The European Commissioner for Social Affairs, Mr Padraig Flynn, has warned employers and unions that he will introduce new legislation for partnership in the workplace if they cannot agree voluntary guidelines.
Mr Flynn said that new forms of organisation were needed in the workplace if European industry was to be competitive. At the same time, workers' rights had to be protected. The way to do this was through both sides embracing partnership.
"In order to improve competitiveness and productivity we need to find the right balance between flexibility and security," Mr Flynn told a conference in Dublin yesterday on "Partnership for a New Organisation of Work".
It is the first of a series of national conferences in the EU, at which employer and trade union representatives will discuss a new Green Paper on partnership. Mr Flynn's announcement was generally welcomed by trade unionists, who are at one with him in wanting works councils introduced in Ireland for any firm employing more than 50 people.
At present, firms are obliged to set up consultative works councils only if they employ more than 1,000 people and have plants employing at least 150 people in two or more member-states.
Mr Flynn is encouraging unions and employers to use the Social Protocol to reach agreement on issues like works councils and other measures to make partnership more meaningful.
But in answer to a question from the general secretary of the Irish Congress of Trade Unions (ICTU), Mr Peter Cassells, the Commissioner confirmed that he would take the initiative in framing legislation if voluntary negotiations failed.
Later, the director-general of the Irish Business and Employers' Confederation (IBEC), Mr John Dunne, said companies recognised that they had to develop "mutually constructive employee relations", but expressed concern about over-regulation of industrial relations.
"The key to higher living standards and greater employment remains uniquely dependent on a healthy business environment. Legislators should be cautious about increasing costs and adding to the administrative burden already faced by employers," he said.
Statutorily-based mandatory representation for employees would not help develop real employee involvement in companies, he said. While he accepted the idea of gain-sharing for employees, this did not mean employees should expect to be paid for change. "I am absolutely opposed to paying for change. It is a totally negative concept that will destroy the economy," he said.
Nor did he feel that mandatory union recognition should be an essential component of partnership. It suited the culture of some companies, but not others.
Mr Cassells said unions were prepared to play their part, but at present the balance of power lay overwhelmingly with the owners. Someone who walked in off the street and bought shares in a company had a far greater say in how it was run than an employee who had worked there for 30 years.
But he added that people should not become obsessed about structures for partnership. More important was agreeing principles on which to proceed. He proposed these should be "acceptance of our interdependence, greater mutual respect, higher levels of trust and a willingness to share power and influence".
Conferences will be held in other EU member-states between now and November 21st, when a European summit on employment will be held in Luxembourg.