Kenny rules out return to social partnership

TAOISEACH Enda Kenny has said the Government is “open and receptive” to dialogue with trade unions — but ruled out a return to the social partnership model of the past.

At the Irish Congress of Trade Unions biennial delegate conference in Killarney, Mr Kenny said it “may be that the social partnership agreements are not appropriate at this time” but that it was necessary to have dialogue with the unions as one of the key interests in civil society.

Asked if the trade union movement would enjoy the level of influence it had during decades of social partnership, which ended acrimoniously two years ago, he said: “I don’t see this as being a case of proportionate influence at all. I see this as being a challenge for the future which requires decisions to be made.”

ICTU general secretary David Begg welcomed the Taoiseach’s comments on social dialogue.

“The successful small countries of Europe have all achieved their success by having a type of social consultation which is embedded in the concept of a negotiated economy,” he said.

“Ireland has to look to its future as to the type of country it will be. It is impossible to achieve our long term objectives without an institutional framework in which real effective dialogue can take place on the basis that every party is treated with equal esteem.”

In the pursuit of that spirit of equality, Mr Begg offered the Taoiseach a method by which he could achieve a fairer society “overnight” — targeting the earnings of the higher paid.

“If we really want an egalitarian base in our economy, there is one way to handle high pay — through the tax system.

“The one group of people never discussed are captains of industry. The wages are the smallest part of the reward those people get. They get their annual bonus, which is equivalent to their wages. They get their pension which is huge and they have long term incentive plans which are quite enormous.

“Overnight you could have fairness at every wage level with a progressive tax system.”

Earlier Mr Kenny had committed to targeting those in society who were not contributing their fair share to the recovery.

“Those who neglect to play their part can expect no sympathy from this Government. That goes for those operating in sheltered sectors of the economy, in the professions and in other areas where extraordinarily high incomes have persisted even in this time of deep recession. That has to change and it will change.”