THE Irish Business and Employers' Confederation has reacted angrily to a new SIPTU plan to seek pay rises in the private sector above those agreed in Partnership 2000.
The director general of IBEC, Mr John Dunne, said the union proposal called into question the future of social partnership. SIPTU appeared to be engaging in "a complete breach of an agreement freely entered into. It would be the most serious breach of faith and a dishonouring of commitments unparalleled in relationships between employers and trade unions in this country.
"It would also call into question the totality of the commitments made in Partnership 2000 and would raise serious doubts about the wisdom of entering into any further agreements with SIPTU."
In a briefing circular to shop stewards, SIPTU has urged them to seek more than the 2 per, cent allowed for at local bargaining level under Partnership 2000. The local increases should be for at least 4 per cent, by way of direct increase and profit or gain sharing schemes.
This would bring the total value of pay rises under the agreement to 11.25 per cent, rather than 9.25 per cent. SIPTU is targeting richer companies that have benefited most from wage restraint over the past decade.
The SIPTU president, Mr Jimmy Somers, strongly defended the union's stance. "There are opportunities to achieve more than 9.25 per cent under Partnership 2000 and we intend to exploit them to the full. We made that clear from the outset."
He pointed out that Chapter Nine of Partnership 2000 allows for various forms of employee involvement in gain sharing schemes. "Some companies don't like profit sharing and if they want to give something extra in pay we are prepared to negotiate on that.
"There is also provision for improvements in sick pay and pension schemes where they are out of line and nobody has suggested this would have to come out of the 9.25 per cent."
This is the second time SIPTU has told members to seek more than the 2 per cent available under the local bargaining clause of Partnership 2000. On the last occasion IBEC referred the matter to the Irish Congress of Trade Unions. Both sides then agreed on guidelines to help the Labour Relations Commission and Labour Court to arbitrate on pay disputes.
IBEC will probably adopt a similar approach this time, although it is a row that the ICTU would prefer to avoid.