Sir, – The decision by Leo Varadkar to establish a review of collective bargaining and the right of the trade unions to organise in Ireland may seem surprising ("Workplace review could compel all employers to talk to unions", News, March 31st). However, Mr Varadkar, seen by some as being on the far right, may be wise. The share of national income going to workers in the West has been declining in recent decades – seen in stagnant wages in many countries for decades. The share going to the owners of capital, clearly seen in soaring profits for some tech and pharma companies, has grown so much that the system is in danger of collapsing.
Correspondingly, capital’s share has grown so much that money is no longer circulating freely in economies, illustrated by share buybacks, the lack of investment, and the vast amount of money circulating, reflected in zero interest rates.
This has meant less demand and employment.
Even the OECD, IMF and World Bank and ex-central bankers like Sir Mark Carney see the danger in the decline in labour’s share of national income. Trade unions’ right to organise and bargain on workers’ behalf is the best way to reduce growing market inequality. Ireland has the highest market inequality in the EU. By addressing this, the government takes some weight off the state’s tax and welfare system.
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Mr Varadkar is not alone – in the US, the House of Representatives legislated recently to remove the so-called “right to work” law which has greatly weakened US unions since the 1940s, although it has yet to get through the US Senate. This may reflect President Joe Biden’s strong trade union support and the near all-time high support for trade unions in the US at 65 per cent. – Yours, etc,
PAUL SWEENEY,
Milltown,
Dublin 6.