In all the gloom caused by rising oil prices and slowing economic activity, the finding that last year was the best for industrial peace in more than three decades is something to be celebrated.
The positive news reflects a high degree of discipline within the workforce and, in spite of complaints by some employers about the ineffectiveness of national agreements, the outcome is a tribute to the social partnership model and to the mechanisms that have been put in place to resolve industrial problems.
The number of days lost through industrial disputes fell from 114,613 in 2001 to 21,257 last year, according to the Central Statistics Office. About half the days lost were in the manufacturing sector, with one quarter in health and social work. In all, there were 27 industrial disputes involving 43 firms and 3,553 workers, the lowest since 1970. The figures are all the more impressive because of the huge growth in the size of the economy and in the labour force during the intervening years.
The new National Agreement, "Sustaining Progress", comes into force in ten days and has been designed to continue that virtuous cycle of high output with minimum industrial disruption. Such discipline will be vital, in view of falling exports, rising oil prices and indications that a recovery in the global economy may be seriously delayed. As things stand, our inflation rate is a major cause for concern. Having added to the cost of living in the Budget through VAT increases and stealth taxes, the Coalition Government must now promote competition policy and moderate the 4 to 5 per cent inflation rate.
A steady deterioration in the unemployment situation almost certainly contributed to the industrial peace of 2002. Increasing job losses and shrinking output made everybody aware of the economy's fragility. The number of people at work here has now peaked, while the unemployment level has reached a three-year high. At the same time, the tourist industry and the industrial sector are fearful about the effects of an extended war in Iraq. "Sustaining Progress" provides trade unions and employers with a valuable breathing space and a degree of economic stability. And an opportunity to moderate house prices, one of the key factors pushing pay demands, exists by way of the Government's commitment to build 10,000 affordable houses.