Union recognition would end investment, warns IBEC

INTRODUCING mandatory union recognition in the workplace will drive away any future investment by international companies, IBEC has warned.

The employers’ body made the claim yesterday, on the second day of talks on a new social partnership deal.

Unions said if an agreement is to be reached, new collective bargaining legislation must be introduced to shore up the gaps created by the Ryanair Supreme Court ruling.

However, IBEC said it would not allow that to happen. “We have told anyone that would listen we cannot concede anything remotely approaching statutory union recognition because we have a huge constituency of multinational companies in Ireland who we need to hold on to,” said director-general Turlough O’Sullivan.

“That is the only competitive advantage we have and, if we give that away, we are effectively saying goodbye to future investment in that sector.”

However, one union source pointed out that multinationals were investing heavily here before the Supreme Court ruling essentially nullified the Industrial Relations Acts of 2001 and 2004, and would continue to do so if the legislation was replaced.

Unite’s Jerry Shanahan, chairman of the private sector committee, said collective bargaining was a deal breaker. “We cannot continue without a legislative framework for collective bargaining.”

Both sides predict the debate over the agreement will continue until the weekend at the earliest.