by SIPTU staff. All such education andtraining is focused on providing activists and staff withthe necessary skills for an organising union to assist ingrowing and building union density to the maximum extent possible.

SIPTU College is FETAC and HETAC accredited. Students participate in programmes that lead toawards which can subsequently lead to progression toother Colleges and Universities. Students who are suc-cessful and are conferred with our ICTU/SIPTU HETACCertificate Business Studies (Trade Union Studies) arethen eligible to progress to

i. Bachelor Degree in Industrial Relations & Human Resource Management in the National College of Ireland (NCI) or

ii. Diploma and Honours degree Bachelor in Business Studies in University College Dublin (UCD)

Where there is a demand for Education and Trainingcourses they will be organised and delivered based on employment types, e.g. Sectors, where participants are broadly from the same, or a similar background of workplace. To ensure all of the education and trainingprogrammes are relevant to the various functions ofworkplace activists and the overall needs of Divisionsand Sectors a procedure is in place whereby the appropriate Sector Organiser and Tutor consult in advance so that the course can be tailored to suit specific requirements.

Traditionally, education andtraining courses were delivered during workinghours with participants getting paid release from normal work duties. In thecurrent economic crisis in Ireland the experience hasbeen that paid release for

activists is proving more difficult to achieve. In an effortto counteract this SIPTU College will deliver coursesoutside of normal working times, e.g. evenings andweek-ends. Outside normal training times courses arebeing developed and delivered as and when there is a demand for them – some have already been organised onevenings and at weekends.

Funding workers representative Education and TrainingEducation and Training courses for worker representativeswere grant aided by the State through FÁS, the National Training Authority, up until February 2010. The withdrawal of these grants constitutes shamefultreatment of workers and their representatives by theIrish Government when compared to;-

i. The inestimable value that trained and competent shop stewards, safety representatives, pension trustees, equality representatives, etc., bring to Irish workplaces in terms of change management, industrial peace, saving lives and limbs, pension protection, equality treatment, etc.

ii. European Union Member States and others that have strong legislation and practices that provide state funding for Education and Training, as well as paid-release for workers representatives to attend such courses.

iii. That the Irish State does not provide funding/ grant aid for trade union activist training casts a dark shadow on the vision that we are a progressive nation.

SIPTU College

14 SIPTU • Annual Reports 2011/2012

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Among the range of Courses available in SIPTU College, provided there is sufficient demand, are

1. Induction for new Union Representatives and new officials

2. Shop Steward courses – basic and advanced (FETAC/HETAC)

3. Effective meetings

4. Safety, Health and Welfare at Work – basic and advanced (FETAC / HETAC)

5. Trade Union organising

6. Computer training

7. Communications

8. Certificate Course in Trade Union Studies (HETAC)

9. Sector Committee training

10. Team-working

11. Continuous development for Union Officials & Administrative staff

12. Union Learner Representatives

13. Occupational Pensions

In addition to the above and in line with the requirements of the new union structures, SIPTU College will design and tailor education and trainingprogrammes to suit particular needs, in consultationwith relevant Divisional and Sector Organisers.

SIPTU College co-operates and collaborates with othertrade unions in sharing resources and facilities in an effort to optimise our collective effectiveness on behalfof members.

Industrial Engineering Department The downward spiral of our economy has meant that all companies are now more focused than ever on theiroperating costs. Labour costs and efficiencies are constantly under review as managers and external consultants implement changes to combat costs. Thesechanges have a direct impact on members as their cur-rent work practices are scrutinised and changed.

Traditionally, the main service provided by the IndustrialEngineering Department was to help implement andmaintain various types of Bonus Scheme. Theseschemes included Profit Sharing Schemes, Gain Shar-ing Schemes, Piecework Schemes and the traditionalBonus Scheme. Over the past couple of years there hasbeen a noticeable shift in demand from these schemesas members’ jobs have become more important tothem rather than their job conditions.

The Industrial Engineering Department is more involved in work measurement, determining correctstaffing levels and Job Evaluation/Grading. The on-going changes in various employments has meantthat the Industrial Engineering Department spendsmore time in “watchdog mode” to ensure that anychanges or demands made are fair and reasonable to members.

The internal changes within SIPTU and its new structure are now starting to have an impact on the Industrial Engineering Department. It is becoming apparent that not everyone within our own Organisationis aware of the backup supports provided by the Indus-trial Engineering Department.

Our continuing objectives are to provide the best professional service to members in the pursuit of fairness and justice so that working conditions andstandards can be protected, advanced and sustained.

Occupational Safety and HealthOccupational Safety and Health (OSH) backup support isprovided to activists (including Safety Representatives, ShopStewards, etc.) and staff, by the Safety and Health Unit.This includes the provision of information, written andoral, advice and representation.

Occasionally, this may involve a workplace visit wheredirect advice is provided to safety representatives andUnion Organisers.

The main challenges facing workplace safety andhealth standards is unscrupulous cost cutting in thebroad area of OSH at the level of the workplace in themistaken belief by some employers that such cuts willamount to real savings. Many studies have shown thatmonies spent on the prevention of work-related accidents, illnesses and diseases save multiples of thespend amounts.

One of the more serious developments is at Europeanlevel under the duplicitous title of ‘Better Regulation’which is a euphemism for deregulation. The EuropeanCommission set-up a ‘High Level Group of IndependentStakeholders on Administrative Burdens’, which produced recommendations that included less workplaceinspection and no requirement to have a written risk assessment for certain small employers. These elementsare essential requirements for proper OSH standards atworkplace level so that lives and limbs can be saved.SIPTU continues to lobby against moves to erode thesafety and health protective legislation that already exists.

15SIPTU • Annual Reports 2011/2012

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16 SIPTU • Annual Reports 2011/2012

One of the greatest threats facing workers at present isthe European Commission’s reluctance to produce anew European Strategy for Safety and Health, as theprevious one expired at the end of 2012. There is nogood reason for this delay as the European social partners are in favour of a new strategy.

Sadly, despite the efforts of trade union activists,worker-related deaths, injuries, illnesses, diseases areall too high when they are all preventable. Without thework of very dedicated trade unionists, statistics wouldbe even worse.

Education Awards

Second Level for Members and their Children 2011

Third Level Education for Members 2011

Gaeltacht Awards for Members’ Children 2011

Second Level Education for Members and their Children 2012

Third Level Education for Members 2012

Gaeltacht Awards for Members’ Children 2012

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17SIPTU • Annual Reports 2011/2012

Report 2011 and 2012The Membership Information and Support Centre advise and represent individual SIPTU members whenthey encounter workplace problems. It was a product of the re-structuring process within the Union and commenced operation in September 2010. The concentration of individual representation in a specialist department allows the five SIPTU Divisions to concentrate on their primary task of Density Building and Organising. The Centre comes under the control of the Legal Rights Unit.

Staffing:The Centre has a supervisor based in Dublin, ChrisRowland, and 19 advocates based in Dublin, Cork, Limerick, Waterford, Kilkenny, Castlebar, Mullingar and Letterkenny. Advocates provide information, advice and representation for members at the various employment law bodies.

Four new advocate/organiser colleagues joined us in the last two years and they were able to avail of the mentoring system which assigns an established advocate for an approximate period of six weeks. The training includes accompanying colleagues to third party hearings and sitting in on consultations with members and meetings with employers. Specialised training courses were also provided.

The Centre has 10 information assistants connectedthrough an integrated communications system. Information Assistants act as a first contact providing information on a wide range of issues to members.They log queries and grievances on the MISC trackingsystem and also provide a variety of supports to advocates in their representational work. InformationAssistants have the opportunity to convert to the Advocate grade through the SIPTU internship system.Two colleagues successfully came through this systemin 2012.

ActivitySince its inception in September 2010 approximately12,000 cases were logged on MISC. Some of thesecases were resolved through advice over the phone,and others were resolved at enterprise/employmentlevel. Those that remained unresolved were referred to athird party.

More efficient information systems for the tracking ofMISC activity were put in place in January 2012. In theCalendar year January 2011 to December 2012 the figures for activity representing members and compensation recovered were as follows:

Meetings Held:with Management 1,290Member Consultations 2,662

Bullying and HarassmentInvestigative Meetings Held 236Member Consultations 476

Density Building & Organising Opportunities Identified:Services Division 42Public Admin & Community Division 8Health 8Manufacturing 2

MISC advocates have also been involved in some landmark cases for example in the areas of the Transfer of Undertakings, specifically in the ServicesSector, and Employment Equality Law in the area ofage related discrimination.

The Organising Mission:MISC also plays a role in the overall organising missionof the Union. There is the stated role of freeing up thedivisions so that they can build membership densityand organise but MISC also plays an active role in identifying targets for organising. In the 12 month period from January 2012 to December 2012 MISCrecorded 60 targeted locations which were sent on tothe Divisions as areas for greater density building in organised employments. Where an employment wasnot organised the advocates identified the opportunitiesand these were passed on to the Divisions.

The MISC operation also assists and supports the organising mission in the following ways:

Membership Information

and Support Centre (MISC)

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18 SIPTU • Annual Reports 2011/2012

• MISC is a bridge to connect with younger workers. The age profile for present online joiners suggeststhat those seeking individual protection and employment rights from the Union have a younger age profile than the Union average.

• The service presently provided by MISC can be promoted as one of the incentives for people to retain union membership who might otherwise resign in a post redundancy situation and take up employment in a non-union company.

• Having a specialist advisory and representational unit complements the organising efforts.

• MISC provides up to date intelligence on various companies and the problems affecting employees in non-traditional sectors and companies.

• The MISC network and its operations actively discourage “de-collectivisation”. This is a situation where employers seek to individualise issues affecting groups of workers. This process is actively encouraged by employers to stifle organising. MISC is in a position to nip such practices in the bud and ensures that issues which affect more than one individual in a similar fashion are addressed collectively by the Union.

Education and Training:Given the nature of the MISC operation and the responsibility attached to protecting members’ rights and livelihoods, it is imperative that there is a consistent process of quality training and education.

On-going training for advocates, established in the lastyear, includes a monthly audio conference where log-inor attendance in person is mandatory. This is broadcastfrom Liberty Hall on a given day each month and Power-Point presentations are sent out beforehand to partici-pants. Active discussion is centred on developments inemployment law and the forum also allows advocatesto give feedback on experiences at Tribunals and otheremployment law bodies. Developments in employmentlaw, which happen at least on a weekly basis, are commu-nicated from the Legal Rights Unit to MISC staff.

We also have monthly meetings with information assistants and bi-monthly training sessions and updates. Information assistants are in the concludingphase of a specialised HETAC accredited course organised by SIPTU College.

A specific course is given on topics which we believeneed to be addressed in more detail. For example,analysis of MISC figures showed that at any given timethere was an average of 90 bullying cases within thesystem. Such cases can be challenging and demand

extra skills in the handling of the very sensitive issues in-volved. A special three day mandatory bullying course, repeated to facilitate attendance by advocates occupiedby third party hearings, was organised in conjunction withSIPTU College.

External education is greatly encouraged. Presently, threeadvocates have legal qualifications and a further four arestudying for legal qualifications at DIT, UCC and the KingsInns. These courses are taken by advocates in their owntime but SIPTU endeavours to support such efforts asthere is an obvious benefit for the Union through the im-mediate application of the skills and knowledge acquiredat this level.

MISC has entered into an arrangement with the law faculty of Dublin City University whereby students, as partof their academic work, are allocated to various employ-ments for a number of weeks to observe the workingsand participate in some useful research on employmentlaw topics. This will involve MISC from October 2013 andstudents will be allowed to accompany advocates, wherefeasible, to third party hearings.

MISC SystemsProper tracking systems were put in place in early 2012to complement the internal case recording application.Members’ details and case outlines are inputted andthen updated after any further contact or correspon-dence in the case. It is vital that no cases be allowedto slip through the cracks and that a system was formalised to the degree that no case is taken withoutthe sanction of the Division. This ensures situations areavoided whereby individual cases are taken and discovered subsequently to be detrimental to collectiveagreements. An online internal electronic form was developed to facilitate online referrals by Divisionalstaff in this regard. Likewise, individual cases referredexternally by members directly to MISC have to be verified online by Divisional staff.

An electronic calendar was introduced to ensure allhearings and meetings are covered and it consequentlyallows relief coverage when staff are ill or on leave. Enhanced use of the computer system ensures thateach contact on a members’ case is logged so that aproper log of activity is maintained.

Advocates provide monthly reports on electronic templates which allow statistical information to be builtup showing the intensity of activity, the attendance levelsat third party bodies and the amount of compensatorysums recovered by MISC. This system is constantly up-dated and developed in conjunction with the InformationTechnology Department. Qualitative changes envisagedfor the Autumn of 2013 include a facility to identify thelegislation and types of cases being taken on behalf ofmembers. Such information should allow us identify

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19SIPTU • Annual Reports 2011/2012

trends in the workplace which affect our members andallow us to identify training needs, among other things.

An electronic database of decisions has been set upwhich allows advocates to input, as well as extract casespreviously taken by MISC staff. This permits them to rep-resent members in an effective manner when similarcases arise in the future.

We operate in challenging times but MISC is confidentthat it is fulfilling the role allocated to it after the restructuring period in 2010. It is committed to ensuringconstant development of staff competencies and the updating of systems. This will ensure that SIPTU mem-bers have the best advice and optimal assistance andrepresentation when they encounter problems in theworkplace.

The Legal Rights Unit:The Legal Rights Unit is linked to the Membership andInformation Services Centre in that the Head of theLegal Rights Unit, Tom O’Driscoll is also head of MISC.Mick Halpenny, who was the original architect of the Unitas well as playing a pivotal role in setting up MISC, retired at the end of 2011. The members and staff willbe forever grateful for his work in building a solid platform for future development.

The Legal Rights Unit does not give independent legaladvice. Instead, it gives primacy to the collective inter-est of the Union membership. Advice will not be given,for example, in situations where there is a conflict between an individual interest and a collective agree-ment particularly where the net result could have adetrimental effect on the interests of fellow union members. All advice therefore has to be filteredthrough an Industrial Official in order to ensure that thecollective interest is the overarching consideration.

As well as giving general advice, Rachael Ryan, theLegal Rights Official, is tasked with giving advice in individual cases to MISC advocates. She gives adviceand support as well in the enforcement of third partydeterminations, company insolvencies and she has aspecial expertise in pensions.

The Unit’s work and responsibility, however, go beyondgiving legal advice to MISC advocates in the field. It extends to giving advice on Industrial Relations law and it counsels on strategic legal issues to Officers and Divisional and Strategic Organising Staff. It also constructs and presents specialist legal education forstaff with the co-operation of SIPTU College. While theLegal Rights Unit specialises in employment and industrialrelations law, it has branched out also to advising onareas of pension law, company law, data protection anddefamation (initial examination only in the latter area),where there is an impact on union activity.

The Legal Rights Unit has a broader strategic functionwith regard to legal reform and developments which mayimpact upon working people generally. In 2011/2012SIPTU submitted two extensive submissions to the Minis-ter for Jobs, Enterprise and Innovation, Richard Bruton TDon the topic of the proposed reform of the EmploymentRights Bodies. The Unit is part of the ICTU Legal StrategyCommittee and has contributed to various campaigns onthe protection of REAs and JLCs, ensuring the rights ofundocumented workers, combating human trafficking,campaigning for data protection reform and for collectivebargaining rights.

In the sphere of Industrial Relations the Unit assists in the drafting of ballot papers, it advises on the conduct of disputes and gives support in defence of injunctions. In the last two years injunctions wereserved on SIPTU members in the following high profiledisputes: the Davenport Hotel, Lagan Brick and EddieStobart.

The Legal Rights Unit has given various presentationsin employment law, not alone to SIPTU staff and activists but externally, for example to non-union members in various third level institutions as part ofthe organising mission. The Unit also drafts themonthly “Know Your Rights“ column for Liberty.

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20 SIPTU • Annual Reports 2011/2012

Membership Information and Support Centre (MISC) - Totals for 2012

MISC – All Contacts Details: Year 2012

No. of Total MISC External Contacts/Internal Referrals received at the Centre: 5,020

Breakdown by Division: Services 1,998 Health 1,260 Public Admin & Community 651 Utilities & Construction 561 Manufacturing 547 Strategic Organising Department 4

Details of Cases: Cases Concluded 1,269 Cases Awaiting Hearing 768 Cases Awaiting Decision 129 New Cases as Disputes of Right 987 New Cases as Disputes of Interest 961 Enforcements Sought 48

Third Party Hearings Attended: Rights Commissioner Disputes of Interest 334 Rights Commissioner Disputes of Right 391 Employment Appeals Tribunal 241 Equality Tribunal 95 Labour Court Disputes of Right 25 Labour Court Disputes of Interest 95 Outcomes:

Cases Settled before the Hearing 267 Total Value of Settlements/Compensatory Awards €5,308,152

Other Awards, i.e. Re-instatement/Re-engagement 17

Meetings Held: with Management 1,290 Member Consultations 2,662

Bullying & Harassment: Cases in Progress 956 Investigative Meetings Held 236 Member Consultations 476

Density Building & Organising Opportunities Identified: Services Division 42 Public Admin & Community Division 8 Health 8 Manufacturing 2

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21SIPTU • Annual Reports 2011/2012

PropertyThe number of premises owned by the Union currently stands at 34. In addition we lease premises in South Circular Road, Dublin for the College and our office in Newbridge is also leased.

In the period under review the National Executive Council approved re-development works for our properties in Waterford and Tralee for completion in2013. We also completed the exterior painting of ourGalway offices and our Athlone office.

An active maintenance programme is in place for allour properties supervised in the Munster area by John Smyth and in the rest of the country by Brendan Murran.

Other projects will be advanced to the NEC for approvalas resources become available.

Goods and ServicesDue to the continued budget pressures all our supplycontracts are under constant review.

We have managed to significantly reduce our costs in all areas and we continue to be vigilant in ensuringthat we do not expose the Union to any unwarrantedcosts in these areas.

We continue to use trade union suppliers and our approach is based on partnership and efficienciesrather than driving prices down at all costs. This approach has yielded very good returns.

Liberty Hall ProjectThe Liberty Hall Project was a very serious commitment bythe Union to develop the site for the membership andthe public and create a building that in its constructionphase would create significant employment in a depressed construction market and, when completed,would have stood as a beacon for the Labour Move-ment. The commitment to four floors of public space at the top of the building was unprecedented. The design conceived of by Gilroy McMahon was, in the view of all who were involved, an outstanding concept.

Notwithstanding the support of the City Council and the city planners Bord Pleanála saw fit to reject the proposal. The board said that it did not necessarilyagree with the building being demolished for any reason which has left us in a very difficult position. Discussions are continuing on possible alternatives to accommodate staff and facilitate our members.

This section would not be complete without mentioningthe endless hours of dedicated work that went intobringing the project to the planning stage by all thosewho participated, particularly Tom Dunne, Project Manager.

Premises

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22 SIPTU • Annual Reports 2011/2012

SIPTU Membership Services provide discounts and benefits to members and their families across a wide range of insurance products and services.

These include Car, Home and Travel Insurance, Life Assurance, Health Insurance, Dental Cover and Income Protection Individual Plans and Group Schemes.

Membership Services also involve the ‘Fair Hotels’ promotion, which is actively incorporated in its various campaigns.

Each year Membership Services devise and carry out a sustained marketing plan to actively promote the benefits of the services throughout the membership.Mailshots which consist of posters for the notice boards

and flyers for distribution are sent to Sector Organisers,Shop Stewards, Officials and Regional Offices for distribution. Site visits to provide information to members are also conducted where there is a requirement. Presentations are delivered at conferences,agms and district meetings when requested.

In addition, Membership Services provide regular updates in Liberty Ezine and feature advertisements in each edition of Liberty. Updated information and details on how to access the services is available onwww.siptu.ie via the Membership Services button on the home page.

SIPTU Membership Services

SIPTU MEMBERSHIPSERVICES

The products of choice for SIPTU members and your families

Home Insurance Car Insurance Income Protection Plans

1890 30 07 45www.siptu.jltonline.ieSubject to underwriting and acceptance criteria. Terms and conditions apply. JLT Insurance Brokers Ireland Limited trading as JLT Ireland, JLT Financial Services,GIS Ireland, Charity Insurance, Teacherwise, Childcare Insurance, JLT Online,JLT Trade Credit Insurance is regulated by the Central Bank of Ireland.

TravelInsurance1890 92 93 73www.quickcover.ie

HealthInsurance

Please quoteSIPTU GroupNo: 72677

1890 44 44 44www.vhi.ie

Fair Hotels,the informed

choice forEthical Consumers

www.fairhotels.ie

Car Insurance1890 22 22 22

www.onedirect.ieAcceptance criteria, terms & conditions apply. One Direct (Ireland) Limited,

trading as One Direct is regulated by the Central Bank of Ireland.One Direct (Ireland) Limited is a subsidiary of An Post.

One Direct Car Insurance is underwritten by Aviva Insurance Europe SE.

* Certain acceptance criteria and policy Terms and conditions apply.

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23SIPTU • Annual Reports 2011/2012

The Institute for the Development of Employee Advancement Services (IDEAS) is a training companyset up by SIPTU. The IDEAS Institute provides trainingfor the wider membership of SIPTU. The FETAC accredited training programmes provided by IDEAS areaimed at developing our members’ skills so that theymay become more skilled in their employments therebyhelping to sustain their jobs, improve their CVs, and assist their company to become more competitive.

SIPTU believes that upskilling is a vital strategy in helping to defend our members’ jobs while also supporting our members’ companies to sustain their competitiveness. The training programmes were delivered by agreement between SIPTU and some of the companies in normal working time. Other programmes were delivered in the eveningsand/or on Saturdays.

Report for 2011

Training Programmes and programme rangeTraining programmes run by IDEAS during 2011 included courses on -

• *Computer training (basic and advanced)

• *Computer Applications

• *Team building (various models)

• *Personal Effectiveness in the Workplace (PEW)

• CV job skills/interviewing,

* = FETAC accredited

Over 650 union members and participants took part inthese IDEAS training courses during the period underreview.

Detailed Listing of IDEAS Training delivered in 2011

1. Computer training (Basic and advanced) FETAC certified computer training was completed by IDEAS in -

• Kirchoff Ltd., Letterkenny, Co. Donegal• Aer Lingus ( 2 programmes)

• Dublin Airport Authority

• Bord Na Móna (6 programmes)

2. Teamworking training IDEAS delivered FETAC certified Teamworking trainingin the following employments both to our members and members of other unions –

• Leo Laboratories, Dublin

• Kirchoff Ltd., Letterkenny, Co. Donegal (3 programmes)

• SAICA, Navan, Co.Meath (4 programmes)

• Wavin Pipes, Dublin

• Kerry Foods, Charleville, Cork.

• BD, Drogheda

3. Job Skills development training/Personal Effectiveness at Work (PEW)This training is focused on members and other employees being made redundant. It includes training to prepare CVs and to do interviews with new prospective employers. Companies and members covered by this training included –• UTC, Dublin (8 programmes)

4. Retail SellingTraining for this programme was undertaken for our members in –• Knock Airport

Report for 2012

Training Programmes and programme range

Training programmes run by IDEAS during 2012 included courses on -• *Computer training ( basic and advanced), • Benefit 3 computer training programme

(1 day basic Internet)

• *Team building (various models),

• *Train the Trainer• *Personal Effectiveness in the Workplace (PEW)• CV job skills/interviewing,

* = FETAC accredited

IDEAS Institute

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24 SIPTU • Annual Reports 2011/2012

Over 600 union members and participants took part in these IDEAS training courses during the period under review.

Benefit 3 training programmeIDEAS has provided this 1-day Internet training programme for over 250 members, unemployed, over55’s, low skilled and retired workers. The programmeintroduces the trainees to the Internet as a means ofengaging with Government services, e-mailing and performing other on-line activities such as banking andmotor tax payment.

Manufacturing DivisionIn November 2011, the Manufacturing Division/IDEAS conference on Innovation – A driver for Jobs andGrowth was held. Following the conference, 45 companies expressed interest in the joint union-management approach developed by IDEAS’s changespecialist Tony Murphy. Briefings on this approach tosustaining our members jobs for the Division’s organisers, led by the General President and the Divisional Organiser, were organised for all the Division’s Organisers in Dublin and Cork. Two in-company case study presentations using this approach were presented by Michelle Quinn and KarlByrne. Normal industrial relations issues are handledseparately from this approach.

Meetings were held with the Minister for Enterprise,Jobs and Innovation and representatives of his Department, the Labour Relations Commission, ForFás, IDA and Enterprise Ireland to explain SIPTU’s approach to change and innovation through joint union-management team-working.

European Trade Union trainingIDEAS is also working with a number of trade unions in Germany, Spain and Poland in a number of EuropeanUnion funded projects concerned with developing pilottraining programmes for workers in the food and engineering sectors across Europe.

A new project recently approved by the European Commission concerns young workers, entitled ‘Decent Working Conditions for Youth’. Its objective is to train a number of youth organisers in the Danish ‘Jobs Patrol’ method, which involves youngunion activists visiting other young workers in factories, and checking with them to see if they are getting treated fairly and legally by the employer. Anybreaches are reported to the union and the nationalauthorities. The Danes have been operating the “JobsPatrol” method for over 30 years very successfully.

Detailed Listing of IDEAS Training delivered in 2012

1. Computer training ( Basic and advanced) & Benefit 3 training

FETAC certified computer training was completed by IDEAS in -• Ballon, Carlow (2 programmes)• Benefit 3 Internet training (one day introductory

programme) - 25 programmes

2. Teamwork training IDEAS delivered FETAC certified Teamwork training in the following employments both to our members andmembers of other unions –• Kirchoff Ltd., Letterkenny, Co.Donegal • SAICA, Navan, Co.Meath • BD, Drogheda• Theo Benning, Wexford

3. Train the Trainer IDEAS has delivered this FETAC Level 6 accredited programme to over 100 participants over 10 trainingprogrammes in Carlow and Kilkenny.

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25SIPTU • Annual Reports 2011/2012

There have been significant developments in SIPTU’sInformation, Communication and Technology infrastructure in the last two years. They range from new telephony, advanced networks, document management, video conferencing and the further development of our internal administration as well as the introduction of new mobile devices.

Telephony - New locations were added to our Voiceover Internet Protocol phone system. These wereCavan, Castlebar and Sligo bringing our total to elevensites.

Video Conferencing - A facility for Video Conferenc-ing using a product called Lifesize has been installed inLiberty Hall, Connolly Hall, Cork and the Galway office.

Network Infrastructure - A new 20MB capacity linehas been installed in Liberty Hall which gives improvedspeed and resilience to our Internet access.

Webcam – a live webcam has been installed on theroof of Liberty Hall which shows various views of thecity and is available through our website.

Document Management - The centralised systemfor managing documents, Alfresco, has been installedand rolled out to all Divisions and Departments. Extensive training has been given to all staff throughoutthe Union.

On-line Ballot Application – An on-line Request forBallot form has been developed at the request ofEamon Lawless, Head of Finance. This will enablemembers’ who use this facility to have a ballot papersent directly to their home/work address where theycannot avail of a workplace ballot.

District Committees Lobbying – a database wascreated of all TDs for the purpose of lobbying on issues such as Budget 2012 and other SIPTU campaigns. It was created to assist the staff involved with the District Committees to record andmonitor the lobbying work.

Case Management System - This system using Sugar CRM is in use in the Membership Informationand Support Centre and was set up to monitor andrecord all calls/cases that come through to SIPTU usingthe 1890 number and where the issue is related to anindividual member.

SIAS Development - further development has beencarried out on our SIPTU Internal Administrative System(Intranet) site. These include a Research Enquiry Formto facilitate staff requesting information from our Research Department, a SIPTU Training Courses System which monitors and records all training carriedout in SIPTU College. A Voice Conference booking system for all staff which allows phone conferences between both staff and members throughout the country was introduced. Membership Application Formscan now be downloaded directly from here and the facility to Look-up Members also. Staff Expenses andMileage are two further options available for development in the next phase.

Conference Attendance using Barcoding - Thenew Barcode system for Conferences has proven to bevery successful, not only in the speedy processing of delegates and observers on arrival, but also in assisting the Finance Department with the payment of expenses.

iPhones - All Industrial staff have the use of an iPhonewhich gives them access to their email, SIPTU’s internalsites and also to look up members.

iPads - We have begun a trial programme in the use of iPad’s as an alternative to laptops for Organisers.

Hardware consolidation - We have added additional servers to our VMWare platform to enable virtualisation and reduce our dependency on physicalhardware and maintenance of same.

Information Technology

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26 SIPTU • Annual Report 2011/2012

The SIPTU banner leading the Union’scontingent in the 2011 May Day marchin Belfast.

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Political OverviewIn 2011 the devolved Government completed its firstever full term of office. Although the Administrationhas not always functioned, it nevertheless holds out apromise of political stability for citizens.

Economic OverviewFive years into this economic crisis the Northern Irelandeconomy is still underperforming and economic activityhas still not found a floor. Labour market statisticsmay, at first glance, paint a brighter picture than that ofthe Republic of Ireland or the rest of Europe, but theunderlying position is still quite precarious. The econ-omy of Northern Ireland is dealing with fiscal austerityof its own, enforced by the Westminster Government,and facing headwinds from the same set of policies inthe Republic of Ireland. Without any significant actionfrom the Northern Ireland Executive, it is difficult toconstruct a scenario where the economy will move to-ward stronger growth and broader employment.The policies of the Tory/Lib Dem Government in the UKhave been manifestly evident in the Six Counties ofNorthern Ireland. Cuts to child tax credits and a hike inthe standard rate of VAT have been imposed in order tomake way for the reduction of the third rate of tax forhigher earners to 45% in 2013. When the Northern Ex-ecutive should be trying to support job creation in theface of an unemployment rate just short of 8%, theircapital budget was cut by an estimated 40% over thenext four years. The Budget announcement of freshfunding worth €226m is a welcome softening of theblow but this is far from adequate. The adoption ofsweeping social welfare reform to bring Northern Ire-land’s system in line with Britain will undo efforts tostimulate recovery in the depressed region which hasbeen badly hit by public expenditure cuts and a con-struction bust. Even more crucially, the welfare reformsdriven by the Tory Party will do little to lift those cur-rently dependent on state services and payments intomeaningful decently paid employment.

The Northern Ireland Composite Economic Indexshowed a fall in growth for the last quarter of 2012 it was revised down from growth of 0.4% to 0.0%. Muchlike the Republic the construction sector remains a significant drag on the rest of the economy, having further declined by 1.8% since Q4 2012. As is reflectedin labour market statistics, Northern Ireland has yet torecover from the fallout of its own property crash andrecent surveys from the Royal Institute of CharteredSurveyors show no signs of improvement for the sector in the near future. Plans for the recovery inNorthern Ireland to be led by a high value services sector are called into question by these figures.

They show the services sector, which is the largest por-tion of the private economy, falling by 1.4% while con-versely the production sector shows small growth of0.3%

The labour market seems to portray a more positiveoutlook for Northern Ireland, especially when comparedwith more startling figures in the Republic and through-out the Eurozone. While headline rates for employmentand unemployment are comparatively low, it has to benoted that these indicators do not present a completepicture of the labour market. As the graph below shows,at best, rates of unemployment have stagnated overthe last five years.

Not all of the recent reduction in unemployment can beaccounted for increases in employment. The numbersin employment increased only marginally over this pe-riod, while the rate of employment actually fell. How-ever the economic inactivity rate did increase. NorthernIreland has always had a comparatively high rate of

economic inactivity, but it had begun to close the gapwith the rest of the UK in recent years. As is the case

27SIPTU • Annual Reports 2011/2012

The Six Counties of Northern Ireland

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28 SIPTU • Annual Reports 2011/2012

with other economies that have experienced increasesin long term unemployment, many people who havebeen unemployed for a long period of time, tend to giveup and stop looking for work. Unfortunately statisticscount these people as being economically inactive, butfortunately there is a distinction between the “economi-cally inactive” who still want to work and those thatdon’t. The number of those economically inactive whowant to work increased by 6000 (4000 more than thefall in unemployment) over the period to June this year,which suggests that Northern Ireland may have a problem with discouraged workers.

While figures for youth unemployment (20.3%) and longterm unemployment (54.3% ) remain worryingly high,there is an equally perilous situation for those at work.The numbers of people in part-time employment hasrisen significantly over the last five years, and the number of people working part-time involuntarily hasincreased significantly as well. Involuntary part-timeemployment is just one element of the growing problemof underemployment in our economy. Zero-hours contracts have recently hit the headlines, and they represent the most egregious form of these precariousemployment practices.

The Northern Ireland economy is still in significant danger and any supposed economic recovery emanat-ing from London may well pass it by. Action at the local

level is what is required. The plans to cut Northern Ireland’s rate of corporation tax have thankfully beenall but abandoned by the Executive. This policy wasmisguided and could have cost Northern Ireland hundreds of millions in lost funding on a gamble thatmight never have paid off. The new Finance MinisterSimon Hamilton in recent comments has made it clearthat he does not see the size of Northern Ireland’s public sector as a blockage to growth; he sees it as an advantage. This is a significant departure from economic commentary that has emanated from the Executive in recent years. The challenge now is to seethe public sector as an engine of growth not an impediment to it.

Within the private sector the dominant employers are in the retail and wholesale sector (17%), manufacturing(10%), the construction sector (7%), and the hospitalitysector (5.5%). Retail and wholesale while providing thelargest employment sector are synonymous with lowpay.

The Nevin Economic Research Institute, has produceda report which recommends using Northern Ireland’spublic housing stock to fund a massive programme ofenergy retrofitting. They have also made proposals toreduce the £300m annual cost of youth unemploymentby introducing a youth guarantee which would provideemployment for young people unable to find work. Inconjunction with Northern Ireland Committee - IrishCongress of Trade Unions (NIC-ICTU) they have madeproposals to use Northern Ireland’s public procurementmore effectively to support the local economy. This canbe achieved within EU rules and could give a wellneeded boost to the SME sector in Northern Ireland.

All of these polices would go some way to putting Northern Ireland on a track for sustainable long termgrowth. There is no merit in waiting for the UK economyor the Eurozone to lift Northern Ireland out of the doldrums, local action is required.

Campaigns

Strengthening our collective voice.SIPTU’s membership density in Northern Ireland grew by 9.5% between 2011 and 2012. Our on-going campaigns led by our activists are ensuring improve-ments for members, while growing the numbers ofworkers who are joining SIPTU to secure protection, a collective voice in the workplace and society, and because of SIPTU’s record as a campaigning union.

Employment RightsEmployment Rights is a devolved issue. It rests with the Department of Employment and Learning. SIPTU is participating fully in NIC/ICTUs Campaign to ensurethat the Northern Ireland Assembly does not acquiescewith the erosion of employment rights which is beingdriven by the Tory/Lib Dem Government in the UK.

Regional PaySIPTU is also fully involved in the NIC/ICTU Campaign to combat chancellor George Osbourne’s plans to introduce regional differences in public sector pay. The introduction of regional pay will not create a single additional job, and will instead result in further falls indemand for goods and services in regions such asNorthern Ireland facing the pay cuts implied in this proposal.

1Long term unemployed is calculated as % of those unemployed who are in unemployment for more than 12 months

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Welfare reformThe Governments’ “skivers versus strivers” rhetoric recently found new force with the 1% cap on benefit increases. This will hit the living standards of millions of people across the UK, the majority of whom are atwork. Government rhetoric would suggest the vast majority of the welfare budget goes to the unemployed.The level of benefits which actually goes to the unem-ployed is a mere 3%. Many SIPTU members includingpublic sector, retail and community workers rely on welfare support such as housing benefit and child taxcredits. The benefits are used to put food on the tableand heat their homes, keep a roof over their heads anddo not provide for a lavish lifestyle. If welfare reform is introduced into the Northern Ireland economy asplanned it will remove £5 million from the local economy.

A recent survey showed proposed reductions will resultin a 24% cut back on heating and 23% on family food.The difficulty faced by these families is in stark contrastto the £40,000 tax giveaway to millionaires in Budget2012. SIPTU argues that if the benefits budget needsto be cut, the government should target profit makingemployers ensuring they pay a living wage of £7.45 perhour that allows them to stay out of poverty. This couldsave an estimated £6 billion per year from the benefitsbudget across the UK.

One problem for the trade union movement tacklingthis issue is that only one in nine workers earning lessthan £7.00 per hour is a member of a trade union. Interestingly, 40% of employees earning £15 to £20per hour are union members.

If the minimum wage had increased by the sameamount as top pay since its introduction in 1999 itwould now be worth £18.89 per hour. Median grossearnings in the private sector in Northern Ireland are£394.20 which is much less than in the UK mediumearnings for the private sector equivalent of £426.20.SIPTU is campaigning with NIC-ICTU and communitygroups to ensure the worst aspects of Welfare Reformare not imposed in NI. In this regard a protest was organised on the 10th September 2012 and furtherprotests are planned to avoid the worst impacts ofthese cuts.

Bill of Rights SIPTU is also involved with NIC ICTU and other organi-sations campaigning for the introduction of a Bill ofRights. Creating a new legal framework and rebuildingconfidence in the legal system has proven to be an es-sential element of transition in societies all around theworld.

SIPTU is seeking a Bill of Rights that will include thehighest possible standards of human rights protection.It should provide social, economic and cultural rightsensuring citizens have access to an adequate standardof living, education, civil and political rights.

Strike ActionOn 30th November 2011 SIPTU members joined col-leagues from other unions engaged in strike action overthreats to their terms and conditions of employment,and in particular their pensions. This strike action wasthe most widespread ever seen in Northern Ireland,and the highlight of the day was a mass rally aroundCity Hall. This action sent a clear message to the gov-ernments in Westminster and Stormont that workingpeople and their families supported by trade unions re-fuse to be the sacrificial lambs on the altar of neo-liberal austerity.

Building peace and combatting sectarianism While SIPTU members and activists continue work toimprove community relations in their own areas, theunion as an institution has also worked through theNorthern Ireland Committee (NIC) of the ICTU whereSIPTU is directly represented. NIC-ICTU is the largestcivil society in Northern Ireland.

SIPTU identified the cross community work of the voluntary and community sector as a fundamental toolin lifting families out of multi-generational poverty andimproving cross community relations. SIPTU activistsfrom this sector have directly lobbied Stormont commit-tees, Ministers, MLAs, MEPS and also arranged eventsat Stormont to showcase the importance of the workundertaken, and to seek the supports necessary to enable them to be more effective in their vital work. As part of this campaign we are also seeking that community workers undertaking work on behalf of thegovernment departments enjoy a threshold of decencyin relation to security of employment and their termsand conditions of employment.

Nevin InstituteSIPTU was proud to support the foundation of the NevinEconomic Research Institute (NERI) with offices inDublin and Belfast. It is a research organisation whichat its core has a vision of the achievement of a better,fairer society. It aims, through the provision of world-class research and analysis, to ensure our activists inNorthern Ireland had access to relevant economic information.

29SIPTU • Annual Reports 2011/2012

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30 SIPTU • Annual Report 2011/2012

Boots the ChemistThis very profitable company imposed cuts to thepremium pay to our membership. Following protestsoutside their stores and the lodging of a Tribunalcase against this unfair action we secured the repay-ment of thousands of pounds for our membership.The Company then responded with the introductionof a new contract for these members again imposingpremium pay cuts. We have lodged a further case tothe Tribunal which has yet to be heard.

When this company relocated its taxable HQ to Zug in Switzerland over £100 million was removed from taxation available to support healthcare and other services. They are not alone in this regard as it is estimated tax avoidance schemes cost the British Exchequer £25 billion each year.

District CommitteeThe Northern Ireland District Committee was the first to be established in the Union. It is comprised of delegates representing members from all industrial Divisions located in Belfast, Derry and Newry. TheCommittee functioned effectively throughout 2011and 2012 meeting bi-monthly.

Boots workers stage aprotest over the cutting ofpremium rates outsideBoots’ flagship store inBelfast city centre, September 2012.

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OverviewJust over two years after the Irish economy went into its deepest recession since the foundation of the State,2011 and 2012 marked the beginning of the five yearprogramme of adjustment under the Troika of the EUCommission, the ECB and the IMF. While the incumbentFianna Fáil-Green government parties were annihilatedin the general election in early 2011, the Memorandumof Understanding (MOU) with the Troika agreed in late2010, remained in place. In effect, this set the parame-ters for action for the new Fine Gael-Labour coalition government.

Although it was originally envisaged that a fiscal adjustment of some €15bn was required between2011 and 2014 to bring the deficit below 3% as ashare of GDP, this plan relied on over-optimistic assumptions of growth and it under-estimated the deflationary impact of austerity on domestic consump-tion. The planned adjustment has since increased to€18.4bn and has been extended to 2015.

Entrenchment of two tier economyStrong export growth ensured that the Irish economytechnically came out of recession in 2011 and ex-panded by 1.4%. However, this was meaningless interms of the impact on employment, tax revenues anddomestic demand. Notwithstanding the global down-turn, Irish export growth hit 5.1% in 2011 although thiswas narrowly concentrated in medical and pharmaceu-ticals products (+9% year on year growth)and food and beverages (+12.4%). Thetwo tier recovery became increasingly en-trenched as domestic demand con-tracted again in both 2011 and 2012and unemployment continued to riseuntil peaking at 15.1% in February 2012.While the freefall in the Irish domesticeconomy came to an end in 2011, it wasto take another 12 months to see anysigns of stabilisation emerge.

Despite tentative signs of some bottoming out in thenumber of job losses by the end of 2012, three majorlong term crises became apparent during these yearsin the form of the burgeoning public debt crisis, the private debt overhang and structural unemployment.Together these issues will weigh heavily on anyprospect for domestic recovery well into the secondhalf of this decade.

Ramping up of Fiscal adjustment After a series of tax increases and spending cuts totalling €9bn in 2009, the €6bn budget enacted for 2011 was the harshest budget adjustment to date.Designed to demonstrate the strength of the FF-GreenGovernment’s resolve to tackle the crisis and reassureinternational investors, Budget 2011 was introducedagainst the backdrop of a dramatic climb in Irish sover-eign bond yields, a domestic economy that remained indeep contraction and increasing concern that Irelandwould not meet the deficit targets by the deadlineagreed with the European Commission by 2014.

Instead, measures that included cuts to the PAYE taxcredit, increases in the standard rate threshold for taxand the introduction of the universal social charge intensified the severe impact of the recession on Irishhouseholds and ensured that attempts to cut thedeficit by a massive 2.2% in a single year were self-defeating and did not reach the intended target.

This was followed by a €3.8bn budget in 2012 and together they brought the cumulative value of total fiscal

Economic Developments

Austerity Budgets to date 2008-2012 totalling €28.1bn

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32 SIPTU • Annual Reports 2011/2012

consolidation to €24.4bn (over 15% as a share of GDP)between 2008 and 2012. While the new Governmentlargely abided by the overall parameters of adjustment inthe original MOU, there were a number of key policyshifts and reversals from previous Government policy -the National Minimum wage was restored to €8.65 in2011 after a €1 cut in 2010, Programme for Govern-ment commitments not to impose any additional incometaxes meant that the MOU plan to further cut PAYE andpersonal income tax credits, and to raise the standardincome tax threshold, were shelved. The introduction ofwater charges was delayed until 2015.

The shift away from targeting direct taxation effectivelyhamstrung the Government’s range of choices and en-sured a greater and more insidious focus on indirect taxin the form of the flat rate €100 household charge and a2% increase in the standard rate of VAT to 23% in 2012. Furthermore, personal income tax did not remain completely untouched. The introduction of theUniversal Social Charge (USC) to replace the income levyand the health levy, along with the abolition of the PRSIallowance of €127 per week from 2013 particularly hitthe estimated 380,000 low income workers earning be-tween €18,000 and €27,000 per year.

SIPTU’s response to the continuing crisisSince the start of the crisis, the consequences of fiscalconsolidation for the public purse and economic growthhave been hotly contested. SIPTU’s contention, andthat of the wider Trade Union Movement, is that auster-ity in the absence of a stimulus to growth at home andabroad would ultimately prove self-defeating. Repeateddownward revision to the growth projections along witha persistently high unemployment rate has played tes-tament to this. At the start of 2011, Government fore-cast cumulative growth of just under 5% between 2011and 2012. A combination of domestic deflationary poli-cies along with the severe drag on external demandprompted by synchronised fiscal contraction in the Eu-rozone and the UK meant that actual GDP was lessthan half that initially expected at just 2.3%.

The SIPTU response was built on three main pillars:

(i) Shift the burden of adjustment to ensure a fairer distribution of the fiscal consolidation measures. Between 2009 and 2012, just 20% of the tax measures were specifically targeted at higher income earners and the better off. In 2012, SIPTU set out a 12 point plan that specifically called for a solidarity PRSI charge on all those earning over €100,000 and an increase in the minimum effective rate of income tax, PRSI to be applied to all unearned income, landlords’ mortgage interest relief to be cut to 10% and a progressively graduated property tax to be

introduced as the first step towards a wealth tax.

(ii) Protect public services and offset the deflationary impact on the domestic economy by fiscal austerity measures. SIPTU sought provisions for the early draw down of Additional Voluntary Contribution pensions (AVC’s) in order to boost domestic growth and for debt restructuring schemes for both distressed households and businesses in order to sustain existing employment.

(iii) Boost capital investment, in order to address the infrastructural deficit and generate jobs. Midway through 2011, the newly elected government announced a Jobs Initiative which halved employer’s PRSI for those earning below €356 per week, it cut to 9% the reduced rate of VAT for particular goods and services and was largely targeted at the hospitality industry. This was funded by a very controversial levy on occupationalpension funds. SIPTU campaigned against this deadweight tax and proposed that such monies should instead be productively invested by pension funds in infrastructure in Ireland in exchange for a commercial return. The Government responded in mid-2012 with a capital infrastructureplan worth €2.25bn over 7 years.

Eventual stabilisation in the Labour MarketFive years after the crisis hit in 2008, the volume of net full time job losses finally hit the bottom in Q32012, with the loss of 21% or just under 380,000 full-time jobs since the final quarter of 2007.

After the initial dramatic collapse during 2009 and2010 which saw an average of 28,325 jobs (full-timeand part-time) lost per quarter, the pace of job lossesdid slow considerably throughout 2011 and 2012 withan average 4,300 fewer persons in employment everyquarter up to Q2 2012. A significant increase in thenumbers employed on short time hours in part helpedto stem this outflow and it appears that part time workwill be a major feature of the recovery in the labourmarket throughout 2013 and beyond. At the end of2007, just over 18% of those at work were on part-timehours, by the end of 2012 this share had increased tojust short of a quarter of all those at work (24.3%).

Construction eventually hit bottom in Q2 2012 havingcontracted by 62% since peaking at the end of 2007.Employment in the accommodation and catering sectors experienced a rebound in the latter half of2011 and 2012 after a dramatic fall in early 2010 dueto the collapse of tourism and the effects of the ashcloud that disrupted most of Europe. Much of the recovery was helped by a number of Government

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33SIPTU • Annual Reports 2011/2012

supports with the halving of employers PRSI for thoseearning €356 or less per week and the cut in the reduced rate of VAT to 9%.

Employment in the wholesale, retail and distributionsectors continues to fall throughout 2011 and 2012 on the back of ever deteriorating retail sales. Employ-ment losses hit the bottom in Q2 2012, some 16%lower compared to the boom time peak. Despite this, it remained at the end of 2012 the largest employmentsector in the State and its share of all workers increased to almost 15%. Industry’s share of employment fell to 12.7% at the end of 2012, downfrom 13.7% at the height of the boom. Losses in industrial employment appeared to hit the bottom in Q3 2012, with the sector now 21% smaller comparedto the peak in 2008.

With regard to the Live Register, the pace of increasesimilarly slowed throughout 2011 and 2012. The numbers signing on peaked in August 2011 at448,500 and the standardised unemployment rate hit15.1% in February 2012. Emigration of approximately87,000 in 2012 plus large numbers exiting the labourforce to take up education or care duties helpeddampen the increase in the Live Register. After muchvolatility in the numbers during the winter of 2011/2012, the Live Register began to record consecutivemonthly declines each month post June 2012.

Bank bailout bill tops €64bn and distressedmortgage numbers continued to growDuring 2011 and 2012, the State committed another€18.6bn to the Irish banks to bring the total bill to€64bn. Whereas the IBRC (formerly Anglo Irish Bankand INBS) received the bulk of the bank bail outmonies (€34.7bn) during 2009/2010, it took longer for

Allied Irish Banks (AIB) and the Gov-ernment to accept that it was alsoin a zombie state. In 2011, it re-ceived a state injection for the thirdconsecutive year to bring the AIB’stotal bailout to €19.9bn. By end2012, the State owned 99.8% ofAIB and 15.1% of Bank of Ireland,with the State’s share in Bank of Ire-land reduced in early 2013 due tothe sale of the bank’s contingentconvertible capital notes.

For the State, the reluctance bybanks to conclude permanent re-structuring deals with borrowers hasensured that uncertainty remainson the possible need for future re-capitalisations. For distressed mort-gage holders, reliance by the banks

on interest only or reduced mortgage payment arrange-ments has proved to be a short term response to amuch longer term problem, particularly in householdswhere one or both jobs have been lost. The Personal In-solvency Bill 2012 marked a significant breakthroughwith the introduction of three types of secured and un-secured debt write down. However banks retain a vetoover any arrangement and the success of the legisla-tion remains very uncertain. Between the end of 2010and the end of 2012, households in arrears of 90 daysor more increased from 5.7% to 11.9%. This figure risesto over one fifth of all households when restructuredmortgages and arrears of 30 days or more are factoredin.

EU Economic DevelopmentsAt the start of 2011, just two member states of the Eurozone 17 were in bail out programmes, Greece andIreland. By mid-2012, this number had risen to five withapplications for assistance made by Portugal, Spainand Cyprus.

2011 and 2012 will be remembered as a key turningpoint in the Eurozone crisis for three reasons. A renewed crisis in Greece in early 2011 threatened todeal a fatal blow to the Eurozone until it was cordonedoff from the rest of the Eurozone through a series of private sector debt write downs at a major human, social and economic cost tothe Greek population and the political system.

Secondly, initial dysfunctionand indecision among EUleaders gave way to anstronger and more dominantGermany, backed by member

Irish Labour market 2009-2012 – Employment (‘000)

and Unemployment rate %, seasonally adjusted

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34 SIPTU • Annual Reports 2011/2012

As Ireland’s economic and fiscal problems deepened,Irish households were subjected to harsh budgetarymeasures and faced very difficult circumstances. Un-employment reached 14.3% at the end of 2011 and re-mained at 13.7% in the last quarter of 2012.

Budget 2011 was the last package introduced by theFianna Fáil/Green Party Government in December2010 before Fine Gael and the Labour Party formed acoalition after the General Election in February 2011.

Low-paid workers were targeted through a cut in thehourly minimum wage rate by €1 to €7.65 underBudget 2011. Following previous cuts in 2010, childbenefit was further limited in 2011, amounting to aloss of €480 per year for a family with three children.While the state pension rate escaped, Jobseekers Benefit and other social welfare payments were cut in2011 by €8 per week, compounding reductions fromthe previous year.

The Income Levy and Health Levy were abolished inBudget 2011 and replaced with a Universal SocialCharge (USC), payable on gross income between€4,004 and €10,036 at 2%; rising to 4% on income between €10,037 and €16,016 and 7% on incomeabove this level. Furthermore, the value of tax bandsand credits was reduced by 10%.

As families were squeezed for extra contributions fromincome, they were simultaneously confronted withhigher expenses for education in the form of a €2,000student contribution and a reduction in the grant allo-cation for third level; alongside increased charges forschool transport.

Following a determined campaign by trade unions andcivil society organisations, including ‘The Poor Can’tPay’ campaign, the Fine Gael/Labour Government re-stored the minimum wage to its previous level of €8.65per hour upon taking office. This was a significantachievement not only for those directly affected butalso for all those seeking to curb the corrosion of wagerates across the economy.

The commitment in the Programme for Government notto increase income tax rates and not to cut core socialwelfare rates provided a shield for some, although theflipside was that the option of leaning more heavily onhigher earners for revenue was restricted. It was particularlywelcome that 330,000 people benefited from the

Social Developmentsstates such as Sweden, Finland and the Netherlands,with the result that a significant stepping up andbroadening of EU fiscal rules emerged as the major re-form response to the fiscal and financial crisis. Theelection of Socialist President François Hollande inFrance was an important symbolic counterbalance tothis, but his achievements have been limited to a number of growth initiatives which have received verysmall amounts of financial backing.

Thirdly, the appointment of the pragmatic Italian MarioDraghi as President of the ECB has proved a more powerful counterbalance with the relatively immediatereversal of two previous ECB interest rate increases in early 2011 and a pushing down of the marginal refinancing rate to a historical low of 0.75% by mid-2012. Even more importantly, Draghi initiated a newround of long term refinancing operations consisting of medium term 3 year loans in late 2011. This was followed by an unlimited bond buying programme inJuly 2012 complemented by a commitment to “dowhatever it takes”.

Together these efforts have temporarily staved offpanic induced contagion and in particular have calmedconcerns about the Spanish banking system and theItalian public debt overhang. However, key questionsabout the future of the Eurozone remained at the endof 2012 and while plans for an EU Banking Union wereset in train, huge uncertainty remains about the singlecurrency project.

For Ireland, there were three major developments during this period, (i) the reduction of interest chargedand extension of loan maturities on the €40.2bn worthof European Financial Stability Facility (EFSF) and Euro-pean Financial Stabilisation Mechanism (EFSM) loansin July 2012, which meant savings of approximately€5.5bn to the Irish debt servicing bill, (ii) The introduction of the Fiscal Compact Treaty and the subsequent referendum in May 2012 and (iii) the June2012 Council meeting where Ireland was singled outfor special mention in the context of a commitment tobreak the link between sovereign and banking crisisacross the EU, along with reconsideration of retrospec-tive recapitalisation of Irish banks. By mid-2013, theprobability of this happening has become increasinglyremote and it appears that the limit to any Irish successin arriving at a sustainable solution for the country’sbanking debt was reached in February 2012 with therestructuring of the promissory note deal.

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35SIPTU • Annual Reports 2011/2012

extension of the exemption limit from the USC to€10,036. However, Budget 2012 also contained unpalatable elements which increased the pressure on household budgets. The standard rate of VAT wasraised from 21% to 23% and the carbon tax was in-creased from €15 to €20 per tonne from May 2012 (excluding solid fuels). The student contribution forthird-level was increased by €250 to €2,250. Moreover,the child benefit rate for the third child dropped to€148 and to €160 for each subsequent child, with a view to standardisation at €140 in 2013.

Jobseeker’s benefit was restricted through the calculationof entitlements based on a five day rather than a sixday week, thereby reducing the payment for many part-time workers. The intention of treating Sunday as aworking day was also signalled.

Older people were affected by the restriction of the fuelallowance to 26 weeks, down from 32 weeks, in Budget2012. Furthermore, new bands and rates were intro-duced pertaining to state pension payments for newclaimants with less than the full social security contri-butions. This prompted SIPTU to lobby for the Home-makers’ Scheme to be backdated so as to boost thecontribution record of people, predominantly women,who took time out of the workforce because of caringresponsibilities (see Equality Report).

Workers in the community sector were exposed to unacceptable proposals in Budget 2012 with theprospect of a reduction in the training and materialsgrant for Community Employment Schemes from€1,500 to €500 per participant per annum, whichwould have effectively made many organisations unvi-able. SIPTU mounted a successful campaign which re-duced the extent of the cut. However, lone parents whohave traditionally had a relatively high level of participa-tion in Community Employment Schemes have been af-fected by provisions in Budget 2012 to reduce theearnings disregard from €146.50 to €60 per week overfive years. The intention to cease the one parent familypayment where the youngest child is 7 years of age overthe period to 2014 provoked considerable opposition, resulting in a longer period for implementation.

The effect of spending cuts in various departments hascaused difficulty in relation to the maintenance of pub-lic services in a range of areas such as education and

health, and in the work of organisations in the commu-nity and voluntary sector that have suffered state fund-ing cuts.

Young people under 25 have been hard hit by a lack ofavailable job opportunities, with an unemployment rateof close to 30% in 2011 and 2012. SIPTU was involved,through the European Trade Union Confederation YouthCommittee, in a campaign at EU level to introduce a‘Youth Guarantee’, offering a quality job offer, trainingor further education within four months of a young per-son under 25 becoming unemployed or leaving school.SIPTU worked with the ETUC Youth Committee to high-light the issue of precarious work among young work-ers, stressing the need for decent pay and entitlementssuch as pension provision, sick pay etc. In addition,SIPTU and the ICTU lobbied strongly for an investmentpackage to boost job creation for all generations.

A ‘new national social target for poverty reduction’ wasannounced by the Government in October 2012 to reduce consistent poverty to 4% by 2016 (an interimtarget) and to 2% or less by 2020, from the 2010 base-line rate of 6.2%. Consistent poverty identifies those simultaneously at-risk-of-poverty (individuals living onincomes below 60% of the median household income)and experiencing basic deprivation (lacking two ormore essentials). The rate of consistent poverty has increased every year since 2008, when it was 4.2%,reaching 6.9% in 2011. The deprivation rate hasjumped from 13.8% in 2008 to 24.5% in 2011, high-lighting the strain on low-to-middle income households.SIPTU is represented on the board of the EuropeanAnti-Poverty Network (EAPN) Ireland, collaborating in efforts to minimise hardship in society, includingamong the working poor. SIPTU also lobbies the Depart-ment of Social Protection on these issues through theTechnical Advisory Group (TAG), which interacts with theSocial Inclusion Division of the department.

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Analysis of the issues around the ReferendumOn The Treaty on Stability, Co-ordination andGovernance in the Economic and MonetaryUnion Known as (The “Fiscal Treaty”)

IntroductionThe Government has scheduled Thursday, 31st May, asthe date for a referendum on the “Fiscal Treaty”. Thispaper offers an analysis of the proposed Treaty and theissues that arise from a trade union perspective. The pur-pose is to examine the likely effects, implications andalternative options facing workers in Ireland.

BackgroundThe Referendum on the proposed Treaty on Stability,Co-ordination and Governance in the Economic andMonetary Union known as the “Fiscal Treaty” arises inthe context of the most serious crisis in the CapitalistSystem since the Great Depression of the 1930s. Thecrisis came about as a result of the dismantlement ofthe global financial regulation infrastructure in the in-terests of people at the top of the financial services in-dustry. Recklessly unsustainable lending left banksacross the developed world completely over-exposedwhen the music stopped. The consequences havebeen particularly acute in Europe. Major banks acrossthe Continent are carrying trillions of euro of public andprivate debt on their balance sheets. The irrational exu-berance of the past has given way to fear and inertiaamong the moneylenders of the world. Greece, Portu-gal and Ireland have found it impossible to borrow atsustainable rates, resulting in the need for EU/ECB/IMFprogramme funding. Other countries such as Spain andItaly are precariously on the precipice. The crisis threat-ens domino defaults, the collapse of the banks, thebreakup of the euro and the implosion of the global financial system.

Germany, because of the size and strength of its economy, is now at centre stage. Together with France(jointly accounting for 48% of Eurozone GDP) it is deter-mining the direction of the policy response. They areapplying remedies that reflect their interests, concernsand the lived experience of their ruling elites. The “Fis-cal Treaty” mirrors a similar measure to one which wasenacted in Germany in 2009 providing for a new “bud-get rule.”

Objectives of the Strategy

The strategy underpinning the Treaty is designed to:• bring about an “adjustment” in costs in the

indebted countries in order to boost competitiveness, (principally through cutting welfare and public services, driving down the price of labour and curtailing people’s rights at work)

• reassure the moneylenders of the world that they will get their money back;

• placate public opinion in Germany which is underwriting the bills and which underwent a severe “adjustment” a decade ago.

It entails an internal devaluation; one-sided austerity approach. The German perception of their own experiencein the two decades post re-unification may well colour theview on what needs to be done. However, the macroeco-nomic conditions were very different then from thosewhich apply in Europe today. While the country never ac-tually dipped into recession, the post reunification billduring the 1990’s imposed huge costs on the Germanpublic finances. The Government response was to effectan “adjustment” through cutting unemployment benefitsand diminishing workers’ rights. Their response floatedon the back of the dot-com recovery globally, exporting tobuoyant neighbouring economies.

Today things are very different. US domestic economicactivity appears to be improving, but its recoverythroughout 2012 and 2013 will remain constrained bya fragile housing market, with negative equity weighingheavily on households alongside significant uncertaintyfor the public finances post the Presidential election.The Eurozone is about to slip back into recession. Lat-est projections envisage lower global growth rates. Un-employment is rising exponentially. Aggregate demandhas declined in virtually every Eurozone country.

A synchronised fiscal contractionThe policy underpinning the Treaty will not solve theproblems of Ireland or of Europe. In 2012, the EuropeanCommission expects that 20 out of the 27 EU memberstates will be in breach of the 3% deficit target (see figure 1). Thus they will be under the “excessive deficitprocedure” requiring them to reduce public expenditureand increase taxation sharply.

SIPTU Analysis of the issues around the Referendum On The Treaty on

Stability, Co-ordination and Governance in the Economic and Monetary

Union Known as (The “Fiscal Compact Treaty”)

19th April 2012

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37SIPTU • Annual Reports 2011/2012

A synchronised, fiscal contraction across the EuropeanUnion can only have the effect of depressing domesticand internal (within Europe) export demand along withliving standards

The prescription is to redistribute income from Labourto Capital in order to bolster international competitive-ness, shore up profitability, encourage investment andultimately create employment.

However, if economic activity is stagnating across almost all Eurozone member states and US growth isinsufficient to shore up export demand from the EU,how will the recovery come about? One-sided austeritywon’t work. The only route to sustainability is throughjob creation and the stimulation of aggregate demand,through investment.

The effect of the contraction could be alleviated by parallel measures such as debt sharing (Eurobonds)and/or massive structural funds to stimulate growth in the stressed countries. However, there is no sign ofeither.

The mandate of the European Central Bank (ECB)should be expanded to intervene directly in the bondmarkets and to pursue growth promoting policies. How-ever, the only initiative of significance thus far has beenthe provision of €1.06 tr. by the ECB, through its longer-term refinancing operation (LTRO). This has beenmade available to the European banks at a rate of 1%interest over 3 years. It was provided to avert a secondcredit crunch. Banks could avail of the liquidity pro-vided at a rate of 1% to buy Government bonds at 5 to

6% returns. This would simultaneously calm the bondmarkets enabling countries to borrow, while alleviatingthe pressure on the bank balance sheets (through in-creasing the value of existing bond holdings) and alsoprovide a guaranteed margin of return. This did hap-pen, at least initially. It was hoped the initiative wouldbuy some respite from the funding crisis for two tothree years. Clearly the strategy is to keep the systemafloat while the “adjustment” is effected (principally atthe expense of working people). However, the wheelsmay be coming off it already. Take Spain for example.They recently elected a government of impeccably right-wing credentials with an overwhelming majority. It wenton to announce the most severe austerity budget sincethe demise of the Franco dictatorship. All seemed to begoing according to plan. However the money lendersdon’t appear to be buying it. They want to know wherethe growth is going to come from to repay them. Theyknow one sided austerity won’t work.

Centre Right parties now dominant in EuropeThe current approach is driven by the Centre-Right Parties now dominant in Europe. It reflects the interestsof those at the top of the banking and financial systems, who ironically caused the crisis in the firstplace.

This is a long way from the outlook of the great Frenchsocialists, Francois Mitterrand and Jacques Delors, whochampioned the concept of Social Europe in the run upto the Maastricht Treaty of 1992. Indeed, ECB Presi-dent, Mario Draghi stated in an interview with the Wall

Source: EU DG Economic and Finance affairs, Ameco database

General Government Deficit - 2012 forecast

Figure 1: EU 27 and the Excessive deficit procedures countries (in blue) 2012

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38 SIPTU • Annual Reports 2011/2012

Street Journal “Europe’s vaunted social model – whichplaces a premium on job security and generous safetynets – is already gone.”

The proponents of the Treaty contend that it is an essential prerequisite for German support for furthermeasures to assist. This may be so, but there is little evidence of any. Indeed the current German Finance Minister Herr Schauble has argued that distressed countries would not carry out the “adjust-ment” if such were to be provided. In any event theproposition as it stands entails a one-sided austerityagenda only.

It is also asserted that the Treaty is merely the reaffirma-tion of measures already in existence such as the Stabil-ity and Growth Pact which is enshrined in the 1992Maastricht Protocol. This obliged countries to observe fiscal limits of max 3% deficit and 60% debt/GDP ratio.

This is true to a considerable degree. However, it differs in a number of important respects:

• the requirement to incorporate it into primary national legislation (i.e. Constitutional level or equivalent);

• the focus on a structural deficit of 0.5% of GDP (as distinct from an overall general government deficit of 3%);

• the requirement for countries with debt levels in excess of 60% of GDP to reduce them to that level by annual increments of 1/20th, (although this is also enshrined in the recently adopted ‘Six Pack’);

• The exclusion of Countries that do not ratify the Treaty from access to the European Stability Mechanism (ESM).

(Economists do not actually agree on the way to calculate structural deficits. Indeed, some contend thatongoing compliance with the 0.5% limit in a low growtheconomy would result in debt levels well below the 60%target.)

One sided austerity is the worst possible responseIn the longer term (if it lasts), the “Compact” will impede countries from supporting their economies during downturns. However, the most immediate effect of the strategy underpinning it is a dramatic reduction in public spending and increases in taxationacross the continent in face of severe recession. Amore rational approach would entail a less severe“debt brake” balanced by other measures to share theburden and stimulate growth. However, this is not onoffer! One-sided austerity is the worst possible re-sponse.

So this is not the correct course for Europe. It is bothunfair and infeasible.

What then for Ireland? Here there is a further complication. We are afflicted by a debt level which is expected to peak at119%/GDP in 2013, second only to Greece. See Fig-ures 2 and 3.

This is the result of the socialisation of the recklesslyincurred private debts of our banks by the last Govern-ment. Ironically, even if the Treaty had been in placeduring the boom years, it would not have prevented themess created by the banks.

Moreover, our banks (now predominantly publiclyowned) continue to rely on billions of Euro from the ECBto stay in business. Since the end of 2010 our Govern-ment has been unable to borrow the money required atsustainable levels to run the country and service debt.We are currently funded by the EU/ECB/IMF Troikathrough a programme which can extend to the end of2013.

The current European funding mechanisms; the Euro-pean Financial Stability Facility and the European Fi-nancial Stabilisation Mechanism (EFSM and EFSM) aredue to expire in 2013. They will be replaced by a newvehicle called the ESM. The sting in the tail is thatcountries that have not ratified the “Fiscal Treaty” by1st January 2013 will not have access to it.

In January 2014, about €8bn of national debt falls due.We will have to borrow to roll it over. Will the money-lenders provide it, knowing that we will not have accessto the ESM if we are not able to pay them back? If theydon’t we may have to default which could become aone-way ticket to the Stone Age.

AlternativesPeople opposing the Treaty argue otherwise. They makea number of points including the following:

• that the changes to the Treaty of the Functioning of the EU, which makes way for the establishment of a permanent bailout mechanism has not yet been ratified and by threatening to veto it we could get better terms of access to the ESM;

• that even if we find ourselves unable to borrow in 2014, the European Council will not allow us to default anyhow because of the danger of domino repercussions across the Eurozone;

• that we could borrow from the IMF if all else fails.

None of these contentions should be dismissed. Theyare at least as valid as the assertion that a recoverycan be engineered through forcing 20 countries in an

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39SIPTU • Annual Reports 2011/2012

Economic Union to cut spending and increase taxationsimultaneously during a recession.

However, we cannot see the sense of vetoing thechanges to the Treaty on the Functioning of the European Union which establishes a fund upon whichwe ourselves may need to rely. Moreover, it would playinto the hands of hard line elements in the German es-tablishment and that of other treble ‘A’ rated countries. They are opposed to any system of financialassistance for the stressed countries whatsoever. Weshould be careful what we wish for.

Similarly we cannot be so sure that those at the top ofthe European Institutions would not allow us to default.They were ready to let Greece go over the edge in Feb-ruary, ultimately forcing them to accept barbaric auster-ity. Indeed they floated the prospect of an “escrowaccount” from which external liabilities would be dis-charged while Greece itself would be fed to the wolves.

The fly in the ointment of these strategies is that thoseat the top of the European system have more to lose bycapitulating to them than by standing firm.

Conceding to us would undermine the credibility of thewhole “Fiscal Compact” edifice in the eyes of themoney lenders of the world. Moreover all the stressedcountries would be queuing up for similar arrange-ments. Admittedly it could work but it is unlikely andtherefore it is like playing Russian roulette with poten-tially awesome consequences.

Arguments have been made by those opposed to theTreaty that there are viable alternative options whichcould be made available from the IMF, when the current flow of funding from the Troika ends in 2013.

The IMF has five distinct programmes for the grantingof loans or overdraft facilities to debtor countries. Ireland currently depends on an “extended fund facility”. This vehicle is specifically intended for countries which require longer periods to pay back thedebt. The argument goes that post 2013, Irelandshould be able to make use of other IMF loan facilities.In particular, the “flexible credit line” has been identi-fied as a possible alternative. This in effect is an over-draft facility. No conditions are attached when using itand there is no cap on the credit allowed. However,there are very stringent pre conditions relating to eligi-bility for funding. It is necessary to have a capital ac-count position dominated by private flows, sound publicfinances, including a sustainable public debt positionand no bank solvency problems that pose systemicthreats to banking system stability. On each of these crite-ria, Ireland fails to meet the requirements. Consequently itis clear that Ireland would not qualify unless very signifi-cant action was taken to write down our debt.

DefaultThen there is the option of default itself. In 2014 weare projected to have a primary surplus. Revenue willexceed the cost of running the country before debtservicing is taken into account. Theoretically we coulddefault on our external and official creditor debt andstill get by, but a major flight of capital out of the coun-try could follow.

We are one of the most open economies in the world.We cannot anticipate the implications. Thousands ofjobs in our financial services industry could evaporate.Foreign direct investment could dry up. How long would

Source: Dept of Finance Budget documents and Medium Term fiscal statement 2011

Government Debt to GDP Ratio

Figure 2: Figure 2 Government Debt to GDP Ratio

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40 SIPTU • Annual Reports 2011/2012

the global manufacturing companies continue to locatehere? Again it could work but the fact is we don’t knowwhat would happen and therefore it’s not a place to gounless there is no alternative.

Medium to long term implicationsEven if we ratify it the Treaty will not affect us directlyuntil 2015 because we are in an EU/ECB/IMF Programme anyhow. Indeed it will have minimal directaffect until 2018, or longer. After achieving the deficittarget of 3%, there is a three year transition until the re-quirement to annually reduce the degree by which theNational Debt exceeds 60% of GDP by increments of1/20th begins, (as set out in the EU’s “Six pack” ofmeasures.) Of course it may affect us indirectly duringthese years because a co-ordinated contraction in Eu-rope could damage exports and tourism.

In the longer term, if it survives in its present form it will have big implications, especially as our NationalDebt currently stands among the highest in the Euro-zone, at 115% of GDP. It also provides for a high levelof scrutiny of our compliance with the Compact by theEU Commission and by other member states. The diffi-culty in observing a structural deficit limit of 0.5% in acountry carrying our level of National Debt cannot beoverstated. As long as the rate of debt servicing pay-ments (See Figure 4) exceeds that of economic growththe General Government Debt will keep increasing andthe structural deficit will pop up each following year. In-deed it may well be a near impossible task.

That being said, it is not a choice between an idyllicallyprosperous utopia outside the Treaty and brutal auster-ity inside. The fact of the matter is that we are going tohave to run primary surpluses for several years in orderto bring down the ratio of debt to GDP in any event.Otherwise we will not be able to borrow at sustainablerates.

It is not as though we can leverage a better deal by voting no either. This is not an EU Treaty. We cannotveto it. It is a multilateral Treaty that requires the ap-proval of only 12 countries to proceed, so it will goahead without us.

The proponents of the Treaty argue that it is critical that we adopt it and continue on the same path as themajority of EU governments. They contend that remain-ing “integrated” in Europe is key to our economy. This is because so many enterprises are located here due toour being perceived as a core Eurozone country. Theywarn of uncertain outcomes in respect of future foreigndirect investment, retention of global companies, mar-ket perception, etc. They are correct in this respect.

We are often advised of the importance of being withall the others on that train which is departing on 1stJanuary 2013 (the date on which the Treaty becomeseffective). However, one wonders if this should stillapply even if the train is heading over a cliff?

The really difficult issue is the exclusion from access toESM funding if we do not ratify the Treaty. The Govern-ment believes that reassuring the money lenders that

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General Government Debt 2012 (forecast)

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41SIPTU • Annual Reports 2011/2012

they will be bailed out if we cannot repay them is key togetting back to the markets. Otherwise, it will be liketrying to get a mortgage without insurance. This makessense as far as it goes.

However, it will take more than that to convince themoney lenders of the world to fund us. They will focuson our debt servicing requirement over the mediumterm, (See Figure 5) our zombie banks and our unem-ployment rate running at 14% plus. (See Figure 6).

If we are unable to borrow at sustainable rates we willbe faced with another “bailout” even if we ratify theTreaty. This may be better than running the gauntlet ofdefault but it will be horrendous nonetheless, (if thecurrent outlook still prevails in Europe). They will insiston further tightening the austerity screw. This will entaila further savage attack on wages and the divestmentof remaining state assets that are critical to growth aswell as ongoing retrenchment on public provision.

Growth is keyTherefore, the key to the future is a credible strategy for growth. That means addressing the issue of consumption and domestic demand (which has collapsed here to an unparalleled degree).

Exports are critically important and they are performingwell but they will not address the jobs deficit. The realproblem is that our domestic economy is stagnant. Unless domestic demand is stimulated we will see neither jobs nor growth of any significance and wewon’t be able to borrow anyhow.

Gross fixed capital formation has contracted by 67%from €48.5bn down to €16bn (at current market

prices) between 2007 and 2011, with an even largercollapse in building and construction activity. The private sector has retreated from the scene. There will be no significant growth without investment.

The Government cannot directly fund a stimulus because the Troika Agreement restricts public spend-ing. However there are other ways of doing it. The tradeunion movement has developed a proposal with the potential to create tens of thousands of jobs. This involves a combination of use of the National PensionsReserve Fund (NPRF), money incentivised from the pri-vate pension schemes through exemptions from thePensions Levy, and resources leveraged from the Euro-pean Investment Bank (EIB).

There is still about €5bn remaining in the NPRF. Al-ready the investment mandate of the NPRF has beenchanged under the previous Government to accommo-date 5% investment of the fund’s resources into com-mercial activities in Ireland. The Government coulddirect the NPRF to step up this domestic investment,where appropriate, co-funding from the private sectorwould need to be sought in order to ensure that suchinvestment remains “off balance sheet”, to meet Euro-stat criteria. The private pension funds currently carrymore than €70bn of assets on their balance sheets.They have been levied at the rate of 0.6% per annumover a four year period – totalling 2.4%. A system couldbe devised to incentivise each fund to invest 5%-7% ofits assets in job-generating enterprises in the domesticeconomy through an infrastructure fund along with theNPRF money in return for exemption from the levy. Addi-tional money could be leveraged from the European Investment Bank (EIB).

A fund of upwards of €10bn could be developed over

Source: Dept of Finance Budget documents and Medium Term fiscal statement 2011

Figure 4: Debt servicing as share of GDP 1998-2015 (forecast)

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42 SIPTU • Annual Reports 2011/2012

three years, investing €3bn per year. (The Nevin Economic Research Institute (NERI) believes it could be extended to €15bn over five years.)

The concept has not been rejected by the Government.(Indeed, we believe a number of ministers agree withit.) However time is passing and nothing tangible hashappened. We are unclear as to whether this is due toofficial inertia or non-cooperation from the Pensions Industry (as distinct from the Pensions Funds) or other-wise. It may also be that some elements of officialdomstill believe that pay costs across the economy shouldbe allowed fall further before any initiative is taken.However, even those who believe in such stuff, will acknowledge that “Ireland is now competitive” e.g.Goldman Sachs (See“ Achieving Fiscal and ExternalBalance”, March 15th and 22nd). Domestic demandhere fell by an unprecedented 24.2% between the firstquarter of 2008 and the fourth quarter of 2011 – wellin excess of any other EU country (See Figure 6). Employment from peak to trough here has fallen bymore than any other industrialised country since theGreat Depression. Moreover, Irish cost competitivenessrelative to our main trading partners, as measured bywhole economy unit labour costs, improved by 19% between Q.2 2008 and Q.1 2011. (See Figure 7)

A domestic stimulusThe initiative could provide the domestic stimulus thatis absent at European level. It would alleviate the misery of unemployment and offer some hope. Accord-ing to the Construction Industry Council each €1bn invested in infrastructure would generate 10,000 jobs.Over time, it would be self-financing, (vis a vis the costoffset of the pension fund levy) reducing the budget forsocial transfers and increasing tax revenue.

It would enhance the productivity of our economy aswell as facilitating skills retention and development.Moreover, it would help stimulate demand and place uson a growth trajectory. Along with the reassurance ofaccess to ESM funding it would help improve our creditrating. It would provide us with a fighting chance ofbeing able to borrow at sustainable rates to fund theneeds of our people again.

It would offer the prospect of a future free of the brutalstrictures of another “bailout” or alternatively runningthe gauntlet on default.

We could possibly ratify the Treaty and work along withother countries to try to change it from within. Onething is sure – change it will, because one-sided auster-ity will not work. By the time it affects us directly, whichwill be at least six years’ time, the Treaty and the strat-egy underpinning it, will have caused so much turmoil

Source: Eurostat

Figure 5: Unemployment rate across EU 27, February 2012

Unemployment rate % February, 2012

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Source: EU DG Economic and Finance affairs, Ameco database.

Change in real unit labour costs across EU 27 and other

industrialised countries 2009-2012

Figure 7: Change in unit labour costs 2009=2012 (forecast) in individual EU 27, member states and other advanced industrialised countries.

43SIPTU • Annual Reports 2011/2012

Source: Eurostat

Figure 6: Europe’s shrunken economies: change from first quarter 2008 to fourth quarter 2011

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44 SIPTU • Annual Reports 2011/2012

in Europe that it will have been offset by other meas-ures, amended or abandoned altogether. In this regard,the wording of the referendum proposal would merelyenable the Oireachtas to ratify the Treaty (See Figure 6).

It does not seek to enshrine it in the Constitution, lock, stock and barrel. This is important in that wewould not be left stuck with a rigid inflexible formula in perpetuity and it at least offers the hope of changingdirection under improved political conditions in the fu-ture.

ConclusionAccordingly, if the Government commits to proceed with a stimulus initiative along the lines outlined above, in addition to the projected capital spend, on asufficient scale to create tens of thousands of jobs, wewill recommend in favour of the proposition being putin the Referendum on 31st May next – but only if theydo so. Otherwise we are unable to endorse it, as apartfrom the inherent unfairness of the strategy under pin-ning it, one-sided austerity will not succeed, in anyevent.

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45SIPTU • Annual Report 2011/2012

‘The Hare’ foodship arrives in Dublin in 1913

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46 SIPTU • Annual Reports 2011/2012Countess Markievicz

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47SIPTU • Annual Reports 2011/2012

Statutory Developments2011 proved to be a turbulentyear for low paid workers as anumber of key developmentscreated uncertainty over theirpay and conditions. Sevenmonths after the National minimum wage was cut by the Fianna Fáil - Green Govern-ment, the rate was restored to€8.65 on 1st July 2011. Foremployers, the impact was inpart offset by the halving of employer’s PRSI to 4.25%,which took place on the same

date. Seven days later, the High Court struck down theconstitutionality of the Joint Labour Committees andleft workers at the mercy of their employers. Workthroughout late 2011 and early 2012 culminated in theIndustrial Relations Amendment Act 2012, which setdown a new legislative process for the establishment ofnew Joint Labour Committees.

Review of JLCs/EROs in 2011 and 2012In February 2011 the Government (Department of Jobs,Enterprise & Innovation), published Terms of Referenceof a Review (Duffy/Walsh) of the Employment Regula-tion Order (ERO) and Registered Employment Agree-ment (REA) Wage Setting Mechanisms as part of theJoint EU-IMF Programme for Ireland, together with theirpublished National Recovery Plan for Ireland 2011-2014. JLCs and REAs provide the statutory wages andconditions of employment for more than 1 in 4 workersin the Irish labour market.

SIPTU was not consulted on the Terms of Reference for the Review, notwithstanding that, in respect of Registered Employment Agreements, it is the primary stakeholder, negotiating 28 of the 32 REAs. These are,for the purposes of Domestic, European and Internationallaw, Collective Agreements.

Historically, JLCs were introduced by way of legislationto provide protection from exploitation and abuse ofworkers in precarious sectors where there are low lev-els of trade union organisation.

SIPTU made a comprehensive submission to the Independent Reviewer (Duffy/Walsh) and was party to the ICTU-led discussions with the receiver thereafter.

In April 2011, the Duffy Walsh Report was publishedsetting down 19 recommendations to Government inrelation to the calculation of these wage setting mechanisms. The Minister then set out a 13-point planwhich was far less positive than outlined in the DuffyWalsh recommendations.

These included having only one rate of pay without provision for experience and no Sunday premium to beset by ERO. Intensive discussions/lobbying took placewith officials of the Department of Jobs, Enterprise andInnovation.

In July 2011, the High Court ruled that the issuing ofEmployment Regulation Orders setting minimum payand conditions for workers in low paid sectors was unconstitutional. This ruling arose from a challengetaken by the Quick Service Food Alliance (QSFA) againstthe Catering Industry ERO for areas outside Dublin.

SIPTU was invited to appear before the Select JointOireachtas Sub Committee on Jobs, Enterprise and Innovation, and did so in February 2012.

Draft legislation was published in early 2012, the Industrial Relations (Amendment) Bill, and enacted in July 2012. While the provisions of the Act seemed to meet our requirements a subsequent Supreme Court judgement relating to the 1946 Industrial Relations Act has since called into question the validity of certain provisions.

The private sector protocol agreed in 2010 betweenIBEC and ICTU for the conduct of local collective bargaining and industrial relations was renewed in full in 2011. It was renewed again in late 2012 tocover that year and 2013. (See below).

Wage Developments

SIPTU Vice President Patricia King

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48 SIPTU • Annual Reports 2011/2012

Private sector Wages2012 marked the first year of increase since the crisisbegan where private sector weekly wages rose by anannual average of 1%. In real terms, weekly wages con-tinued to be eroded by an increase in consumer pricesof 1.7%. This recovery in the nominal weekly wage fol-lowed 0.8% fall in weekly wages in 2011.

Across fifteen economic sectors, only four recorded increases in both 2011 and 2012; information andcommunications, wholesale and retail, storage andtransport, administrative and support services. Weeklyearnings increased in just 6 sectors in total in 2011and with the exception of mining and quarrying, the payincreases were on average less than half of the annualrate of inflation of 2.6%. However, this large pick upwas coming after sustained period of deflation in 2009and 2010, which saw prices fall by a cumulative 7.5%.

In 2012, the rise in weekly wages was more broad-based with 12 out of the 15 economic sectors record-ing an increase. This recovery was driven by three mainsectors; Professional, Scientific, Technical (annual aver-age increase of 6.5%), electricity, water supply, wastemanagement (+4.8%) and information and communica-tion (+4.8%).

The 2012 private sector wage recovery was largely attributable to an increase in the hourly rate (excludingirregular earnings) of 0.3%, with hours worked rising byjust under 0.1%. The Professional, Scientific, Technicalsector saw the largest increase of almost €0.74 perhour in the basic wage. In a small number of sectors, ir-regular bonuses were the source of uplift with the basicwage falling or remaining flat; accommodation andcatering, transport and storage, administrative andsupport services. This may well be a tentative sign of aparticular pattern in certain sectors over future yearswhere total wages become increasingly dependent onbonuses or performance related wages.

Nominal weekly wages 2011 growth 2012 growth

All economic sectors -0.5% 0.5%

Private Sector wages -0.8% 1%

Mining and quarrying 6.5% -1.9%

Manufacturing -0.2% 2.1%

Construction -4.1% 0.6%

Wholesale and retail trade; repair of motor vehicles and motorcycles 1.0% 2.5%

Transportation and storage 1.2% 0.3%

Accommodation and food service activities -0.2% -3.6%

Information and communication 1.4% 4.8%

Professional, scientific and technical activities -3.9% 6.5%

Administrative and support service activities 1.4% 1.0%

Public administration and defence; compulsory social security -3.5% -0.7%

Education 1.8% -0.3%

Human health and social work activities -1.6% -1.7%

Industry -0.8% 2.2%

Electricity, water supply and waste management -5.7% 4.8%

Financial, insurance and real estate activities -0.7% 0.6%

Arts, entertainment, recreation and other service activities -6.2% 2.2%

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49SIPTU • Annual Reports 2011/2012

November 2012.

IBEC AND ICTU NATIONAL PROTOCOL FOR THE ORDERLY CONDUCT OF INDUSTRIAL RELATIONS ANDLOCAL BARGAINING IN THE PRIVATE SECTOR

1. Both IBEC and ICTU have reviewed the above protocol and reiterate their agreement that the maximisation of sustainable employment is the mostimportant objective to be secured on the way to economic recovery.

2. The parties will work together to facilitate economic recovery through agreed strategies within their sphereof influence.

3. The parties are committed to preserving stability byensuring that industrial relations are conducted in anorderly manner and to serve the primary purpose ofprotecting jobs. Specifically the parties will:

a. Promote meaningful and timely engagement at local level in relation to issues in dispute; and which is undertaken in a spirit of making every effort to reach agreement at the earliest stage;

b. Encourage their members to abide by established collective agreements and ensure that local negotia-tions, where applicable, take place on the expiry of existing agreements on pay under any procedures agreed at enterprise level for the resolution of disputes;

c. Utilise the machinery of the State – the Labour Courtand Labour Relations Commission (or other agreed machinery) – to resolve disputes.

4. The parties recognise that they are operating in a context without a formal agreement on pay determination.However, bearing in mind the shared commitment tomaximising the sustainability of employment, it is ac-cepted that the economic, commercial, employmentand competitiveness circumstances of the firm are le-gitimate considerations in any discussion of claims foradjustments to pay or terms and conditions of employ-ment. It is not the intention of the parties to alter theirhistorical approach to dealing with normal ongoingchange.

5. The parties will try to achieve common ground for thepurposes of persuading Government to take action onpriority issues including:

- Job retention and creation;

- Pensions;

- Home repossessions

- Reform of labour market institutions (Employment Rights & Industrial Relations Bodies)

- Support for the manufacturing sector in line with the relevant objectives of the Report of the High Level Group on Manufacturing and to encourage innovation at enterprise level in the sector.

6. The parties are committed to ensuring that their respective members do not engage in strikes, lockoutsor other forms of industrial action in respect of any matters covered by this protocol where the employer ortrade union concerned is acting in accordance with itsterms.

7. This protocol remains effective for 2012 until the end of 2013 and the parties will meet before the end of 2013 to discuss arrangements to apply thereafter. Otherwise, the parties will meet as required to reviewthe operation of this protocol, to oversee the delivery ofindustrial peace, stability, good industrial relations andto consider any procedural matters where difficultiesarise.

8. The parties will establish agreed tripartite structuresto discharge the functions set out in paragraph 7 above.

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50 SIPTU • Annual Reports 2011/2012

Changes to Terms & Conditions

Division Employment Details

Health An Bord Altranais New Code of Ethics introduced.

Health Bon Secours Hospital, Cork Agreement reached on incorporation of Security Careers Gradeinto Clerical Grade with substantial increase for our members.

Health Radiographers, Community Welfare Service, Major Changes to terms & conditions under Public Service/Croke Ambulance Sector, IBTS, etc. Park/Haddington Road Agreement

Manufacturing Automatic Plastics Profit Sharing Scheme Agreement - company to pay 10% of profits to members in proportion to actual hours worked by end of November.

Manufacturing Batchelors New work roster: week where Public Holiday falls due, members will only work 2 x 12 hour shifts that week and be paid for the full 39hours. Balance of hours will be worked back during the course of the year.

Manufacturing BS&B Safety Gainshare Agreement yielding up to €1,600 p.a. agreed.

Manufacturing Coca Cola HBC Irl New Performance Pay Increase of 1% guaranteed, with 2% linked to performance. Increased Bonus for newer Sales members from 15% to 20%

Manufacturing Diamond Innovations Labour Court recommended allocation of overtime between Temporary, New Entrant and Legacy Annualised Hours Workers be offered proportionately to all grades.

Manufacturing Glanbia - Van Sales Improved sales commission rate of 1.3% for butter and cheese sales, up from 0.9%.

Manufacturing Glen Electric, Newry New Redundancy Policy agreed.

Manufacturing Kraus & Naimer Buy out of loss of shift pay at 1.5 times the annual loss and retain shift pay for redundancy situation, should it arise, for a term of 3 years.

Manufacturing Leo Pharma, Operative Grade Increase in Productivity Bonus to equivalent of 1.3 per cent of basicpay per annum, with lump sum payment to cover retrospection.

Manufacturing Roche Ireland, Clarecastle Improvement to Site Bonus, Medical Insurance Cover, Income Continuance.

Manufacturing William Grant & Sons, Clonmel Improvement to Product Allowance based on Attendance, Gainshare Bonus, Annual Leave, Medical Insurance Cover.

Public Admin & Community Dublin City University Language Service Agreement on payment for attendance at meetings.

Public Admin & Community Local Authority, Education, Community, Major changes to terms & conditions under Public Service/Croke State Related Sectors Park/Haddington Road Agreement

Services Bank of Ireland Security changes at College Green provided for a reduction in overtime with compensation at a level of 2.5 times the annual loss.

Services BWG Foods Ltd Buy out of meal allowance - two years loss for difference.

Services Micronclean Agreement reached in LRC on €250 voucher bonus payment in return for changes to breaks.

Changes in Sick Pay Schemes and

other Working Conditions 2011-2012

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51SIPTU • Annual Reports 2011/2012

Pensions/Sick Pay

Division Employment Details

Changes to Terms & Conditions (continued)

Services Senaca CIT Members required to pay €200 per year for uniforms. LRC intervention resulted in members not having to pay for uniforms.

Services Westbury Hotel Agreement on Cost Savings Agreement through Labour Court.

Utilities & Construction Energy Sector: ESB, Bord Gais, Major Restructuring ongoing in these organisations, involving Bord na Móna, Coillte, Inland Fisheries redundancies (700 ESB, Coillte 140 amongst others)

Utilities & Construction John A Wood, Tar Plant Tar Plant moved from Classis in Ballincollig to Carrigtohill. 3 members received €5,000 nett in Disturbance Money.

Utilities & Construction Transport Sector: CIE, Bus Eireann, Major Restructuring ongoing in these organisations, involving Irish Rail, Dublin Bus, Port & Docks redundancies (450 in Irish Rail amongst others).

Utilities & Construction Veolia, Driver Grade 12 additional rest days; 2 additional annual leave days after 10 yrs' service; 2 new public holidays, improved visability of rosters, max days worked in a row reduced from 5 to 4, increased driver numbers, agreement on accommodating drivers with permanent late shifts, preferential depots and equity of duty distribution, amongst other items.

Division Employment Details

Health All Sectors, Nationally Changes to Sick Pay and Pensions under Public Service/Croke Park/Haddington Road Agreement

Manufacturing Bausch & Lombe Changes in DB Scheme

Manufacturing Coca Cola HBC Irl DB Staff Pension to close affecting 70 members. Existing contributions protected and DC arrangements for remainder of service.

Manufacturing Connacht Gold New DC Scheme for new employees introduced.

Manufacturing FMC Biopolymer, Cork Changes to Pension Contribution levels in new DC Scheme, employee contribution 4%, 5 % & 6%, company contribute 8%, 9% & 11% respectively.

Manufacturing FMC Biopolymer, Cork Company want to wind up DB Scheme.

Manufacturing Gypsum, Kingscourt, Cavan Six Irish Pension Schemes amalgamated into one.

Manufacturing Kilkenny Cattle Mart Defined Benefit Scheme closed, affecting 2 members. Fund protected and company injected €60,000. Protected fund to transfer to Defined Contribution Scheme with Company contributionof 10% of salary. Payment into the scheme is optional for members.

Manufacturing Pfizer, Newbridge Sick Pay waiting days reduced from 3 to 1.

Manufacturing Quality Plastics DB Scheme frozen due to €700,000 deficit.

Manufacturing Roche Ireland, Clarecastle Improvement to Pension, Medical Insurance Cover, Income Continuance and Sick Pay.

Manufacturing Tayto (Kerry Group) Company transferring 33 members from DB to DC PensionScheme.

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52 SIPTU • Annual Reports 2011/2012

Division Employment Details

Pensions/Sick Pay (continued)

Manufacturing William Grant & Sons, Clonmel Improvement to Sick Pay.

Public Admin & Community All Sectors Nationally Changes to Sick Pay and Pensions under Public Service/Croke Park/Haddington Road Agreement

Public Admin & Community CE Supervisors Nationally Pensions Scheme claim rejected.

Services ACC Bank Closing DB Scheme.

Services AIB - Baxter Storey Company agreed to put in place a Defined Contribution Scheme for Catering employees transferring from Baxter Storey, with 7% contribution from company.

Services ALSAA Sick Pay Scheme restructured

Services Arnotts Staff pension changing from DB to DC.

Services Chesapeake Increase in contribution rate by 2% for members to DB Pension Scheme.

Services G4S Company closing DB Scheme

Services Grafton Group Closed off DB scheme to new members in 2010. Union seeking new hybrid scheme

Services Green Isle Hotel Death in Service Scheme introduced.

Services Gresham Hotel Hotel moved from Defined Benefit to Defined Contribution Scheme affecting 50 SIPTU members.

Services IBOA Changes to Pension Scheme

Services Independent Newspapers Trustees stopped paying into the Pension Scheme at the beginning of August 2012.

Services INTO Increase in Pension Contribution

Services SIMI Pension is being wound down.

Services Superquinn Cost cutting measures relating to the Pension Scheme accepted by members.

Services TEEU Staff had 10% increase in their pension contribution.

Utilities & Construction Balfour Betty GLG DC Pension Scheme for Office Staff agreed

Utilities & Construction Cemex Company has introduced a new Contribution Pension Fund for New Entrants.

Utilities & Construction Cemex A new Pension Scheme was agreed here.

Utilities & Construction DAA/Aer Lingus Multi-Employer Pension Scheme in deficit - changes proposed in 2011/2012. Still under negotiation in 2013.

Utilities & Construction Dublin Bus/Bus Éireann Sick Pay/Pension Scheme under proposed Cost Reduction Plans being discussed.

Utilities & Construction John A Wood/Roadstone Pension Scheme in deficit. Negotiations concluded with changes agreed, including a move for future service to a career average on service going forward from 1st Jan 2012.

Utilities & Construction Veolia, Driver & Traffic Supervisor Grades Company introduced 'Interval Medical Screenings' for Safety Critical Grades.

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53SIPTU • Annual Reports 2011/2012

Redundancies, Short Time & Lay Off (continued)

Division Employment Details

Health Nationally Major Restructuring under Public Service/Croke Park/Haddington Road Agreement

Manufacturing Andersens Members on short time working - 3 day week

Manufacturing Arqiva Ltd 2 voluntary redundancies at 4 wks pys + SE

Manufacturing Barry's Tea 12 redundancies

Manufacturing Basta Members on short time working

Manufacturing Blakes Ingredients 3 voluntary redundancies

Manufacturing Boortmalt (Minch Norton) Members operating the Plant were made redundant at end of August 2012. Terms agreed were 6 wks pys + SE.

Manufacturing Braun Hospicare Members on 4-day week for month of December 2011.

Manufacturing Carl Zeiss Closure of company - all members redundant @ 5.5 wks, inclusive of SE, no cap.

Manufacturing Connacht Gold Voluntary Severance agreed, inclusive of SE, capped at 2 years' salary

Manufacturing Connacht Gold Co Op/Achonry 4 redundancies @ 3 wks pys + SE.

Manufacturing Dawn Fresh Foods 44 voluntary redundancies at SE + €500 + PILON.

Manufacturing De Laval, Carlow 1 redundancy

Manufacturing Diageo Baileys 17 redundancies @ 5 wks pys + SE + €1,500 + €500 training grant.

Manufacturing DIS Enbi Members on 3-day week

Manufacturing DIS Enbi 16 members made redundant @ 6 wks pys, inclusive of SE.

Manufacturing Donoghues, Enniscorthy Closure of Carlow Depot and redeployment to Enniscorthy plant. 2 voluntary redundancies (SE only).

Manufacturing Dosco 1 redundancy agreed, 50% of members on short time working

Manufacturing Electronic Concepts Europe Members on short time working - 3 day week

Manufacturing Essilor Sales 3 voluntary redundancies @ 5 wks pys, VHI paid to end year, PILON.

Manufacturing Flair Int, Cavan Company went into voluntary liquidation with the loss of 52 unionised jobs

Manufacturing Gaoth Dobhair Foods 7 redundancies

Manufacturing Glanbia Inch, Wexford Members made redundant @ 67 wks pys, cap €125k

Manufacturing Glanbia Soup Plant 1 voluntary redundancy

Manufacturing Gypsum, Kingscourt, Cavan Short time working agreed with company for remainder of the 2012.

Manufacturing ICM/BASF 5 redundancies at 2 wks pys + SE.

Manufacturing Kerry Foods, Sligo 1 voluntary, 1 compulsory redundancy

Manufacturing Kileshandra Dairies, Milling A number of staff temporarily redeployed; 2 members on temporarylay off; 1 redundancy and 1 early retirement

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Redundancies, Short Time & Lay Off (continued)

Division Employment Details

Manufacturing Kingspan, Kingscourt, Cavan 6 redundancies @ 5 wks pys + SE, on last in first out basis, due to downturn in business.

Manufacturing Kirchoff 6 voluntary redundancies

Manufacturing Liebig Members on 3-day week

Manufacturing Liebig Simpson Strongtie 19 redundancies @ 4 wks gross, inclusive of SE, with no cap.

Manufacturing Liebig Simpson Strongtie Members on short time working for 4 years

Manufacturing Liebig Simpson Strongtie Members on 4 day week

Manufacturing Michael H Clothing 7 redundancies

Manufacturing Moog Ltd Company on short time working for 3 months

Manufacturing Munster Proteins, Tipperary Members on short time working

Manufacturing Mutares (Stada), Clonmel 13 members availed of redundancy package of 3 wks + SE. Had been on temporary lay off.

Manufacturing Newbridge Silverware Members on 3-day week

Manufacturing Oldlum Group, Dublin Port 5 compulsory redundancies @ 7.5 wks pys inclusive of SE, ceiling €65,000 + 25% of any amount over €65,000 + €2,000.

Manufacturing Olhausen Ltd 160 redundancies at Statutory Entitlements (SE) only.

Manufacturing Proiseail Teo Company on short time working

Manufacturing Quality Plastics Company on short time working

Manufacturing Quinn Cement, Cavan All members on Lay off from April 2012.

Manufacturing Rexxam, Drogheda 4 voluntary redundancies @ 2 wks pys + SE

Manufacturing Roadmaster Caravans Members on short time working for almost 12 months.

Manufacturing Roadmaster Caravans 12 voluntary redundancies consisting of Statutory Entitlements and payment in lieu of notice (PILON).

Manufacturing Rosderra, Clara, Co Offaly 3 members on lay off

Manufacturing Sketting 22 redundancies at 6 wks pys.

Manufacturing Stryker Voluntary redundancies at 6 wks pys + SE, capped at 104 weeks.

Manufacturing Tegral 8 redundancies

Manufacturing Tente Company on short time working

Manufacturing Titan Tanks, Carrickmacross 11 redundancies @ 2 wks pys + SE, max of 10 years, i.e. 50 weeks' pay.

Manufacturing Trend Technologies 8 redundancies

Manufacturing Wexford Creamery 24 compulsory redundancies @ 4 wks pys + SE, with restructuring including new shift rosters, pay cut, closure of Pension & Sick Pay scheme proposed.

Manufacturing Wexford Viking Glass Workers on short time working for over a year.

Manufacturing Wexford Viking Glass 12 members made redundant.

SIPTU • Annual Reports 2011/201254

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Redundancies, Short Time & Lay Off (continued)

Division Employment Details

Public Admin & Community Nationally Major Restructuring under Public Service/Croke Park/Haddington Road Agreement

Public Admin & Community North & East Kerry Development Ltd 2 voluntary redundancies.

Public Admin & Community Royal Irish Academy of Music 2 voluntary redundancies.

Public Admin & Community St Enda's Sports Centre 7 redundancies @ 2 wks pys.

Public Admin & Community UCD SU Shop 1 redundancy

Services Allegro Compulsory redundancy avoided. Some exits achieved on a voluntary basis, thus saving the jobs of those previously selected.

Services Allied Foods 150 redundancies following loss of Dunnes Stores contract.

Services ALSAA Bar staff on 3-day week for almost a year.

Services Automobile Association Redundancies due to closure of Cork Office

Services Chadwicks 40 redundancies @ 5 wks pys, cap €80,000.

Services Clare Inn Members on short time working

Services Clerys With the closure of 4 stores we have lost 12 members. Statutory Entitlements were paid as the stores went into liquidation.

Services Clerys Home Furnishings With the closure of this store we have lost 9 members. 16 job losses in total

Services Clondalkin Guy, Cork 12 voluntary redundancies.

Services Cullina SHS Redundancies of our members here @ 3 wks pys.

Services D C Kavanagh 32 jobs lost due to company closure

Services DHL Supply Chain, Robinhood Road Redundancies here as site closed.

Services Ericssons 25 compulsory redundancies at 5.5 wks pys + SE.

Services Kylemore (KSG), Dublin Airport, Terminal 1 17 voluntary redundancies.

Services Lahinch Golf Club Members on 3-day week

Services Marchmont Packaging Members on short time working

Services MUTEC Members on 4-day week.

Services Oughterard Golf Club Members on short time working

Services Permanent TSB 20 redundancies under Severance Package of 5.25 wks pys + SE, ceiling 2.5 years.

Services RTE In excess of 200 workers have applied to depart under the Voluntary Severance Scheme.

Services Spring Grove 50 redundancies @ 2 wks pys + SE + 25% of old Rebate

Services Texoil 20 redundancies

Services Truvo 12 redundancies @ 7 wks pys, cap 2 years' salary.

Services Tucks Members on short time working

SIPTU • Annual Reports 2011/2012 55

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56 SIPTU • Annual Reports 2011/2012

Redundancies, Short Time & Lay Off (continued)

Division Employment Detail

Services West County Hotel Members on short time working

Services West County Hotel Members on short time working

Services Woodprintcraft 63 jobs lost with close of plant.

Utilities & Construction Bord na Móna Members on short time working

Utilities & Construction Cemex A number of redundancies have taken place.

Utilities & Construction Dublin Port Co Members applying for voluntary severange package

Utilities & Construction ESB 514 staff have left the company under a Voluntary Severance Scheme, which is seeking up to 705 such exits.

Utilities & Construction ESB 730 employees being made redundant and 300 availing of retirement package

Utilities & Construction Galway Airport Authority 49 staff made redundant.

Utilities & Construction Garlester Ltd All members made redundant

Utilities & Construction Ireland West Airport Knock 100-strong staff on Winter short time working to stave off immediate redundancies.

Utilities & Construction Irish Cement 25 redundancies in Limerick.

Utilities & Construction Irish Rail 300 staff applied for voluntary severance

Utilities & Construction Kerry Airport 14 staff made redundant @ 5 wks pys.

Utilities & Construction Kilkenny Limestone 9 voluntary redundancies @ 3 wks pys, incl. SE + PILON

Utilities & Construction Lagan Brick 25 members availed of voluntary severance package

Utilities & Construction Luftansa Technik Airmotive Irl (LTAI) Members on a 3-day week

Utilities & Construction Murray Timber Members on short-time working for nearly 2 years.

Utilities & Construction Roadstone Woods 7 redundancies in Kilmacow, 2 in Slane, lay offs in Castlebar and Bennettsbridge.

Utilities & Construction Stena Line Compulsory redundancies of 39 members with Labour Court in January 2012.

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57SIPTU • Annual Reports 2011/2012

Restructuring/Rationalisation

Division Employment Details

Health Radiographers, Community Welfare Service, Major Restructuring under Public Service/Croke Park/Haddington Ambulance Sector, IBTS, Etc. Road Agreement

Manufacturing Britvic Ireland's Commercial Division Restructuring Agreement saw revised structures with new roles but no changes to terms and conditions. A voluntary severance scheme of 4.5 wks pys + SE, ceiling €120,000.

Manufacturing CG Power Systems, Cavan Buy out of Chargehand Grade with compensation of 2 years difference in salary, pension & service pay.

Manufacturing Glanbia, Goresbridge, Kilkenny Loss of earnings for work no longer carried out and loss of overtime: compensation of 1.5 times the annual loss for 2 members.

Manufacturing Gypsum, Kingscourt, Cavan €600 compensation for loss of Canteen

Manufacturing Kostal Ireland Compensation for loss of shift premium - 1.5 times the annual loss.

Manufacturing Lakeland Dairies, Milling Improved mileage and rates in compensation package for transfer of hauliers

Manufacturing MSD Rathdrum Limited changes in work practices accepted in return for modest increases and acceptable compensation for loss of overtime and shift.

Manufacturing Valeo Foods In late 2010, the merger of Batchelors and Origin Foods to form Valeo Foods brought together leading Irish brands such as Odlums,Batchelors, Sqeez, Erin , Shamrock and Roma. There followed restructuring and rationalisation in these merged companies.

Manufacturing Wexport (Leo Pharma), Cork Substantial lump sum settlement achieved for loss of earnings for company preventing member returning to work after illness.

Public Admin & Community Deptment of Social Protection 700 members transfered to the various Civil Service unions from FAS, Forfas, the Arts Council, etc. A Redeployment Toolkit was established to cater for those on career breaks during the transfer period. Also, various other arrangements

Public Admin & Community FÁS 300 staff transferred to Department of Social Protection, and from July 2012 can no longer remain members of SIPTU

Public Admin & Community Local Authority, Education, Community, Major Restructuring under Public Service/Croke Park/Haddington State Related Sectors Road Agreement

Services Easons Recent Restructuring Agreement was voted on and accepted by members.

Services JJB Sports Restructuring Agreement implemented.

Services Ladbrokes Significant restructuring programme took place here entitled 'Project Rafael' . The Labour Court recommended compensation of twice the annual loss where this occurs.

Utilities & Construction Aer Lingus & Dublin Airport Authority Restructuring programmes continue in Dublin, Cork and Shannon.

Utilities & Construction Bus Éireann Cost Cutting Plan involving all of the Dublin Bus changes (see above) along with others such as redeployment, outsourcing and elimination of shift payments.

Utilities & Construction Coillte Transformation/Restructuring agreement concluded in August 2012 under the auspices of the LRC, in the region of 140 redundancies

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58 SIPTU • Annual Reports 2011/2012

Restructuring/Rationalisation (continued)

Utilities & Construction Dublin Bus Major Cost Reduction Plan 2012 involving changes to shift, overtime,allowances, annual leave, rates and travel time.

Utilities & Construction Irish Rail Staff accepted LRC proposals on Cost Containment within the Company involving €2.1m cut in overtime, 20% reduction in expenses and 25% claw back in accrued annual leave. The proposals will result in 450 voluntary redundancies over 4 years. 200, mainly SIPTU members to go in 2012.

Utilities & Construction Seahorse Offshore Compensation for change of date of crew changeover every month, from 28th to 26th of each month: €750 to each of 19 employees plus payment for those who had to work 2 extra days in November and December 2012.

Division Employment Details

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59SIPTU • Annual Reports 2011/2012

MANUFACTURING Pharmaceuticals UCB SCHWARZ Breach of Agreement PATRICIA KING 17/01/2011& Chemicals Vice President

SERVICES Ins & Fin, Print & NEWLINE DIES Company refuse to PATRICIA KING 01/02/2011Media attend the Labour Vice President

Court. Refuse to negotiate rotation, as an alternativeto compulsory redundancy.

SERVICES Hotels, Catering, O'CALLAGHAN'S Unilateral removal of PATRICIA KING 09/02/2011Art, Leisure & DAVENPORT workers from payroll Vice President

HOTELS t/a Persian for refusing to sign Props. consent for pay reduction

PUBLIC ADMIN & Local Authorities SOUTH DUBLIN CO CO Failure to pay the full PATRICIA KING 10/02/2011COMMUNITY Road Works Section terms of an agreement Vice President

to regularise allowances

SERVICES Wholesale & Retail PULLMAN FLEET Compulsory Redundancy PATRICIA KING 21/02/2011Distribution SERVICES without agreement Vice President

PUBLIC ADMIN & Community MEITHEAL FORBARTHA NA Company unilaterally issued PATRICIA KING 07/03/2011COMMUNITY GAELTACHTA TEO redundancy notice to 4 Vice President

members and unilaterally imposed pay cuts.

UTILITIES & Construction JOHN SISK & SONS LTD Loss of direct employment; PATRICIA KING 21/04/2011CONSTRUCTION Vice President

SERVICES Security & Cleaning REGENCY DRY CLEANERS Failure to pay members PATRICIA KING 04/05/2011Payment has either Vice President

SERVICES Wholesale & Retail BROOKS BUILDING SUPPLY CO, PATRICIA KING 17/05/2011Distribution CORK Vice President

SERVICES Hotels, Catering, CLIFFS OF MOHER LTD Failure by Employer PATRICIA KING 17/05/2011Ent, Arts & Leisure Vice President

SERVICES Wholesale & Retail TIBBETT & BRITTEN GROUP Enhanced Redundancy PATRICIA KING 26/05/2011Distribution Vice President

SERVICES Hotels, Catering, MITRESPOR LTD t/a The Old Employer unilaterally PATRICIA KING 30/05/2011Art, Ent & Leisure Darnley Lodge Hotel cut pay rates by 20% without Vice President

consent or agreementGeneral non-compliance withHotels ERO.

MANUFACTURING Industrial QUALITY PLASTICS Company want to PATRICIA KING 15/06/2011Production implement 20 redundancies, Vice President

engage outside contractors to work in plant in place of a number of those being made redundant and pay Statutory Entitlements only.

SERVICES Wholesale & Retail JOHNSON BROTHERS LTD Company attempting to PATRICIA KING 04/07/2011Distribution move work from this site Vice President

to Shannon.

SERVICES Wholesale & Retail ALLEGRO LTD Unilateral reduction of JOE O'FLYNN 09/08/2011Distribution 5% in salary without General Secretary

agreement

Disputes Sanctioned in 2011

DIVISION SECTOR SECTION ISSUE IN DISPUTE APPROVED BY DATE

CHECK

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60 SIPTU • Annual Reports 2011/2012

SERVICES Contract Cleaning & NOONAN SERVICES TUPE not being JOE O'FLYNN 15/08/2011Security implemented by new General Secretary

contractor and Noonans not provide for redundancy or redeployment

HEALTH Nursing MID WEST HSE Non compliance with Interim PATRICIA KING 20/09/2011Agreement, Dec 2010. Now: Vice PresidentCompliance with agreed A/E staffing and overcrowding

HEALTH Nursing CENTRAL MENTAL Imposed Date for unilateral PATRICIA KING 30/09/2011HOSPITAL unagreed changes. Vice President

SERVICES Insurance & MOOREPARK Refusal to implement terms PATRICIA KING 10/10/2011Finance, Print & TECHNOLOGY LTD of LCR 19725 re. pay and Vice President

terms & conditions, & whether public or private sectoremployees.

MANUFACTURING Pharma, Chemicals KYLEMORE FOODS GROUP Failure of company to PATRICIA KING 13/10/2011& Medical Devices implement LCR 20072 re. Vice President

enhanced redundancy terms for 5 members.

MANUFACTURING Industrial MEDITE EUROPE LTD Failure of company to PATRICIA KING 21/10/2011comply and Production Vice Presidenthonour LCR 20106 - payment of 3rd phase of T2016.

MANUFACTURING Agri Business, Dairy ULS AMMADO, Failure to honour agreed PATRICIA KING 25/10/2011& Meat part of UNIPAR GROUP redundancy package Vice President

SERVICES Wholesale & Retail REYNOLDS LOGISTICS LTD Unilateral Implementation PATRICIA KING 27/10/2011of New Distrib Standards Vice President

PUBLIC ADMIN & Support Staff PUBLIC SECTOR BODIES Pension increases, pay PATRICIA KING 23/11/2011COMMUNITY Northern Ireland (see listing) and staffing reductions Vice President

(Strabane District Council in the Public Sector. Northern Ireland WaterTranslinkSouthern Education & Library BoardBelfast City CouncilNewry & Mourne District Council)

SERVICES Insurance & Finance IBOA Management's ongoing PATRICIA KING 23/11/2011failure to consult with our Vice Presidentmembers regarding changes to their terms and conditions.

SERVICES Security & Contract MANGUARD PLUS TUPE not being PATRICIA KING 23/11/2011implemented by new Vice PresidentCleaning contractor and Manguard Plus not providing for Redundancy orRedeployment.

SERVICES Insurance & Finance CLONDALKIN PHARMA & Threatened Site Closure. PATRICIA KING 14/12/2011HEALTHCARE (CLONSHAUGH) Terms not agreed. Vice President

Company not agreeing to referral to Labour Court.

DIVISION SECTOR SECTION ISSUE IN DISPUTE APPROVED BY DATE

Disputes Sanctioned in 2011 (continued)

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61SIPTU • Annual Report 2011/2012James Connolly

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62 SIPTU • Annual Reports 2011/2012

HEALTH Support Staff MAYO GENERAL HOSPITAL Replacement of Support PATRICIA KING 06/01/2012Staff grades exiting on Vice Presidentretirement with contractors already operating on site.SIPTU proposals ignored.

UTILITIES & Construction IRISH CEMENT LTD Non-payment of Bonus PATRICIA KING 13/01/2012CONSTRUCTION due in December 2011 Vice President

SERVICES Wholesale & Retail STOBART (IRL) DRIVER Company refuse to PATRICIA KING 15/02/2012SERVICES Distribution LTD engage with Vice President

SIPTU for collective bargaining purposes on a number of issues, including hours and health & safety.

HEALTH Allied Health AMNC HOSPITAL, TALLAGHT Staffing levels in Catering PATRICIA KING 23/02/2012Professionals/Nursing below agreed levels and Vice President

Health & Safety concerns had arisen.

SERVICES Insurance & IBOA Employer refuses to Finance, Print & attend at the PATRICIA KING 01/03/2012

Labour Court and Vice Presidentrefused to concede to pay increase

SERVICES Wholesale & Retail FOSROC CONSTRUCTIVE Redundancy Terms PATRICIA KING 01/03/2012Distribution SOLUTIONS Vice President Vice President

UTILITIES & Construction LAGAN BRICK LTD Plant Closure: Claim JACK O’CONNOR 02/03/2012CONSTRUCTIION terms/ex gratia payments General President

and a reopening of the plant agreement.

UTILITIES & Energy BORD GÁIS Bord Gais wish to JACK O’CONNOR 07/03/2012CONSTRUCTION make savings of €8.5m through General President

a combination of reduced overtime, pay and allowances and the introduction of an individualised pay model (PRP). No agreement reached and Bord Gais have since unilaterally reduced overtime and allowance payments and have threatened a 7.5% unilateral pay cut to all pay grades from 1/4/12 in breach of existing pay agreements and procedures for dealing with same.

UTILITIES & Energy BORD NA MÓNA Payment of 3.5% plus JACK O’CONNOR 09/03/2012CONSTRUCTION retrospection General President

due under T.16 Transitional Agreement

Disputes Sanctioned in 2012

DIVISION SECTOR SECTION ISSUE IN DISPUTE APPROVED BY DATE

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63SIPTU • Annual Reports 2011/2012

PUBLIC ADMIN & Education STUDENT SERVICES LTD In pursuit of proper union PATRICIA KING 13/03/2012COMMUNITY recognition, consultation Vice President

and negotiation in advanceof changes to pay and conditions and job cuts.

PUBLIC ADMIN & Community AMBER KILKENNY WOMEN'S Changes to terms & PATRICIA KING 03/04/2012COMMUNITY REFUGE PROJECT conditions, lay off of Vice President

members, intention to cut basic pay by 10%, refusal to engage with union.

SERVICES Insurance & LADBROKES IRL Company's decision PATRICIA KING 05/04/2012Finance, Print, to unilaterally Vice President

introduce changes to members' terms and conditions of employment from April without exhausting IR procedures.

Disputes Sanctioned in 2012 (continued)

DIVISION SECTOR SECTION ISSUE IN DISPUTE APPROVED BY DATE

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64 SIPTU • Annual Reports 2011/2012

Larkinship

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65SIPTU • Annual Reports 2011/2012

Health Division

Biennial Delegate Conference

The Biennial Delegate Conference took place in Liberty Hall, Dublin, on the 25th October and 26th October 2012. A total of 220 Delegates were entitled to attend representing the four Sectors within the Division.

Ambulance Sector: 972 Members

Health Professionals Sector: 4,363 Members

Support Grades Sector: 31,530 Members

Nursing Sector: 5,380 Members

The Conference was addressed by a number of speakers including –

Jack O’Connor, General President SIPTU

Joe O’Flynn, General Secretary SIPTU

Patricia King, Vice President SIPTU

Ethel Buckley, National Campaigns and Equality Organiser

Darragh O’Connor and Miriam Hamilton, Organisers Strategic Organising Department

Alex White, Minister for State

Dr Mohammed Maqaba, Chief Medical Director(UNWRA Gaza)

Dr Jane Pillinger

Ms Christina McAnea, General Secretary Unison Health Division UK

Paul O’Brien, ASPE, UK

Divisional Committee

The Inaugural Meeting of the Health Divisional Committee took place on Wednesday 3rd November2010, in Liberty Hall, Dublin.

The following were elected to the Divisional Committee for the period under review.

Sector NameHealth Professionals Marie BarrySupport Grades Julie BissettSupport Grades Joan CaseySupport Grades Joe CaseySupport Grades Dave ClancyNursing Mary CurtinSupport Grades Seamus DillonSupport Grades Karena O’BrienHealth Professionals Brendan FaganSupport Grades Cathal FloodSupport Grades Dermot GarrettSupport Grades Marian KellySupport Grades Pat LalorAmbulance Pat LynchSupport Grades Noreen McElligottNursing Pat MurphyNursing Padraig PeytonHealth Professionals Noel PocockSupport Grades Matt Reilly

Support Staff Sector Committee 2012Broc Delaney (Sector President)Jackie Brennan (Vice President)Mary BohanMichael BrideJacqueline CookePatrick DonohueDenise DoreKevin DoyleVeronica DreaNellie DuffyDavid DunneMichael FerryPatrick GilmartinFrances GrahamRory HawkinsMary KinsellaWillie McGuinnessDenis MurphyBernie Murphy

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66 SIPTU • Annual Reports 2011/2012

Gerardine NagleMarian O’DonnellDessie O’RiellyBernadette Stone

Ambulance Sector Committee 2012Fintan Feerick (Sector President)James Walsh (Vice-President)Jim GleesonCharlie HarringtonDeborah LaceyPaula LawlessPat LynchJoe O’DwyerCiaran SheridanMichelle Treanor

Allied Health Professional Sector Committee 2012Michele Monahan (Sector President)Brendan Fagan (Vice-President)Marie BarryJoe ConnollyDavid NooneGreg PriceColette ReganSally Corr

Nursing Sector Committee 2012Padraig Heverin (Sector President)Mary Durkin (Vice-President)Eamonn CluskeyPat CodyDonie DoodyOdran HynesAnne McConvilleNeil McGinnHelen MurphyEleanor NeweMarie O’DonoghueMary Ward

Standing Orders CommitteeNoel Pocock (Chairman)Julie BissettJoan CaseyDermot GarrettKarena O’Brien

Representation from Division on National Executive Council and National Trustee

NATIONAL EXECUTIVE COUNCILBroc DelaneyMary Dolan McLoughlinMichele MonahanHelen MurphyMichael O’Sullivan

NATIONAL TRUSTEEPadraig HeverinStaff – Health Division

DIVISIONAL ORGANISERPaul Bell

SECTOR ORGANISERSMarie ButlerKevin FiggisTony KennySean Nolan

INDUSTRIAL ORGANISERSDeclan FerryPaul HardyTed Kenny

ASSISTANT ORGANISERSLiam AllenDavid FieldPat FlanneryDamian GinleyJohn HubbardJohn McCamleyDave MorrisRay Stanley Ben Weathers

ADMINISTRATIVE ASSISTANTSAdrienne CushnahanCatriona DennedyMary HolmesCeline O’ConnorKathleen O’ShaughnessyLaura Tucker

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67SIPTU • Annual Reports 2011/2012

Matters within the Division

This report outlines the highlights of Health Division activities over the period 1st January, 2011 through 31st December, 2012.

The report also records the activities of all four sectors within the Health Division:Ambulance Sector

Allied Health Professional

Nursing Sector

Support Staff Sector

Much of our collective bargaining activity focused onnegotiating the Croke Park Agreement (PSA), and postMarch 2010, its effective implementation in defence ofour members’ jobs and pay.

Negotiations under the PSA achieved considerable veri-fiable change in the area of hours of work, service re-quirements, staff deployment in the Public HealthService, with the main focus of savings in the area ofProfessional and Support grades.

FUTURE OF IRISH HEALTH SERVICE (CONFERENCECONVENED CROKE PARK) AND CAMPAIGNS

In response to the Government’s stated intention andpolicy position of creating a Universal Health Care sys-tem, based on the Dutch Health Care model or a varia-tion thereof, the Health Division organised a focusedconference on the challenges posed by the introductionof such a model into the Irish Health System.

The conference attended by Health Division shop stew-ards and activists from all sectors across the countrywas addressed by Dr Henk Van Der Velden of the DutchCongress of Trade Unions, Health Service Managersand Health Service academics and to experts in thefield of health care management, resourcing and publicpolicy.

A major campaign was run nationwide over the periodfor Home Helps with the assistance of the Campaignsdepartment under the banner ‘Better Health Care Bet-ter Jobs’. This campaign allowed our members to fightfor their jobs in the face of concerted media, politicaland private sector employer demonisation of publicsector workers. It also lifted the morale of health work-ers, allowing for a greater understanding of the CrokePark Agreement, the value of having a collective agree-ment and the ultimate obligation of health workers tofight for their right to be employed in the service of thepublic, and the value of good public service jobs to thelocal community and economy.

ORGANISINGThe recruitment and organising of members has beenchallenging in the Public and Private health sector dueto the voluntary exit of approximately 3,000 personneland the effects of the Government imposed staff mora-torium. The Health Division commenced a recovery inmembership numbers through “House Keeping” pro-grammes and through a pilot initiative resourced byDublin Health Support Workers, who sanctioned the re-cruitment on secondment of two activists for the pur-pose of organising and recruiting members in Dublinand the greater Dublin area.

This initiative was aimed at increasing Union densityand thereby improving and maintaining leverage in theemployments we represent, as well as recruiting in newareas where we had little or no presence.

This particular model is yielding a degree of successand we envisage continued work with the Organisingdepartment for all sectors of the Health Division.

Ambulance Sector

Most of our discussions since our last National Conference were focused on the Public Sector Agreement.

The following issues have been the subject of National discussions between the Irish Ambulance Representative Council (IARC) and the management of the National Ambulance Service (NAS) under thePublic Service Agreement (PSA)

Photo: Photocall Ireland.

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68 SIPTU • Annual Reports 2011/2012

Agreement on Release of Union RepresentativesWe agreed Guidelines in 2012 on the Release of UnionRepresentatives. This matter arose due to on-going difficulties with their release. It was in line with the LRCcodes of Practice.

The Intermediate care vehicle for Patient transportThis will deal mainly with patient transfers to hospitalsand clinics for appointments and will free up ambu-lance staff to deal with front line emergencies. Therewere also cost savings to management in respect oflong distance journeys. The LCR 20313 3rd of July2012 stated that this programme should be opera-tional within two years.

Income ContinuanceAn Income Continuance scheme was agreed with a company, JLT Services, and was launched in April 2012.The scheme provides our members with protection of in-come against unforeseen long term illness or injury.

Overtime IssuesLabour Court Recommendation LCR20313 was issued on 3rd July, 2012. It dealt with the removal ofovertime covering short time replacements, overtimebuilt into rosters and overtime before start and finish ofshifts. It also dealt with overnight stays and paymentfor long distance journeys. Any loss of earnings werecompensated under the PSA Croke Park Agreement.Further discussions are to take place to review the2007 agreement on structured annual leave.

Practitioner DeploymentDiscussions are continuing with management on theissue of Practitioner Deployment. This is a majorchange document and will deal with deployment ofstaff to emergencies that require changes to rostersto meet the skill mix of Advanced and Paramedicsgrades. It will also deal with response times to 999calls and the general need to meet standards withinthe Service.

Discussions have also taken place with managementregarding the payment of overtime to un-rostered staffwhen they complete their 78 hour fortnight, instead of being paid the flat time rate.

Ambulance officers We commenced discussions with Management in Late2012 on entitlements to annual leave for some mem-bers on 29 days when acting up, who had the leave cutto 24 days when positions were regularised. Manage-ment was also looking for a call out system to cover the7/24 service. Discussions are on-going.

Closure of Control Centres The closure of control centres around the country wasthe subject of a Labour Court Hearing in December2012. Labour Court Recommendation LCR 20456 wasto be issued in January 2013.

When the closure of Centres around the country iscompleted all calls and despatching of same will betransferred to Townsend Street in Dublin with back upin Ballyshannon, County Donegal. Discussions willfocus on the redeployment of staff from these controlcentres to frontline Ambulance work, Patient Transport,Redeployment to the greater HSE Services or to thewider Public Service. The use of agency staff in controlcentres and the introduction of a new grade of calltaker with new terms and conditions, without agree-ment, is also to be addressed, and the impact it willhave on despatchers. This matter is now being dealtwith under our National discussions on the introductionof an annualised hours system.

The National Ambulance Sector Committee We are currently filling four seats on this committeedue to the difficulty meeting quorums and attendancesat meetings. Some difficulties have arisen over the re-lease of members from duty, aggravated by the factthat some of our committee members also sit on thesector committee and the Irish Ambulance Representa-tive Council.

We face huge challenges going forward with the contin-uing attacks on public sector workers from those whowant to privatise our service. We will be entering na-tional discussions on an annualised hours systemunder the Haddington Road Agreement. If successful

Better Health Care, Better Jobs National Rally Outside the Departmentof Health on Hawkins Street, Dublin in October 2012. Photo: PhotocallIreland.

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69SIPTU • Annual Reports 2011/2012

this will allow for additional efficiencies, cost savingsand provide a safe guard for the service, as well as se-curing jobs into the future.

Health Professional Sector

It has been a challenging number of years for our membership within this sector particularly given thefocus afforded to certain key grades under the PSA2010-2014 (Croke Park Agreement).

Due to a Government decision the Community WelfareService was identified to transfer from the HSE to theDepartment of Social Protection. This transfer wasachieved in early 2012 under the PSA 2010-2014 andtwo binding Labour Court recommendations protectedour member’s conditions of employment upon transfer.SIPTU does not have negotiation rights within the CivilService and therefore, we will not be representing thisservice in the future following its departure from theHSE. We take this opportunity of wishing our colleagueswell for the future and thank them for their efforts onbehalf of all SIPTU Community Welfare members overthe years.

National negotiations on a significant change pro-gramme were advanced to accrue savings within theprofessions of radiography and radiation therapy. Thesenegotiations concluded with two binding labour courtrecommendations.The implementation of the labour-court recommendation for radiography (binding underthe PSA 2010-2014) has been independently verifiedand it has been confirmed that an average €1.5m willbe saved per year. Loss of earnings payments are pro-vided for within the recommendation and will bepayable to members under the national formula.

In addition, a significant development has been the establishment of CORU, the new authority which regu-lates health and social care professionals under the au-thority of the Health and Social Care Professionals Act,2005. This body will be the national regulator fornamed health professions, which include SIPTU repre-sented Allied Health Professional grades.

SIPTU has been successful in having two membersnominated by the Minister for Health to the RegistrationBoard for radiographers and radiation therapists. TheBoard was established on the 24th January 2012 andwill officially open before the end of 2013. All practisingprofessionals who are subject to the remit of CORUmust be registered in order to continue practising oncethe register is open.

Service development such as hospital groupings andthe role out of key services such as STEMI (interventionfor suspected cardiac arrest) has created challenges

due to the reduced availability of staff resources.

Considerable activity has also been centred on thechallenges within the Private Hospital setting. Given theeffect on the reducing numbers undertaking privatehealth insurance, employers have focused on reducingthe cost base. As a result we have sought to assist ourmembers through very difficult negotiations within thissector.

Many thanks must be afforded to our committees andlocal representatives who continue to work tirelessly onbehalf of our members within the sector.

Nursing Sector

There has been much activity since the last BiennialDelegate Conference in 2011 within the SIPTU Nurseand Midwife Sector. The Service Plans developed withinthe health service in the intervening years have soughtto restructure public services with ever depleting re-sources. Since 2009, in excess of 4,000 whole timeequivalent (wte) nurses and midwifes have left the pub-lic health service and the current programme of tar-geted exit gives little hope that vital frontline resourceswill be protected from the consequences of this policy.

The current staffing levels mean that there are 34,000nurses and midwives employed in the public sectorwith another 10,000 in the private sector. The HSE hasconfirmed that it spent €86m on agency nurses andmidwives in 2012 equating to approximately 750 wteposts.

Activity within the sector has centred on progressingsignificant issues of dispute for our members both lo-cally, regionally and nationally. These have included is-

Pictured at the Better Health Care, Better Jobs rally in October 2012are (LtoR) Katherine Dowling, Agnes Dowling and Maureen Connolly.Photo: Photocall Ireland.

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70 SIPTU • Annual Reports 2011/2012

sues such as the standardisation of annual leave, regu-larisation of long term acting arrangements and the re-instatement of the Senior Staff Nurse post.

The Senior Staff Nurse post was deemed to be a pro-motional opportunity and was therefore barred by theGovernment imposed moratorium. Approximately 2,800Staff Nurses had a legitimate entitlement to seek ap-pointment to this grade since the moratorium wasgiven effect in 2009.

SIPTU has maintained a continued campaign to seekrestoration of the Senior Staff Nurse grade, and indeedregularisation of the hundreds of members ‘acting’ upfor long periods of time without the appropriate recogni-tion of their post.

Both of these issues have been resolved within the re-cent talks process. In addition, the SIPTU Nursing andMidwifery Sector fronted a campaign challenging theproposed introduction of a graduate nurse and midwifescheme at 80% of the current rate for new entrants.SIPTU outlined our opposition to this scheme direct tothe office of the Minister for Health to ensure new grad-uates received a significant improvement on the termsoffered.

SIPTU has played a significant role in negotiating a newnurse management structure within Mental Healthservices which has introduced new areas of responsi-bility throughout the country. This new structure willrepresent a new grade of Area Director of Nursing andcommits the employer to appoint some 150wte postsat Assistant Director of Nursing level to support themodel.

The SIPTU Nurse and Midwife Sector has played an im-portant role within the health services at national levelgiven that we assume a seat on the National JointCouncil for Health Services alongside colleagues fromsister trade unions. Many issues such as the develop-ment and issuance of HR Circulars are passed throughthis committee and therefore our position on it is vitalto ensure that the SIPTU Nurse and Midwife voice isloudly heard and represented.

SIPTU Nursing and Midwifery has also played a signifi-cant part in advancing the concerns of our membersthrough the work of the ‘Linking Service and Safety’Committee. This committee highlights the need to man-age the risk of violence and aggression to service usersand staff alike. Its work is of vital importance andSIPTU has played a pivotal role in highlighting the bene-fit of a co-ordinated approach, ensuring that patients,service users and staff are provided with a safe work-ing/living environment.

An Bord Altranais developed a new format in 2012 forthe election of board members via electronic voting.This new format has presented many challenges to ourmembers and the results demonstrate the importanceof a high turnout and the need to utilise every vote.

An Bord Altranais has stated that it intends learningsome lessons from the exercise, given that this was thefirst use of the electronic voting system and we look for-ward to future engagement on the matter. We wouldlike to thank the dedicated SIPTU members who putthemselves forward for election through the process.

Many thanks must be afforded to our sector commit-tees and all of our local representatives for their hardwork at ground level. There is no doubt that we wouldnot be able to assist and support our members to thedegree needed only for the great work which is under-taken on a daily basis by our honorary organisers andlocal shop stewards.

Support Grades Sector

The Support Sector grades are predominantly, but notexclusively, representative of Health Care Assistants,Care Workers, Home Helps, Porters, Security personnel,Catering Assistants, Chefs, Laundry Service workersand Household Staff.

In the period of 1st January, 2011 to 31st December,2012, Support Staff grades endured a very difficult andchallenging period due mainly to the effects of non-re-placement of 2,000 staff who vacated support staff po-sitions via the voluntary severance package andincentivised early retirement programme. The latterwas open to support staff grade members.

In general Support Staff Grades have experienced adraconian and disproportionate application of the staffrecruitment moratorium which gave rise to a huge in-crease in spending on agency workers with in excess of€50 million spent on premium cost labour in order tomaintain services and prop up the illusion that the staffmoratorium is actually contributing to a decrease in thenumbers of staff working throughout the public healthservice.

Support Grades have also been to the forefront in con-fronting the creeping proliferation of contractors and con-tract companies providing services under the guise of costefficiency and value for money initiatives.

In the period under review, our focus has been fixed onhow the Croke Park Agreement affects the SupportGrades across the spectrum of Health Support Work-ers, be they community based or in established institu-tions. A huge amount of change and modernisation hasbeen achieved through amendments of roster, rede-ployment, upskilling and more flexible work arrange-

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71SIPTU • Annual Reports 2011/2012

ments. All were agreed in order to deliver the mainte-nance of viable jobs and terms and conditions for ourmost vulnerable members.

It is fair to state that the following headings representthe areas where the Support Sector Committee of theHealth Division has concentrated its attention and de-veloped strategies for the future protection and devel-opment of Support Workers directly employed in thePublic Health Service:

Croke Park (PSA) and its applicationOutsourcingHealth Care AssistantsHome Helps

Croke Park (Public Service Agreement)While all Health Service workers rightly lament thechanges and challenges in the Croke Park Agreement,the challenges faced by Support Staff present particu-larly complex issues in the area of job protection. Thisis true in maintaining job security and terms and condi-tions of employment, while understanding that loss ofpay would in many cases be a factor due to reorganisa-tion of the services which those employed in SupportStaff grades provide. At the same time it has been nec-essary to cope with the concerted strategy of manage-ment that disregarded the protections againstoutsourcing which is an integral part of the Croke ParkAgreement under the guise of short staffing generatedby a policy of denuding the public health service of di-rectly employed support staff workers. This can best bedescribed as the tactic of the “manufactured crisis”.

Our members have worked the Public Service Agree-ment to their advantage through their understanding ofthe value of securing and maintaining a collectiveagreement with their employer, the absence of whichwould lead to the wholesale destruction of the provi-sion of utility services through direct labour provision.

OutsourcingSIPTU secured a significant and ground breakingclause in the area of “External Service Delivery”, whichcommits the employer to direct employment and pre-vents the outsourcing of our members’ work throughthe application of a specific hourly rate of pay factor.The Health Division is committed to ensuring manage-ment does not evade its obligations to apply the CrokePark Agreement external service delivery clause to theletter.

This has not been easy. Support Workers balloted forstrike and industrial action in Cavan, Mayo and Clare inorder to stop the outsourcing of services.

Since the introduction of the Croke Park Agreement we

embarked on a communications initiative under theHealth Division “Better Health Care, Better Jobs” Cam-paign to debate and explain why outsourcing needs tobe and can be confronted in the interests of quality em-ployment, and the benefits of such employment tothose working in the service and the wider local econ-omy.

As a concerted campaign we have developed a strategywhich can, will and is exposing the myth on a value formoney basis of replacing direct employment with con-tractors and agency workers.

We have committed resources to working with our sis-ter union UNISON in Scotland, in the Scottish HealthService and with the Association of Public Service Ex-cellence (APSE) in Manchester England, the NEVIN In-stitute (an ICTU supported institute) and with SIPTUcolleagues from various disciplines within our own or-ganisation in order to produce an academic and eco-nomic argument as to the concrete reasons why thegovernment needs to revisit the strategy on a value formoney and social and economic basis as to why themass outsourcing of direct jobs is neither socially oreconomically viable.

We submitted our report to Brendan Howlin, Minister atthe Department of Public Service Reform, in December 2012, which convinced him and his Department to agree two major initiatives that nowform an integral part of our latest national agreement.The success of these initiatives will feature in our next Biennial Conference Report.

Both initiatives allow for the recruitment of SupportStaff Grades under training and education programmeson a direct employment basis for the purpose of pro-tecting and enhancing support staff work, replacing theuse of expensive contactors and agencies.

Health protest in Belfast.

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72 SIPTU • Annual Reports 2011/2012

Our Shop Stewards and activists are committed toworking the adopted strategy to the benefit of membersand organised labour. SIPTU is the only Union to haveapproached this critical issue in such a resourcedstrategic manner.

Health Care AssistantsSIPTU has been to the forefront in arguing for the up-skilling of Health Care Assistants and campaigning foran increase in the number of these skilled workers onthe basis adopted by health authorities in neighbouringjurisdictions.

Our national Health Care Assistant subcommittee is developing both policy and strategy on these lines andwe are confident that our approach will yield results forHealth Care Assistants and the public who rely uponthem for delivery of care in Hospitals and in the Com-munity.

Home HelpsOver the two year period we successfully organised andmobilised Home Helps to campaign for their rights theyare entitled to as Public Service Health workers, and asworkers who have rights and protections under the CrokePark Agreement.

To date, while we have made some progress in negotiationswith the HSE and the Department of Public Expenditureand Reform, we believe that the employer has not ad-dressed the basic issues raised under the headings ofhours of work, pay, redeployment, pensions and outsourcing. Having attended the Labour Court we ac-cepted further intervention from the Labour Relations Commission on the basis of securing a negotiated set-tlement for our members. We believe that these en-gagements have not resulted in delivering what we believe our members are entitled to.

It is also of deep concern that the hours available tothe 10,000 Home Helps employed have reduced overthe past two years, while in the same period the HSEand Department of Health increased the spending ofpublic money on private home help providers. In somedocumented cases a number of private home careproviders have doubled their income in a three year pe-riod, which is contrary to the position publicly stated bythe HSE and Department of Health.

All issues of dispute have been referred back to theLabour Court.

Mental Health Service DevelopmentsIn early 2011, in a pre-election TV debate, our currentTaoiseach was asked, “What will be your priority if youget into Government?” He responded as follows, “I feelthe priority should be the 30,000 people who sufferfrom mental illness, and the 75,000 people who at-tempt self-harm, and those who have the tragedy ofsuicide visit their families.” Well, some 2½ years on,and some 7 years after the launch of the ‘Vision forChange’ strategy for Mental Health, it is important tosee how far we have come.

The vision was of a humane, person focused, accessi-ble and responsive service: of a service where multi-disciplinary staff teams are resourced and developed toeffectively deliver accessible, modern therapeutic inter-ventions. Unfortunately, the reality has been somewhatdifferent from the vision.

Investment in Community Services has been paltry.Many institutions have closed, with clients moved tothe community. But the integrated service promisedand supports required have not followed. There are ex-amples of good practice, with this Union involved insome very worthwhile pilot projects, but there is noguarantee that the good service in one area is availablein another community. There has been a failure to re-source and implement the policy in an integrated man-ner and with any sense of urgency.

Transformation of our Mental Health Services, at a timewhen all our mental health is suffering due to economicfactors, will depend on cultural change, both through-out the services, in wider society, and especially at gov-ernment level.

Some done, much much more to do!

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Membership and Organisation

A Sectoral breakdown of the financial membership for the period under review shows the following.

Sector 2011 2012

Ambulance Sector 960 965

Health Professionals Sector 4,160 3,902

Nursing Sector 5,522 4,670

Support Grades Sector 31,206 30,162

TOTAL 41,848 39,699

Finally, I would like to thank all those who contributedto the report through their contributing informationand, or active involvement in our various campaigns toprotect the health services during the present economic crisis.

73SIPTU • Annual Reports 2011/2012Photo: Health protest in Abbeyleix, April 2012.

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74 SIPTU • Annual Reports 2011/2012

Divisional CommitteeThe following were elected to serve on the Divisional Committee for the Manufacturing Division. Noel Finnwas elected as Divisional President with Rose O’Reillyas Divisional Vice President. The current DivisionalCommittee took office following the Inaugural DivisionalConference on the 19th & 20th November 2010.

Andrew SextonBattie DoohanBill BlairBrendan CreminBridget BurrowsEnda McDaidFiona Doherty³Jemma MackeyJohn MontgomeryKathleen Fitzpatrick²Noel FinnPat O’FlynnPaul KellyRose O’ReillySeamus Califf¹Sean ClarkeTom FoxTony HoganWilliam MulliganDick Duff

¹ Seamus Califf replaced Damien Finn on the Committee in December 2011.

² Kathleen Fitzpatrick replaced Dee Dee Heaphy on the Committee in December 2011.

³ Fiona Doherty replaced Rita Quinn on the Committee in September 2011.

Sector Committee Members 2011-2012Following the merger of the Agriculture Food & Drinkand Agri Business, Dairy & Meat Sectors, it was agreedto name the new Sector the Agriculture, Ingredients,Food & Drinks Sector.

Following the merger of the Electronics and Engineeringand Industrial Production Sectors, it was agreed toname the new Sector the Electronics, Engineering andIndustrial Production Sector

The following are the Sector Committee Members for2011 to 2012.

Agriculture, Ingredients, Food & Drinks SectorJohn BoyleJack DonohueBattie DoohanTim Fitzgerald (President)Tom FoxMartin HampenstalMichael HickeyTony Hogan (Vice Chairperson)James KennedyGerry LynamJohn MontgomeryJohn MortellTim O’Connor Liz O’DonohueKieran O’DonnellPat O’FlynnRose O’ReillyLeonard TobinMichael Toolan

Electronics, Engineering & Industrial Production SectorBill BlairDebbie KennyAnja Boeger Paul KellyBridget Burrows (Vice President)Ray ThompsonSean ClarkeCatherine Noonan

Noel Finn (President)Gerry ByrneSeamus CaliffJohn LenihanFiona DohertyDerry BlakeShane O’BrienPaudie Power John Delaney

Pharmaceuticals, Chemicals & Medical Devices SectorAlec CoakleyBrendan CreminBrian KeatingEamonn ThorntonEnda McDaid (Vice President)

Manufacturing Division

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75SIPTU • Annual Reports 2011/2012

Jemma Mackey (President)Margaret McNultyPat PerryAidan McDonnellSuzanne KellyYolanda HughesKieran O’ConnorJim FueryChristopher CrowleyPaul BarryLiz Dolan

Membership & OrganisationThe financial membership of the Division at the end of 2011 was as follows:

Agriculture, Ingredients, Food & Drinks Sector 13,676

Pharmaceuticals, Chemicals & Medical Devices Sector 11,158

Electronics, Engineering & Industrial Production Sector 12,777

Total 37,611

The financial membership of the Division at the end of 2012 was as follows:

Agriculture, Ingredients, Food & Drinks Sector 12,746

Pharmaceuticals, Chemicals & Medical Devices Sector 11,658

Electronics, Engineering & Industrial Production Sector* 10,305

Total 34,709

*Approximately 900 members transferred from theEE&IP Sector to the Construction & Utilities Division.These members are from the Aviation Engineering related industry.

Sectors

Agriculture, Ingredients, Food & Drinks SectorIrish Agri-Food and Drink exports increased by an estimated 11% to approximately €7.88 bn (Bord Bia2011).

The UK was the main destination for Irish Agri-Food and Drink exports in 2010/2011 accounting for 44% of all exports. 34% of exports went to Continental EUmarkets while the remaining 22% went to internationalmarkets.

United Kingdom, 44% Continental Europe, 34% Rest of the World, 22%

The distribution of Ireland’s Agri-Food and Drink exports by sector were as follows:-

Dairy Products and Ingredients (29%)Prepared Consumer Foods (18%) Beef (19%)Live Animals (3%)Beverages (15%)Pig Meat and Poultry (6%)Sheep and Sheep Meat (2%) Seafood (5%) and Edible Horticulture (3%)

Primary Agriculture Gross Agricultural Output (GAO) was valued at €4.73 bn. Department of Agriculture and Food (DAF)

The cattle category accounts for the largest share ofGAO at 32% while milk accounts for 22%. Other sectorsto have a share in GAO include pig (6%), sheep (3%),cereals (2%), and forage plants (18%).

Cattle and BeefThere were 6.62 million cattle in Ireland according tothe Aim’s database, this represents a 5% fall on prioryear levels. Irish beef production is predominately agrass based system, with 559,000 tonnes produced.

Ireland exported an estimated 504,000 tonnes of beefworth approximately €1.51 billion.

339,000 cattle were exported live from Ireland worthapproximately €183 million.

Sheep and Sheep MeatThe Irish sheep flock is estimated to have fallen by 3%to 4.64 million head, with the breeding flock falling similarly to 2.45 million head. (Bord Bia)

Ireland exported an estimated 36,500 tonnes of sheepmeat which was valued at approximately €170 million.

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76 SIPTU • Annual Reports 2011/2012

France is the main market for Irish sheep meat exports,accounting for approximately 51% of total exports in2010. The UK is also a substantial export market, taking 26% of shipments.

Pigs and pig meatCSO Livestock Survey showed there were 1.49 millionpigs in Ireland, this represents a 1% increase on prioryear levels.

Ireland exported an estimated 130,000 tonnes worthapproximately €317 million.

The UK was the main market for Irish pig meat, takingover 50% of our total exports. Continental EU marketsaccounted for 29% of our pig meat exports while the re-maining 21% went to international markets.

DairyTotal milk output (incl. imports) amounted to 5,600 million litres.

From this total milk output, 493 million litres wereconsumed as liquid milk. In addition to this 135,000tonnes of butter were produced and 163,000 tonnes ofcheese. Total dairy exports rose by an estimated 17%to €2.3 bn.

Irish Farms There are approximately 128,200 family farms in Ireland with an average size of 32.3 hectares (ha) per holding.

The total land area of Ireland is 6.9 million hectares of which 4.2 million ha is used for agriculture (DAF).Close to 80% (3.34m ha) of Ireland’s farmland is inpasture, hay and grass silage (grassland), 11% (0.45mha) is rough grazing and 10% (0.42m ha) is in crop pro-duction (DAF).

Sector Developments• In 2012, the Agri, Food and Drink Sector

accounted for 7.7% of Ireland’s economy wide GVA, 10.8% of Ireland’s exports and 8% of total employment.

• In 2012, Irish Agri Food and Drink exports increased by an estimated 2% to approximately €9.02bn according to Bord Bia.

Ireland as a major food producer and exporter needs tobe able to guarantee its own domestic consumers andits export customers the highest level of quality. Any de-

viation from the highest possible standards, whether itbe in areas of health and safety, terms and conditions ofemployment, hygiene or product contamination cannotbe tolerated. The Government must be prepared to actdecisively against any company, no matter how large,which is seen to be bringing our reputation as a pro-ducer of top standard food and drink into disrepute.The potential to become the “Breadbasket of Europe”must not be destroyed by a handful of greedy un-scrupulous individuals some of whom, not for the firsttime, are seriously damaging our record as a producerof quality traceable food.

Some of our members working in companies totally unconnected with the horsemeat controversy haveseen sales for their products plummet, resulting inshort-time working and layoffs.

The Sector continues to work effectively with the Strate-gic Organising Department on a number of organisingcampaigns most notably in the area of Red Meat. Thisindustry is now populated with a multi-ethnic workforceand is presenting unique difficulties in terms of culturaland language barriers. We as a trade union will have torespond to these developments in new and innovativeways to ensure that we can build and maintain density to effectively represent the workers employed init, and to avoid the situation where we have a type ofsecond class workforce totally at the mercy of ruthlessemployers.

Electronics, Engineering & Industrial Production SectorAs of June 2011, there were 201,600 persons employed in the manufacturing sector. Since the onset of recession in mid-2007, there are currentlyover 61,000 (15%) fewer jobs in the sector, but this was a trend in train long before the bursting of the bubble, with a decade long process of attrition of traditional manufacturing jobs over the past decadedown from highs of 265,000 in the mid 2000’s.(source: CSO).

Manufacturing accounts for 11% of total employmentas of Q2 2011, a share that has been on a downwardslide. Relative to the rest of the EU, Irish manufacturingemployment as a share of the total in the Irish economy is lower as would be expected, compared tothe EU 27 average of 15%. This is driven by Germany,where 18% of all jobs are in manufacturing. Ireland’sindustrial mix has traditionally been similar to that ofDenmark and the share of manufacturing employmentthere is 12%. In contrast to the perception of a more in-dustrialised UK economy, when compared to Irelandthe share of manufacturing in the UK amounts to just9% of total employment as of Q2 2011. (Source: Euro-stat labour force survey data, own calculations).

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Government Innovation Fund Under the Government’s medium term framework doc-ument published for Infrastructure and Capital Invest-ment 2012-2016, the Jobs, Enterprise and Innovationbudget was the only spending envelope out of all theother spending departments not to be cut.

Within this budget, the allocation to Enterprise Ireland(EI) for science, technology and innovation was margin-ally increased by €1m to bring it to €132m. There wasalso an increase in funding to EI for general enterprisesupports, under which a second call under the Innova-tion fund to attract venture capital will be issued. Sci-ence Foundation Ireland will see their budget reducedto €156m in 2012, down €4.8m from 2011, but SFI in-tends to maintain the current level of support to re-searchers and research networks.

Export performanceThe value of Irish goods exported into the EU markethas grown by 3.5% over the first eight months of 2011compared to the same period in 2011, with goods ex-ports to the US rising by 8.3% over the same period in2010.

Export competitiveness has improved by almost 3.6%over this period. While export volumes expanded by 5%,the corresponding rise in export values was only 1.4%.(Source: CSO external trade data).

Although the decline in cost competitiveness vis a visour main trading partners over the past decade hasbeen well documented (economy wide unit labour costs(ULC) have declined by 16.3% between Q1 2008 andQ1 2011), there has been a great failure to acknowledgethe very significant drop in unit labour costs in manu-facturing and the increase in productivity. Between1999 and 2010, ULC in the manufacturing industrieshas fallen by 31%. This is a 25% improvement relativeto our main trading partners over the same period. Partof that story is explained by an attrition of traditionalmanufacturing jobs here in Ireland in the early part ofthe last decade, while the later dis-improvement inmanufacturing ULC abroad is partly accounted for bythe labour hoarding policies enacted when the globalrecession hit three years ago. (Source: Central BankQuarterly Bulletin Q4, 2011).

Pharmaceuticals, Chemicals & Medical Devices SectorThe Pharmaceuticals, Chemicals & Medical Devices(PCMD) Sector experienced significant restructuringand job losses between 2008 and 2011. The rationali-sation of jobs continued throughout 2011 when therewere job closure announcements in Carl Zeiss, Wexfordand 240 jobs were lost in Schering Plough, Bray. Thesewere in addition to hundreds of voluntary and compul-sory job losses in firms such as GSK in Cork. These areparticularly regrettable as they were high quality Unionjobs. There is an obvious challenge for the Division inorganising new members to replenish the losses andan even bigger challenge in ensuring that good termsand conditions of employment attach to quality Unionjobs.

The patents cliff within the Pharmaceutical & Chemicalindustry is a major threat to existing jobs. Some sections are dependent on the continued success ofestablished products to prosper. Medical Devices arealso under severe competitive pressure from big non-union players such as Boston Scientific, who are provid-ing alternative devices to Union labour producers.

Despite all the gloom there have been some signs of investment growth during the latter stages of 2011.

The PCMD Industry itself grew in 2011 compared to2010. The recent CSO report showed a record tradesurplus of export goods outstripping imports by 44.7bn. It stated that, “according to the latest figuresfrom the Central Statistics Office (CSO) Chemicals andPharmaceuticals are now the country’s biggest export”.It is accepted by the Government that our country’s recovery will be based on an export led recovery inmanufacturing and the PCMD Sector is a key leadingsector to drive the recovery of our economy.

There were a number of high profile job creation announcements during 2011 in the Medical Devices Industry. Teleflex in Limerick announced 80 new jobsover two years, Allergan in Westport Co Mayo announced €350 million investment and 200 new positions over two years. There are some signs thatGSK will re-invest manufacturing back into Cork fromIndia which is a significant vote of confidence in theworkforce in GSK.

Novartis Cork hired 40 new temporary operators withhopefully another 40 later in 2013, and Janssen isdoing well. In Bausch and Lomb, Waterford, the company has invested €100 million and a number ofkey new products will be launched next year. It is obvious that a priority for this union must be to retainmanufacturing jobs such as Bausch and Lomb for thesake of the wider community in Waterford. This is alsothe case for other areas such as Medronic in Galway,Abbot and Baxter for the North West and Stryker forLimerick. Manufacturing jobs are vital to the lifeblood

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of towns throughout Ireland. During 2011 other firmssuch as Hollister, Yves Rocher, Abbot and Swords Labindicated growth and workers at Baxter have resumedfull production.

Stability and Pay AgreementsAcross the Sector, the Union has been engaging inhand to hand combat with employers on improving payfor our members. This is a vital part of the Sector’s in-dustrial work in line with our policy of “Security of In-come and Security of Employment”. To date weestimate that we have 95% of our members covered bythe Stability and Pay agreements, with 2% pa being theguideline figure. As Inflation was running at 1.6% andthen reduced to 1.2% later in 2012, the 2% level isplacing members’ incomes above inflation. The deliveryof these agreements also provides some slight bufferagainst the austerity cuts. Some notable agreementsare in Proctor and Gamble, Roche, Swords Labs, Becton Dickinson, GSK, and Pfizer Kildare. The mostdifficult pay negotiation was Bausch and Lomb, Waterford.

Enhancing the Unions positive profile-University of Limerick As part of the Sector’s positive PR work within thebroader community we were pleased to conclude a collaboration agreement with the University of Limerickin November 2012 where both parties committed tocollaboration on mutual areas of interest such as further education, research and attending lectures in the College.

Activist Development and TrainingOur representatives have attended a number ofcourses throughout 2012. Basic shop stewards’ training was held in Cork, Waterford and Galway. An advanced shop stewards course for Medronic is due inApril 2013. In order to ensure that every section in thesector is provided with the relevant training, sub-sec-tors will be asked to nominate in advance the relevanttraining required.

District CommitteesThe Sector is well represented throughout the variousDistrict committees and we would encourage each sec-tion to nominate at least one representative to be ac-tive in this important union committee. Lobbying isbecoming a big part of our union work and the DistrictCommittee members involved in the lobbying initiativeprior to the last budget say we must do more targetedlobbying on issues that affect workers and their families.

Divisional Developments The most significant event was the Vita Cortex dispute.The Vita Cortex dispute and sit-in was finally resolvedafter 161 days, when workers vacated the KinsaleRoad Foam Manufacturing plant on the 24th May2012. The sit-in commenced on the 16th December2011, when the workers occupied the plant. The 23SIPTU members always stated that they would maintaintheir protest until the company made a definite provision to meet their outstanding redundancy payments

The Vita Cortex workers showed enormous courage in the stand they made. They tolerated appalling conditions in terms of sleeping on foam on the groundat night, in what might be described as a large shed.

Vita Cortex was owned by businessmen, Jack Ronanand Sean McHenry, who announced in September2011 that they intended to close the Cork plant statingthat the operation’s assets had been frozen by NAMA.The company alleged in December 2011 that NAMA refused to release funds to pay the workers their out-standing redundancy entitlements, claiming that theywere held in a related, but legally separate, companyaccount.

The new owners of the company borrowed millions ofeuro from AIB to buy out previous shareholders andused the company assets as collateral against thoseloans. They gambled with the workers’ jobs and liveli-hoods to gain control over a valuable site in Cork.

A lunch-time demonstration was organised by the Manufacturing Division outside Dáil Éireann on the12th January 2012 and supported by other tradeunions including Unite, Mandate, the CommunicationsWorkers Union and the TEEU. Several trade union leaders including ICTU General Secretary David Begg,SIPTU General President Jack O’Connor, CWU GeneralSecretary, Steve Fitzpatrick and TEEU President FrankKeoghan attended. Among the many politicians whoalso attended the protest were Labour Deputy Leader,Joan Burton, Sinn Féin President Gerry Adams, Socialist Party leader Joe Higgins, Fianna Fáil leaderMicheál Martin, ULA TD, Richard Boyd Barrett and CorkSouth Central Labour, TD Ciaran Lynch.

Thanks to the intervention of the Minister for SocialProtection, Joan Burton, the workers received theirstatutory redundancy entitlement from the State duringFebruary 2012. Statutory Redundancy would normallyhave taken up to 18 months to process.

Cork City Centre came to a halt on the afternoon of Saturday, 11th February, 2012, afternoon as over5,000 people marched in solidarity with the Vita Cortexworkers. The march began outside the SIPTU offices atConnolly Hall, Lapps Quay and was described by Gardaías the largest protest in Cork in recent years. The peo-

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79SIPTU • Annual Report 2011/2012Vita Cortex worker Catherine McCabe, January 2012.

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80 SIPTU • Annual Reports 2011/2012

ple of Cork applauded the Vita Cortex workers as themarch made its way along Patrick's Street ending witha rally on Grand Parade.

Manchester United manager Alex Ferguson made a surprise phone call to the Vita Cortex workers on Monday, 13th February to tell them he supported theirfight and to “stick in there” until they secured victory.The football legend, and committed trade unionist, expressed his admiration and support for the workers'stand for justice. He told the workers that he had beeninvolved in the apprentices’ strikes in the Clyde shipyards in Glasgow in 1961 and that he understood whatthey are going through in their battle to secure theiragreed redundancy terms.

A morale boosting weekend was held on the 17th February, 2012, for the Vita Cortex workers with a sold out solidarity concert headlined by Christy Moore, accompanied on stage by Declan Sinnott and Vita Cortex worker Mick ‘Tana’ O’Brien in a show that delighted the capacity audience in the Triskel Arts Centre. Greenshine with Noel Shine, Mary Greene andtheir daughter Elle, also performed on the same night.

Among the workers other high profile supporters wereformer President Mary Robinson, American academicand human rights advocate Noam Chomsky, actor Cillian Murphy, Boxing Gold Medal Champion Katie Taylor and former Irish international football legendPaul McGrath.

The workers received massive support from the community in Cork, including SIPTU members, throughfinancial support and from local individuals and businesses. The dispute was supported nationally and internationally through a Facebook and Twittercampaign with more than 13,000 supporters, friendsand family members taking part.

During the dispute, the Labour Relations Commission(LRC) made a number of unsuccessful attempts to resolve the dispute with conciliation meetings chaired byChief Executive, Kieran Mulvey and the Head of Concilia-tion Services, Kevin Foley. A mediation process was alsoattempted in March 2012 but the proposals were re-jected by the company. The mediation panel included theChairman of the Labour Court Kevin Duffy and two formermembers of the Court, Jack Nash and John Doherty.

The dispute was finally resolved on the 2nd May, 2012,through direct negotiations between SIPTU and theowner, Jack Ronan. The resulting proposals were ac-cepted by the workers.

On the 17th July 2012, a reception was held in Áras anUachtaráin for the Vita Cortex workers and families, whichwas described by President Michael D Higgins as the ‘icingon the cake’. President Higgins praised their solidarity and

congratulated them on their successful outcome.

The Manufacturing Division in conjunction with theCommunications Department commissioned a film“161 Days” which was premiered at the ManufacturingDivision Conference in November 2012. Former work-ers and shop stewards addressed the conference. The film got its first public screening at the Cork FilmFestival and received very positive reviews.

Workplace Innovation CampaignThe Manufacturing Division and the Ideas Institute co-operated in developing a project on Workplace Innova-tion. This aims to improve workplace performance andworking lives and to stimulate positive organisationalchange through inclusive dialogue and by releasing thecreativity of employees. SIPTU is utilising Workplace In-novation as a means of helping to retain and ultimatelyincrease employment in the manufacturing sector.

In the Manufacturing Division, we have taken our roleseriously and, in conjunction with the IDEAS Institute,we have already demonstrated our commitment to se-cure the future of Irish manufacturing in a very real and practical way. We have developed and successfully“road-tested” a robust yet flexible model that guaran-tees “the co-ordinated and collaborative approach”mentioned above. Our joint union-management ap-proach is actively working in a number of manufactur-ing companies. This union-led initiative is the pragmaticresponse needed to strengthen, and grow, the Irishmanufacturing sector. This is the SIPTU response to thepresent crisis.

How it worksA detailed procedure has been developed to show howinitial contacts are made with both sides. Our membersare always consulted first. The process will consist ofmeeting(s) with shop stewards/committee and what-ever additional general meetings/discussions are re-quired. It is only with members’ approval that themanagement team is spoken to.

Our initial meeting with management is especially criti-cal. The traditional assumption made is that the unionis clearly “part of the problem”. Senior managers needto be convinced that we can bring a new and creativeenergy to the table and, therefore, we should be viewedinstead as a critical “part of the solution”. Hence, thisfirst meeting with management is vitally important andmay be the only chance we get to make the case forour involvement in the change process. The importanceof this initial meeting is explained below.

If both sides agree to proceed, then the next step is theselection/establishment of the Joint Union-Manage-

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81SIPTU • Annual Reports 2011/2012

ment Steering Group (JUMSG). This group will determine the overall strategic direction to be taken.Thus, the make-up of the JUMSG is critical to futuresuccess and all JUMSG members must be leaders and influencers – all fully committed to and supportive ofthis joint union-management approach. This requiresthe involvement of visionary shop stewards as well ascommitted senior managers. This group (JUMSG) become the leaders of the change process.

Both sides must be comfortable with adopting a joint approach. If either side will not agree to fully engage,then the process cannot begin. A useful analogy is thescrum in a game of rugby football.

Both sides need to: -“Crouch” -- - get ready and consider the process andpotential outcomes,

“Touch” -- - make meaningful and constructive contactwith the opposition,

“Pause” --- take time to evaluate and consider responseand align thinking,

“Engage” --- both sides must stick their respectivenecks out and strive to keep the scrum from collapsing.

The JUMSG members attend the 6-day FETAC accred-ited “Teamwork Training Course (G20034 Level 5). During the course they complete the following tasks:

• Agree a set of “Ground Rules” that will be used not only throughout the course, but also continue to function as a JUMSG into the future.

• Discuss and agree “Terms of Reference” --- i.e. what is within their remit as a JUMSG. Experience shows that IR/HR issues should not to be included.

• Establish jointly a “warts-and-all” assessment of the current state of play within the organisation, i.e. a statement outlining clearly “where are we now”. This becomes the agreed starting point of the journey.

• Establish a joint vision of where the plant should be in the future. This is not a corporate document handed down from the CEO in Boston or Berlin. This is a vision developed by local stakeholders and reflects their aims and aspirations. This is a powerful statement of intent and can be used to keep all parties focused, as well as to firmly reprimand any players who may be tempted to go off on solo runs.

• Long term plans for communicating/engaging with and/or training all employees are explored and agreed.

All these activities are facilitated and conducted in aconstructive fashion, in a safe atmosphere that is conducive to delivering “win/win” outcomes. Whencompleted these outcomes are presented jointly byJUMSG members to all employees within the plant.

In the first phase of our JUMSG model, we provideteamwork training to the entire workforce. Upon completion of the teamwork course, fully equipped andfunctional teams that have already “delivered” continu-ous improvement project(s) are established within thecompany. One of the key on-going roles of the JUMSG isto provide a safe and supportive environment that willencourage further team development and activity.

How it worksThe second phase is designed to build on the momentumestablished and provide further training to establishedteams. This will prevent “effectiveness decay” fromhappening. The training selected is company specific,and is chosen to provide the continued upward improvement in effectiveness, and may be drawn downfrom the following menu of “options” which, incidentallyand very importantly, we can deliver: -

Single Minute Exchange of Dies (SMED) --- techniquefor reduction of change-over times.

“Lean”/Toyota Production System --- identification andelimination of waste in all it is forms.

Total Productive Maintenance (TPM) --- operations andmaintenance working closely together to reduce machine downtime.

Photo: Speaking at the Innovation in Manufacturing conference whichwas held in November 2011 were from left to right, Jack O’Connor,SIPTU General President, Máire Geoghegan Quinn, EU CommissionerforResearch, Innovation & Science and Sean Sherlock, Minister of State, Department of Enterprise, Jobs & Innovation

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82 SIPTU • Annual Reports 2011/2012

Preventive Maintenance (PM) --- operations and maintenance working closely together to identify andschedule preventive activities to improve machine uptime.

Statistical Process Control (SPC)/Six Sigma --- using statistical techniques to monitor and control productionprocesses.

Phase II is designed to hold, and build on, the gains sustained as a result of implementing teamwork usingour joint union management approach. The skills/train-ing required to move into Phase II will be identified bythe JUMSG and will reflect their specific needs as theyrespond to the operational circumstances in which theyfind themselves.

The project is on-going and work is being successfullyimplemented across all 3 sectors of the Division.

Supporting Quality CampaignThe Supporting Quality Campaign was launched by theManufacturing Division in October, 2011. The simpleaim of the campaign is the protection of quality jobs inIreland by promoting quality goods manufactured andproduced by unionised workplaces in Ireland.

The Manufacturing Division recognised that within the180,000 SIPTU union membership, it could influence in a positive way members’ consumer purchasing power by highlighting which goods are manufactured and produced in Ireland.

Supporting Quality encourages the consumer to consider the wider economic and social impact of their shopping choices. Research has stated that if consumers spend an additional €4 per week on Irishmanufactured goods it can help create up to 6,000jobs.

The campaign also encourages members who are involved in sports and social clubs to consider purchasingIrish manufactured and produced products identifiedby the campaign when compiling gifts for hampers andso forth.

The campaign is backed by a sustained marketing plan.This strategy was taken as it was recognised that inorder to achieve longevity, numerous initiatives andcommunications are necessary to create awareness of the campaign itself, and to highlight the positivemessage of the campaign on an ongoing basis.

Such initiatives have included a national media launch,ongoing editorial, adverts and supplements in Libertypaper and Liberty online Ezine. In addition, the cam-paign has sent mailshots and numerous communica-tion pieces to SIPTU’s 7,500 plus shop stewards andofficials who actively promote the campaign in theirworkplaces.

The main communications tool is the official website –www.supportingquality.ie which features the companies, products and information relating to thecampaign including numerous testimonials from bothemployers and shop stewards & members alike.

Into the future, the focus of the Supporting Quality campaign is to encourage more unionised employ-ments to join the campaign, especially the small tomedium sized employments which can benefit greatlyfrom this targeted consumer campaign. To this end, thecampaign works with and encourages shop stewards inmanufacturing workplaces to convey the message ofthe campaign to their employers with the aim of theseemployments joining the campaign.

Supporting Quality will also bring its message to otherunions to encourage them to actively promote the cam-paign to their membership in order to widen the posi-tive impact of the campaign - the protection of qualityjobs in Ireland.

Pictured at the launch of the Supporting Quality campaign in July2012 with some of the participating products were from left to rightJoe O'Flynn, SIPTU General Secretary, Fabia Gavin, Supporting QualityMarketing Director and Gerry McCormack Manufacturing Division Organiser. Photo: Photocall Ireland.

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Pay Strategy Manufacturing DivisionPay increases of about 2% are being recorded in firmswhere deals are being agreed with employers with an average length of agreements of 2 years and 7 months.The increases are being recorded across all sectors. However, the Pharmaceutical, Chemicals and Medical Devices Sector have by far the greater number of payawards.

This model has the greater company-level flexibility of the‘free-for-all’ system, yet has a significant degree of pay co-ordination and pay stability for long periods of time, like the national wage agreements.

The strategy began in the Pharmaceuticals, Chemicalsand Medical Devices sector in late 2010 and early 2011and since then has spread to other sectors. The Stabilityand Pay Pacts in the PC&MD sector are motivated by apolicy of “Security of Employment and Security of Income,where the ability to pay and maintaining jobs are centralplanks to the strategy”.

This strategy is significantly different to the union paystrategy in the free-for-all era, when industrial organiserstended to target first the companies with the greatest ability to pay, either in a particular sector or geographicalarea. After securing pay increases officials would normallyseek to apply similar increases in less prosperous compa-nies, using the ‘headline deals’ in the most profitablecompanies to extract the highest possible deal from otheremployers. While officials could have secured pay in-creases well above 2% in a small number of all but themost prosperous companies, this approach might have attracted significant negative publicity, at a time of high unemployment and significant pay cuts, not in just the public service, but in a significant minority of private sector companies.

Almost all of the deals provide for co-operation with normal on-going change, in the sense that it was understood under the old social partnership nationalagreements. Some agreements also contain productivityitems. Another important element in the strategy was tofocus on agreeing these new pay deals at local companylevel, especially in the early stages, rather than going allthe way through the procedures to outside third parties.This allowed a certain critical mass of pay deals to buildup at the target 2% level, which then provides a strongbasis for going to third parties later on, if necessary.

The Division has created a data-base for all wage move-ments which now allows officials from different parts of thecountry to be aware of what pay agreements have beenmade in other employments, assisting them greatly in thenegotiation process for new deals.

The total number of wage agreements agreed under period under review was 81 with average increases of 2% per annum with the average length of the agreements 3 years and 7 months.

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Divisional Conference

The Theme for the Conference was “Activist and Member Development in an Organising Union”. The Conference had 199 accredited delegates from thethree (3) Sectors of the Division, including the RetiredMembers Section and the Equality Committee.

Day 1 Day 2

Actual Attended/Total Expected 186/212 (88%) 146/212 (69%)

Male 143/161 (89%) 114/161 (71%)

Female 43/51 (84%) 32/51(63%)

Delegates 140/161 108/161

Observer 46/50 38/50

There were eight (8) Motions considered at the Conference and all were passed by the delegates present.

Speakers The Conference was addressed by the three (3) General Officers - General President, Jack O’Connor,Vice President, Patricia King, General Secretary, JoeO’Flynn. Tony Murphy, IDEAS Institute, Fabia Gavin,Supporting Quality Campaign, Her Excellency, TeresitaTrujillo, Cuban Ambassador to Ireland, Daria Cibario,EFFAT and Orlagh Fawl, Strategic Organising Department also addressed the conference.

The highlight of the Conference was the premiere of the film ‘161 days’ which depicted the dispute at VitaCortex plant in Cork. The Conference was addressed byex-workers and shop stewards from Vita Cortex.

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85SIPTU • Annual Reports 2011/2012

Biennial Delegate Conference

The Biennial Delegate Conference took place in LibertyHall Dublin on 7th and 8th November 2012. A total of213 Delegates were entitled to attend representing thefour Sectors within the Division.

Local Authority Sector: 14,274 Members

Community Sector: 9,720 Members

Education Sector: 6,444 Members

State Agencies Sector: 5,115 Members

The Conference was addressed by a number of speakers including –

• Jack O’Connor General President SIPTU

• Joe O’Flynn General Secretary SIPTU

• Patricia King Vice President SIPTU

• Ethel Buckley Head of National Campaigns and Equality Organiser

• Joe Cunningham National Organiser Strategic Organising Department

• Niall Crowley Former CEO Equality Authority and Independent Equality and Diversity Expert

• Manus Bree Community Activist

A number of Workshops considered the key industrialissues facing our members in the various Sectors.

Local Authority Sector: Delivering for the Citizens

Community Sector: Role of Community Sector in Society

Education Sector: Investing in our future through Education

State Related Sector: Contribution to the Economic Recovery

Divisional Committee

The Inaugural Meeting of the Public Administration &Community Divisional Committee took place onWednesday 2nd February 2011, in Liberty Hall, Dublin.

The following were elected to the Divisional Committee for the period under review.

Sector Name

Education Maurice O’Donoghue (President)

Community Suzanna Griffin (Vice President)

Local Authority David Breen

Local Authority Denis Cooke

Local Authority Stephen Kelly

Local Authority Willie Bagnell

Local Authority Jim Byrne

Local Authority Brian Murray

Local Authority Jerry Crowley

State Related Thomas Walsh

State Related Danny Crowley

State Related Sandra Darley

Education Kieran Allen

Education Marnie Holborrow

Education Grainne Morahan

Community Kate Campbell

Community Helena McNeill

Community Peter O’Connor

Community Derek Mulcahy

Retired Member John James McLoughlin

Public Adminstration and

Community Division

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Community Sector Committee 2012Helena McNeill Frank McDonnellLynda ScullySuzanne GriffinElaine HarveyTeresa Hinchey-CollinsBrendan McNultyKevin O’ConnorPeter O’ConnorJohn BurnsAnne CarrDavid ConnollyVeronica HosiePatsy MoranDonie O’LearyOrlaith Rowe

Education Sector Committee 2012Kieran AllenJack McGinleyMarnie HolborrowMaurice O’DonoghueTommy MurtaghOwen DohertyMichael GeogheganPaul ShieldsKieran HoareJames SneeEileen McCarthyNiamh O’SullivanKieran McKennaFiona Murphy

State Related Sector Committee 2012Sandra DarleyAlan LindleyTony TreanorTom GillTom WalshCaroline CurraoinDanny CrowleyCharlie AsheRena CushionAideen KellyFrank O’NeillDorota Richards

Local Authority Sector Committee 2012Willie BagnellPaddy BeirneDave BreenMartin BurkeJim ByrneGerry ConcannonDenis CookeJerry CrowleyNigel DaltonAlan DalyPaul DelaneyEugene DevlinAnnette DonlonFrank FlanaganMartin GleesonEddie GoldrickMatt HenryBrian McNamaraEmmanuel MillarJohn O’ConnorSenan O’FlahertyMatt O’MalleyDenis ReenBrian ScanlonDamien StirratGerry Warburton

Standing Orders CommitteeFrank McDonnell (Chairperson) Community SectorSandra Darley State Related SectorElaine Bean Education SectorDave Breen Local Authority SectorMatt O’Malley Local Authority Sector

Representation from Division on National Executive Council and National TrusteeNATIONAL EXECUTIVE COUNCILMatt Henry Local Authority SectorDavid Connolly Community SectorJack McGinley Education SectorTom Gill State Related Sector

NATIONAL TRUSTEEAnnette Donlon Local Authority Sector

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87SIPTU • Annual Reports 2011/2012

Matters within the Division

Primary Responsibility

The Primary responsibility of the Division is –• Density Building• Collective Bargaining and Industrial Leverage

through the development of –- Workplace Organisation- Workplace Committees- Development of Shop Stewards

INDUSTRIAL ISSUES

The Public Sector is governed by the Public ServiceAgreement 2010 – 2014.

This includes three Sectors within the Division, Education, State Related and Local Authorities.

The Community Sector, while not governed by the Public Service Agreement, is subject to constraints imposed by public finances.

The Agreement was entered into against the background of the most serious economic collapse in the history of the state.

The Union agreed a mechanism for reform of the Public Sector in return for no further cuts in pay, nocompulsory redundancies and re-deployment within a 45km radius as a corollary to no compulsory redundancies.The Agreement also makes provision for a Service Delivery option that commits the employer to the use of direct labour to the greatest possible extent.

In the period under review significant savings and efficiencies have been achieved across the Public Sector. From the Union’s perspective the question of proportionality, equality and fairness in the application ofsavings is beginning to manifest itself as a problem; as isthe impact of the moratorium on recruitment of staff.

The Community Sector, which is the bedrock of supportfor the less well off in society, marginalised and disad-vantaged, has during the period under review beensubject to severe constraints imposed as a result ofcutbacks in funding to the Sector.

There were numerous industrial relations issues dealtwith by the Union on behalf of our members during theperiod under review across all the Sectors within the Division.

State Related Sector

INDUSTRIAL OVERVIEW

The Public Service Agreement 2010-2014 applies to all of the non-commercial semi-state bodies covered by the Sector, with the exception of cross-border organisations under the North-South Ministerial Counciland those employed in the Houses of the Oireachtas.As a result, industrial activity in the past couple of yearshas been largely governed by the impact of this agree-ment and by the Government Moratorium on recruit-ment or promotions.

State Agencies are struggling to meet their EmploymentControl Framework (ECF) targets, which were reviseddownwards in December 2011, while still delivering afull service to the public and Government. Our membershave been demonstrating exceptional flexibility in tak-ing on additional tasks and responsibilities to fill gapsleft by colleagues, who have retired or who were onFixed-Term Contracts which have not been renewed.Re-organisations in work practices are now an on-goingfeature of our negotiations with management, with theUnion’s agenda strongly focused on ensuring that fair-ness exists and that workloads remain reasonable. Weare also being faced with the situation where organisa-tions are declaring surplus posts in areas such ascatering, with the resultant redeployment of our mem-bers, both internally and externally, and then seeking tobring in contractors to carry out the work formerly doneby those redeployed members.

The reduction of public service staff numbers by the allocation of Employment Control Framework numbersis a very crude instrument which does not take accountof the service delivery requirements and the need forAgencies to be allocated the optimum number of stafffor this.

During the period under review we were represented on both the Civil Service Implementation Body and theNon-Commercial Semi-State Bodies ImplementationBody. We have had to refer a number of issues to thosebodies which were a cause of dispute with differentagencies, for example, the definitive definition of the45km rule for redeployment.

A Voluntary Early Retirement/Voluntary RedundancyScheme was sanctioned in Teagasc in late 2011 andthis saw 85 staff members depart the organisation. A Voluntary Redundancy Scheme was also introducedin Fianna Fáil in Autumn 2011 for those staff who held“Red Circle” entitlements to a permanent post with theParty in the Oireachtas.

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88 SIPTU • Annual Reports 2011/2012

Major negotiations took place over the past year in relation to the transfer of FÁS staff and functions to theDepartment of Social Protection. The Terms and Conditions of our members were very different to thoseof the Civil Service and agreement had to be reachedon matters such as career structure and developmentpath/promotions; recognition of service/seniority;transfer and mobility; central and back office resourc-ing; Performance Management Development System(PMDS).

The issue of negotiating rights also arose as the majority of our members wished to remain in SIPTU.However, following Independent Arbitration under theauspices of the ICTU the members were required to betransferred to the Civil Service Unions to avail of collective bargaining representation.

The Children’s Acts Advisory Board and the NationalBuilding Agency have both closed down. The staff fromthe CAAB have moved into the Civil Service with mostgoing to the Department of Youth and Children. Allstaff from the NBA were originally to transfer to the newHousing and Sustainable Communities Agency (HSCA).However, the proposed staffing level for HSCA was mas-sively reduced and a large number of NBA staff wereplaced on the Redeployment list.

A number of claims seeking contracts of indefinite duration for members with more than four years’ service and two or more contracts have been success-ful. This is also an issue for seasonal staff with morethan four seasons employment, who should be re-garded as part-time rather than seasonal.

Some positive improvements have been achieved suchas remote working; e-working; flexitime, in a number oforganisations.

Other areas where major negotiations have taken placeor are in the process include –

• The establishment of SOLAS and the transfer of FÁS staff involved in training into Local Education Training Boards (currently VECs)

• Merger of the National Roads Authority and the Railway Procurement Agency

• Transfer of Forfás into the Department of Jobs Enterprise and Innovation

• Break-up of Shannon Development and the transfer of its functions to Fáilte Ireland, IDA, Enterprise Ireland and a new Shannon Aviation Development Agency

UNION ORGANISING

This is extremely challenging in the State Related Sector as this is an area where members who retire or leave at the end of a Fixed-Term or Specific Purpose contract are not being replaced, other than invery exceptional circumstances. The transfer or redeployment of our members into the Civil Service hasalso resulted in membership losses.

An organising initiative in the Railway ProcurementAgency, assisted by the Organising Unit, has witnesseda slow but steady increase in membership.

CAMPAIGNS

The Sector’s main activity in this area is to try to in-crease public awareness of the positive activities of ourmembers in the Public Sector in an effort to combat theconstant anti-public service barrage coming from themedia. To this end briefings were given to both SinnFéin and Labour Party senators on the Public ServiceAgreement 2010 - 2014 and the contribution of ourmembers to the public good and towards economic re-covery.

Local Authority Sector

INDUSTRIAL OVERVIEW

SIPTU represents over 14,000 members in the LocalAuthority Sector across 34 Councils in the Republic and in Northern Ireland.

Our members have been engaged with managementunder the terms of the Public Service Agreement sincethe last Conference. This has seen our members fullyparticipate in cost saving exercises across the countrywith on-going flexibility and up skilling. In addition tothe cuts in basic pay, which all public servants have ex-perienced, our members in the outdoor grades have inaddition lost earnings through allowances and over-time. This has reduced considerably the earnings of ourmembers in these grades. In the second phase of theagreement we have insisted on equity and fairness inrelation to further efficiencies going forward.

The Local Authority Sector has shown its commitmentto public sector reform as indeed it has done over theyears before this agreement. It is now a serious matterof concern as to how services are to be delivered withthese cut backs and on-going reductions in staff num-bers. The numbers of outdoor staff have reduced byover 21% since 2008. In total the Sector has seen adrop of 8,500 over that period. The Local Authority

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sector is now already below the Employment ControlFramework for 2015 and is the only sector in this position. There is an urgent need to allow recruitmentto bring up the numbers to at least these levels.

Local Government is facing on-going and radicalchange through the implementation of the EfficiencyReview and Public Sector Reform programme. This includes fewer Councils and closer integration of othersalong with shared services. These are on-going challenges for our Sector.

UNION ORGANISATION

This is extremely problematic but we continue with ourefforts at the housekeeping exercise across the sector.

Density is high in the sector. However, we continue tohaemorrhage membership as a result of membersleaving and the moratorium on recruitment.

The Sector Committee meets on a regular basis andhas been consolidated over the period since our lastConference. The Sector has a number of Sub/Voca-tional Committees covering Water Services, Supervi-sors, Fire Services, Wardens and Procurement.

WATER SERVICES - CAMPAIGN

One of the major activities has been the highly active work on the issue of National Water Policy. This included our members organising a one day seminar on water leading to publication of a discussion document in advance of the development of IrishWater. SIPTU participated via the ICTU in making theTrade Union case for public water under public control.

This also contributed to the launch of the ICTU policydocument on Irish Water which was presented to therelevant Minister and Department.

The Committee has also lobbied in Dáil Éireann on theissue of Public Private Partnerships in the water sector.This included a presentation to the Joint OireachtaisCommittee on Environment. This presentation leads di-rectly to that body calling on the Comptroller and Audi-tor General to investigate the PPP predominance inwater.

These activities continue and in particular our firm belief that the Irish Water development is a clear moveto prepare water for privatisation, which we will continue to resist.

FIRE/EMERGENCY SERVICE

In the Fire Services our members are represented viatheir National Committees, both full time and retained.The Committees have worked together in the NationalFire Services Directorate and in lobbying for a singleNational Fire Authority. The many changes proposed inthe recent document “Keeping Communities Safe” isunder review by their respective National Committeesworking together with a single agenda to protect com-munities and represent our fire-fighters who carry out avital role.

Our members’ interests in the professional/engineeringarea are also actively represented through Local Authority Professional Officers (LAPO). LAPO also produced a position paper to the Department on theissue of Irish Water.

TRAININGThe Sector has organised training in Dublin, Cork andWexford on a regional residential basis for membersthroughout the Sector.

89SIPTU • Annual Reports 2011/2012

February 2012, SIPTU members in Dun Laoghaire/Rathdown CountyCouncil marched to Dún Laoghaire Town Hall from the People's Parkin protest against attacks on the Croke Park Agreement. Photo: Photocall Ireland.

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Education Sector

INDUSTRIAL OVERVIEWSIPTU represents over 6,500 members in the education sector across a range of grades. The Sectorhas been targeted for savings under the Public ServiceAgreement and we are engaging with the employers inthis regard. The biggest challenges we currently faceare from outsourcing of what the Department of Education regard as non-core or non-sanctioned posts.These are positions in the support grades in which wehave members such as care takers, cleaners and catering staff.

VECsWe have been engaged in discussions with the Department of Education regarding the amalgamationof the VECs into the Education and Training Boards.This will see a significant sharing of resources and aconsequent saving to the exchequer. The issues arisingfrom the increased work load for CEOs and the loss ofan allowance were the subject of intense negotiations.

ACADEMICS & RESEARCHERSThe revision of the academic contract has been agreedin UCG and is proposed in both DCU and UCD. Despiteagreement with another representative body there hasyet to be final agreement with SIPTU at national level.The impact of the Employment Control Framework isbeing felt in this sector as the employer attempts to circumvent our members’ entitlements to Contracts of Indefinite Duration.

TRANSFER OF FUNCTIONS FROM THE DEPARTMENT OF EDUCATION & SCIENCEThe Department of Education and Science, in line withGovernment policy, divested itself of responsibility for theTraveller Education Centres and Crèche facilities. Wehave been engaged with the VECs to ensure that ourmembers are facilitated with appropriate/redeploy-ment.

PUBLIC SERVICE AGREEMENTMembers continue to co-operate with the terms of the PSA. Under the PSA the following is being negotiated:

• The merger of FETAC, HETAC, NQAI and QUB into one organisation

• Negotiations on the revision of the academic contract (in some locations)

• The retention of direct labour in the security

section in TCD

• The introduction of self-issue of books by students in TCD when library staff off duty

• The roll out of the strategic plan in the library (UCD)

• The redeployment of staff from both the VEC Crèches and the Traveller Education Centres

• The retention of staff in the restaurant in UCD and the VEC in Limerick and the contracting out of certain functions

UNION ORGANISATIONThe Sector Committee meets on a regular basis andhas been consolidated over the period since our lastConference. We also have active workplace committeesin the Universities and colleges which meet on a regular basis with the full time officials – on a gradespecific and general basis as required.

Community Sector

INDUSTRIAL OVERVIEW:SIPTU represents over 9,700 members in the Community and Voluntary Sector in areas such as Community Employment Schemes, Job Initiative, Partnership Rural Social Schemes etc.

The Community Sector is funded through a number ofState Bodies such as Pobal, HSE and Solas.

As a consequence the current economic crisis has resulted in severe and unsustainable cuts in fundingfor these Agencies. The restructuring arising from suchcuts was carried out without engagement from thefunding agencies in relation to the detrimental effect of such cuts on vulnerable communities.

The December 2011 Budget was particularly difficultfor the sector and especially the Community EmploymentProjects which saw a cut in annual Training and Materialsgrants from €1,500 per participant to €500. There followed a period of intensive lobbying particularly atGeneral Officer level which led to a review being commissioned and a commitment from the Minister forSocial Protection Joan Burton TD that no scheme wouldclose pending the outcome of the review.

The Local and Community Development Programme(LCDP) Budget was also cut by 13% and this had a significant impact of members’ terms and conditions

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91SIPTU • Annual Reports 2011/2012

of employment in partnership companies. The level ofdiscussion that took place within Partnership Companiesvaried from full engagement in the majority of cases tonone at all in a small minority. The fact that there is noopportunity to negotiate at central level is problematicfor the sector.

A considerable amount of work is being put into the updating of contracts for RSS Supervisors.

There are still a considerable number of Labour CourtRecommendations across a number of areas within thesector that have not been honoured by the fundingagencies. As of December 2011, the General PresidentJack O’Connor and Vice-President Patricia King havebecome actively involved in trying to have these recommendations honoured.

Funding within the Sector continues to be a majorissue. The cuts that have been imposed have had anegative impact on work within the Sector.

A major restructuring of the CDPs took place whereby a majority have merged with Partnership Companies.The terms and conditions of employment were preserved under the Transfer of Undertakings legislation.

UNION ORGANISINGThere is considerable opportunity for organising withinthe Community and Voluntary Sector. The Organisingsection visit as many CE Schemes as is possible asclose to roll over date as possible to speak with and toorganise workers. The Union has arranged a number ofRegional Forums to get our message to the member-ship and to listen to the activists concerns.

CAMPAIGNSThe Union conducted a number of campaigns duringthe period under review.

• Defending Ireland’s Communities• Road to Recognition• Communities against cuts • A cut too far

All of the above are seeking to protect the Communityand Voluntary Sector from cuts in funding that havedrastic consequences in the many communities aroundthe country. It is also the stated intention that we seekto achieve recognition and a mechanism whereby wecan engage with the relevant Government Departmentsin relation to any restructuring, and or related issues.

MEMBERSHIP AND ORGANISATIONAs previously mentioned, the period under review in the Public Administration and Community Division wasextremely problematic as a result of the chronic state ofthe public finances and the moratorium on employmentimposed by the Government. Notwithstanding, therewas a determined effort to organise workers and tomaximise the membership in existing employments.

A Sectoral breakdown of the financial membership for the period under review shows the following.

Sector 2011 2012Community Sector 9,720 8,558Education Sector 6,444 5,866Local Authority Sector 14,274 12,867State Agencies Sector 5,115 4,510

A continuous process of organising needs to be undertaken particularly in relation to many unorganisedworkers in the Community Sector, together with a vigor-ous and sustained effort to maximise numbers in or-ganisations within the sectors already unionised.

The Vice-President, Patricia King, initiated a co-ordinated exercise across the Union in workplace organisations in the period under review. This exercisewas conducted in each Division and in in each Sectorwithin the Division aimed at identifying workplace representatives, workplace committees and training requirements with the purpose of rectifying any identified weakness in the organisation. The IndustrialLeverage Campaign is on-going.

Communities Against Cuts campaigners marching in the Anti-Austerityprotest on 24th November 2011. Photo: Photocall Ireland.

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Protesters at the International Justice Day for Cleaners at the Department of Trade and Employment, Kildare Street in Dublin, June 2011. Photo: Photocall

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93SIPTU • Annual Reports 2011/2012

Divisional Committee

President Charlie BradleyInsurance & Finance, Print Media Sector

Vice PresidentMargaret CoffeyHotels, Catering, Arts Entertainment & Leisure Sector

Padraig Murray Hotels, Catering, Arts Entertainment & Leisure Sector

Shirley BradshawHotels, Catering, Arts Entertainment & Leisure Sector

John GuilfoyleHotels, Catering, Arts Entertainment & Leisure Sector

Vincent TynanHotels, Catering, Arts Entertainment & Leisure Sector

Seamus DoyleHotels, Catering, Arts Entertainment & Leisure Sector

Sean WhelanInsurance & Finance, Print Media Sector

Garrett O’BrienInsurance & Finance, Print Media Sector

Brendan McNameeInsurance & Finance, Print Media Sector

Christy WatersSecurity & Contract Cleaning Sector

Thomas WalshSecurity & Contract Cleaning Sector

Malcolm MoranSecurity & Contract Cleaning Sector

Maria MonahanSecurity & Contract Cleaning Sector

Paul KellySecurity & Contract Cleaning Sector

Edel O’NeillWholesale Retail & Distribution Sector

Tommy DoyleWholesale Retail & Distribution Sector

Eddie ReidWholesale Retail & Distribution Sector

Maureen StewartWholesale Retail & Distribution Sector

Trevor SkeltonWholesale Retail & Distribution Sector

Standing Orders Committee – Services DivisionJohn FoleyInsurance & Finance, Print Media Sector

John FitzgeraldWholesale Retail & Distribution Sector

Paul CarrollWholesale Retail & Distribution Sector

Ger MackinHotels, Catering, Arts Entertainment & Leisure Sector

NEC – Services DivisionSean WhelanInsurance & Finance, Print Media Sector

Christy WatersSecurity & Contract Cleaning Sector

Margie McQuaidWholesale Retail & Distribution Sector

Bernie CaseyHotels, Catering, Arts Entertainment & Leisure Sector

NEC Trustee – Services DivisionTim DalySecurity & Contract Cleaning Sector

Services Division

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Introduction

The Services Division is made up of four Sectors as atyear end 2012 and these Sectors represent workersacross the following industries and related industries.

Sector Membershipas at 2012

Insurance & Finance, Print Media 6,056

Wholesale Retail Distribution & Related 9,948

Hotels Catering, Arts Entertainment & Related 7,446

Security & Contract Cleaning 8,952

During 2012 the Union’s NEC decided to create a newSector for the Division which will operate in the area ofArts and Culture with effect 1st January 2013.

Over 2011/2012 undoubtedly the biggest issue confronting our Division was the effect of the economic collapse on the domestic economy and the resulting sustained attack on the pay and conditions ofemployment of our members.

The reduction in the National Minimum Wage and thedecision of the High Court to declare it was unconstitu-tional for a Joint Labour Committee to establish an Employment Regulation Order, made it easier for whileemployers to drive the race to the bottom, while at thesame time drive tens of thousands of workers and theirfamilies into poverty.

During this period the Services Division, its four Sectorsand our members were to the fore in the campaigns tofight against these measures and to ensure that theunion retained its ability to engage in Collective Bargaining through the Joint Labour Committee Systemso that it could continue to influence the pay and conditions of employment of low paid workers acrossthe economy.

During the period our members in the Services Divisionwere not covered by any National Agreement and relations between our members and their employerswere dealt with through Collective Agreements and thearrangements laid out in the Private Sector Protocol.There was evidence of pay progression in some Sections within the Division, but for most of our members it was a period of consolidation and protection of existing agreements to avoid the worsteffects of the economic collapse rather than advancement.

Services Division Conference 2011The Divisional Conference took place on the 1st and2nd November 2012 in Liberty Hall, Dublin with a totalof 200 Delegates entitled to attend from the Division and the four Sectors.

Sector No of Delegates

Insurance & Finance, Print Media 36

Wholesale Retail & Distribution & Related 55

Hotels Catering, Arts Entertainment Leisure & Related 42

Security & Contract Cleaning 47

Speakers and DebatesThe Conference over the two days was addressed by a number of speakers including;-

Jack O’Connor, General PresidentJoe O’Flynn, General SecretaryPatricia King, Vice PresidentJohn King, Divisional OrganiserJack McGinley, Cuba ForumJoe Cunningham, Strategic Organising DepartmentOrlagh Fawl, Strategic Organising DepartmentEthel Buckley, Equality and Campaigns DepartmentPadraig Yeates, Lock Out Centenary

In addition to the invited speakers many delegates addressed Conference on the subject matters of themotion submitted by the Sectors and the Division.

Key Conference ThemesThe Conference broke into Workshops to consider a number of key challenges being addressed at Conference which are confronting workers across the Sectors of the economy organised by the Division.

• Activists – Campaigning and Activism Facilitator – Ethel Buckley Chair Karan O’Loughlin

• Economy – A Strategy for GrowthFacilitator – Marie Sherlock – Chair Adrian Kane

• Employment Rights – Trend & DevelopmentFacilitator – Tom O’Driscoll – Chair Owen Reidy

• Activists – Training & DevelopmentFacilitator Sylvester Cronin – Chair Denis Hynes

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95SIPTU • Annual Reports 2011/2012

Industrial Issues

Minimum WageIn early 2011 the Division was to the fore in campaign-ing for a reversal in the legislation introduced in late2010 to cut the National Minimum Wage by €1.00 from€8.65 to €7.65 per hour.

The Union’s activists and Staff working with other tradeunions and NGO organisations on the ‘Coalition to Pro-tect the Low Paid’ and ‘Poor Can’t Pay’ groups lobbiedintensively to make this issue a key priority for workersin the general election of February 2011.

The effect of this work led to a reversal of the rate cutby the Government. Along the way the Division engagedin battles with employers who had sought to impose thereduced rate on existing employees, none more so thatat the Davenport Hotel.

Davenport HotelThe minimum wage reduction and the manner in whichit was unlawfully imposed in this Dublin city centreHotel propelled the issue and the Division into the national spotlight as a key battleground in the fight toprotect low paid workers.

This opportunistic employer refused to roster fourwomen who would not sign a document that gave himthe right to reduce their pay. These women, supported by SIPTU, stood together and took officialstrike action in defence of their rights. Following a threeweek strike the four women – all Eastern European –had their rights fully upheld by the Labour Court, hadtheir rate restored and received full compensation fortheir employer’s action.

Joint Labour Committees/Employment Regulation Orders

Over the period under review the Division, Sectors and Activists battled intensely to maintain these legallyenforceable pay and conditions of employment instruments.

Across the Services Division, this Union has membersin the following Sectors of the economy covered by aJLC/ERO.

• Contract Cleaning• Security• Retail• Hotels• Catering• Law Clerks• Hairdressing

These Statutory Instruments (SI), which give minimumprotection to low paid workers in largely unorganisedsectors of the economy where workers are denied thebenefits of Collective Bargaining, had been sacrificedby the previous government in late 2010 to the Troikain return for the bailout terms.

The defence of these Statutory Instruments was madea key priority for workers in the General Election of February 2011. The union, along with other tradeunions and NGO groups, initiated campaigns such asthe Coalition to Protect the Low Paid group and lobbiedsuccessfully to ensure their existence going forward wasprovided for in the current Programme for Government.

However, all this changed for the worse in July 2011when the High Court declared that the ability of a JLC to issue an ERO was unconstitutional. This meant thatthe JLC/ERO regime was no longer enforceable andworkers in the affected sectors, as well as new entrants, faced a potential race to the bottom in its starkest form.

Immediately the Union, the Division, Sectors, and Activists commenced an intense campaign to have legislation enacted to provide legal and constitutionalprotection for the JLC system and its ability to issue anERO. This campaign would prove successful when theGovernment passed the Industrial Relations (Amend-ment) (No 3) Act 2012.

Not all of the measures previously dealt with by a JointLabour Committee are allowed for under the provisionsof the new Act. However, having the provisions will enable the union to collectively bargain legally enforceable pay and conditions of employment for low paid workers in certain sectors of the economy.

Members on strike outside the O'Callaghan owned Davenport Hotelin Dublin, February 2011. Photo: Photocall Ireland.

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96 SIPTU • Annual Reports 2011/2012

Currently there is a review underway by the Ministerunder the provisions of the new legislation to whichSIPTU has made a comprehensive submission on whichindustries within our economy should have a JLC goingforward.

Contract Cleaning IndustryWith the collapse of the JLC/ERO system as a result ofthe High Court decision of July 2011 in the John Grace,Fried Chicken Ltd and Quick Service Food Alliance Con-stitutional Challenge, contract cleaners were left withno collectively bargained agreement on minimum payand conditions that was legally enforceable.

As a result, the Sector supported by the Division en-gaged with the employers and their representative bod-ies in what turned out to be successful talks intransposing the terms of the former JLC/ERO into aRegistered Employment Agreement (REA). This ensuredthat the rates of pay and conditions of employment ofcontract cleaners were still protected by a legally en-forceable collectively bargained agreement.

The Union convinced the employers that without suchan agreement industrial chaos would prevail as workerswould resist and would be supported by this union inresisting a collapse in pay rates for these low-paid work-ers. An interim agreement was secured, giving ourmembers the necessary protections and both partiesagreed to a formal talks’ process as the best way forward.

Security IndustryThe collapse of the JLC/ERO in July 2011, as a result the of the High Court decision of July 2011 inthe John Grace, Fried Chicken Ltd and Quick ServiceFood Alliance Constitutional Challenge, meant that se-curity workers were left with no collectively bargainedagreement that was legally enforceable or minimumpay and conditions of employment.

Initially the Sector, supported by the Division, engagedwith the employers and their representative bodies inan effort to transpose the terms of the JLC/ERO into aRegistered Employment Agreement to avoid the indus-trial chaos that would result from a situation if ourmembers faced unilateral reductions in their pay andconditions of employment.

While it was no longer possible to maintain the REA be-cause of potential legal challenges from unscrupulousemployers in the Sector, talks did pave the way for theunion and employers to begin discussions on conclud-ing an agreement and registering it as an REA underthe provisions of the Industrial Relations (Amendment)Act 2012.

Print & PackagingThe Print Industry continued to go through a turbulentrationalisation process and a significant number of redundancies and job losses were experienced by ourmembers. The threats to the industry came from theon-going technology revolution, combined with the economic downturn that has resulted in a collapse in advertising revenue.

The Sector continues to work through the Print and Packaging Forum to develop broad industry-wide strategies to try and ensure sustainable employmentopportunities for workers in the Sector.

Banking, Finance & InsuranceThis sector of the economy went through a significantconsolidation process during the period under review,with widespread redundancies, concession bargainingon terms and conditions of employment and de-skillingof once skilled, well-paid jobs into low cost call centretype operations.

The strategy devised to combat these measures included:

• Direct employment by way of resisting outsourcing

• Protection of pay and benefits

• Establishing SIPTU as a presence that campaigns for the rights of workers in this Sector.

Hotels & CateringThese sectors were adversely affected by the HighCourt decision to declare JLC/ERO’s unconstitutional.Over the period under review the union has been bat-tling to ensure the protection of pay and conditions ofemployment of our members.

The effect of the global economic downturn, the fall-off in domestic discretionary spending, added to the over supply of rooms and the debt crisesamongst Hotel owners, have added to the downwardpressure exerted by employers on our members’ payand conditions. Notwithstanding the challenges confronting workers in this Sector a number of significant outcomes were achieved, most notably inthe Davenport Hotel and the Old Darnley Lodge Hoteldisputes.

Retail Wholesale & DistributionThis segment of the economy has suffered enormouslyas a result of the fall-off in domestic spending, and theeffect of the High Court Decision on the Retail JLC.

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97SIPTU • Annual Reports 2011/2012

The builders’ providers trade has been decimated andin the main retail area there are significant numbers ofour members working reduced hours and shorter working weeks.

The main issues being dealt with are associated withemployer demands for cost and payroll reductions. The following are the key issues for our members:

1) Restructuring2) TUPE3) Consolidations4) Reductions in Pay5) Reductions in hours

Where pay improvements have been made they havebeen negotiated in return for change, flexibility and co-operation with technology.

Arts & CultureThe Division continues to work in the Film and Entertainment Industry, including within Irish Equityand the Musicians Union of Ireland.

Efforts continued to conclude appropriate agreementsand to enforce compliance with agreements for the var-ious component elements of this industry.

The union, supported by the ICTU, continues to campaign, in conjunction with ARRO for amendment to the Competition Act 2000, to ensure that the prohibition on freelance musicians and voice over actors from engaging in Collective Bargaining throughtheir unions is removed.

The NEC in 2012 decided to set up a new Arts & Culture Sector in order to give greater focus to buildingan Organising Union within the Industry.

Pay Improvements

AllegroAgreement secured for 2% pay increase, which mem-bers agreed to put into the pension scheme as an addi-tional employee contribution.

DebenhamsDuring 2012 the review of the collective agreementwas completed. Members agreed to maintain the payfreeze for an additional 12 months up to September2013, from which point a 2% increase will apply to allbasic rates. An additional day’s annual leave wasachieved on a once off basis for 2012/2013. Agree-ment was also secured to maintain the existing Christ-mas bonus and overtime arrangements.

KeelingsFollowing protracted negotiations at local level, theLabour Relations Commission and two Labour Courthearings, agreement was finally secured in mid-2012on a new pay agreement in this Company. Memberswill receive:• 2% with effect from 1st January 2013 to 28

February 2014• Lump sum payments of €350• The incentivised pay scheme to be re-introduced

for lower grade new entrants• Improvements to existing bonus arrangements.

In addition the LRC Advisory Service is also workingwith the parties in an effort to improve industrial rela-tions on the site.

UPC2% basic pay agreement

TescoArising from Labour Court rejection of members’ claimunder the previous National Wage Agreement, they accepted an offer of 2% to be paid with effect from 1st January 2013.

Avery Dennison1% basic increase agreed – with an additional 5% possible on the basis of productivity measures to ensure cost neutrality.

Musgrave Wholesale Partners3% increase in basic pay.

Musgrave Retail Partners5% increase in basic pay in return for co-operation with change and new technology.

The settlement of this issue was a difficult matter atthe employer’s site in Cork, where members having At the launch of the new MUI website in Liberty Hall in November

2011 were from left to right: Andy Irvine, Eamon Gilmore, Tánaisteand Patricia King, SIPTU Vice-President. Photo: Tommy Clancy

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balloted to reject a Labour Court recommendation engaged in a 3-week official strike before the matterfound resolution.

Cliffs of MoherMembers in this employment took official strike actionfor almost two weeks following this employer’s refusalto implement the terms of a Labour Court recommen-dation on pay and conditions of employment.

The matter was resolved to our member’s satisfactionin late 2012, following further interventions from theLabour Relations Commission and the Labour Court.

Members will receive the following improvements

6% pay increase with effect from 1st January 2013

4% pay increase with effect from 1st January 2014

Increase in Sunday premium payments from time plusa quarter to time plus a third.

Increase in sick leave to 10 days per annum.

Campaigns

Fair HotelsDuring the period under review the Division continuedto support the Hotels, Catering, Entertainment, andLeisure Sectors’ Fair Hotels Campaign for quality jobs in the hotel Industry, where hotels as a principle treattheir staff fairly and recognise their rights to join atrade union and engage in Collective Bargaining.

The campaign launched in May 2010 has gone fromstrength to strength and is supported by an ICTU combined purchase policy, trade unions nationally and,increasingly, international NGO and civic society organisations.

Credit UnionsThe Insurance & Finance, Print Media Sector has itsprofile in the Finance/Banking area. The Sector isbuilding sustainable contacts with the Credit Unionmovement and is increasing membership and densitywithin this segment of the economy.

While the future shape of banking is yet to be deter-mined it is likely that the Credit Union sector will play apivotal role in the delivery of banking services to thepublic. The aim of this sectoral campaign is to placeSIPTU central to these developments.

‘Don’t Bin our ERO Campaign’The Security and Contract Cleaning Sector, in conjunction with the Strategic Organising Department,continued to collaborate in a comprehensive organisingcampaign. It targeted employers in certain segments of the Public/State sponsored contracts for Health, Education and Public Transport.

A central element of this work was the campaign’s workon their ‘Don’t Bin our ERO Campaign’ to retain the JLCsystem for the Contract Cleaning Industry and otherlow-paying sectors.

This was a very visible and dynamic campaign and sawworkers and activists lead demonstrations andprotests. Workers and Activists also lobbied parliamen-tary meetings of political parties in the Dáil directly inseeking political support for their JLC.

StobartThe Wholesale Retail and Distribution Sector continuedto battle against reductions in pay, conditions of em-ployment and standards across the Distribution Sector,as best exemplified by this employer.

Cliffs of Moher members from left Frances Nagle, Roisin Kelly, Tom Doherty, June 2011. Photo: Declan Monaghan

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Fair Hotel workers, July 2012. Photo: Tommy Clancy

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This Company refused to recognise the rights of itsworkers to join and be represented by this union forCollective Bargaining purposes at the TESCO Distribu-tion facility at Ballymun.

Members at the site balloted in early 2011 to take official strike and industrial action as a result of the intransigence of the employer and two periods of industrial action were taken by our members. However,the employer was successful in securing a High Courtinjunction against the industrial action and membersreverted to other measures to secure the desired resultwhile maintaining the right to re-ballot and engage inofficial action at a later date if required.

SIPTU has reported TESCO, of which Stobart is a client,to the UK Ethical Trading Initiative (ETI). TESCO is amember of the UK ETI.

Members of the ETI are by their membership commit-ted to ensuring that they and their suppliers allow theemployees to join trade unions and engage in CollectiveBargaining. SIPTU will be requesting that the ETI use itsprocedures to ensure TESCO lives up to its obligationsto ETI Codes in respect of the employees working atStobart.

Redundancy/Restructuring/RationalisationAcross the industries covered by this Division workerswere faced with a relentless attack on their jobs, hoursof work, and pay and conditions of employment, as employers sought to shift the burden of the collapse inthe domestic economy onto their employees.

The following are examples of Services Division Agreements made to protect our members in their employments and, where this was not possible, to conclude appropriate severance arrangements:

ChadwicksZurich InsuranceHeiton BuckleysAXA InsuranceAtlantic HomecareUlster BankG4S SecurityAIBSpring GrovePermanent TSBBrinks AlliedAutomobile AssociationCP OmadaWestbury HotelCWS BocoLynch Hotel GroupCavtat TavernsEasonsSelect Service PartnersClerysAramarkWoodprint CraftDC KavanaghArnotts

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The Utilities and Construction Division came into existence in September 2010 and the new structuresplayed a crucial role in tackling the intense pressuremembers’ jobs and working conditions came under dur-ing the economic crisis. Teamwork was the key to effec-tive action, not only between Activists and full-time staffat Divisional and National level, but also between front-line negotiators, specialist services and administrativestaff. While these different inputs have not beenitemised in this Report, they are duly recognised andacknowledged. When this is placed with the solidarityof Union Members “Activist and Member Developmentand Participation in an Organising Union” can be advanced all the more.

Elections The Divisional Committee took office at the inauguralDivisional Conference on November 5th/6th 2010. Itheld five meetings in 2011.

Divisional President: Tommy Wynne (Transport Sector)Divisional Vice President: Philip Casey (Energy Sector)

DIVISIONAL COMMITTEE

Aviation SectorWillie HynesMary McCabeDorothy PrendergastConor Swords

Construction SectorNoel CoughlanSteve GarveyMichael LambeDick McGlewDaniel O’ConnellWilliam O’Shaughnessy jnr

Energy SectorPhilip Casey (Vice President)Marcus MacMahonTony Merriman

Transport SectorKevin BrownPat HartnettJohn McCamleyAnn RyanTommy Wynne (President)

Retired MemberTom Donnelly (Divisional Retired Members’ Representative)

Divisional Standing Orders CommitteeRichard Dignam, Stephan Hannan (Vice-President), Teresa Murphy (President), Kathleen O’Toole David Traynor

National Executive CouncilJack Dempsey, Ann Ryan, Anthony Blake

National TrusteeAnton McCabe

Rules Revision CommitteeJohn McCamley, Tony Merriman

Equality CommitteeAmanda KavanaghLeonard SimpsonAnn Ryan

National Standing Orders CommitteeDavid Traynor

DIVISIONAL STAFF

Divisional Head OfficeDivisional Organiser: Christy McQuillanAdministrative Assistant: Susan Dwan

Aviation SectorSector Organisers:Dermot O’Loughlin/Teresa Hannick(1)Administrative Assistant: Anne LindsayIndustrial Organisers: Tony Carroll and Jason Palmer

Construction Sector:Sector Organiser: Martin MeereAdministrative Assistant: Rhona Alford Industrial Organisers:David Lane, John Regan, James Coughlan, Pat McGrath, Mary McElligott, Henry O’Shea, Jim Sheridan

Energy SectorSector Organiser: Greg EnnisAdministrative Assistant: Rosemary GillespieIndustrial Organiser: Oliver McDonagh

Utilities and Construction Division

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102 SIPTU • Annual Reports 2011/2012

Transport SectorSector Organiser: Willie Noone

Administrative Assistants:Miriam Smith and Marcella O’Brien(2)

Industrial Organisers: Paul Cullen and John Murphy

(1) In September 2011 Dermot O’Loughlin transferred from the Aviation Sector to the MembershipInformation and Support Centre (MISC) and was replaced by Teresa Hannick who transferred from the Manufacturing Division.

(2) Marcella O’Brien retired 8th June 2011

Sector Committee Members 2010-2011The following were elected to the Sector Committeesand took up office following Inaugural Committee meetings in September 2010.

Aviation Sector CommitteeRichard DignamDominic HarrisWillie HynesKevin McCarthy (President)Tony O’ConnellJohn O’TooleKathleen O’TooleDorothy Prendergast (Vice President)John Sarsfield

Construction Sector CommitteeAnthony BlakeJohn ChandlerSean ClarkeNoel CoughlanRichard DavisJack DempseySteve GarveyEddie Gunnery (Vice President)Daniel O’ConnellWilliam O”shaughnessy jnrPatrick PeoplesFergal RocheDavid TraynorGreg Walsh

Energy Sector CommitteePhilip Casey (President)Marcus MacMahonMalachy McMenaminTony Merriman

Eugene MurphyTeresa Murphy (Vice President)Noel Stanley

Transport Sector CommitteeKevin BrownMichael CullenBenard EdwardsPadraic FinneganVincent GreenStephen HannanPatrick HartnettShane HovellsDavid KeatingJohn McCamley (Vice President)Ann RyanTommy Wynne (President)

Membership & OrganisationThe Financial Membership of the Division at the end of2011 was as follows:

FinancialMembership

2010 2011

Aviation Sector 4,118 4,407

Construction Sector 9,008 7,269

Energy Sector 3,190 2,659

Transport Sector 6,628 6,392

Total 22,944 20,727

Training & DevelopmentAs part of our commitment to the ongoing developmentand education of our workplace representatives, SIPTUCollege provided the following Training Courses

DivisionOne Day Staff Training – 28th February 2011 Four Day FETAC Health & Safety – 18th April 2011Two Day Pensions – 2nd November 2011Five Day FETAC Health & Safety – All Divisions – 12th December 2011

AviationThree Day Teamwork ‘Search Unit’ – 8th November 2010Three Day Basic Shop Stewards – 1th February 2011Three Day Basic Activist Training – 8th March 2011Three Day Basic Shop Steward – 5th April 2011

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103SIPTU • Annual Reports 2011/2012

One Day Section Committee Training – 11th April 2011Three Day Advanced Shop Stewards – 28th June 2011Three Day Basic Shop Stewards – 6th December 2011

ConstructionFour Day FETAC Health & Safety – Lisheen Mines – 16 May 2011

Four Day FETAC Health & Safety – Lisheen Mines – 22 November 2011

EnergyThree Day FETAC Health & Safety – 20th September2011

A detailed Training Analysis was carried out in the Energy Sector and it is expected that significant trainingwill take place in this Sector in the future

TransportThree Day Basic Shop Stewards – 4th October 2010Two Day Veolia Joint Management – 8th November 2010Three Day Veolia Joint Management – 19th January 2011 One Day EWC Training LUAS Workers – 4th May 2011One Day Transport SC Presentation – 18th May 2011Three Day Health & Safety – LUAS Workers – 23rd, 30th and 31st May 2011One Day Health & Safety LUAS Workers – 21st May 2011Two Day EWC Training – 30th May and 22nd June 2011Three Day FETAC Health & Safety – 20th September2011

ScholarshipsCongratulations to the following Scholarship Winners:

2010 (Second Level)Sector Awarded to: Member: Member’s

EmploymentAviation Elaine Geraghty Michael Geraghty Aer LingusTransport Gavin Martin Tony Martin Dublin Bus

2010 GaeltachtTransport Jessica Kelch Raymond Kelch Dublin BusTransport Anna Sheeran John Sheeran Irish RailTransport Conor McEvoy Stephen McEvoy Dublin Bus

2011 (Second Level)Construction Niall Murphy Edward Murphy Arklow Crane

HireConstruction Alan Murphy Edward Murphy Arklow Crane

Hire

2011 GaeltachtAviation Emma O’Toole Tony O’Toole Aer Lingus Construction Caoimhe Moriarty Padraig Moriarty Tara MinesConstruction Sean Moriarty Padraig Moriarty Tara MinesTransport Sean McEvoy Stephen McEvoy Dublin BusTransport Gareth Byrne Jim Byrne Dublin Bus

Aviation SectorThe period covered by this Report has seen extremedownward pressure in the Aviation Industry, almost as severe as 2001, after 9/11.

Our members are all too familiar with the cyclical nature of the industry, which entailed redundancies,both voluntary and compulsory, restructuring, reductions in pay and in other terms and conditions. A small number of employments experienced modestimprovements.

The Sector is made up of Aviation workers in nationaland regional Airports in the Republic of Ireland. During2012 workers in the Aircraft Engine Overhaul and maintenance industry in Dublin, Shannon and Corktransferred into this Sector from the Manufacturing Division. This was generally welcomed as consolidationthat would benefit the Sector in the long-term. The twoprincipal employment sections were the Dublin AirportAuthority and Aer Lingus. The loss of public service obligations (PSO) subsidies hit smaller airports hard.

Dublin airport. Photo: Photocall Ireland.

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Dublin Airport Authority (DAA)The very future of the DAA itself, involving our threeprincipal airports – Dublin, Cork and Shannon – hasbeen very much in the minds of our members through-out the period covered by this Report. The announce-ment by Leo Varadkar, Minister for Transport of theseparation of Shannon Airport from the DAA has been amajor disappointment. We believe this strategy is not aviable situation for the future of Shannon Airport andwill have negative consequences for the rest of theDAA.

The union’s DAA ‘Three Airport Strategy Group’ will con-tinue to campaign against the separation of Shannonfrom the DAA. The campaign is being co-ordinated withthe Irish Congress of Trade Unions and the assistanceof an independent financial advisor has been secured.

While all these developments have required attention,the construction of Terminal 2 facilities at Dublin Air-port has been completed and it commenced services in2010.

In relation to Terminal 2, Aer Lingus made significantcommitments from the outset that it would be a keyuser of the facility and its appeal to the travelling publichas been very significant. The workers in T2 have, overa period, been organised and many have completedtheir probationary employment period. That has pro-vided an opportunity to begin putting structures inplace for representation, recruitment, training and iden-tifying initial issues of concern to members. The newly-elected Shop Stewards sought improvements andchanges to the working hours rosters. First progresswas achieved for our members in the Passenger Serv-ices section of T2 with a large majority voting in favourof a union-endorsed roster as against the employer’s

one. Similar progress for the Facilities Section of T2 became the follow-on goal.

As with any new start-up employments much still needsto be achieved. The density of membership and a solidunion organisational structure will be crucial to successin improving the values of jobs our members undertake.

Regional Airports

Galway AirportThe loss of the PSO subsidy hit Galway Airport hard andthe withdrawal of the Aer Arann Galway-Dublin Serviceresulted in 49 staff being made redundant by the endof 2011.

Irish West Airport KnockThis airport placed the majority of the 100 strong staffon short-time with flexibility to redeploy them in a suc-cessful effort to avert immediate redundancies. TheCompany also sought a review of particular terms andconditions of employment to achieve greater cost effi-ciencies.

Kerry AirportJust like Galway, Kerry Airport was badly affected by thedifficulties presented by the PSO, and by the reductionin scheduled flights. While there have been no redun-dancies since early 2011 the Company has soughtmajor changes to shift pay and work practices.

Lufthansa Automotive Technik IrelandThis company sought voluntary redundancies from theindirect staff at its plant in Rathcoole. It has announceda €4 million staff cost-cutting plan that affects directemployees. These entail suggested pay cuts, reductionsin shift payments and changes to work practices. Thereare three unions representing workers in LATI. Theagenda will certainly involve the third party Labour Re-lations Commission (LRC) process.

Pratt Whitney Associates IrelandAgreement has been reached providing for a pay riseduring 2012 and 2013. The terms are: a 2% increaseon basic pay from the 1st January 2012 and a further2% rise on basic pay from the 1st January 2013.

ServisairThis company has been seeking agreement to intro-duce a reduced rate of pay for new entrants.

Aer Lingus – Dublin, Cork and ShannonOur members in Aer Lingus have been dealing with issues regarding the implementation of the GreenfieldProgramme, which has seen an upward trend in profits.This continual change programme has been a challenge and a cause for concern for members inmany areas. Many sections are experiencing manage-ment initiatives that often have questionable results. In

Terminal 2 at Dublin airport. Photo: Photocall Ireland.

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Head Office and support areas of Aer Lingus, DublinSection, the Greenfield Restructuring Programme hasseen the company target human resources, crew ad-ministration and accounts payable. The company hasput forward a redeployment document that proposes acompulsory redundancy situation and contains a com-pulsory buy-down clause for members in the affectedareas. The document has been rejected by membersand the LRC’s services are being utilised.

Another major concern has been an announcement bythe company to transfer the Aircraft Maintenance Basefrom Shannon Airport to Dublin. Members are con-cerned that the removal of this section of Aer Lingusoperations from Shannon could be a precursor for theremoval of other parts of the Aer Lingus operation, andpossibly the elimination of the base itself from the air-port.

This is an issue that the Aer Lingus Craft Group ofUnions is addressing.

Once again our members in Aer Lingus benefitted fromthe gainsharing initiative that is part of the GreenfieldProgamme and we have to acknowledge its signifi-cance in the company’s profitability.

While our members in Aer Lingus do a very committedjob for the travelling public and strive to keep the com-pany profitable, they are concerned at the attitude ofone company’s shareholder. Not for the first time theworkers find themselves meeting their work commit-ments while a hostile takeover bid is again launched byRyanair. A successful bid by Ryanair would not be goodfor the future of Aer Lingus, the travelling public,tourism or the Aer Lingus workforce.

We played a major role in trade union lobbying at homeand in the EU to highlight the serious consequences forour economy and our people if this bid were to suc-ceed, or if it were it to be accommodated by the EUCommission on Monopolies and Takeovers.

Our members believe that our Government, with its 25%stake in the company, has a major responsibility to play itspart so that airline travel to and from Ireland does not endup in the hands of one principal carrier alone.

Additionally, there is, of course, the important matter ofthe Heathrow slots which are of such strategic impor-tance for our travel to and from the UK.

Irish Aviation Superannuation Scheme (IASS)This Pension Scheme is a multi-employer scheme his-torically, involving Aer Lingus, DAA, SR Technics andothers. It has been of concern for some years now.While current pensioners’ benefits remain the mostprotected group there are real concerns for the benefits

of current employees and deferred pensioners. Seriousand ever-increasing frustration exists amongst the present contributing workforce to the scheme relatingto their employment pensionable service and benefitsto date, together with pension benefits for future employment service. For deferred pension schememembers there is increasing anxiety about the securityof their already earned pensions. Any remedy clearlyentails further financial commitments from the princi-pal employers – Aer Lingus and DAA. A real stepping inand out ritual has evolved between the various employ-ers, who have been unwilling to transparently addressthe scheme deficit and their respective responsibilitiesto their employees.

There is also a multi-union membership to be repre-sented with various views on what would be a balancedsolution.

The LRC and various pension advisers continue theirattempts to assist in finding a resolution and industrialaction cannot be ruled out.

Construction Sector

Employment and Pay Construction workers’ jobs have been decimated by thecrisis created by banks, greedy builders and land spec-ulators, facilitated by the complicity of previous Govern-ments. The Construction sector has been hit harderthan any other sector of the economy.

At the end of 2007 there were over 269,000 construction workers in employment covered by theRegistered Employment Agreement (REA) for the Industry. This compares with 108,000 employed in1997. Every quarter since 2008, construction job num-bers have plummeted. At the end of the first six monthsof 2012 employment stood at under 100,000.

Building workers had their last pay increase in January 2008 and that increase provided the Construction Operative with a basic hourly rate of€14.88 per hour. Semi-skilled Operatives had hourlyrates between €16.37 and €18.04 per hour. The Craftrate in January 2008 stood at €18.60 per hour.

While construction workers were losing their jobs at the rate of thousands per month, the building employers, through the Construction Industry Federa-tion (CIF) made a claim for a pay cut, as well as otherdemands for a reduction in terms and conditions of employment during January 2010.

SIPTU took serious issue with the employers’ attempt tojustify their demands and, through the Construction

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Industry Committee of the Irish Congress of TradeUnions, it challenged the employers’ stance within theNational Joint Industrial Council for the Industry. Noresolution at Council level was possible and so the employer’s menu of cuts went before the Labour Court.Following a full Labour Court hearing it issued a recom-mendation covering pay, Registered Employment Agree-ment (REA) compliance measures, training and criteriafor redundancies.

Following the Court’s recommendation in June 2010extensive engagement with our members followed andthis led to a ballot on the Court’s recommendation re-sulting in acceptance by each of the ConstructionUnions who are signatories to the REA. As a result ofthat process a 7.5% pay cut, which was similar to thepay cut by Local Authorities, was registered by theLabour Court with effect from February 2011.

There was a reluctant hope that these measures couldslow the hemorrhaging of jobs and contribute to anearly recovery within the Industry. Unfortunately joblosses continued unabated. The loss of direct employment with principal building contractors, asagainst sub-contractors, was also very significant.

By the end of 2011 the employers returned with a further demand for reductions in construction workers’pay, a change in the value of travelling time, alterationsto early start premiums and general overtime premiums;and a new demand for a new starting rate. Employersdemanded a further 20% pay cut which, if applied,would result in:

• Craft rate reduction of €134 per week

• Grades A, B, C, D General Operatives’ Pay

reduction of between €130 and €107 per week

• A new General Operative starting rate that would result in a €203 per week reduction on the existing rate

As with the employers’ demand in 2010, SIPTU and theConstruction Unions of Congress vigorously objected tothis outrageous CIF claim. Their agenda went beforethe National Joint Industrial Council for the Industry,through the LRC process and ultimately before theLabour Court. Labour Court Recommendation 20417issued during November 2012.

Apart from the pay values that are under sustained attack, compliance and enforcement of the REA termsare being seriously undermined. This is the case underprivately-funded construction projects and contracts.However, even more alarmingly, non-compliance is extensive even with publicly-funded contracts which areunder the jurisdiction of Local Authorities, Departmentof Education, Department of Health, Office of PublicWorks and Department of Defence.

Denial of building site access to trade union officialsseeking information from principal contractors on theircompliance and that of their sub-contractors is a dailyexperience. Our defence of jobs and pay values for theworkers and their families in the industry are at a cru-cial stage.

SIPTU and the Congress Construction Unions havebeen to the fore in seeking a stimulus for the industrywhich would herald the start of a recovery resulting in areturn to employment for the thousands of buildingworkers who have lost their livelihoods. There hasbeen limited success thus far but many worthwhile andnecessary projects which are within the remit of Gov-ernment and have State approval are yet to materialise.The undue delay in advancing these projects is worry-ing when coupled with the added time spent on plan-ning and tendering.

Our campaign will continue. The employers are also lob-bying for a stimulus package, but at the same time theyare attacking the workforce on the basis of not wastinga recession and the opportunity to drive down termsand conditions.

The intermittent nature of building work is very chal-lenging for those employed by the industry and thosetrying to organise and represent them and their fami-lies. Direct employment, i.e. employment with the prin-cipal contractor, has been seriously diluted in recentyears. The effective outsourcing of direct jobs to thesub-contractors has further challenged our capacity toensure maximum REA compliance within the industry.

This Divisional Report contains samples of campaign-ing material which SIPTU has produced to brief and

Construction workers.

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support building workers members, both employed andunemployed. The report also contains details of welfareprotections which are a fundamental feature of the REAagreement e.g. pension, sick pay and life assurancecover. Without compliance and enforcement of the REAthese crucial benefits and protections are denied tobuilding workers and their families.

Strategic OrganisingCreating a National Compliance Culture for the Con-struction Industry REA on Pay, Pensions, Sick Pay andDeath in Service Benefit is key.

In the context of the Organising Campaign, Organisersfrom the Strategic Organising Department make routine checks on contractors and sub-contractorsthrough their role monitoring the Construction Workers’

Pension Scheme (CWPS). This is to ensure SIPTU members are covered for the scheme’s principal benefits, and that workers who are not covered are informed of the fact. It provides them with an opportunityto join SIPTU and initiate complaints through the CIMAmonitoring process. These complaints are directedthrough the Team Lead Organiser.

In the majority of cases, the firms co-operate with the investigation process. The complaints are initiatedunder failure to register, arrears or misreporting ofworkers. They are resolved through the registration ofthe firm and its workers; and through the payment ofthe arrears identified and quantified. In many instancesthis is through the mechanism of an arrears agreement.

A minority of firms are referred to the Labour Courtseeking either inspection of their employment recordsor an Order for arrears outstanding. An even smallernumber result in a full hearing of a Court Division.

To demonstrate the level of this activity, the following is an indicator of the extent of work involved:

Investigations initiated:2010 2011 201238 147 101

Investigations concluded:2010 2011 201237 94 111

There can be an overlap as cases initiated in one yearmay not be concluded until the following year(s).

Firms failing to comply with Labour Court Orders are re-ferred to the District Court, which is handled by the Na-tional Employment Rights Authority, and our SIPTU

Team Leader Organiser is sometimes required to at-tend as a witness.

Twenty firms ended up being referred to the DistrictCourt over the period. The Court has the discretion tofine the firm up to €4,000. This is a derisory fine, notreflecting the seriousness of the crime.

In the instance of Cree Construction in the DistrictCourt in Naas on the 20th June 2012 Justice Zaidenfined the firm €4,000, and commented that the law isdeficient in these matters as fines are invariably a fraction of the pension contributions unpaid (OrderValue €38,000). He remarked when dealing with thiscase that the Oireachtas should be advised to changethe law to reflect the seriousness of the situation.

In the instance of AGS Scaffolding Ltd, at Ballina District Court on 24th April 2012, a fine of only €1,000was imposed, and the value of the Order for unpaidcontributions was €112,000, this despite the Judgebeing told that the firm’s Director was now trading as anew entity using a similar trading name.

In the instance of Daniel McAuliffe and Sons ConstructionLtd in Listowel District Court, a fine of €1,000 was imposed despite the Order value being €17,000 andthe Judge’s attention being drawn to the fact that thesubscription deductions were made from SIPTU members'wages. This matter is proceeding to the Pensions Boardfor further prosecution.

SIPTU assisted the Pensions Ombudsman in the in-stance of South East Scaffolding and Associated Serv-ices Limited, which failed to pass on subscriptions tothe scheme, resulting in a worker’s family being deniedthe Death in Service of €66,675 from the scheme. Thefirm's Director, Vincent Woodlock of Fethard, Tipperary,misled the Ombudsman and deliberately forged docu-ments asserting that the worker did not wish to be in-cluded in the scheme. He was directed by the Judge atClonmel Circuit Court to comply fully with the Orders ofthe Final Determination with immediate effect. ThePensions Ombudsman in response to the Court deci-sion stated that he was extremely happy with the out-come and wanted this to send a signal that individualsor companies that fail to comply with his Final Determi-nations will be subject to the full rigours of the law.

These cases provide a clear demonstration that unionorganisation is the best and indeed only clear means ofensuring workers’ rights are secured. The REAs aremeaningless unless workers are organised and activein their Union. We must continue to organise at everyavailable opportunity across the state to build workerpower through union density and worker activism.

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108 SIPTU • Annual Reports 2011/2012

Health and SafetyThe industry has advanced training and developed site systems and disciplines so that standards of healthand safety awareness, and skill levels have greatly improved in recent years. The Construction IndustrySafePass programme and the overseeing and manage-ment of it by FÁS have played an enormous part in improving the focus on health and safety in workplaces,both large and small. The lack of clarity regarding future responsibilities for the continuing co-ordinationand development of health and safety programmes forthe industry, for example, FÁS/Solas as opposed to theHealth and Safety Authority, the Department of Education or even the private sector, is causing uncertainty and growing concern.

Health and Safety figures for 2009, 2010, 2011 and, thus far, in 2012 reveal there is no room for complacency.

Fatalities for the Construction Industry confirm:

2009 2010 2011 201210 6 6 5

These figures are the next highest level of fatalitiesafter the Agriculture, Forestry and Fishing Sectors.

SIPTU and its membership must remain actively involved in influencing this most important area ofworkplace standards and practices as financial cut-backs and races to the bottom cannot be allowed to relegate health and safety provisions to second classstatus.

The Health, Safety and Welfare at Work Act, with its related regulations, statutory instruments and codes or practice is vital for the protection of workers in allconstruction workplaces covered by the legislation provisions.

Balfour Beatty CLG and Bord GaisThe agreement that Balfour Beatty CLG has enteredinto with Bord Gáis is a unique one in that for the firsttime it gives a ten year agreement to this company toservice the Bord Gáis gas networks across the twenty-six counties of Ireland. Prior to this agreement therewere as many as seventeen companies involved inservicing these gas networks.

Since the takeover of the ten year contract, which has areview clause after four years, BB CLG has engagedwith SIPTU, culminating in an agreement being reachedin March 2012. This agreement covers three compa-nies that are now known as BB CLG (GMC Ltd, EmeraldGas Ltd, CLG Ltd). The agreement covers the following:

Redundancies and related termsCall-back arrangementsRepresentation on the Management BoardIR Forum engagementSub-Contractors’ ProtocolEuropean Works Council RepresentationTraining / SkillingOutplacement ProgrammeOperational/Staff HandbookJobs SecurityRedeployment ConditionsRecruitment/Selection CriteriaGift VouchersPay Freeze Agreement

Mining and Quarrying This forms part of the Construction Sector. During theperiod under review there have been extensive revi-sions of agreements relating to our members. These revised agreements have in a number of instances, and particularly within Mining, improved basic pay andbonuses and protected core jobs against outsourcing.Some agreements provide for mines which are in theirlatter years of extracting the ore reserves available.While these remain financially profitable to mine andare continuing to operate to the point of wind-down,terms have been agreed for our members when closureoccurs.

In relation to Quarrying, like Construction, membershave experienced a loss of jobs, pay cuts and encoun-tered management attempts to deny them the pay theyhave earned, despite giving employers’ efficiencies,cost savings and extra productivities. At the same timethe employers have paid themselves handsomely.

Film IndustryThe Construction Sector also represents members inthe Film Industry. Employers have in recent years been attempting to frustrate the provisions of the Industry’sNational Agreement with the Construction Unions on recruitment of Craftsmen Crews. It has also sought cutsto the agreed pay rates and allowances.

The LRC has been attempting to advance a revision ofthe National Agreement but the process has thus farbeen unable to reach conclusion. The ConstructionSector maintains that honouring the National Agree-ment is paramount until any revision or changes to itsterms form the basis of an LRC proposal, which willthen be placed before members by way of secret ballotvote.

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Energy Sector

The Energy Sector of the Utilities and Construction Division represents members in electricity, gas, peat, forestry, fisheries, waste recovery and private energy enterprises. Employment of our members iscountrywide and geographical representation is key to the representative structures within the Sector.

Government policy over the years has always been ofkeen interest to members and the current Programmefor Government is no exception.

Programme for Government 2011-2016Without fear of contradiction one of the single biggest challenges facing the Energy Sector are thecommittments in the Programme for Government2011-2016. This Programme, and particularly its newERA policy aspects, identifies, among other things:

a) The merger of Bord na Móna and Coillte to form a new State company called BioEnergy Ireland;

b) The transfer of the ESB transmission assets to Airgrid;

c) The formation of a new State company called Smartgrid, which would ultimately own, manage and operate the electricity network and the gas pipeline infrastructure in the future.

BioEnergy Ireland and Smartgrid are now highly unlikely following more recent announcements sincethe Programme for Government was formulated.

In July 2011 the Minister bravely and correctly reversedthe Government policy on the transfer of ESB assets toAirgrid, and that decision was warmly welcomed by ourmembers in the ESB. However, since then the Govern-ment has been forced into a situation arising out of the2010 Memorandum of Understanding signed off be-tween the previous Fianna Fáil-led Government and theTroika to sell off State assets so as to be seen to bedealing with the crippling socialised banking debts ofour State, brought about by the reckless gambling ofdevelopers, property speculators and incompetentbankers.

The McCarthy Report in April 2007 proposed the assetdisposal of:

• Coillte forest and non-forest assets,

• Bord na Móna’s entire operation while retaining ownership of the peatlands,

• Bord Gáis Éireann’s operations with the exception of gas transmission and networks and

• The ESB’s overseas assets, supply, distribution and generation capacity, whilst transferring the grid and hydro stations to Airgrid.

It was against this background that the Irish Congressof Trade Unions suggested a State Holding Companywherein State-owned companies could find ways to cre-ate employment and access capital through investmentfrom private pension funds.

Notwithstanding all of these options, matters crys-tallised when the Government announced in February2012 that it would sell off the following State assetsover a two year period:

a) The Bord Gáis Energy Division

b) Coillte’s non-land assets

c) The ESB’s non-strategic power stations

These sales could realise a value of some €3 billion,with €1 billion being used for employment stimulus and€2 billion going to debt write-down.

While this decision has been largely forced upon thecurrent Government and is consistent with asset dis-posal in the other two countries where an IMF bailoutprogramme exists, i.e. Greece and Portugal, we have toseriously question the long-term implications of sacrific-ing the financial return lost by such sales, not to men-tion future job stability and job creation potential.

Dividends• The ESB has paid €1.2 billion in dividends to the

State over the last ten years and has invested over €10 billion in infrastructure.

• Bord Gáis has paid dividends of €113 million over the last five years.

• Bord na Móna has contributed dividends of €33 million over the last five years.

Selling off any of these assets, and particularly wealth-generating ones like Bord Gais, ESB and Coillte, is extraordinarily short-sighted!

It is throwing away an opportunity of jobs and futureemployment growth. We have seen almost half of thisState’s commercial enterprises sold off over the lasttwenty years and surely that experience tells us thatany further off-loading of these State owned energy assets would be a retrograde step.

ESBDuring the period being reported upon issues withinthe ESB centered on the independently-verified payrollcost base difficulties. This verification identified a

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110 SIPTU • Annual Reports 2011/2012

problem of €140 million from the 2010 payroll of €651 million and was placed on the table for negotiation withthe Group of Unions in February 2011.

The Group of Unions was unable to engage with theESB until September 2011 as the ESB had failed to honour the existing agreements in the intervening period. Two days prior to a special Shop Stewards’meeting of all 268 Shop Stewards from the four unionsin the Mansion House, the ESB confirmed it would payoutstanding monies due to its workforce from theagreements. This facilitated talks on the cost-baseissue, which culminated in late February with independ-ently verified proposals to address the €140 millionproblem by 2015. The proposal was then presented tothe 6,300 staff at eleven general meetings across thecountry. The key elements of the proposals were as follows:

a) A staff reduction of 1,000, 700 through a voluntary severance scheme and 300 by natural attrition, to achieve savings of €83million.

b) A 50% cut in mileage subsistence and car allowance rates valued at €9 million.

c) Overtime reductions averaging €9 million per annum.

d) A 27 month pay pause valued at €17.8 million.

e) Loss of annual lump sum payments, averaging €2,500 per person.

f) An interlock mechanism which will guarantee the savings in each business unit, incorporating, if necessary, binding determinations by the ESB Industrial Council.

The proposals were accepted after a ballot in April2012.

From the outset, the unions set out to protect base payand pensionable pay, to ensure that there would be nocompulsory redundancies and to retain as many of thecurrent agreements as possible. What was achievedwas against a background of very difficult negotiations.

Bord Gáis60 voluntary redundancies took effect in July 2011.The Company sought the redundancies as part of pay-roll reductions of 10% across the Company at that time.

Relocation agreements were also reached for memberswho were targeted for relocation.

Unilateral action by the employer saw a reduction inovertime pay rates, toll tag payments, expenses, stand-by agreement and mileage.

Bord Gáis also issued written notice of its intention tounilaterally cut pay rates across all grades in the

Company by 7.5% and included a threat to collective bargaining by the proposed imposition of an individualised performance-related pay system.

Following this unilateral action by the employer, thethree constituent unions in Bord Gáis balloted for andreceived an aggregate mandate for industrial action, upto and including strike action. Prior to serving notice ofindustrial action both parties were requested by theLRC to attend a conference from which the followingproposals emerged:

• The reinstatement of agreements and IR procedures.

• Recommendations on compensatory payments for changes to existing overtime payments, site allowances, unvouched expenses, on-all/standby, toll tags, mileage etc.

• Clarifications on interpretation of Clause 13 (f) within the R2000 Collective Agreement with regard to pay, protection and future changes.

• Further talks to proceed on other outstanding matters and issues.

Bord na MónaThe big issue in Bord na Móna during the period underreview was a pay dispute which led to the unions ballot-ing their members and receiving a mandate of supportfor a campaign of industrial action to achieve paymentof an increase of 3.5%, with retrospective paymentsback to 2009 relating to the T2016 Transitional Agree-ment.

The company was profitable during the period whenthis payment fell due and, as earlier reported, had paid€33 million in dividends to government in the most re-cent five years.

The Bog of Allen near Lullymore in County Kildare. Photo: PhotocallIreland.

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There was disagreement between management andunions on the interpretation of the Labour Court recom-mendation and a period of industrial unrest followed,including one day and two day stoppages. After discus-sions under the guidance of the LRC and further talkswith an independent chair a proposal was put forward.This proposal was rejected by our members.

The campaign for industrial action was suspendedpending an invitation from the LRC. However, this paydispute, which had yet to find a resolution, was complicated by a seriously bad harvest for 2012, theworst in the history of Bord Na Móna, due in the first instance to one of the wettest summers on record.

As a result of bad harvest management lay-offs of seasonal workers began earlier than normal and somefull-time workers (mainly, but not exclusively, core staffin IT clerical and HR) were put on short-time.

The policy of lay-offs and short-time working was alsoreferred to the LRC as the unions were dissatisfied withhow management handled matters. Issues arose overselection criteria and the consultation process for therange of short-time and lay-offs being applied.

The Group of Unions is concerned at how Bord NaMóna has gone about diversification and its strategy onalternative energy sources such as wind, water andwaste disposal. For example, it was unsuccessful in ob-taining the water contract and entry into the waste dis-posal market was a core reason for significant lossesthis year 2012. Nor has investment in wind energy sofar borne fruit. The company borrowed excessiveamounts from American banks to finance this policy,and so far it has not produced dividends. Instead inter-est rates added to the losses for this year 2012.

While unions accept the need for diversification andwelcome a policy of expansion to secure the future,they are concerned that senior management appearsto be neglecting the core industry of Bord na Móna,which is peat production. The Group of Unions believesthat proper management of peat production could haveavoided the crisis we are now in and a concentration ofresources in this area would have negated losses to alarge degree. Peat production continues to sustainBord Na Móna and the company is nowhere near readyfor full diversification into other energy sources.

Management has produced an Asset Management Review, which envisages the closure of some storesand garages. It has identified job cuts, mainly but notexclusively among craft workers. Other workers will beaffected largely through natural wastage and redeployment. It seeks a small number of job cuts forSIPTU members through voluntary redundancies. Talksare beginning on this process and the union agendawill be to protect jobs.

Talks also started on restructuring of rail crews, involving both Drivers and Rail Maintenance. It is notenvisaged that this process will lead to job losses butmanagement will be seeking to restructure operations.

Although Advanced Environmental Solutions was not involved in the 3.5% pay claim SIPTU pursued a claimto the Labour Court for pay standardisation, a sick payscheme and pension scheme. Talks in this area havebeen hampered by the fact that AES has suffered majorlosses this year.

Suttons Oil and Donnelly Coal continued to operatethrough the summer and returned to full manning levels for the winter. So far there has been no majorfall-out from the crisis in Bord Na Móna.

CoillteNot to be outdone by its sister commercial semi-statecompanies, Coillte sought to reduce its cost base by20% and commenced discussions with SIPTU on atransformation programme. The company sought a reduction of 200 staff from its overall complement of1,008 across all grades and an overall reduction of€11.9 million in its cost base. The 200 staff reductionswere to be achieved by 160 voluntary redundancies and40 retirements over eighteen months. This would resultin the entire operation moving from a tri-region – 13 district – process to an operation based on eight self-sustained business area units (BAU).

The programme would see a reduction in managementand forestry workers of the order of 27%, with a reductionin area Foremen/Weighbridge operators of 19%. A newroll of Forestry Technician will be created under the programme which will be of direct benefit to SIPTU Industrial Worker grades.

Coillte forest. Photo: Photocall Ireland.

111SIPTU • Annual Reports 2011/2012

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112 SIPTU • Annual Reports 2011/2012

With the assistance of the Labour Relations Commission an eighteen page document capturing allfeatures of the Coillte Transformation Programmeemerged. The Transformation Programme was put to ageneral meeting of Industrial Forestry members and ina secret ballot vote was accepted by over 85%.

Inland Fisheries IrelandIn Inland Fisheries Ireland (IFI) the moratorium on filling vacancies associated with the Croke Park Public Sector Agreement had huge consequences forservices provision. The IFI has a statutory obligation toprotect, manage, carry out research on and conserveover 70,000 kilometres of waterways. Therefore theproposed cut in staff numbers to 3,006 staff by 2015was of real concern.

These further proposed cuts in staffing numbers will reduce staff by over 30% in a seven year periodwhich started in 2008.

Existing staff numbers, as of March 2012 were 326.5work time equivalent. Reduced resources made it almost impossible to perform the necessary statutoryfunctions, and in some cases exposed members to increased risk.

Both SIPTU and a delegation from the Board discussedthe matter with the Minister responsible but littleprogress was made. Permission was also sought tohire temporary staff to cover peak activity periods.

A new Garda vetting policy was agreed and an agreement reached on a protocol for work wear with accessories, logos, etc. There would be a six month review of this work wear programme and further improvements to the design, quality and quantity of garments and footwear is expected.

Head Office relocation and base consolidation remains a major concern for members in the SwordsHead Office and the Blackrock River Basin District Office, and the IFI’s obligations under the Croke ParkAgreement were identified to them by SIPTU.

Some public representatives have claimed that the IFIhead office relocation is to places such as Drogheda,Cavan, Mullingar etc. However, the spirit and intent ofthe Croke Park Agreement will dictate the location foracceptance by members.

The Sector also represents members in Calor Gas andBOC Gases. Various issues concerning members inthese employments have been processed during theperiod covered by the Report.

Pensions Pensions across this Sector remain a huge issue formembers, notwithstanding the Pensions Board’s decision to extend the date of compliance for minimumfunding standards. This is temporary with regard to theprovision of funding proposals for schemes in deficit.In addition, the Social Welfare and Pensions Act 2011will push the State pension age out to 66 in 2014, 67in 2021 and 68 in 2028. This enforced gap in occupa-tional pension cover will need to be addressed in futureoccupational pension negotiations as most of our mem-bers’ pensions in this Sector are integrated with theState pension, while normal retirement in most instances is 65. The question of how to bridge one, two or three year gaps in pension payments is therefore urgent.

In the case of Coillte, the Sector had four ConciliationConferences at the LRC relating to the occupationalpension. This is a poor scheme for our IndustrialForestry members, who in some cases receive wellbelow €40 per week after 40 plus years’ service. This is principally due to pensionable salary being reducedby an amount equal to twice the State Social Welfare Pension, coupled with a low basic pay rate which excludes productivity pay.

The application of the N200 model scheme wassought, which would double the value of the occupational pension if secured. The company for itspart has sought to increase members’ contributions tothe current scheme without any benefit improvements.This was steadfastly resisted.

Transport Sector

The principal employments in this Sector are:

Iarnrod Éireann Veolia Transport (LUAS)Bus Éireann Bus Atha Cliath (Dublin Bus)Translink Aircoach Ports / Docks / Harbours

As with the other Sectors within the Division this Sectorhas been affected by downsizing, non-replacement, re-structuring and cost-saving agendas.

CIE GROUPThe three main CIE companies (Bus Éireann, DublinBus and Iarnrod Éireann) have three sources of income:

i) Subvention from Government to Public Transport, as transport is provided to locations and at times not commercially viable;

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113SIPTU • Annual Reports 2011/2012

ii) Revenue from fares;

iii) Revenue from property such as Spencer Dock and Rosslare Europort

The problems now arising in the CIE group can be sum-marised as follows:

(i) Government subventions have fallen from €304 million in 2008, to €276 million in 2010, €242 millionin 2012 and is projected to fall to €209 million in 2014.This will be a drop of €95 million in six years, whichequates to a 31.25% cut. Although not formally signedoff it has been publicly stated that Dublin Bus and Iarn-rod Éireann combined will post losses of €40 million in2011, whereas Bus Éireann will show a modest profitof €500,000 in 2011. Dublin Bus had its share of theCIE subvention payments cut from €7.4 million in 2010to €3.3 million in 2011. (Bus Éireann lost €6.3 millionover the same time period but was cut by another €6.2million in 2012 because it was making a profit in 2011.The National Transport Authority (NTA) decided to redis-tribute the subvention amongst the CIE companies). Allof the CIE Transport operators are limited companiesgoverned by the Companies Acts 1969-2009 whichprevent them from engaging in reckless trading (e.g.,accumulating unsustainable debts). Accounts are exter-nally audited, publicly available and, crucially, CIE com-panies are prevented from borrowing (withoutGovernment approval). An announcement that €36 mil-lion would be injected into CIE by Minister Leo Varadkerin June turned out to be political gamesmanship, as itsubsequently emerged that the Government would notadvance any cash to CIE but wanted the Group to raisethis finance by either disposal of "non-core assets"and/or borrowings which can only be accessed when"robust" cost saving plans were demonstrably in place.

(Iarnrod Éireann has an agreed cost saving plan butthis is predicated on a large number of staff taking voluntary severance which requires cash to fund. Thiscompany had a cut of €11.7 million or 8% in its subven-tion coming into 2013. Both Dublin Bus and Bus Éire-ann have produced cost saving plans which seek verysevere payroll savings. If agreed they would lead to aserious reduction in earnings for members. For exam-ple, Bus Éireann is seeking €9 million savings from pay-roll alone from 2,570 employees, which averages over€3,500 per employee.

(ii) The revenue from fares is elastic, in that as fares in-crease there is a % drop in passenger numbers. Thetravelling public either reduces journeys and or seeksalternative transport modes and/or operators. Therewas a drop of 11% in passenger numbers using the CIECompanies between 2008 and 2009. In December2011 the NTA authorised an average 15% increase infares to Dublin Bus, an average 5.1% in Bus Éireannand an average 6.5% in Iarnrod Éireann. Fares are au-thorised to increase again between November 2012and January 2013, ranging from 4% to over 10% in theCIE companies. Dublin Bus passenger numbersdropped by 21% between 2007 and 2011, 17% in Iarn-rod Éireann and over 10% in Bus Éireann.

(iii) Suffice to say that due to the property slump, revenue from property rental deteriorated and is projected to fall further. Nevertheless revenue from the property portfolio continues to make a positive contribution to CIE Group finances.

Unfortunately, the pressure on the CIE companies' finances seem set to worsen as it is expected that fuelprices will rise, passenger numbers and subventionswill continue to fall and, if capital funding is not main-tained, maintenance costs will also begin to rise. Gov-ernment pressure to sell off non-core assets is causinghuge concern to members in Rosslare-Europort whofear that any property sales would be asset stripping asproperty prices are currently at rock bottom levels. Asmall but badly needed income stream would also dis-appear. Unfortunately access to badly needed fundingis tied to cost cutting plans and the sale of assets.

The election of the new Government, particularly withthe size of the mandate the electorate gave to FineGael, was of considerable concern to our membersfrom the outset. This party has traditionally been unfavourable towards funding Public Transport and favours privatisation ofState assets. Its Manifestoshowed a desire to sell offRosslare – Europort and tender out Bus Éireann andDublin Bus routes to allow private operators to utilise CIEinfrastructure. Bus Éireann passenger bus. Photo: Photocall Ireland.

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In the context of Bus Éireann, the school transport sys-tem and its resources continue to be pressurised by thesustained encroachment of the private sector. OurSchool Bus Driver members are increasingly confrontedby route changes and board hour reductions, with corresponding pay hour reductions. This has been donein some parts of the country, particularly in the Westand South-East, without consultation and in a non-transparent way. The Sector, however, has now securedfair procedures, a transparent process and a set timefor prior consultations and information sharing to occur,as well as provisions for internal assessment. The initialexperience with the new procedures is encouraging.School Bus Drivers have secured access to the Company’s Employee Pension and Welfare Schemes. Gratuity benefit has also been secured for those not eligible to join the Pension Scheme.

Veolia Transport (LUAS)SIPTU organises four grades within the employment –Drivers, Traffic Supervisors, Revenue Protection Officers and Revenue Supervisors.

During the period covered very challenging issuesarose for our members and the Company. The Company/Union Comprehensive Agreement was reviewed and revised, including its provision of a “no strike” clause.

Our members’ claims on pay, reduced spread over duties, annual leave, public holidays, rest days,changes in duties etc, was the subject of internal discussion and negotiation, followed by Labour Relations Commission and Labour Court processes, together with independent facilitation and arbitration.

The initial outcome did not find acceptance by ourmembers and a 93% ballot in favour of industrial actionsecured the sanction of the union. During the noticeperiod of 21 days further engagement resulted in somekey remaining issues for our members being addressedby Veolia Transport management. This enabled thepresentation of revised proposals and a ballot vote, resulting in an excess of 95% of our members findingthe revised proposals acceptable.

This allowed for extensive changes and improvementsto be incorporated and reflected within a revised Registered Agreement on Pay, Terms and Conditions of Employment that will serve both parties until the end of2014. They form a legal commitment in advance of thecompletion of the tendering process for the new con-tract to operate the LUAS.

An interesting definition of LUAS emerged during themonths of marathon engagement which seems worthsharing:

LUASListen – Understand – Act – ShareThis could be a potential prescription for the many industrial relations environments employers and tradeunions find themselves in. In the instance of VeoliaTransport (LUAS) it certainly proved its relevance.

Ports, Docks and HarboursThis Section is a very strategic one in that it representsthose workers who provide the only other means of access and egress from our island nation besides Aviation. It is key to our economic growth and wellbeing,our import and export needs, and the tourism andleisure sectors of our economy.

The Section has been the subject of assessment andrenewed attention by SIPTU in the period covered bythis Report. There is a considerable amount to be doneif the Section is to realise its full strategic potential formembers within it and for SIPTU as a whole.

The erosion over time of the Docker/Cargo Handlerskey job roles has had serious consequences for jobnumbers, skills, health and safety, pay values andunion organisation.

The exploitation of Seafarers after they have berthedtheir ships has been the principal exploitation tool ofship owners in minimising what services they requirefrom the Onshore Dockers’ Crews. The Onshore Crewsthemselves for too long have looked on as ship ownersdiluted their jobs by exploiting ships’ crews to do morethan sail and maintain vessels. There are renewed ef-forts being made whereby SIPTU and the InternationalTransport Workers’ Federation (ITF) will enhance theprinciple of solidarity between Dockers and Seafarers

Luas tram. Photo: Photocall Ireland.

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to their mutual benefit. The very future geography ofour Ports, Docks and Harbours, their structures of oper-ation and their cost efficiencies as they presently exist,are under review by Government. The term of office ofPort and Harbour Boards has expired, so key decisionson their future direction become a matter of urgency.The term of office of elected Worker Directors has alsoexpired and elections have been undertaken in thethree eligible Ports for elected Worker Directors. SIPTUcandidates were elected in each, i.e. Dublin Port Com-pany, Shannon Foynes Port Company and the Port ofCork Company. Equally a number of nominations havebeen submitted by the Irish Congress of Trade Unionsto the Minister for consideration for nominations he willmake.

In preparation for the new Ports, Docks & Harbours’ ini-tiative a SIPTU and ITF Mission/Constitution wasagreed in August 2012. The creation of an active Na-tional SIPTU/ITF Ports Dockers Harbours (PDH) Na-tional Committee is advanced and it will have a rangeof responsibilities. The key ones are:

• The National Committee on behalf of SIPTU Members represented by the Committee will not tolerate breaches of Maritime International Labour Organisation (ILO) Conventions within the Ports of Ireland

• SIPTU will provide a safe working environment so that the members of the Committee, SIPTU Activists, and the general membership can prosecute action(s) based on morality to assist Seafarers who have been the subject of abuse and lack of dignity and respect at work at the hands of ship owner(s) or employer(s). Employers will be engaged with throughout the country to establish this fundamental standard

• As part of this the Committee will undertake, in conjunction with the ITF, to engage with each employer in all ports on the island of Ireland to secure appropriate signed agreements establishing these fundamental standards.

• The Committee endorses the official position of the International Transport Workers’ Federation on cargo handling, whereby it ensures that neither the ships’ crews nor anyone else on board, whether in permanent or temporary employment by the ship operator/owner, be required or induced to carry out cargo handling and other work traditionally done by dock workers without the prior agreement of the ITF/SIPTU affiliate concerned. For the purposes of this clause, cargo handling may include, but is not limited to: Loading, Unloading, Stowing, Unstowing, Pouring, Trimming, Classifying, Sizing, Stacking, Unstacking, as well as Composing and

Decomposing Unit Loads, and also services in relation to Cargo goods such as Tallying, Weighing, Measuring, Cubing, Checking, Receiving, Guarding, Delivering, Sampling, Sealing, Lashing and Unlashing.

• To ensure that where a vessel is in port and where an official trade dispute involving an ITF affiliated dockworkers’ union is taking place, neither the ship’s crew nor anyone else on board, whether in permanent or temporary employment, by the ship operator/owner be instructed or induced to undertake Cargo Handling or other work traditionally and historically done by members of that Union which would affect the resolution of that dispute.

A new Health and Safety Authority (HSA) Code of Practice with reference to Dockers and Seafarers hasalso been completed and its roll out is now eagerlyawaited.

This is a Section within Utilities & Construction Divisionwhich offers union organising potential, but it will entailthe availability of a range of resources to undertake it.

Port Operatives/Cargo Handlers Mission Statement

• Port Operatives/Cargo Handlers to support and give solidarity with Seafarers against unfair treatment, exploitation and where a lack of dignity and respect exists.

• Port Operatives/Cargo Handlers to be active and support and promote the Union Organising of Ports, Docks and Harbours so as to achieve a high standard of Safety and Health at Work together with fair pay, terms and conditions of employment.

• Port Operatives/Cargo to advance Health and Safety of all Dockers and Seafarers with the use of Health & Safety legislation, Codes of Practice and advancing the role of Safety Representatives.

• Port Operatives/Cargo Handlers to build their collective strength and leverage so that direct employment, job security, pay terms and conditions acceptable to SIPTU Members are the result of collective bargaining with the availability of Trade Union resources and support.

• Port Operatives/Cargo Handlers to support and help enforce the Port of Convenience and Flag of Convenience Agreements by supporting Campaign(s) in conjunction with the ITF and its Co-ordinator/Inspector(s) for Ireland & UK.

• Port Operatives/Cargo Handlers to build relations with other Port Workers and Seafarers who are European Trading partners.

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• Port Operatives/Cargo Handlers, Shop Stewards, Safety Representatives and National Committee Delegates will be given opportunities for training to support them in their role, work and activity on behalf of the Union Membership and for their solidarity activities with Seafarers.

• Port Operatives/Cargo Handlers will have a publication issued three or four times yearly entitled “SIPTU Port Worker”. The publication will have input and material provided by the ITF.

A number of Pay, Terms and Condition Agreement Reviews have been already undertaken in this Sectionand others are in progress or are about to proceed, eg:Port of Cork, Celtic Tugs, Warrenpoint Harbour, BurkeShipping, Dublin Port Company, Dún Laoghaire Harbour, Galway Port Company.

Our members have also had the burden of redundancies,short-time, lay-offs and pay cuts, some unilateral, andwhich are the subject of claims under the Payment ofWages Act.

Loss of jobs in Stena Line relating to the Ferry Serviceat Dún Laoghaire Harbour was an extreme and bluntbusiness decision, as was the outsourcing of some sea-sonal jobs, though at least in the short-term these jobscontinue to exist.

Worker Directors/European Works CouncilRepresentativesWithin Sectors of the Division Worker Directors and European Works Council representatives are an additional feature of workplace representation on behalf of our members.

The Worker Directors have a National Worker Directors’ Group structure through which they liaise.

Their role and work is likely to become ever more crucial given the agendas that now exist and are beingrolled out in the employment sections where they areemployed.

1913 – 2013The historical activities and role of Dockworkers on thisisland and their trade union activities is coming to thefore as the centenary year recalling the 1913 Lockoutcomes ever closer.

Disputes – Strike ActionThere were three disputes within the Division whichhad their origins in the 2010/2011 years being re-ported upon.

Marine Terminals Ltd (Peel Ports Group), Dublin Port.This dispute lasted 37 weeks. Issues: manning levels,hours of work rosters, pay and terms, redundancy andseverance, IR procedures.

Lagan Brick (Lagan Group), Kingscourt. This disputelasted 25 weeks. Issues: jobs, redundancies and severance terms.

Irish Cement Ltd (CRH Group), Limerick Plant. This dispute lasted six weeks. Issues: payment of earnedbonuses.

Marine Port Terminals protest, Dublin. Autumn 2009.

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OrganisingThe Division has been supported with on-going resources from SIPTU’s Strategic Organising Depart-ment in relation to the Construction Sector. This Sectorowes its present strength and leverage level to this focused organising resource and to the teamworkingwhich operates between the Organisers and IndustrialOrganisers in the Sector.

The Union’s Organising Department also provided vitalresources for the organising of Terminal 2 at Dublin Airport. This proved crucial in achieving the advancesmade thus far.

Campaigning and PublicityThe Division has had on-going publicity campaigns relating to Construction Sector issues, privatisationand, during the long-running strikes mentioned in thisReport, the firms concerned. The support, innovationand material content coming from both the Policy De-partment and the Communications Department of theUnion were extremely influential in giving our membersand the general public an appreciation of the issues wewere confronting.

Individual GrievancesEach Sector within our Division utilised the newly-cre-ated Membership Information and Support Centre for arange of individual member advocacies, claims, griev-ances and appeals. It is gaining considerable under-standing and recognition from members who haverequired its help.

Legal IssuesThe law plays an ever-increasing role in our work. Employment legislation provides ways of protecting ourmembers and their rights. It can also determine how weconduct ourselves when acting in support of members,particularly in the lead-up to potential industrial action.The Union’s Legal Unit has been an invaluable resourceto our Division and its Sectors in this area.

ObituariesThe Utilities and Construction Divisional Committeewishes to extend its deepest sympathies to the familiesand friends of deceased Members in the Division, andto all Union Members who have suffered bereavementsduring 2010 and 2011.

Lagan Brick workers were greeted by cheers and applause as theymarched in the Kingscourt, Co. Cavan, St. Patricks Day parade on17th March 2012.

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Roundtable on Ensuring Decent Work for Migrant Workers - including JohnDouglas Vice-President of ICTU (centre) with participants who stagedan action at James Connolly statue, Beresford Place, Dublin.October 2012.118 SIPTU • Annual Reports 2011/2012

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Equality

The pursuit of equality in the workplace and in society generally is at the centre of all of the union’swork. The achievement of an equal society is our raison d’être.

Achieving a society where people have equality of opportunity and equality of outcome has been set backconsiderably by the economic recession. The austerityresponse being pursued by successive Irish govern-ments and mandated by the terms of the Troika bailoutprogramme of the European Commission, the EuropeanCentral Bank and the International Monetary Fund haseffectively turned an economic crisis into a social crisis.This has had the effect of deepening inequalities.

Many of the gains and social transfers that were hard-won over decades of trade union organisation andthrough struggles by the women’s movement, commu-nity movement and other marginalised groups havebeen eroded or dismantled altogether in the pursuit ofa lop-sided austerity agenda.

Income and Wealth Inequalities There is limited data available on wealth distribution in Ireland and different studies use different measurements. However, from the data that is available, it is clear that Ireland is deeply unequal interms of income and wealth distribution. While the economic crisis has had an impact on wealth inIreland, it would be a mistake to think that it has reduced the incomes and assets of Ireland’s wealthiest people. In fact, the data would indicate that wealthy people have benefited from the crisis.

The World Wealth Report showed that in 2010 therewere 19,000 “High Net Worth Individuals” (HNWIs) inthe Republic, up 5% on the previous year. HNWIs aredefined as people with €700,000 of investible assets.

Income inequality is on the rise, not just in Ireland, but all over the world. The total wealth generated byworkers is rising but it is being distributed in an increasingly unequal way. The rich are becoming richerand as they do, the gap between the working class andthe ruling class is widening. Globally, the wealth ofHNWIs rose almost 10% to $42.7 trillion between 2009and 2010.

According to an OECD study in 2008, of the EU-15, Ireland ranked first in terms of earnings inequality.

The wealthiest 1% of Irish people own 20% of the nation’s wealth, or about €100 billion worth of assets.The Sunday Times “rich list”, published in April 2012,showed that despite the cuts in income and living stan-dards being endured by working people across the is-land, the combined wealth of Ireland’s richest 250people in 2012 was €46.71 billion, up a staggering€3.1 billion from €43.6 billion the previous year.

An EU Survey on Income and Living Conditions basedon 2011 data found that 37.6% of children in Irelandare at risk of poverty or social exclusion. Ireland wasthe country with the largest increase in the number of children at risk of poverty across the EU since the previous study in 2008.

A 2011 report by the OECD, “Divided We Stand: Why Inequality Keeps Rising” demonstrated that in the threedecades prior to the recent economic downturn, wagegaps widened and household income inequality in-creased in a large majority of OECD countries. This oc-curred even when countries were going through aperiod of sustained economic and employment growth.However, income inequality increased by more in thefirst three years of the crisis to the end of 2010 than ithad in the previous twelve years, before factoring in theeffect of taxes and transfers on income. The welfarestate has cushioned the blow for many, but the OECDwarned that further spending cuts risk causing greaterinequality and poverty in the years ahead.

After taxes and transfers, the richest 10% of the population in OECD countries earned 9.5 times the income of the poorest 10% in 2010, up from 9 times in 2007. The gap was largest in Chile, Mexico, Turkey,the United States and Israel, and lowest in Iceland,Slovenia, Norway and Denmark.

The average income of the top-earning 10% of Irishhouseholds was 7.5 times greater than those in thebottom 10% in 2010 according to the OECD. Inequalityhas become deeply entrenched in Ireland. There are, ofcourse, those who view inequality as a necessary by-product of economic growth. These are often the samepeople that deny structural discrimination and arguethat we are all born with the same opportunities andthat those who are successful or wealthy have simplyworked harder than those that are not.

The general public, however, does not share that view.On the contrary, a Behaviour and Attitudes survey con-ducted for the independent think-tank TASC found a

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pronounced awareness of structural inequality in Ireland. 85% of survey respondents said that they believe that wealth is distributed unfairly and 77% said they were very or fairly concerned at high levels of inequality in Ireland. TASC also found that a majorityof respondents regarded inequality as the central issuefacing our society.

National Equality Committee The National Equality Committee is the SIPTU body with primary responsibility for promoting equality andfor considering equality-related issues.

The Equality Committee is a standing sub-committee ofthe National Executive Council. It meets bi-monthly andreports to the National Executive Council on a quarterlybasis.

The 2009 Biennial Delegate Conference adopted newrules relating to equality. Rule 102 provides for the establishment of an Equality Sub-Committee comprisingat least 75% females; nominated from the National Executive Council and Divisional Committees; with atwo-year term of office and presided over by the General President.

In June 2011, the National Executive Council adoptedStanding Orders providing for the establishment of anEquality Committee so comprised and set about callingfor nominations for four representatives from the NECand two representatives each from the five Divisions.

At its October 2011 meeting, the NEC recommendedthe co-option of two additional people to the Commit-tee; one from Northern Ireland and one from the Re-tired Members Section. The first meeting of the newlyconstituted Equality Committee took place in November2011. At its first meeting, the Committee acknowledgedthe hard work of the previous committee, chaired by LizO’Donoghue with Lily McConnin serving as vice-chair.In particular, their role in relation to the rule changesestablishing the Equality Committee was commended.

Over the coming months the new Committee consid-ered the issue of the representation of the Union’s migrant members and made a recommendation to the Executive Council that the Standing Orders be amended to allow for the inclusion of migrant members. The Executive considered the recommendation and inMarch 2012, ratified an amendment to Standing Orders providing for the co-option of two members of non-Irish nationality to the Equality Committee.

Membership of the Equality Committee The following members were nominated to serve on the Equality Committee:

National Executive CouncilBernadette CaseyJack McGinley Helen MurphyAnn Ryan

Health DivisionRachel ByrneElizabeth Cunningham

Manufacturing DivisionBridget BurrowsSeamus Califf

Public Administration & Community DivisionSuzanna GriffinBrídín McIntyre

Services DivisionShirley BradshawVincent Tynan

Utilities & Construction DivisionAmanda KavanaghLeonard Simpson

Northern IrelandSally Rock

Retired MembersEsther Cowan

Migrant MembersIneta Millere Monika Grad

Programme of Work Given its role in relation to the promotion of equality,with a specific responsibility under the rules to identifyand develop women and migrant leaders in the Unionand in the community, the Equality Committee set itself three priorities for the period in question:

1. To set forth a vision for a more equal society

2. To equip itself with evidence that equal societies do better and;

3. To forge pro-equality coalitions across trade unions and progressive civil society so that working people have the power in their workplaces and in their communities to win a more equal society.

To work toward these priorities, the Committee agreeda Programme of Work for its term of office. The nextsection highlights some of the activities under the programme of work.

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Education and TrainingThe Equality Unit has a strong commitment to assisting in the provision of relevant equality-relatededucation and training for union staff and activists.

In recognition of the unique aspects of case handlingunder the equality legislation, the Unit collaboratedwith the ICTU and the Legal Rights Unit to run an intensive one day training workshop for MISC Advocates and staff from the Legal Rights Unit on taking employment equality cases. Delivered by SheilaLarkin, Legal Officer at the Equality Tribunal, the coursewas a well-received boost to the Union’s capacity in thisspecialist area.

The Equality Committee itself undertook an intensivetraining programme. The first step in building capacitywas to read and analyse the book which changed howthe world thinks about equality and inequality, Wilkin-son and Pickett’s, ‘The Spirit Level: Why More Equal Societies Almost Always Do Better.’ The Committeethen undertook a training course delivered by SIPTUCollege with inputs from external experts on varied aspects of equality legislation, policy and campaigning.

The Equality Unit collaborated with the ICTU in publicising a new online training facility for equality activists which is hosted on the INTO website and inpublicising and disseminating a new manual for practitioners entitled ‘Equality How.’

Women WorkersIn the period 2011-2012, the most significant issueconfronting women workers in Ireland was the impactof the recession and austerity measures on jobs, payand conditions. A number of significant reports werepublished providing evidence that in the early years therecession had hit traditional male industries very hardas it continued, women workers were disproportion-ately hit by a combination of job losses, pay cuts, taxa-tion measures and cuts in public services. Women inlow paid jobs and on part-time hours were worst af-fected. Data from the EU showed that the gap in earn-ings between women and men – the gender pay gap-remained persistently high in Ireland at about 14%.The gap in time committed to unpaid work betweenwomen and men in Ireland is one of the highest in theEU. The recession has seen an increase in women’s un-paid workload as a decrease in disposable income hasimpacted on (child and elder) care work and domesticchores. SIPTU Equality sought to draw attention tothese issues in various public arenas by contributing topublic meetings and conferences on the topic ofwomen and work and by intervening in the media.

Changes from September 2012 to the qualificationbands for the State Pension cut the pension entitlements forcertain categories of vulnerable workers particularly those

with a broken PRSI record. Workers who took time outof work due to caring responsibilities, the majority ofwhom are women, were most affected. Changes in thequalification bands meant that those who have an average of 29 annual contributions have lost €1500 a year for the rest of their lives. SIPTU lobbied the Department of Social Protection not to proceed withthis grossly inequitable measure which would inevitablyhave a greater impact on women. In conjunction withthe Research Policy Unit, a policy paper was developedon the issue. ‘Making Caring Count: SIPTU Policy Document Regarding Contributory State Pension Entitlements’ informed the Union’s pre-budget 2013demand that in response to the changes to the qualification bands, the Department should backdatethe Homemakers Scheme to 1964. The Scheme, whichoperates in the Department of Social Protection, givesa PRSI credit for the State Pension for years spent caring for children up to age 12. This demand wasechoed to numerous TDs and Minister in the Union’spre-budget lobbying campaign rolled out in conjunctionwith the District Committees. A protest was held at theDail in November 2012 which highlighted the issue.

SIPTU Equality was well represented at the ICTUWomen’s Conference in Belfast in March 2012. The conference, which was opened by the recentlyelected President of Ireland, Michael D Higgins, endorsed a SIPTU motion calling on the ICTU Executiveto formulate and mount a campaign aimed at organising women workers into unions. SIPTU EqualityCommittee representatives play active roles on theICTU Women’s Committees in Northern Ireland and theRepublic of Ireland.

The union continued to forge alliances with other civilsociety organisations working on women’s working conditions. Committee member, Suzanna Griffin, waselected to the Board of the National Women’s Councilof Ireland. In partnership with the National Women’sCouncil of Ireland, SIPTU secured Equality Authorityfunding to commission new research on labour marketactivation measures for women and to set forth a gen-der mainstreaming activation model for government de-partments and state agencies. ‘Careless to CarefulActivation – Making Activation Work for Women’ waswritten by Dr. Mary Murphy and published in November2012.

The Union continued its tradition of marking International Women’s Day on 8th March each year. In2011, to mark its 100th year anniversary, Jack O’Con-nor, in his capacity as ICTU President, launched the‘Women’s Charter for Equality’ which was a joint initia-tive by the National Women’s Council of Ireland and theNational Collective of Community Based Women’s Net-works. In 2012, SIPTU Solidarity with Cuba Forum andSIPTU Equality co-hosted a public talk in Liberty Hall bypeace activist and author Cindy Sheehan.

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SIPTU Equality played an ac-tive role through 2012 in thenewly established IrishWomen Workers Union Com-memorative Committee. TheCommittee is made up of indi-viduals from various back-grounds and organisations –trade unionists, feminists, his-

torians, community activists, academics – who wish tocommemorate the establishment in 1911 of the IrishWomen Workers Union and its work in organisingwomen workers in various industries up to the 1980’s.The Committee intends to commission the productionand erection of a commemorative plaque. The NationalExecutive Council agreed to meet the full cost of theplaque.

Belfast City Council played host to the final EqualityCommittee meeting of 2012. The committee meetingwas timed to coincide with a lecture in City Hall onWinifred Carney – legendary trade unionist and suffra-gist- organised by SIPTU Belfast District Committee. TheCommittee also visited Milltown Cemetery and laid awreath on Carney’s grave. It, undertook a very informa-tive human rights tour of Belfast which featured the political murals of the Shankill and Falls areas, as wellas the International Wall.

Migrant Workers The Equality Committee undertook a scoping exercise on the number, nationality, participation andrepresentation of migrant members in the Union. It found that in 2012, we had approximately 15,000 mi-grant members from 45 different countries. The Equal-ity Committee established a small sub-committee witha specific remit to examine and make recommenda-tions on issues relating to migrant workers. Member-ship of the sub-committee was drawn from the EqualityCommittee along with Anton McCabe from the NEC.

On Decent Work Day 2012, in conjunction with the Mi-grant Rights Centre Ireland and the Coalition to Protectthe Lowest Paid, SIPTU Equality hosted a roundtablediscussion in Liberty Hall. Entitled, “Ensuring DecentWork Standards for Migrant Workers in the CurrentLabour Market,” the roundtable was chaired by EthelBuckley National Campaigns and Equality Organiser andfeatured papers by international experts, Kevin Curranfrom London Citizens and Patrick Taran from Global Migration Policy Associates. Approximately 40 invitedguests from trade unions, government departments,state agencies, non-governmental organisations, community organisations and academia discussed issues relating to working conditions of migrant workers in recessionary Ireland and attempted to chart a way forward with deeper collaboration in campaigning fordecent jobs.

SIPTU Equality Committee was successful in its bid forfunding under the ICTU Challenge Fund (supported bythe Department of Justice and Equality, via the EqualityAuthority). The Union utilised the funding to build ca-pacity to generate the active participation of migrantworkers in the contract cleaning industry in order tosupport diversity, improve equality outcomes, fight dis-crimination and advocate for change. In conjunctionwith the Fair Deal for Cleaners Campaign, 3,000 infor-mation packs were designed and produced with the di-rect input of contract cleaners on messaging anddesign to support organising and outreach activities.The packs were produced in English, Lithuanian, Russ-ian, Romanian, Polish and Portuguese reflecting themost common languages spoken by contact cleanersworking in Ireland. The packs were utilised as part ofthe organising and mobilising efforts of Union Organis-ers on contract cleaning sites across the country.

In 2011, the Irish Congress of Trade Unions published a toolkit for unions organising in migrantcommunities. Entitled ‘Towards a Strategy for the Inclusion of Migrant Workers in Trade Unions,’ the pub-lication identified examples of good practice in over-coming the barriers experienced by migrant workers injoining and becoming actively involved in trade unions.The Union’s work in the Fair Deal for Cleaners Cam-paign, Workplace Integration Project, Fair Hotels Cam-paign and collaboration with the Migrant Rights Centrein the mushroom industry are all outlined as examplesof good practice of a trade union organising and cam-paigning in industries with a high proportion of migrantworkers. In Northern Ireland, SIPTU continues to workclosely with the Migrant Workers Support Unit and in

Suzanna Griffin, Equality Committee, Orla O’Connor, Director, National Women’s Council and Minister for Social Protection,Joan Burton TD at the launch of ‘Careless to Careful Activation,’November 2012.

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123SIPTU • Annual Reports 2011/2012

particular to support the services and representationprovided to migrant workers through the Migrant Work-ers Employment Rights Centre in Belfast as well as par-ticipating in the Unit’s outreach clinics in variouslocations.

Ethel Buckley, National Campaigns and Equality Organiser and Paul Bell, Health Division Organiser were both invited to join an expert advisory panel which guided a piece of Equality Authority-funded research by the Migrant Rights Centre Ireland on migrant workers in the care sector. The expert groupalso included academics as well as representativesfrom the Carers Association, Inclusion Ireland, the National Women’s Council and the Equality Authority.Published in November 2012, “Who Cares? The Experience of Migrant Care Workers in Ireland” foundthat almost 1 in 3 care workers in the Republic are migrant workers. They experience regular breaches oftheir employment rights and because of cut backs inservices and hours many are concerned about thestandard of care that their clients receive. Low pay is the norm and 3% are paid less than the National Minimum Wage. SIPTU and the MRCI committed to continue to collaborate on the organisation of migrantcare workers and to campaign for better jobs and conditions.

Reform of the State’s Equality Infrastructure As part of a wider ICTU initiative, SIPTU met with representatives of the Department of Jobs, Enterprise andInnovation and lobbied them on concerns regarding the incorporation of the functions of the Equality Tribunalinto the Workplace Relations Commission.

The ICTU opposed the merger of the Equality Authorityand Irish Human Rights Commission into the IrishEquality and Human Rights Commission. Congress argued that the merger ran counter to the provisions of the Good Friday Agreement as well as compromising theinternationally recognised independent status of theIHRC. SIPTU made representations to the Departmentof Justice, Equality and Defence to the effect that thenew body, which will be responsible for promoting equality in the workplace and for combatting workplacediscrimination, should include ICTU representation atboard level as was previously the case with the EqualityTribunal.

Ethel Buckley, National Campaigns and Equality Organiser (left)with members of the Equality Committee and Belfast District Committee laying a wreath on the grave of Winifred Carney in Milltown Cemetery, Belfast December 2012.

Helen Murphy and Jack McGinley, Equality Committee picturedat the International Wall, Belfast December 2012.

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Asc Airport Services Consolidated – Terminal 2, Dublin Airport

The first scheduled services from the new Terminal 2(T2) at Dublin Airport began on 23rd November, 2010.Since then 37.8 million passengers have transitedthrough Dublin Airport and with T2 capable of comfortablyprocessing up to 12 million passengers a year its effi-cient operation enables Dublin Airport to handle up to32 million passengers annually. It therefore plays a critical strategic role in supporting the future growth ofDublin Airport, which is currently the 13th largest in Europe for international traffic.

The terminal’s Passenger Services are a key componentin the delivery of this growth and in T2 this service isprovided by Asc Airport Services Consolidated. Asc employs in the region of 380 workers, the majority ofwhom are employed in the ‘Facilities’ and ‘PassengerServices’ sections.

In collaboration with the Aviation Sector (Utilities andConstruction Division), the Strategic Organising Departmentcommenced an ‘infil’ recruitment and organising initia-tive in November 2011. This initiative was designed tonot only support the newly elected shop stewards atAsc but to develop sustainable union structures.

Given the nature of the aviation sector and its strategicimportance, priority was given to the training and mentoring of the shop stewards in both organising andindustrial disciplines. Disciplines such as workplacemapping, density building, communication skills, collec-tive actions and collective bargaining became the focusof the organising campaign. In total seven shop stew-ards from both ‘Asc Facilities’ and ‘Asc Passenger Serv-ices’ participated and completed this extensive trainingprogramme. They were supported in their endeavoursby organisers from both the Strategic Organising De-partment and the Aviation Sector.

The project ran for a period of six months and due tothis collaborative and organising approach the averageSIPTU density across all the organised grades has in-creased to 84%. A strong union structure has emergedwith exceptionally committed shop stewards and acommittee structure operating throughout Asc. The newunion structures have been critical to the on-going de-velopment of a vibrant industrial relations agenda thatis addressing issues such as rostering and pay.

An example of a truly organised workplace, a key component in developing and maintaining a sustainableunion within Asc has been the collaboration betweenthe Strategic Organising and the Utilities and ConstructionDivision on this project. Most importantly the role of theCommittee needs to be recognised as it is they whohave developed the structure, confidence and belief todeliver on the challenges they face now and into the future.

ConstructionThe Campaign can be considered to be successful, particularly considering the state that the industry findsitself in nationally. To illustrate, the CSO figures show adecline in construction employment from 66,500 in thelast quarter of 2011 to 60,700 in the last quarter of2012, a loss of 5,800 jobs (Source QNHS).

In 2012 just over 2,168 workers have been organisedin the sector. However 5,205 workers left membership,reflecting the industry’s woes and shedding of jobs.This highlights the enormous effort that it requires toorganise membership and to maintain the density levelof the sector. This is a continuation of trends in 2011,when 2,875 workers joined SIPTU, but we lost 4,572.

In 2012, the focus of the Strategic Organising Department (SOD) team has been on ensuring allmajor construction projects are visited, and that can-teen meetings with members, including all workers onsite, take place on a regular basis. Included are followup meetings with the contractors (employers) in respectof issues raised by current and newly organised mem-bers, and in some particularly difficult situations, theclient companies for whom the projects are being built.

The SOD has particularly focused on two areas where we identified that organisation of workers wasparamount - the Department of Education and Skillsschool building programme and the outsourcing of worksto be carried out for local authorities.

In the case of local authori-ties, notification of outsourced projects to theunion was essential. The provisions of the Croke ParkAgreement strengthened ourposition, but we soon foundthat delivery of the

Strategic Organising Campaigns

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information was patchy and untimely. In some areaslocal arrangements worked well, but, in general, organisers in the field were coming across projectsbeing carried out without any notifications being sent to our officials. Organisers found non-compliance withthe construction Registered Employment Agreementswas not unusual where the contractors had informedthe local authorities they were compliant. In a particularfocus on County Clare, organisers found twenty exam-ples of non-compliance with both REA’s, and a low levelof worker understanding of the provisions of the agree-ments in respect of pay, pension and sick pay.

As a result of the activities nationwide, and with the assistance of Local Authority Sector Organiser MichaelWall, we were able to prevail on the office of the LocalGovernment Management Sources Board (LGMSB) toinstruct local authorities in the housing,water androads sections to notify projects centrally to Construc-tion Sector Organiser Martin Meere, which will assist infollowing through our campaign to create a complianceculture in respect of outsourced projects. This in turnprovides us with the organising opportunities through oursite visit programme.

The DOE Building Programme, estimated to be worth€1.5 billion, and parallel spending of €26.5 million onreplacement of pre-fab classrooms, is an area of particular focus. Initially, SIPTU organisers met with resistance from some prominent contractors in respectof access to workers on site and the provision of infor-mation relating to sub-contractors. A prolonged seriesof meetings with DOE officials took place with littleprogress. A consistent and persistent programme ofsite visits was maintained, together with the referral ofcomplaints to the Labour Court in regard to complianceand protests at sites. A political lobbying campaign com-menced, culminating in joint protest action by construc-tion workers from all construction unions at the NUIGsite in Galway. This was rewarded when the Minister forthe first time met the CIC committee, including the SODat Government Buildings in December. Further meet-ings with the DOE were scheduled for 2013 to addressthe issues of union access and REA compliance, andresistance by contractors to site visits was virtuallyeliminated. As a result the DOE is committed to settingup an independent compliance mechanism run fromDOE resources, and SIPTU together with other construc-tion unions are to be consulted regularly. Complaintscan be made through the mechanism.

The SOD also targets HSE projects, and NRA fundedprojects, and successfully recruits on these sites. The visits also proved critical in observing employmenttrends within the sector. What is pronounced is the everincreasing switch from firms engaged in direct labour tothe use of agency labour, with the resultant underminingof pay and conditions of members. It dwelt in particularButlersbridge/Belturbet project, the utilisation of work-

ers from outside the state on the project in what is anunemployment blackspot. The labour here, thoughsourced from Portugal, has been organised and REArates applied to those workers.

In furthering compliance in the sector, 124 cases wereopened and concluded through the CIMA in 2012, re-sulting in increased SIPTU membership, registration forworkers in the CWPS and payment of arrears to thepension scheme.

However, the agency labour issue is one which in theview of the SOD, must be addressed. These are themost vulnerable of construction workers, given that theclient can choose to switch individuals at will, with themost cursory of excuses. In the current economic cli-mate, many workers are intimidated into working forthe incorrect pay grade, and in many cases below theREA minimums.

CommunityThe Community & Voluntary (C&V) sector operates inareas such as childcare, disability, youth, communitydevelopment, enterprise, training and education. Theseare vital services that the State either does not or couldnot deliver directly.

In the absence of a national agreement, workers andorganisations suffered disproportionate cuts as Government funding was slashed. Government Depart-ments fiercely resisted taking responsibility for their de-cisions when it came to workers entitlements.

Within this context the SIPTU Community Campaign organised thousands of workers, giving them the abilityto defend their jobs, services and communities.

A key element of the campaign has been the closeworking relationship between the Strategic OrganisingDepartment, the Public Administration and CommunityDivision, activists and the Office of the Vice President.

Community Employment (CE)Budget 2012 saw an attack against CE as their trainingand materials grant was cut by 66%. This would haveseen many CE Schemes close. A campaign was imme-diately launched by SIPTU, starting, with a protest out-side the Dail on the 9th December 2011.

The following months sawhundreds of workers take ac-tion across the country. SIPTUmembers used a range of tac-tics including lobbying over 50local TDs, organising massmeetings, protesting and pre-senting their case to the

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Oireachtas Education and Social Protection Committee.

By organising a campaign with workers taking an activepart, an extra €9.5 million was secured for CE and acommitment was given by the Minister for Social Protection, Joan Burton that no CE scheme would close.

The campaign also led to the establishment of a highlevel advisory group on labour activation schemes, onwhich a SIPTU member participates.

Communities Against CutsMobilising workers and communities against cuts has been a key feature of the Community Campaign. Collaboration with the Spectacle of Defiance and Hope,the Dublin Council of Trade Unions and other unionsled to demonstrations that saw thousands of workersand their supporters take to the streets with colour andenergy around the country.

Many actions were coordinated through CommunitiesAgainst Cuts, which is comprised of SIPTU and a number of key Community Sector organisations such as the Community Workers Co-op and Citywide. Building relationships and collaborating with other progressiveorganisations has been an important elements of theoverall campaign.

ICTU Committee2011 also saw the establishment of the ICTU Community Sector Committee. This committee, chairedby SIPTU activist David Connolly, comprises of SIPTU,IMPACT and UNITE representatives and helps coordi-nate unions operating in the sector.

The committee also commissioned the influential 2012report ‘Downsizing the Community Sector’, which outlines the extent of cutbacks to the Community andVoluntary sector. Between 2008 and 2012 Governmentcurrent spending fell by just 2.2% but the Local Community Development Programme fell by 35%,Drugs Initiatives fell by 29% and Youth projects by 18%.

Contract Cleaning Campaign Report2011/2012

Fair Deal for CleanersEvery time we get on to a bus or a train, or we walk into a hospital, or our children sit down in a clean classroom, do we ever spare a thought for the army ofcontract cleaners who spend their working lives cleaning up the mess others have left behind?

The Fair Deal for Cleaners campaign has continued tobring cleaners out of the shadows and into the mindsof the public, with what has often been a colourful, vibrant and newsworthy style of organising and campaigning.

In 2011, extensive research was undertaken to mapDublin and identify target sites for an organising campaign in the industry, that employs an estimated25,000 workers nationally.

Through collaboration between the Strategic OrganisingDepartment and the Security and Services Sector, anumber of important sites across the health, publictransport and higher education sectors were identifiedas organising targets. Joint meetings between the twoteams were used to develop an industrial agenda thatwould be pursued to seek improvements for contractcleaners. Issue based organising campaigns were undertaken on 17 sites simultaneously across thethree targeted sectors. As a result of this activity, newworkplace committees sprang up across the city andcleaner’s issues could no longer be disregarded by contractors.

The workplace committees and workplace leaders wereordinary women and men doing extraordinary things fortheir colleagues and their industry. An innovative train-ing programme was devised and delivered on site to activists, many of whom had never previously been involved in a Union education programme. The culmination of this training was a graduation ceremony

SIPTU members protest against CE cuts outside the Daíl on 9th December 2011.

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for workplace leaders who had undertaken to promotethe organising agenda in their workplace and who hadcommitted to building Union density and influence intheir industry.

While the main focus of the campaign was the work-place, the worker leaders supported and led severalcampaigns of national importance to workers outsideof their industry, the most noteworthy being the Cam-paign to protect the Minimum Wage, which resulted ina resounding win for all low wage workers, when theMinimum Wage was restored to €8.65 following theFebruary 2011 general election.

When the previous government gave an assurance tothe Troika that there would be a review of the JLC sys-tem, contract cleaners took to the streets, determinedto protect their hard won conditions of employment.The Duffy Walsh Review process was inundated withpersonal submissions and testimonials on how workerswould be affected if the ERO for their industry was abol-ished. This resulted in the Report recommending thatthe contract cleaning industry should have its own REA.

Negotiations with the employer body began. The SIPTUteam comprised three industrial organisers, one strate-gic organiser and three industry experts in the guise oftwo hospital cleaners and one industrial cleaner. To-gether they secured an interim REA for the industrywith the employers.

Close collaboration and extensive team work, saw anumber of national meetings take place, which in-cluded joint presentations being delivered to cleanersto ensure they were involved in the consultationprocess.

In 2012, the number of targeted sites rose to 26 andthe campaign took on another strategic dimension. This is the ISS ‘Access and Neutrality Agreement’, ajoint initiative successfully negotiated by StrategicOrganisers and Divisional Organisers with one of thelargest companies in the sector, which saw the FairDeal for Cleaners campaign take on a nationwide perspective for the first time in the history of the campaign. It also saw the campaign move to organisingcontract cleaners on sites outside the health, publictransport and higher education sectors.

Throughout 2011 and 2012, the campaign continuedto build solid, sustainable union structures on all of thetargeted sites. The number of shop stewards, work-place leaders and activists has risen steadily, with wellover 100 contract cleaners being invited to attend theCleaners’ Forums which regularly held meetings ofcleaners from a vast array of worksites, who come together to set the agenda for their industry.

Union density in the industry has steadily increased,

with an average of 58% density on all sites where thecampaign is active, a figure that continues to grow.

Of the 25,000 contract cleaners employed in the indus-try, 82% are employed by one of five major employers.As with all organising campaigns, the strategic directionis open to change, to take full advantage of every op-portunity that presents itself. In the final quarter of2012 the Fair Deal for Cleaners campaign, added a di-mension to the campaign by focusing on ‘the big five’cleaning companies. It is actively pursuing the opportu-nity to negotiate Access and Neutrality agreements withthem. This process is the result of in-depth negotiationsand continued collaborations between the Strategic Or-ganising Department and the Security and CleaningSector.

2011 and 2012 have been turbulent years for workerscovered by the JLC system. Hundreds of thousands ofworkers have been left without any legal protections fortheir terms and conditions of employment due to thedecisions of the two highest Courts in our land. Con-tract cleaners had been to the fore in the struggle toensure the REA recommended for their industry in theDuffy Walsh report was delivered. They were the firstsector to deliver an REA under the Industrial Relations(Amendment) Act 2012.

None of the achievements in the campaign over thelast two years could have been realised without thecommitment of workplace leaders, committees and ac-tivists, and members who have taken a stand in theirown workplaces and who have taken to the streets todefend their terms and conditions of employment. Theyhave embraced the organising agenda and have contin-ued to build union density, build union structures butmost of all to build worker power.

RED MEAT CAMPAIGN

The agri-food sector is one of Ireland's most importantindigenous manufacturing sectors, accounting for theemployment of around 150,000 people. Research hasshown that Ireland’s investment in agriculture producesa far bigger return than investment in other sectors duein the main to the fact that agriculture sources 71% ofraw materials and services from Irish suppliers. Datafrom the Central Statistics Office indicated that duringthe period 2011 to 2012 the agri-food sector ac-counted for around 7% of GDP.

The Red Meat Industry con-tributes in no small way to thesuccess of this sector andcontinues to be dominated byprivate companies and enter-prises. Directly employing

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James Larkin

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10,000 people this industry was reportedly highly or-ganised and unionised during the 1980s, exerting con-siderable union influence within the Sector.Unfortunately, this is no longer the case and in re-sponse to declining terms, conditions and union den-sity, the Strategic Organising Department designed andimplemented a sector specific strategic Red Meat Or-ganising Campaign in 2010. Following the Campaignwork in 2010 and as part of the Campaign’s progres-sion it was decided that the Red Meat Team would startan organising campaign in early 2011. Based on strate-gic research, Kepak became the focus of the secondstage of the Red Meat Campaign.

KepakKepak is one of Ireland’s most prominent meat compa-nies. Its business is divided into three Strategic Busi-ness Units comprising of Kepak Meat Division (KMD),Kepak Convenience Foods (KCF) and Agra Trading witheach unit playing a pivotal role in the growth and expan-sion of the company. The group processes in excess of300,000 cattle, 1.5 million lambs and 25,000 tons ofconsumer foods per annum and reportedly has aturnover in excess of €750 million. Employing over2,000 people, Kepak operates nine manufacturing fa-cilities which are located across Ireland and the U.K.Five of them were the focus of the Campaign.

Campaign objectives were devised in conjunction withthe Agriculture, Ingredients, Food and Drink Sector ofthe Manufacturing Division and these objectives wereclear: to organise workers and revitalise structureswithin these employments, address and arrest the de-cline in membership and in activism, and to develop astrategy that would ensure effective collective bargain-ing. The initial engagement with existing and potentialmembers was conducted through house calling work-ers, developing employment specific collective actionsand spreading the union message by involving theworker’s families and their communities. Utilising thesupport of religious and community leaders, the work-ers sought and won a number of improvements in theirworkplace terms and conditions at local level and fun-damentally new trade union structures were imple-mented.

Specific training was devised and delivered to all ac-tivists and local committees were established on eachsite reflective of the workplace. A National Kepak SIPTUCommittee was established which facilitated the devel-opment of an industrial agenda reflective of issuesfrom all Kepak sites. A substantial increase in uniondensity resulted. In some cases this was achieved in anenvironment where, to begin with, these sites had nounion recognition or membership. Notwithstanding thefact that union recognition remains unresolved in some

locations. sites have developed where there is density,structure and some positive advances in local indus-trial matters. These were achieved through the use ofcollective actions co-ordinated and run by local ac-tivists. Relationships between members, activists andthe union are key to the sustainability of this organisinginitiative and an industrial agenda centring aroundterms and conditions will be fully addressed in the future.

The Red Meat Campaign then focused on Dawn Meatsand the third stage of the campaign commenced.

Dawn MeatsDawn Meats was established in 1980, with its head-quarters located in Waterford. It is one of Europe'slargest food processing companies and has over 30years’ experience in supplying premium quality beefand lamb products to 40 countries. It currently em-ploys over 1,400 people throughout Ireland. The organ-ising team commenced work on Dawn Meats towardsthe latter end of 2011 while still engaged in the KepakCampaign.

In collaboration with the Manufacturing Division, theCampaign focused its attention on six sites throughoutthe country and engaged with existing and potentialmembers through house calling workers, developingemployment specific collective actions and spreadingthe union message by involving the workers’ familiesand communities. Committees were established in fourof the six sites and a SIPTU National Dawn Committeewas established that reflected location, employmentsection and nationality. This Committee devised a na-tional industrial and organising agenda for Dawn Meatsand it is expected that this agenda will be progressedas organising continues in early 2013. Uniquely DawnMeats employs a high percentage of Agency Workerson some sites and a specific organising campaign wasdevised to address their needs. It was supported byMISC and the provisions of the Protection of Employees(Temporary Agency Work) Act, 2012, were utilised.

As 2012 came to a close SIPTU’s membership in Dawnhad increased on average by 49% across a number ofthe sites. The leadership and activist numbers hadquadrupled. An industrial and organising agenda hasbeen devised for 2013 which continues the collabora-tive approach adopted by the Strategic Organising De-partment, the Manufacturing Division and the activistsfrom Dawn Meats, who are committed to further build-ing their influence and collective voice through SIPTU.

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Developing further leverageDuring 2011 and 2012 the Strategic Organising De-partment became actively involved in the Ethical TradeInitiative (ETI), a UK based organisation. The ETI is aground-breaking alliance of companies, trade unionsand voluntary organisations who work in partnership toimprove the lives of vulnerable workers across theglobe who make, grow or process consumer goods -everything from tea to T-shirts, from flowers to footballsand of course meat.

Ethical trade means that retailers, brands and theirsuppliers take responsibility for improving the workingconditions of the people who make the products theysell. Member companies with a commitment to ethicaltrade adopt a code of labour practices they expect sup-pliers to work towards. Such codes address issues likewages, hours of work, health and safety and the right tojoin trade unions.

The red meat industry in Ireland continues to produce,supply and export a large percentage of its products forboth the domestic and international markets. Manufac-tured and produced by skilled labour these productsthen appear on the shelves of very large retailers, themajority of whom are corporate members of the ETI,committed to complying with Ethical Supply Chains.SIPTU, as a member of the ETI, participates at theTrade Union Caucus of the ETI and utilises this forum toengage on matters that are of concern to its membersthroughout supply chains, thus creating influence inthis important sector. Such engagement will continueinto the coming years.

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Pensioners from Tara Mines protestedoutside the Daíl over attacks on theirpensions November 2011. Photo: Photocall Ireland.

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The Retired Members Section maintained a high levelof activity in its work to represent the interests of retired members of SIPTU and of older people generally.

The Section has welcomed the restructuring of theUnion in order that we would be fit for purpose to organise and mobilise workers to defend their interestsin today’s labour market.

The Section continues to embrace the opportunitiespresented by the various newly established representa-tive positions for retired activists such as observer onthe National Executive Council, a role ably executed bythe Section Secretary Paddy Moran. SIPTU is the firsttrade union in this country to acknowledge the impor-tance of its retired members to its overall structures inthis way. Retired activists also took up positions on theDivisional Committees and on the emerging DistrictCommittees.

The National Retired Members Section itself main-tained a regionalised structure with five active regionalcommittees. The Regional Committees elected the following members to the National Retired MembersCommittee.

Padraic BrowneJerry BrowneHarry Byrne

Esther CowanBilly Doyle

Larry DugganFinbarr Foley

Peter CampbellPat HarringtonMairead HayesAnthony Gilligan

Jimmy LynchMike Joe Mahon

John James McLoughlinPaddy Moran

Seamus MurrayTomas O’FaolanChristine O’Flynn

Martin O’NeillJim Quinn

Sean RocheSeamus Rodgers

Mary Traynor

The highlight of activities during the period under report was the National Retired Members Conferencewhich took place in November 2012 and was attendedby over 120 delegates and guests. The theme of theconference was “Building Solidarity Between Genera-tions.” The keynote speaker, from the European Foun-dation for Living and Working Conditions, addressedthe conference on the topic of ‘2012, the EuropeanYear of Active Ageing and Solidarity Between the Gener-ations.’ We were honoured to welcome the President ofIreland Michael D Higgins to Liberty Hall on the day forthe official launch of the 1913 Tapestry.

Jim Quinn, Chairperson of the Retired Members Sectionsince its inception, received a commendation from theGeneral Officers and the members for his life-long commitment to the Union at the Delegate Conference.Along with Ross Connolly, Jim was given the job of organising this section which entailed him travelling allover the country talking to members and helping themto organise and develop the regional structures thathave prevailed.

Retired Members

From right, Jim Quinn, accompanied by his wife Ellen receiving a commendation for life-long service to the Union from Jack O’Connor,General President November 2012.

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ObituariesThe death in May 2012 of our Section Vice PresidentMichael Scanlon was a huge loss. Michael served theSection with unparalleled commitment and honesty.He will be sadly missed by us and by the many mem-bers he served down through the years in Dairygold inCork and as Regional Committee member in Region 4.The death occurred also of Willie Stewart whose losswe mourn.

ActivitiesThe section has a history of involvement in the Union’scampaigns and indeed involvement in the activities ofother organisations that advocate for rights of olderpeople. The Section maintained its collaborative work-ing relationship with the Irish Senior Citizens Parlia-ment. It is fair to say that whereever the Union or anolder persons’ advocacy group held a campaigningevent –from Cork to Donegal- this Section was repre-sented. The Section continued its involvement with theICTU Retired Members Committees.

The Section has also been to the fore in highlightingthe ways in which the one-sided austerity programmebeing pursued at this time in Ireland is detrimentally af-fecting the standard of living of older people and of thepublic services upon which many depend. The House-hold Benefits Package, with a guaranteed provision ofbasic items in the home, is a hugely important benefitto which retired and older people are entitled. This en-titlement has been under sustained attack in annualbudgets. The Section has also highlighted concernsabout the fairness of the Fair Deal programme for nurs-ing homes and the year-on-year reduction in the publichealth budget.

The Section was also to the fore in campaigning forpension rights for both retired and active workers. TheSection campaigned against any potential cut to theState Pension in Budgets 2012 and 2013. Along withthe Equality Committee, the Retired Members Sectionstaged a rally at the Dail in November 2012 protestingat changes to the State contributory and transition pensions. The protest called on the Government to notproceed with the proposed abolition of the transitionpension and to backdate the Homemaker’s Schemethereby preserving the pension entitlements of workerswith broken PRSI records, the majority of whom arewomen.

Retired Members supporting a Better Health Care Better Jobs rally inCork, July 2012

Members of the Retired Members Section with Union Vice President,Patricia King campaigning at the Dáil in November 2012 for pensionjustice for women.

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The Pension Advisory Service, which is located in theLegal Rights Unit, continued to offer support and assis-tance to members and organisers when negotiating onand dealing with issues related to members’ pensions.The service included research and assistance for Gen-eral Officers in relation to pension policy issues. Thiswas in order to lobby for legislative measures whichsupported the retention of decent pensions; as well asan improved legislative environment in which memberscould access important information relevant to theirpensions.

In June 2010, on the nomination of the ICTU, SIPTU’spension advisor was appointed by the Minister for Social Protection to the Pensions Board for a five yearterm. Members’ interests in their occupational pen-sions, which play an integral part in their terms andconditions of employment, as well as their concerns forpension security, were consistently represented atBoard level, as were the interests of members who cur-rently have no occupational pensions.

The temporary hold on the requirement for DefinedBenefit schemes to submit funding proposals, whichwas put in place by the regulator at the end of 2009,continued throughout 2011. Nonetheless, work contin-ued by members, officials and employers as attemptswere made to secure schemes through restructuring or,where this was not possible, through negotiation of thebest possible outcome when schemes were wound up.This work was carried on in anticipation of legislation to amend the funding standards and offer hope tomembers of these schemes.

The Pension Levy was introduced under the Finance(No. 2) Act 2011. This legislation imposed a 0.6% levyon occupational pensions in the private sector and facilitated a reduction in benefits for both active members and pensioners. This measure and its consequences led to many queries from members.

The Social Welfare and Pensions Act 2011 provided forthe abolition of the State Transition Pension at age 65from 1st January 2014. It also provided for the StatePension being available at age 66 from the 1st of January 2014, age 67 from 1st January 2021 and age 68 from 1st January 2028.

During 2011 a total of 89 cases were processed. Thesecases were spread across the Sectors and Divisions

within the Union, with a concentration in the Manufac-turing Division. Queries of a general nature were alsodealt with and examples of the assistance that wasgiven include the following:

• Reviewing and responding to pension proposals put forward by employers with a view to establishingthe best outcome for members.

• Identifying options for the union when seeking the introduction of a pension scheme where no scheme already exists.

• Assisting in seeking improvements to existing pension schemes.

• Providing comparators and best practice for union officials negotiating on pension scheme changes.

• Providing assistance and guidance on member trustees’ issues.

• Answering queries on early retirement/redundancy/ill health retirement.

• Explaining what information can be sought, and when, from an employer and from trustees; and who can seek it in accordance with pensions legislation.

Assistance on pension matters was provided locally in members’ employments, as well as at the Labour Relations Commission and Labour Court. Training on pensions was provided in members’ employmentsand at Sectoral and Divisional meetings when requested.

On 10th November, 2011, the Women at Work Skillsnet (a forum spearheaded by six trade unions and supported by a cross section of employers and policy advisors) hosted a Pensions Conference in Liberty Hall, entitled “Irelands Pension Crisis”. Speakers at the conference were from ICTU and SIPTU.The conference was well attended by trade union members.

Pensions Advisory Service

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Representation of members’ pension issues was highlighted at the ICTU Conference ‘Wake up to Public Pension Reform’. This conference was held in April 2012. It was chaired by SIPTU’s pension advisor Rachael Ryan, addressed by the Minister for Social Protection, Joan Burton,and was attended by trade unions, employers’ groups and pension industry groups. Changes to the State Pension, whichsaw the introduction of new rates and bands for thoseworkers who would retire without the maximum PRSIrequired for a full pension, was just one of the issueshighlighted as a backward step for workers who werealready suffering from a decline in occupational pensions.

The Pharmaceutical, Chemicals and Medical DevicesSector of the Manufacturing Division hosted a pensions seminar as part of its Biennial Conference.The Committee requested the attendance of theunion’s Pension Advisor to give a presentation on current issues.

Training on pensions was provided through SIPTU College to Sector Committees; with pension presentationsalso being provided to the Utilities and Construction Di-visional Committee.

The funding standard was re-introduced for DefinedBenefit schemes. Changes to the standard included anew risk reserve of 15% of non-bond and cash assets,plus the net effect on assets and liabilities of a 0.5% re-duction in interest rates. The new standard allowed forsovereign annuities and sovereign bonds to form partof a funding proposal. A sovereign bond is a bond is-sued by Ireland or any other EU Member State. A sover-eign annuity is a new type of annuity product wherepayments under the policy will be directly linked to theproceeds of these sovereign bonds. With these prod-ucts, if there were to be a non-payment event on theunderlying bonds, then the benefit payments under thesovereign annuity could be reduced.

While a date was set for submissions for funding proposals to be sent to the Pensions Board for DefinedBenefit schemes that failed to meet the funding standard, this was again extended. Coupled with an expectation of further legislation to assist theseschemes, this meant there was little activity from thePension Advisory Service in assisting with funding proposals. There were however a number of occasionswhen the Service assisted members, the Union andemployers in the negotiation of changes needed to se-cure schemes.

On the invitation of, and in solidarity with our tradeunion colleagues in the TEEU, SIPTU’s pension advisormade a presentation to their Biennial conference at theend of the year.

The Department of Social Protection issued its “Reporton Pension Charges 2012”. Charges have been high-lighted as a concern for our members, particularly onthe introduction of a Defined Contribution scheme intoan employment, as in these schemes all of the chargescan be levied against the member’s fund. Where thisoccurred the issue was raised with employers in order toseek to have the charges paid directly by the employerand to have the charges set at as low a rate as possi-ble.

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Internal CommunicationsThe quantity and quality of output of the CommunicationsDepartment has increased substantially since 2010. TheDepartment has been engaged with others in the Unionto strengthen the internal communications of the Union.Maintaining communications with our members. ShopStewards and staff to ensure that the message of theunion, its policies and direction are shared and under-stood is of key importance and much effort has been putinto updating and expanding our database.

External CommunicationsThe control of traditional media including newspapers,television and radio and increasingly of new media is in the hands of a diminishing number of powerful individ-uals. The Department has developed the Union’s capacity to produce our own publications while maintain-ing contact and relations with the national and local printand broadcast media. It has also played a central role inpromoting alternatives to the one sided austerity policiesenforced under the EU/ECB/IMF troika programme. Publications including ‘Investing for Jobs and Growth’(September 2011), ‘Optimising Irelands Oil and Gas Resources’ (June 2011) were produced along with extensive material in response to the dismantling of theEmployment Regulation Order and Registered Employ-ment Agreement wage setting mechanisms. The Depart-ment also released regular updates on the progress ofreforms under the Croke Park Agreement for members inthe public service during 2011 and 2012.

Liberty Between 35,000 and 40,000 newspapers are senteach month to members at their workplaces. The content of Liberty includes the on-going industrial activities of the union and provides extensive reportsand analysis of political and economic affairs, culture,sport and other matters of interest to members. The editorial policy is to highlight the role and participationof members across the Divisions of the Union while pro-viding readers with a mix of news reports and features,international affairs, commentary, analysis and reviews

on a wide range of topics.Since 2010 the production val-ues and design quality of Lib-erty have steadily improved toa standard comparable to thebest of trade union publica-tions internationally. Contribu-tors range from members andstaff of the Union, and other

unions, to specialist writers on economics and finance,health, education, culture and sport. Liberty is distributeddirectly to workplaces by the Irish Times which also printsthe newspaper and through An Post. Liberty is free formembers but it can also be purchased at Eason’s storesacross the country.

Liberty OnlineThe E-zine of news, comment and analysis is publishedon a fortnightly basis and reaches over 45,000 sub-scribers with email addresses. It includes industrial newsand coverage of political, economic and cultural issues ofrelevance to members. The online publication is openedfortnightly by some 20% of subscribers and reader trendsand choices can be tracked through the Newsweaverservice.

Website & Social MediaThe SIPTU website www.siptu.ie attracts on average 1000views each day. Information and news on the website isupdated daily. The introduction of the Webcam on therooftop of Liberty Hall has helped to build traffic on thewebsite.

There are over 2000 followers on the SIPTU Facebookpage and over 1000 followers on Twitter. We have increased our output of video and film on the websiteand YouTube.

The department has assisted with the development ofnew websites for different sectors and affiliated unionsincluding the Community sector, MUI and Irish Equity andthe Fair Hotels and Supporting Quality campaigns.

Press ReleasesThe Department issued over 500 press releases, newsstories and statements during 2012 (400 in 2011) covering the range of industrial and policy issues withwhich the union was engaged. A number of successfultraining days with industrial staff were also organised.

DisputesThe Communications Department has had a major inputinto the industrial disputes in which the union has beenengaged over 2011 and 2012. One of the most sus-tained campaigns involved support for the occupation bythe Vita Cortex workers of the former foam manufacturingplant in Cork. The dispute over the company’s refusal tomake promised redundancy payments to the SIPTU mem-bers and other workers involved daily press statementsand briefings. The Department was central to the organis-ing, with Christy Moore, of a concert in the Triskel ArtsCentre in Cork at the height of the dispute in the Spring of

Communications Department

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138 SIPTU • Annual Reports 2011/2012

2012. Subsequently we co-produced, with WildacreFilms, a film of the occupation entitled ‘161 Days’ whichhas been shown to enthusiastic audiences at the CorkFilm Festival in 2012 and other venues across the coun-try. There were a series of campaigns involving the healthand community sectors through 2011 and 2012 withwhich the Department assisted through the production ofleaflets, posters and online communications material.The Department also assisted workers involved in theprotracted Davenport hotel, Irish Cement and Lagan Brickdisputes during 2011 and 2012. A series of videos on dif-ferent disputes and campaigns were produced by the de-partment and broadcast on the website www.siptu.ie.

Congress CommunicationsThere has been reasonably intensive engagement withCongress Communications Group with discussions on acentralised and efficient media strategy for affiliatedunions. There has been a deeper co-operation with otherunions on media strategy and sharing. A proposal for anew national newspaper (hard copy and online version)was the subject of detailed discussion although no con-sensus has yet been reached. The SIPTU Communica-tions Department played a central role in theorganisation of Congress mobilisations and other eventsduring 2011 and 2012.

International MediaThe Department has frequent contact with the international media and with the European and globaltrade union movement particularly in relation to the economy and the union’s campaign against the one-sided austerity policies of the Government. The Department has also supported union campaigns of international solidarity with the peoples of Palestine,Cuba, Colombia and other countries.

Other PublicationsThe department has generated a large volume of material including, books, posters, leaflets, banners andnewsletters for Sectors and Divisions. Other publicationsincluded the annual report and diary, concert posters,placards. Soundpost, the OPW Union news and otherdedicated publications are produced by the Department.

Books published by the department included those onformer Labour Party TD and union activist, James Everettby John Kenna and on republican and labour activist,Tadgh Barry by Donal O’Drisceoil.

There is a significant programme of events planned for the commemoration of the 1913 Lockout which will also involve a significant input from the Communications Department in co-operation with the 1913 Committee and Congress.

Conferences and campaignsThe Department has been involved in the organisation of conferences on ‘Innovation in Manufacturing’ (November 2011) and ‘Sustainable Energy and Jobs’ (November 2012 and hosted by SIPTU and the Sustainable Energy Authority of Ireland) in co-operationwith the Manufacturing and Construction and Utilities divisions of the union. Both events brought together employers and workers in the sectors as well as leadingcontributors from the EU, Irish government and StateAgencies. The Department also co-operated on variouscampaigns in which the Union has been involved includ-ing the ‘Better Health Care Better Jobs Campaign’ and or-ganising campaigns for contract cleaners, constructionworkers, Home Helps and others and in the Communityand Voluntary Sector. The Department also produced material for organisers in Northern Ireland involved in the Boots pharmacy recruitment and Community Sectorcampaigns in Northern Ireland. The Fair Hotels and Sup-porting Quality campaigns have also involved a significantinput by the Department. The Department assisted withthe production and publication of reports for the BiennialConference in October 2011 and the Divisional Confer-ences in 2012. It also published the report by the Union’sNational Trustees Sub-Committee on its enquiry into theHSE Skills Fund.

The Department organised a special concert for faminevictims supported by Concern in Somalia in October2011 during which singers and musicians DamienDempsey, Donal Lunny and Paddy Glackin performedwhile former president Mary Robinson also addressedthe audience.

The Department also assisted with the organising of the launch by President Michael D Higgins of the 1913Lockout Tapestry Project in Liberty Hall in November2012. In another historic event organised and recordedby the Department with the Manufacturing Division President Higgins invited the Vita Cortex workers to meethim at Áras an Uachtaráin in July 2012 just weeks afterthey and Union officers negotiated a successful conclu-sion to their 161 day occupation and received their dueredundancy entitlements in May 2012.

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139SIPTU • Annual Reports 2011/2012

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140 SIPTU • Annual Reports 2011/2012

Optimising Ireland’s Oil andGas Resources

Report of the SIPTU Oil & Gas Review Group

NNaattiioonnaall CCoonnffeerreennccee

Sustainable Energy & JobsCCrreeaattiinngg aanndd ssuuppppoorrttiinngg jjoobbss iinn

IIrreellaanndd tthhrroouugghh ssuussttaaiinnaabbllee eenneerrggyy

Hosted by SIPTU and SEAI

Croke Park Conference CentreThursday, 1st November, 2012

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141SIPTU • Annual Reports 2011/2012

Presentation by the SIPTU Oil and Gas Review Group to the Joint Oireachtas Committee on Communication, Natural Resources and Agriculture on Tuesday 22nd November 2011

by John Kenna

James EverettTrade Unionistto Government Minister1917-1951

P

Tadhg Barry (1880-1921)The story of an Irish revolutionary

by Donal Ó Drisceoil

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142 SIPTU • Annual Reports 2011/2012

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143SIPTU • Annual Reports 2011/2012

SICK PAY

The current daily rate for Sick Pay benefit is €37.51 per day, weekly€187.55 and is paid for a maximum of 50 working days in a calendar year.For the first three working days of any period of illness/injury, there is no benefit entitlement under the Rules of the Scheme.

If a Claimant has no entitlement to Social Welfare Disability Benefit theymay be entitled to claim Supplemen-tary Sick Pay Benefit from the Scheme.

SAFETY

SAFE PASSThrough our efforts in highlighting thechronic Health and Safety problems in theindustry, all workers must now by regula-tion be in possession of registration cards.

For booking call IDEAS on Tel: (01) 4531440

SAFETY REPRESENTATIVESSites with 20 workers must now haveelected safety representatives.

Contact: Health and Safety Authority, Tel: 1890 289389

CONSTRUCTION SKILLS CERTIFICATION TRAINING

A training needs analysis is to be under-taken and it will influence training plansfor safety at work, protection of skills,and upskilling under Safe Pass and SkillsCertification. All workers undertakingspecified safety critical duties must havereceived training approved by the State training authority under the ConstructionsSkills Certificate Scheme (CSCS) and bein possession of CSCS registration cards.

Grade A: Technical Operative Grade (97% of craft rate): this grade includesskilled operatives with four years’experience and certification-such as banksmen, crane drivers, scaffolders, steel fixers. It also includes Heavy Plant Operatives.

Grade B:Skilled Operatives (91% of craftrate): includes medium plant operatives, teleport drivers, pipelayers, basic ticket scaffolders and craft-persons attendants.

Grade C: Semi-skilled Operative (88% of craft rate): construction operatives with a minimum of one year’s experience.

Grade D: Basic Operative (80% of craftrate): construction operatives with less than one year’s experience who are capable ofcarrying out basic general labouringrequirements, including occasionaloperation of small plant items.

The Construction Industry is governed by a Registered Employment Agreement (REA). REA is a nationally negotiated dealwhich sets legally binding minimum rates of pay and conditions. All building workers are entitled to these benefits. IItt iiss uunnllaawwffuull ttoo bbee ppaaiidd lleessss..

Registered Employment Agreement Rates for the Construction Industry

01-Jan-08 04-Feb-11

CRAFTSMEN €18.60 €17.21

CONSTRUCTION OPERATIVES (% of craft rate)GRADE A (TECHNICAL OPERATIVE) 97% €18.04 €16.69GRADE B (SKILLED OPERATIVE) 91% €16.93 €15.66GRADE C (SEMI-SKILLED) 88% €16.37 €15.14GRADE D (BASIC OPERATIVE) 80% €14.88 €13.77

APPRENTICES (% of craft rate)IST YEAR RATE 33.3% €6.20 €5.732ND YEAR RATE 50% €9.30 €8.613RD YEAR RATE 75% €13.95 €12.914TH YEAR RATE 90% €16.74 €15.49

October 2012 Friday 26 October AnnualMonday 29 October Public

Christmas Leave Monday 24 December AnnualTuesday 25 December PublicWednesday 26 December PublicThursday 27 December AnnualFriday 28 December AnnualMonday 31 December AnnualTuesday 01 January Public

March 2013 - St Patrick’s Weekend Friday 15 March AnnualMonday 18 March Public

April 2013 - Easter Leave Friday 29 March AnnualMonday 01 April PublicTuesday 02 April AnnualWednesday 03 April AnnualThursday 04 April AnnualFriday 05 April Annual

May 2013 Monday 06 May Public

June 2013 Monday 03 June Public

Summer Holidays 2013 Monday 22 July to AnnualFriday 02 August

August 2013 Monday 05 August Public

Anyone starting work after August should get 13.65 hours pay for each four week period in which they have worked at least 117 hours.

OVERTIMEMonday-Friday

Standard Working Week 39 Hours8.30am-5.00pm Monday-Thursday

Fri-4.00pm Flat Time

5pm-midnight Time and a half

Midnight to normal start Double time

Before normal start Double time

Saturday: first 4 hours Time and a half

Any work thereafter up to normal start on Monday Double Time

Country Money - Subsistence Allowance: €181.60 per week

TRAVELLING TIME(Dublin Area):

0 - 4 miles 1 hour per day

4 - 5 miles 1.25 hours per day

5 - 6 miles 1.5 hours per day

6 - 8 miles 1.75 hours per day

8 - 12 miles 2 hours per day

12 - 20 miles 2.5 hours per day*

*not payable to workers recruited on site.

Travel time is to be included when calculating Holiday pay. All Dublin rates calculated on distance from GPO. ContactSIPTU for Cork/Limerick/Waterford/GalwayTravel Time Rates.

HOURS OF WORK

DEATH IN SERVICE BENEFIT

The Death in Service Benefit is €63,500which is payable to the next of kin of adeceased member-provided the deceased was a member of the schemeand in benefit at the time of the death.

An additional death in service benefit of€3175.00 is payable for each eligible dependent child under 18 years of age.

MANDATORY PENSION SCHEME

(Applies to all construction workers)

All workers covered by the RegisteredEmployment Agreement for the construction industry must be registeredby their employer with the scheme withintwo weeks of commencing of employ-ment.

Annual Leave/Public Holidays 2012/2013

SIPTU - Organising for Fairness at Work and Justice in Society

GET ORGANISEDUNION membership defends your pay and conditions - including Sick-Pay, Death in Service and PensionYou can contact the following members of our Organising Team:

Lead Organiser: Pat McCabe Tel: 087 2501731 [email protected]

Limerick/South West: Mark Quinn Tel: 087 1378277 [email protected]

North West/West: Arek Muszynski Tel: 087 9138791 [email protected]

Midlands/North East: Stephen Lewis Tel: 087 6576956 [email protected]

Dublin: David Murphy Tel: 087 2883245 [email protected]

Dublin: Tony Whelan Tel: 087 2759062 [email protected]

“An injury to one is an injury to all” — James Connolly

Services Industrial Professional &Technical Union

Utilities & Construction DivisionContact: Rhona Alford, Tel: (01) 8586409Email: [email protected]

Divisional Organiser: Christy McQuillan, Tel: 087 2026857

Sectoral Organiser:Martin Meere, Tel: 087 0512025

Industrial Organiser - Painters Group:Jimmy Coughlan, Tel: 087 2334471

GRADES

Construction Industry Registered Employment AgreementThe Construction Industry is governed by a Registered Employment Agreement. This is a nationally negotiated deal which sets legally binding minimum rates of pay and conditions. All building workers are entitled to these benefits.

It is unlawful to be paid less.

Construction workers - this is your agreement - play your part in preserving it!Now, more than ever, it is crucial that construction workers act collectively to preserve this agreement. Every worker has his/her role to play and thatrole begins with joining SIPTU and standing shoulder to shoulder with your colleagues to defend your Pay Rate & Terms and Conditions.

These terms and conditions are not set by contractors or the Construction Industry Federation. It is a collective agreement - the result of over 40 years of hard bargaining and professional negotiationbetween the construction unions and construction employers through theirrepresentatives. If you value your pay, conditions and a safe working environment, invest in your future-make your voice heard.

JOIN SIPTU!

JOINONLINEwww.siptu.ie

Secure Your Rights Join SIPTU

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145SIPTU • Annual Reports 2011/2012

During 2011 and 2012 plans were progressed by SIPTUto commemorate the Centenary of the 1913 Lockoutand the foundations for a number of initiatives includ-ing the Lockout Tapestry were laid.

Lockout TapestryThe Tapestry, which is a partnership project betweenSIPTU and the National College of Art and Design, waslaunched by the President, Michael D Higgins, on 6thNovember 2012 in Liberty Hall. It tells the story of theLockout through 30 richly embroidered panels. The pro-duction of the Tapestry is the subject of a DCTV televi-sion documentary and an RTE Nationwide programmewhich will both be broadcast in 2013 The Tapestry itselfwill be available for display across the country in thecoming year.

Two well known artists, Robert Ballagh and Cathy Henderson, were commissioned to design the Tapestry,which was then created by volunteers from the arts andcrafts sector, community activists and trade unionmovement. There were well over 100 volunteers involved, including pupils from several schools and prisoners in Limerick and Mountjoy.

The groups participating in the project include members of

• The Irish Guild of Embroiderers

• The Irish Patchwork Society

• The Irish Countrywomen’s Association, Blanchardstown, County Dublin

• The Finglas Arts Squad, Dublin

• The Divas Girls Group from Finglas Arts Centre, Dublin

• RADE (Rehabilitation through Art, Drama and Education), Dublin

• The Rowlagh Women’s Arts Group, Dublin

• The Cherry Orchard Art Group, Dublin

• The Gala Group, Ringsend, Dublin

• Mater Dei Primary School, Basin Lane, Dublin

• Larkin Community College, Champions Avenue, Dublin

• St Louis High School, Rathmines, Dublin

• Central Remedial Clinic in conjunction with the Holy Faith School, Clontarf, Dublin

• Limerick Prison Group

• The Party Group

• SIPTU Equality Group

• Tallaght Library Group

• Abbey Theatre Group

• Drombana Day Care Centre Group, Limerick

• Mountjoy Prison Group

• Embroidery Guild, Limerick

• Sew Busy Group

• Liberty Hall Group

• MV Group

• Five Lamps

• Irish Patchwork Society, Galway

• East Wall Group, Dublin

• Waterford Group

• And many individual volunteers.

Other Centenary ActivitiesThe Irish Congress of Trade Unions subsequently assumed charge of overall preparations for the LockoutCentenary and a number of ICTU affiliates joined SIPTU infunding a range of events, most of which will take place between July 2013 and February 2014.

These include:

Tenement ExperienceA ‘Living the Lockout’ Tenement Experience is plannedin Henrietta Street, Dublin in July and August 2013. Theproject is a partnership between Dublin City Council,ICTU and the Irish Heritage Trust. The centerpiece is aninteractive experience for visitors with members of ANUProductions, the award winning theatre group.

The house, No 14 Henrietta, was a tenement up untilthe 1970s and captures the dire social and economicconditions of early 20th century Dublin, when tens of

Lockout 1913-2013 Centenary

Commemoration

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146 SIPTU • Annual Reports 2011/2012

thousands of people lived in cramped, insanitary andhazardous conditions; their circumstances dictated en-tirely by the extent to which they had access to continu-ous, decent employment.

ICTU will be working with its partners to use the Experi-ence as a basis on which to develop a permanent Tene-ment Museum on the site.

Oral HistoryThe Living Past, an Oral History Project that will developthe capacity of unions, trades councils and other socialsolidarity organisations to retrieve their history. Theproject is being led by oral historians Ida Milne andMary Muldowney.

National LibraryThe National Library, Kildare Street, Dublin is the venuefor an important commemorative exhibition usingarchival material, much of which will be exhibited forthe first time. An online study resource is being pre-pared to enhance access to the material, which willalso be used for a special 1913 schools’ programme.This project is a partnership venture between Congressand the National Library that is curated by Peter Rigneyof ICTU and Padraig Yeates on behalf of SIPTU.

State CommemorationAn important national event is planned to mark thecentenary of the Great Lockout in O’Connell Street,Dublin, on 31st August the site of Bloody Sunday in1913. It is anticipated that this will be a major show-case event and will be the first official acknowledge-ment by an Irish Government of this seminal event,including the role that the labour movement played inthe creation of the modern Irish State.

Food shipA Food Ship Re-enactment is planned for October 2013to mark the centenary of the food shipments from theBritish TUC to support striking workers and their fami-lies. This event is being undertaken with support fromthe International Transport Federation, the Dublin PortCompany, Dublin City Council and the Dockers Preser-vation Society.

Banners and BadgesA Trade Union Banners and Badges exhibition isplanned in conjunction with the National Museum ofIreland at Collins Barracks, Dublin. The exhibition willhighlight the origins and organisation of trade unions,from the 19th and 20th centuries to the present day.

Installations are being provided from many sources in-cluding the Irish National Archives, the Millmount Mu-seum in Drogheda, the Irish Labour History Society andSIPTU.

LiteratureDublin City Council has chosen James Plunkett’s Strumpet City as the One City, One Book novel for2013, with a range of literary and public informationactivity taking place from April onwards.

ITUC & Labour Party RecordsThe Irish Trade Union Congress and Labour Party re-ports from 1900-1925 are to be digitized and placedonline. This will provide a crucial primary source to stu-dents and the general public during the decade ofCommemoration

James Plunkett Short Story CompetitionA major short story competition was launched and re-ceived a superb response from writers across the coun-try. It was Coordinated by the Irish Writers’ Union andthe Writers’ Centre and supported by Dublin UNESCOCity of Literature and the Irish Congress of TradeUnions, the winning entries will be announced in theautumn.

Lockout: Dublin 1913 by Padraig Yeates’ was reprintedfor the commemorative year and other publications including a series of academic essays A Capital in Conflict, edited by labour historian and former SIPTUTutor, Francy Devine.

Dublin Port NamebookThe Dublin Port Company and SIPTU are digitising theNamebook of the old Dublin Port and Docks Board.This contains the personal details of every manual em-ployee of the Board from 1895-1925, including detailsof those who were on strike in 1913.

Schools’ ProgrammeA special module on the Lockout and the ongoing cam-paign for decent work has been developed for incorpo-ration into the ICTU Youth Connect programme forschools. This will be rolled out to some 400 schoolsfrom the end of August 2013 and will be promotedalong with a competition to engage young people in re-searching and exploring the significance of the Lockoutto world of work today.

StampsThere will be three 55c stamps issued in August 2013to commemorate the Lockout and a stamp to mark thefounding of the Irish Citizen Army in November 2013.

The 1913-2013 Commemorative Programme is co-ordi-nated by Joe O’Flynn, Treasurer of ICTU and SIPTU Gen-eral Secretary; Sally Anne Kinahan, Assistant GeneralSecretary, ICTU; Padraig Yeates, historian.

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SIPTU • Annual Report 2011/2012

Tapestry Panel.

147

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149SIPTU • Annual Reports 2011/2012

President Higgins with artists RobertBallagh and CathyHenderson and tapestry volunteers6th November 2012.

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Organising for

Fairness at Work

and Justice in

Society

150 SIPTU • Annual Reports 2011/2012150

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151SIPTU • Annual Reports 2011/2012

Services Industrial Professional and TechnicalUnion Statement of Trustees’ Responsibilities for the yearended 31st December 2012The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable Trade Union law, Miscellaneous Technical Statement 28, Annual Financial Statements of Trade Unions, and generally accepted accounting practice in Ireland.

The Trustees are required to prepare financial statements for each financial period which give a trueand fair view of the state of affairs of the Union and ofthe surplus or deficit for that period. In preparing thosefinancial statements the Trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Union will continue in operation.

The Trustees confirm that they have complied with the above requirements in preparing the financialstatements.

The Trustees are also required to state whether applicable accounting standards have been followed,subject to any material departures being disclosed and explained in the financial statements.

The Trustees are responsible for keeping proper booksof account, which disclose with reasonable accuracy at any time the financial position of the Union and to enable them to ensure that the financial statements areprepared in accordance with accounting standards generally accepted in Ireland. The Trustees are also responsible for safeguarding the assets of the Unionand hence for taking reasonable steps for the preventionand detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the organisational information included on the Union’s website.

Trustees:

Anton McCabe, Seamus Califf, Padraig Heverin, Annette Donlon, Tim Daly

Date: 23rd May 2013

Report of the independent auditors to the members of theServices Industrial Professionaland Technical UnionWe have audited the financial statements of Services,Industrial, Professional and Technical Union for the year ended 31st December 2012 which comprise theRevenue Accounts, the Balance Sheet, the Cash FlowStatement and the related notes. These financial statements, on pages 4 to 22, have been preparedunder the historical cost convention and the accountingpolicies set out on pages 15 and 16.

This report is made solely to the Union’s members, as a body. Our audit work has been undertaken so thatwe might state to the Union’s members those matterswe are required to state to them in an auditor’s reportand for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than the Union and the Union’s membersas a body, for our audit work, for this report, or for theopinions we have formed.

Respective responsibilities of trustees and auditorsThe trustees’ responsibilities for preparing the financial statements in accordance with applicableTrade Union law, Miscellaneous Technical Statement28, Annual Financial Statements of Trade Unions, and generally accepted accounting practice in Ireland,are set out in the Statement of Trustees’ Responsibilities,on page 1.

Appendix 1:

Financial Statements

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152 SIPTU • Annual Reports 2011/2012

Our responsibility is to audit the financial statements inaccordance with relevant legal and regulatory require-ments and International Standards on Auditing (UK andIreland).

We report to you our opinion as to whether the financialstatements give a true and fair view in accordance withgenerally accepted accounting practice in Ireland. Wealso report to you whether in our opinion proper booksof account have been kept by the Union. In addition,we state whether we have obtained all the informationand explanations necessary for the purposes of ouraudit and whether the Union’s balance sheet, revenueaccount and cash flow statement are in agreementwith the books of account.

We read the other information contained in the finan-cial statements and consider whether it is consistentwith the audited financial statements. This other infor-mation comprises only the Schedules to the Accounts.We consider the implications for our report if we be-come aware of any apparent misstatements or materialinconsistencies with the financial statements. Our re-sponsibilities do not extend to any other information.

Basis of opinionWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment ofthe significant estimates and judgements made by theTrustees in the preparation of the financial statementsand of whether the accounting policies are appropriateto the Union's circumstances, consistently applied andadequately disclosed.

We planned and performed our audit so as to obtain allthe information and explanations which we considerednecessary in order to provide us with sufficient evidence to give reasonable assurance that the finan-cial statements are free from material misstatement,whether caused by fraud or other irregularity or error.In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OpinionAs explained in Note 15, the Union has considered theimplications of Financial Reporting Standard 17 (FRS17), Retirement Benefits, and has decided not to com-ply with the requirements of the standard in the finan-cial statements for the year ended 31st December2012, as the Union considers the standard to be con-trary to its objective of supporting the continued provi-sion of defined benefit pension schemes by employersto their employees.

FRS 17 provides for the presentation of information regarding the costs of providing the pension benefitsearned by employees during the year and of the valueof the benefits that the Union has committed to provid-ing in respect of service up to the year end, and for therecognition of relevant amounts in the revenue ac-count, statement of total recognised gains and lossesand balance sheet of the Union. The Union has, in Note15, disclosed information in respect of the financial po-sition of the Pension Scheme. If the Union had com-plied with the requirements of FRS 17 the effect wouldhave been to reduce net assets by €127.1 million(2011: €87.1 million), to reduce the surplus for the yearby €5.6 million (2011: €3.2 million) and to debit thestatement of total recognised gains and losses for theyear with an amount of €34.4 million (2011: €14.1 mil-lion).

In our opinion, because the adjustments required to implement FRS 17 are material, the financial statements do not give a true and fair view, under current accounting standards, of the state of affairs of SIPTU at 31st December 2012 and of its surplus forthe year then ended as set out in the General FundRevenue Account on page 4 and the Consolidated Revenue Account on pages 11 and 12.

We have obtained all the information and explanationswe consider necessary for the purposes of our audit.

In our opinion proper books of account have been keptby the Union in accordance with the Trade Union Acts,1871 to 1990. The financial statements are in agreement with the books of account.

O’Connor & AssociatesChartered Accountantsand Registered AuditorsHarcourt CentreBlock 3Harcourt RoadDublin 2

23rd May 2013

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153SIPTU • Annual Reports 2011/2012

General FundRevenue Account for the year ended 31st December 2012

Schedule 2012 2011€ €

IncomeMembers’ Contributions 33,520,291 36,075,996 Rents 152,956 378,209 Sundry Income 1 553,508 129,801

34,226,755 36,584,006

Expenditure

Finance and Administration 2 4,948,928 5,091,579 Industrial Services 3 6,808,964 6,586,933 Industrial Engineering 4 180,753 177,274 Property 5 3,373,201 3,723,430 Utilities and Construction 6 2,176,990 2,124,340 Manufacturing 7 3,017,209 2,712,875 Health 8 2,096,662 2,243,625 PA and Communities 9 2,384,780 2,347,912 Services 10 2,195,583 2,278,065 Research 12 358,654 277,324 Publications 13 698,545 638,548 General Services 14 2,019,062 2,042,489 Dispute Benefit 237,773 25,199Depreciation 15 914,940 961,315

31,412,044 31,230,908

Surplus for year 2,814,711 5,353,098 Impairment of Investments - (437,831)Liberty Hall Development 7,670,066 (1,500,000)Surplus on Disposal of Investments 183,204 - Surplus on Disposal of Fixed Assets 87,075 218,721

Surplus after Disposal of Fixed Assets and Investments 10,755,056 3,633,988 Transfer to Industrial Contingency Fund (500,000) (1,000,000)Transfer to Provident and Educational Fund - - Liberty Hall Modernisation Fund (7,670,066) - Transfer to Income Support Scheme Fund (350,000) (350,000)Surplus after transfers to other funds 2,234,990 2,283,988

Balance in Fund at beginning of Year 18,653,442 16,369,454 Balance in Fund at end of year 20,888,432 18,653,442

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Provident and Educational FundRevenue Account for the year ended 31st December 2012

Schedule 2012 2011€ €

IncomeBank and Other Interest 318,049 253,619 Grants 137,339 127,166

455,388 380,785

ExpenditureStaff Costs 809,464 812,328 Education and Training 11 270,110 272,136 Retirement Benefit 260,726 205,002 Mortality Benefit 70,523 57,764 Superannuation and Grants 56,484 121,481 Miscellaneous Expenses 12,333 9,170

1,479,640 1,477,881

Deficit for year (1,024,252) (1,097,096)Transfer from General Fund - - Balance in Fund at beginning of year (2,646,349) (1,549,253)Balance in Fund at end of year (3,670,601) (2,646,349)

Industrial Contingency FundRevenue Account for the year ended 31st December 2012

Schedule 2012 2011€ €

IncomeGeneral Fund - -Expenditure - -ITUT Grant - - Surplus for year - - Transfer from General Fund 500,000 1,000,000

Balance in Fund at beginning of year 19,446,611 18,446,611 Balance in Fund at end of year 19,946,611 19,446,611

Political FundRevenue Account for the year ended 31st December 2012

Schedule 2012 2011Income € €Members’ Contributions 89,284 96,939

89,284 96,939

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155SIPTU • Annual Reports 2011/2012

ExpenditureAffiliation Fees 98,000 98,000 Political Grants and Donations 136,472 57,570 Conference Expenses 16,503 2,141

250,975 157,711

Deficit for the year (161,691) (60,772)Balance in Fund at beginning of year 208,052 268,824 Balance in Fund at end of year 46,361 208,052

Provident Pension and General Purposes Fund (IPG)Revenue Account for the year ended 31st December 2012

Schedule 2012 2011€ €

IncomeMembers’ Contributions 65,592 72,509

65,592 72,509

ExpenditureClaims and Allowances 68,056 103,437 Payment to Superannuitants 17,814 20,852

85,870 124,289

Deficit for year (20,278) (51,780)Balance in Fund at beginning of year 1,606,233 1,658,013 Balance in Fund at end of year 1,585,955 1,606,233

Income Continuance FundRevenue Account for the year ended 31st December 2012

Schedule 2012 2011€ €

IncomeMembers’ Subscriptions - -

- -

ExpenditureClaims and Allowances 35,551 7,595

35,551 7,595

Deficit for the year (35,551) (7,595)Transfer from the General Fund 350,000 350,000 Balance in Fund at beginning of year 692,405 350,000 Balance in Fund at end of year 1,006,854 692,405

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Liberty Hall Modernisation FundRevenue Account for the year ended 31st December 2012

Schedule 2012 2011€ €

IncomeGeneral Fund - -

ExpenditureSurplus for year - -Transfer from General Fund 7,670,066 -

Balance in Fund at beginning of year - -Balance in Fund at end of year 7,670,066 -

Consolidated Revenue AccountRevenue Account for the year ended 31st December 2012

Note 2012 2011€ €

IncomeMembers’ Contributions 33,675,167 36,245,444 Rents 152,956 378,209 Bank & Other Interest 318,049 253,619 Grants 137,339 127,166 Other Income 553,508 129,801

34,837,019 37,134,239

ExpenditureStaff Costs 21,984,826 22,299,683 Honorary Secretaries Commission 388,514 359,909 Administration 1,338,360 1,142,120 Promotional 198,982 115,374 National/ Divisional & Industrial Conferences 481,550 692,706 Travel, Subsistence and Transport Costs 1,655,749 1,521,967 Computer and Equipment Maintenance 206,471 140,463 Publishing Costs 213,370 209,655 Legal and Professional Fees 528,346 405,941

Divisional Development and Campaign Fund 59,922 52,213 Strategic Development Activities 37,850 26,381 Establishment 2,046,365 2,221,389 Organisational Unit Expenses 398,257 353,890 Dispute Benefit 237,773 25,199 Depreciation 4 914,940 961,315 Provident & Educational Fund 1,479,640 1,477,881 Political Fund 250,975 157,711 Income Continuance Fund 35,551 7,595 IPG Fund 85,870 124,289

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157SIPTU • Annual Reports 2011/2012

Affiliation Fees 725,888 708,513 Bank Charges 53,543 52,852

Amortisation of Capital Grant 11 (58,662) (58,662)Total Operating Expenditure 33,264,080 32,998,384

Surplus for the year before exceptional items 1,572,939 4,135,855 Impairment of Investments - (437,831)Liberty Hall Development - (1,500,000)Surplus on Disposal of Investments 183,204 - Surplus on Disposal of Fixed Assets 87,075 218,721 Surplus for the year 1,843,218 2,416,745

Balance in Funds at beginning of year 37,960,394 35,543,649 Balance in Funds at end of year 39,803,612 37,960,394

A statement of total recognised gains or losses has not been prepared as there were no gains orlosses recognised other than as stated above.

Consolidated Balance SheetRevenue Account for the year ended 31st December 2012

Note 2012 2011€ €

IncomeFixed Assets 4 16,047,463 16,197,344Heritage Asset 5 266,771 266,771 Financial AssetsInvestment Portfolio 2,329,161 6,331,067 Other Investments 18,812 18,812

6 2,347,973 6,349,879

Current AssetsLarcon Centre Stock 7 1,846 2,565 Sundry Debtors and Prepayments 8 14,538,748 12,722,962 Cash in Hand 21,999,327 19,305,652

36,539,921 32,031,179

Current LiabilitiesSundry Creditors and deferred income 9 (6,040,618) (15,138,284)

Net Current Assets 30,499,303 16,892,895

Long Term LiabilitiesGrants received – Liberty Hall Centre for the Arts 10 (1,635,419) (1,694,081)

Deferred Income – Belfast premises (52,413) (52,413)Total Long Term Liabilities 10 (1,687,832) (1,746,494)

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158 SIPTU • Annual Reports 2011/2012

Net Assets 47,473,678 37,960,394

Represented by:Accumulated BalancesGeneral Fund 20,888,432 18,653,442 Liberty Hall Modernisation Fund 7,670,066 - Income Continuance Fund 1,006,854 692,405 Provident and Educational Fund (3,670,601) (2,646,349)Industrial Contingency Fund 19,946,611 19,446,611 Political Fund 46,361 208,052 Provident, Pension and General Purposes Fund (IPG) 1,585,955 1,606,233

47,473,678 37,960,394

Release of Liberty Hall DevelopmentProvision to Liberty Hall Modernisation Fund 7,670,066 -

Balance brought forward 37,960,394 35,543,649Balance carried forward 47,473,678 37,960,394

Represented byGeneral Fund 20,888,432 18,653,442Liberty Hall Modernisation Fund 7,670,066 -Income Continuance Fund 1,006,854 692,405Provident and Educational Fund (3,670,601) (2,646,349)Industrial Contingency Fund 19,946,611 19,446,611Political Fund 46,361 208,052Provident, Pension and General Purposes Fund (IPG) 1,585,955 1,606,233

Cash Flow StatementRevenue Account for the year ended 31st December 2012

2012 2011€ €

Surplus for yearGeneral Fund 10,755,056 3,633,988 Provident & Educational Fund (1,024,252) (1,097,096)Political Fund (161,691) (60,772)Income Continuance Fund (35,551) (7,595)Provident, Pension & General Purpose Fund (IPG) (20,278) (51,780)

9,513,284 2,416,745

Depreciation 914,940 961,315 Surplus on Disposal of Fixed Assets (87,075) (218,721)Surplus on Disposal of Investments (183,204) - Impairment of Investments - 437,831 Grant Amortisation (58,662) (58,662)(Increase) in Debtors (1,815,786) (344,586)Decrease/(Increase) in Stock 719 (369)(Decrease)/Increase in Creditors (9,097,665) 1,327,583

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Net Cash flow from Operations (813,449) 4,521,136

Net Cash InflowsSale of Tangible Fixed Assets 306,037 404,673 Sale of Investments 4,185,110 -

Investment ActivitiesPurchase of Tangible Fixed Assets (984,023) (530,014)Purchase of Investments - -

2,693,675 4,395,795

FinancingIncrease in Cash and Cash Equivalents 2,693,675 4,395,795

2,693,675 4,395,795

Notes to the accounts for the year ended 31st December 2012

1. Accounting Policies(a) The financial statements have been prepared on the going concern basis and in accordance with

Miscellaneous Technical Statement 28, Annual Financial Statements of Trade Unions, and accounting standards generally accepted in Ireland.

(b) Members’ Contributions are accounted for on the basis of contributions remitted in respect of the accounting period and include remittances received after the year end.

(c) Grant IncomeGrant income is accounted for on an accruals basis. Capital grants are credited to the Revenue account on a basis consistent with the depreciation of related capital assets.

(d) Tangible fixed assets and depreciation All tangible fixed assets are recorded at historical cost less accumulated depreciation. Depreciation is provided on the fixed assets at rates calculated to write off the cost of the assets less any residual value over their expected useful lives as follows: -

Premises 2% Reducing BalanceMotor Cars 25% Straight LineFurniture and Fittings 10% Reducing BalanceComputers & Office Equipment 25% Straight Line

(e) Heritage assetsHeritage assets are recorded in the balance sheet at historical cost. The asset included on the balance sheet is deemed to have an indefinite life and the Trustees do not therefore consider it appropriate to charge depreciation. The carrying amount of the asset will be reviewed for evidence of impairment on an annual basis and any such impairment will be dealt with in accordance with the recognition and measurement requirements of FRS 11 ‘Impairment of fixed assets and goodwill’.

(f) InvestmentsOn initial recognition investments are recorded in the accounts at cost. At each balance sheet date this original cost is compared to market value on an asset by asset basis. Where there is an indication that there

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160 SIPTU • Annual Reports 2011/2012

has been a permanent diminution in value below original cost the asset is written down and an impairment is recognised in the profit and loss account in that year.

(g) Stocks and work in progressStocks are stated at the lower of cost and net realisable value.

(h) PensionThe Union operates a defined benefit pension scheme. Contributions are made to the scheme in accordance with recommendations of independent actuaries. Such contributions are charged on an accruals basis. An independent actuarial valuation is carried out every 3 years. The last actuarial valuation was on 1st January 2010 (Note 15 to the accounts provides information in respect of the pension scheme).

(i) Political FundThe Union administers a Political Fund to which Section 3 of the Trade Union Act 1913 applies.

(j) ContingenciesIn the normal course of events, the Union becomes involved in various legal disputes relating to its representation of members. The policy of the Union in terms of the financial impact of such disputes is to provide for expenditure arising from legal cases only where it is probable that a transfer of economic benefits will result. Any contingencies arising from such cases are disclosed unless the possibility of a transfer of economic benefits is remote.

(k) ProvisionsA provision is recognised in the balance sheet when the Union has a constructive or legal obligation as a result of a past event, it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

(l) Foreign Currency TransactionsTransactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange at the balance sheet date.

2. Employee numbersThe average number of persons employed by the Union during the year was as follows:

2012 2011332 337

3. Member numbersThe number of members at the beginning and end of the year was as follows:

2012 2011Number of members at the beginning of the year 225,044 232,125Number of members admitted during the year 19,203 21,555Number of members who ceased during the year (29,781) (28,636)

214,466 225,044

4. Fixed Assets Premises Motor Cars Computers Furniture Total& Office & FittingsEquipment

€ € € € €Cost/Valuation At 1.1.2012 19,823,065 1,523,175 4,425,364 4,818,589 30,590,193 Additions 266,194 598,717 85,423 33,689 984,023

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161SIPTU • Annual Reports 2011/2012

Disposals - (679,224) (1,810) - (681,034)At 31.12.2012 20,089,259 1,442,668 4,508,977 4,852,278 30,893,182

Accumulated DepreciationAt 1.1.2012 5,363,432 846,996 4,245,708 3,936,713 14,392,849 Charge for year 294,516 364,544 164,505 91,375 914,940 Depreciation on Disposal - (462,070) - - (462,070)At 31.12.2012 5,657,948 749,470 4,410,213 4,028,088 14,845,719

Net Book ValueAt 31.12.2012 14,431,311 693,198 98,764 824,190 16,047,463

Net Book ValueAt 31.12.2011 14,459,633 676,179 179,656 881,876 16,197,344

5. Heritage Assets2012 2011€ €

Opening Cost 266,771 266,771 Additions - - Disposals - -

266,771 266,771

During 2010, SIPTU purchased an original copy of the 1916 Proclamation. As this item meets the definition of a her-itage asset as defined under FRS 30 “Heritage Assets” it has been accounted for in accordance with this standard.

6. Financial Assets Investment Other TotalPortfolio Investments

€ € €

Cost at 1.1.2012 6,331,067 18,812 6,349,879 Sale of Investments (4,001,906) - (4,001,906)Purchase of Investments - - - Capital Gain reinvested - - - Impairment of Investments - - -

Carrying value at 31.12.2012 2,329,161 18,812 2,347,973

The Union Investment Portfolio analysed as follows:2012 2011€ €

Pension Cash Fund - 3,951,906 Ireland Fixed Interest 95,697 668,338 Irish Equity Fund 743,343 757,978 Eurozone Cash & Equity Fund 1,490,121 952,845

2,329,161 6,331,067

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162 SIPTU • Annual Reports 2011/2012

2012 2011€ €

Other Investments at Cost€3,127 9.75%National Development Loan 3,127 3,127 Prize Bonds 1,079 1,079 Other Investments 1,175 1,175

5,381 5,381 Cash Retained by the AccountantCourts of Justice 13,431 13,431

18,812 18,812

The investment portfolios are managed by Prescient Investment Managers (Ireland) Limited.

The investment portfolio is stated at the lower of cost and market value where a reduction in market value below costis considered to be of a permanent nature. The Union’s investment strategy is to hold the portfolio for the long termwith some movements being made by the Investment Managers into or out of funds in order to optimise return orlimit loss.

The total market value of the investment portfolio is €2,468,882 (Cost: €2,329,161) at 31 December 2012. The market value of ‘Other Investments’ held by the Union is not materially different than the cost.

7. Stock2012 2011€ €

Larcon Centre Stock 1,846 2,565

8. Sundry Debtors and Prepayments2012 2011€ €

Contributions 3,461,023 3,578,792 Salaries in Advance 857,575 856,293 Other Prepayments 237,686 232,674 Other Debtors 9,982,464 8,055,203

14,538,748 12,722,962 9. Creditors falling due within one year

2012 2011€ €

Creditors 1,239,225 1,158,588 PAYE/PRSI 903,731 1,336,210 Accruals 3,648,520 3,916,419 Restructuring & Development 249,142 288,141 Liberty Hall Development - 8,438,926

6,040,618 15,138,284

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10. Creditors falling due after one year2012 2011€ €

Deferred Income – Belfast premises 52,413 52,413 Deferred Income – Capital Grants (Note 11) 1,635,419 1,694,081

1,687,832 1,746,494

11. Deferred Income-Capital Grants2012 2011€ €

At beginning of year 1,694,081 1,752,743 Amortisation during the year (58,662) (58,662)At end of year 1,635,419 1,694,081

12. Capital Commitments and ContingenciesThe plan put forward to redevelop Liberty Hall was rejected during the year by the planning authority, An BordPleanála. The Union remains committed to the Liberty Hall site which has been the home of the Union since 1912.Accordingly the Union is examining options which will permit an appropriate modernisation of the facilities. At theyear end 31st December 2012, this review is ongoing and the Union has provided for the modernisation through thecreation of a separate Liberty Hall Modernisation Fund.

The Union has a commitment to provide the Economic Intelligence Unit established by ICTU with €100,000 perannum over a period of five years. In this regard, at 31st December 2012 an amount of €100,000 is provided in respect of 2012.

In 2010 SIPTU established an Illness Income Support Scheme to provide financial support to Union staff who are ab-sent from work for medical reasons. This replaces a previous Income Continuance Scheme provided by an externalprovider. Under the Scheme the Union has committed to making an annual contribution of €350,000 to a fund fromwhich eligible staff may receive financial support. Accordingly, for 2012, €350,000 (2011: €350,000) of the General Fundsurplus has been segregated for that purpose and is held in the Scheme Fund. During the year two members re-ceived income continuance of €35,551 from the Fund.

At 31st December 2012 a number of legal cases to which the Union is a party are ongoing. An estimate has beenmade of the expected costs to the Union associated with these cases and a provision is included in the accounts inthis regard.

13. Report on Enquiry into Assertions made by the Health Service ExecutiveOn 25th March 2011, the National Trustees Sub-Committee of SIPTU published a report on its enquiry into assertions madeby the HSE. It is the opinion of the Trustees that no liability attaches to the Union in respect of the matter. During2011, the funds remaining in the bank account (€697,894) associated with the matter were returned to the Exchequer. The Comptroller and Auditor General conducted enquiries, concluded its investigations and issued its report inApril 2013. The findings of this report were broadly in line with the report of the National Trustees Sub-Committee ofSIPTU.

14. Related partiesIDEAS Limited is a company limited by guarantee carrying on a range of training and educational activities. The members of IDEAS Limited are appointed by SIPTU. The Union continues to support the activities of IDEAS Limited.The amount outstanding at the end of the year to SIPTU was nil (2011: €nil).

ITUT is a company limited by guarantee with the objective of promoting social solidarity in Ireland. Included in debtorsat 31st December 2012 are amounts due by ITUT to SIPTU of €32,946 (2011: €95,199). The Union has continued tosupport the activities of ITUT and in this respect SIPTU agreed to write off the outstanding 2011 balance betweenITUT and the Union.

Larcon Cultural Services Limited is a limited company established to operate the Liberty Hall Centre for the Arts. TheTrustees of SIPTU are the shareholders of Larcon. During the year Larcon Cultural Services Limited incurred licensefees and charges and purchased goods in the amount of €50,385 (2011: €49,575) from SIPTU. Included in debtors

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164 SIPTU • Annual Reports 2011/2012

at 31st December 2012 are amounts due by Larcon Cultural Services Limited to SIPTU of €50,385 (2011:€165,467). The Union has continued to support the activities of Larcon Cultural Services Limited and in this respectSIPTU agreed to write off the outstanding 2011 balance between Larcon Cultural Services Limited and the Union.

15. PensionsThe Union operates a defined benefit pension scheme for staff employed by the Union. Contributions are made tothe scheme in accordance with recommendations of an independent actuary. Such contributions are charged on anaccruals basis. An actuarial valuation was carried out at 1st January 2010. Using the aggregated method of fundingwhich has traditionally been used, the results of the valuation showed that the Fund was in deficit under the Mini-mum Funding Standard at 1st January 2010 in the amount of €103 million. The Union is committed to supportingthe continuation of the Pension Scheme, in conjunction with staff and Pension Trustees. This commitment extends,at the discretion of the NEC, to the provision of supplementary funds if required. The Pension Scheme Trustees andEmployer are in ongoing discussions with the Pensions Board with a view to reaching agreement on a suitable fund-ing proposal to address the deficit.

The Union has considered the implications of Financial Reporting Standard 17 (FRS 17), Retirement Benefits, andhas decided not to comply with the requirements of the standard in the financial statements for the year ended 31stDecember 2012. FRS 17 provides for the presentation of information regarding the costs of providing the pensionbenefits earned by employees during the year and of the value of the benefits that the Union has committed to providing in respect of service up to the year-end.

It is the Union’s position that the provisions of FRS 17 are not in the best interests of members of defined benefitpension schemes and are contrary to the Union’s objective of supporting the continued provision of defined benefitschemes by employers to their employees. The basis of valuation provided for in the FRS differs from the basis ofpreparation of the funding standard provided for in the Pensions Act 1990. The Union is, as described above, takingappropriate steps under Pensions legislation to protect the interests of the members of the scheme and to addressthe deficit in the scheme.

The information required under FRS 17 does not, in the view of the Union, reflect the liabilities currently or likely tofall payable by the Union in respect of the Pension Scheme in the foreseeable future. Accordingly, the Union is satisfied that the information required under FRS 17 has no impact on the ability of the Union to continue to operateon a financially viable basis.

If the Union had complied with the requirements of FRS 17 the effect would have been to reduce net assets by€127.1 million. This compares with a figure of €87.1 million for 2011.

16. Restructuring & DevelopmentDuring 2012, the Union has continued a major process of internal transformation in order to meet the challenges ofa rapidly changing workplace and to place the Union in a position to deal effectively with all aspects of its social andeconomic role.

17. The Trustees approved the accounts on 23rd May 2013.

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Schedules to the accountsfor the year ended 31st December 2012

2012 2011

Schedule 1 € €Sundry Income

Income from Services to Provident Fund 84,092 84,092 Other income 469,416 45,709

553,508 129,801

2012 2011Schedule 2 € €Finance and Administration

Staff Costs 4,038,239 4,458,027 Administration 520,560 322,317 Equipment & Computer Maintenance 114,461 109,201 Honorary Secretaries’ Commission 5,964 - Travel and Subsistence 13,921 17,823 Transport Costs - Car Fuel 12,745 6,252

- Car Maintenance 1,492 1,105 - Tax and Insurance 8,277 7,578

Officials’ Transport Policy 17,835 32,149 Legal and Professional Fees 161,891 84,542 Bank Charges 53,543 52,585

4,948,928 5,091,579

2012 2011Schedule 3 € €Industrial Services

Staff Costs 6,468,652 6,284,544 Administration 102,811 70,598 Legal & Professional Fees 76,225 77,828 Officials’ Transport Policy 115,445 106,940 Travel and Subsistence 31,473 29,635 Transport Costs - Car Fuel 8,057 3,678

- Car Maintenance 737 8,182 - Tax and Insurance 5,564 5,528

6,808,964 6,586,933

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2012 2011Schedule 4 € €Industrial Engineering

Staff Costs 166,143 168,790 Administration - (4,245)Travel and Subsistence 1,425 1,440 Transport Costs - Car Fuel 90 90 Officials’ Transport Policy 13,095 11,199

180,753 177,274

2012 2011Schedule 5 € €Property

Staff Costs 1,030,082 1,035,637 Administration 136,817 380,208 Legal and Professional Expenses 50,729 39,284 Equipment and Maintenance 91,728 29,719 Travel and Subsistence 3,768 2,405 Transport Costs - Car Fuel 3,320 2,222

- Car Maintenance 1,112 595 - Tax and Insurance 1,236 1,055

Officials’ Transport Policy 8,044 10,917 Rent, Rates and Insurance 1,060,322 1,175,954 Heat, Light and Cleaning 662,294 679,668 Maintenance and Refurbishment 323,749 365,766

3,373,201 3,723,430

2012 2011Schedule 6 € €Utilities and Construction

Staff Costs 1,829,725 1,841,303 Divisional Development 194 219 Administration 66,342 39,731 Travel and Subsistence 158,446 127,316 Transport Costs - Car Fuel 14,441 13,287

- Car Maintenance 2,752 2,903 - Tax and Insurance 5,617 4,930

Officials’ Transport Policy 99,473 94,651 Bank Charges - -

2,176,990 2,124,340

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2012 2011Schedule 7 € €Manufacturing

Staff Costs 2,524,923 2,348,429 Divisional Development 12,712 26,234 Honorary Secretaries’ Commission 45,334 43,701 Administration 111,155 71,783 Professional and Bank Charges 4,305 - Travel and Subsistence 136,565 81,722 Transport Costs - Car Fuel 25,041 20,891

- Car Maintenance 9,727 5,419 - Tax and Insurance 9,013 8,573

Officials’ Transport Policy 138,434 106,123 3,017,209 2,712,875

2012 2011Schedule 8 € €Health

Staff Costs 1,399,517 1,595,295 Divisional Development 33,373 20,178 Honorary Secretaries’ Commission 267,449 262,516 Administration 119,478 93,328 Professional and Bank Charges - 267 Travel and Subsistence 162,486 166,386 Transport Costs - Car Fuel 13,039 11,947

- Car Maintenance 2,646 4,366 - Tax and Insurance 4,251 4,120

Official’s Transport Policy 94,423 85,222 2,096,662 2,243,625

2012 2011Schedule 9 € €

PA and Communities

Staff Costs 1,876,712 1,899,341 Divisional Development 6,153 4,470 Honorary Secretaries’ Commission 63,992 44,404 Administration 113,607 75,770 Professional and Bank Charges - - Travel and Subsistence 179,423 202,004 Transport Costs - Car Fuel 20,282 17,239

- Car Maintenance 3,430 5,988 - Tax and Insurance 7,547 7,339

Officials’ Transport Policy 113,634 91,357 2,384,780 2,347,912

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168 SIPTU • Annual Reports 2011/2012

2012 2011Schedule 10 € €Services

Staff Costs 1,900,350 2,011,811 Divisional Development 7,490 1,112 Honorary Secretaries Commission 5,775 9,288 Administration 89,718 54,455 Equipment and Computer Maintenance 73 449 Travel and Subsistence 74,238 79,580 Transport Costs - Car Fuel 19,152 21,940

- Car Maintenance 1,821 3,035 - Tax and Insurance 9,178 8,466

Officials’ Transport Policy 87,788 87,929 2,195,583 2,278,065

2012 2011Schedule 11 € €Education and Training

Administration 9,391 3,736 Equipment Maintenance 500 352 Travel and Subsistence 12,813 9,198 Transport Costs - Car Fuel 8,901 15,031

- Car Maintenance 1,343 4,431 - Tax and Insurance 3,698 2,930

Rent, Rates and Insurance 30,850 39,494 Repairs and Renewals 2,600 4,111 Tuition Fees 1,099 - Course Expenses 98,581 118,967 National Seminars/Workshops - (126)Staff Education and Development Grants 24,102 1,270 Officials’ Transport Policy 17,457 14,502 Scholarship Grant /Law Course Expenditure 58,775 58,240

270,110 272,136

2012 2011Schedule 12 € €Research

Staff Costs 328,716 261,615 Administration 24,218 10,193 Equipment Maintenance 209 404 Travel and Subsistence 1,257 204 Transport Costs - Car Fuel 2,342 2,854

- Car Maintenance 948 899 Officials’ Transport Policy 964 1,155

358,654 277,324

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169SIPTU • Annual Reports 2011/2012

2012 2011Schedule 13 € €Publications

Staff Costs 421,767 394,891 Administration 53,654 27,982 Equipment Maintenance - 690 Travel and Subsistence 6,140 1,161 Officials’ Transport Policy 3,614 4,169 Publishing Costs 213,370 209,655

698,545 638,548

2012 2011Schedule 14 € €Services

General ServicesDivisional/Biennial Delegate Conference 142,993 331,923 ICTU Biennial Conference - 46,037 Other Conferences 11,107 3,192 ICTU Affiliation Fee 599,186 595,379 Affiliation Fees 24,035 23,477 Other Affiliation Fees 102,667 89,657 Grants and Charitable Donations 400 9,437 NEC Costs 300,764 292,244 Promotional Expenses 176,302 96,235 Overseas 37,849 26,381 Divisional Executive Committee 26,686 19,310 Organisation Unit Expenses 398,257 353,890 Legal & Professional Fees 235,196 204,287 Retired Members’ Expenses 22,282 9,702 Projects - - Amortisation of Grant (58,662) (58,662)

2,019,062 2,042,489

2012 2011Schedule 15 € €Depreciation

Premises 294,516 295,094 Motor Cars 364,544 380,744 Furniture and Fittings 91,375 97,986 Computer & Office Equipment 164,505 187,491

914,940 961,315

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Appendix 2:

Staff Salaries

The following were the annual salaries paid to staff at the top of the salary scales at the 31st December 2012which were the same as of the 31st December 2011.

Grade: Annual Salary

National Executive Officer €115,635*

Divisional Organiser/Head of Department €84,142

Sector Organiser €66,290 plus an allowance of €5,604

Industrial Organiser €66,290

Assistant Industrial Organiser €54,601

Location Based Organiser €49,075

Maintenance Supervisor €49,075

Administrative Assistant €39,034

Porter/Maintenance €36,986

*The National Executive Officers salary was again reduced, to €108,384, following the Haddington RoadAgreement (HRA) when the Officers voluntarily applied theterms of the Agreement to their salaries.

SIPTU staff pension benefit at retirement is to be reducedby 20% and there will no longer be any provision for any element of pension increases.

Subsistence Allowances

The following schedule of allowances – approved by the Office of the Inspector of Taxes was agreed by theNational Executive Council applied to members, activists and staff while undertaking union business.

Dec 2011 Dec 2012For absences of 5 hours but less than 10 €13.71 €13.71For absences of 10 hours or more €33.61 €33.61Where overnight stay is required (maximum – subject to production of receipt) €89.25 €89.25

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