The New World of Work CIPD Annual Conference – May 2007

Presentation by Kieran Mulvey, Chief Executive Labour Relations Commission

“ HR in the New Workplace” A Practitioners Perspective

Social Partnership and “Towards 2016” - a mid term healthcheck

• A Radical and all embracing vision for economic and social development • “Cradle to Grave” Perspective and Solutions • We have gone from a 32 page plan in 1987 to a 139 page plan in 2007 • From 7 participating/representative bodies to 28

Social Partnership – An Academic Perspective

“The Irish social partnership model is distinctive and even unique in its longevity, scope and versatility; has contributed to economic recovery and prosperity and has become embedded or institutionalised in economic and political life through an increasingly dense and pervasive network model of organisation. The view that it has displaced or supplanted liberal democracy remains wide of the mark.” Professor Bill Roche “Developments in Industrial Relations and Human Resource Managemt in Ireland” ESRI Quarterly Economic Comment (Spring 2007)

The China Effect • For more than 15 years Chinese exports have grown by more than 20% per annum • Over the past 25 years Chinese exports and imports have each grown from 1% of the world’s total to more than 6% • In 1980 the share of trade (exports plus imports) in China’s GDP was 15%; in 2005 it will exceed 70% • The United States is the only continental economy ever to have matched China’s impact on the world economy • Huge countries formerly closed have entered the world system

• • • • China has redefined communism to indulge markets and trade… India has decided that openness is better than protection The former Soviet Union has repudiated Communism Its former satellites in eastern Europe have joined the EU “There is a new sense of security among multinationals that they could and should take advantage of low wages, low transport and communication costs and low tariffs. A successful commercial strategy now necessitates developing global capacities, a global reputation and global brands”. Will Hutton – “The Writing on the Wall – China and the West in the 21 st Century”.

Current Challenges to “Towards 2016”

• The “drift” in competitiveness, inflation, productivity and interest rates • The imperative of reform/delivery in all state sectors/services • Dispute resolution and “Benchmarking”

Current Challenge to “Towards 2016”

• Retention of Employment/Industrial Investment/Infrastructural Delivery • Integration of migrant workers • Legalisation of the Employment Relationship and Dispute Resolution Procedures

Social Partnership – a Business Perspective

“ While levels of support for Social Partnership are still high, a downturn in support is beginning to emerge (a decrease of 10% to 72% since 2006)

CEO Pulse Survey 2007 Price WaterhouseCoopers

At this point Social Partnership has become to a certain extent “uncriticisable”; involving as it does such a diversity of groupings. However, with cost competitive pressures increasing monthly, albeit still hidden somewhat by the strength of the economy, one wonders whether the survey results may just be the first signs of business beginning to question whether Social Partnership, as it is currently configured, makes bottom line sense for Irish Business. Only time will tell.” CEO Pulse Survey 2007 PriceWaterHouseCoopers

”Discussions and debate on strategy must quickly give way to collective action by all the stakeholders. The creation of a new dynamic knowledge economy requires not only vision but determined leadership from within, to take bold steps, make hard choices and invest in the future.” “ Retuning the Growth Engine” American Chamber of Commerce Ireland - 2007

Different Economies /Different Human Resource Strategies

• High tech /High yield Multinationals • Mobile/ “Backroom” Services • Diminishing Traditional Manufacturing Services • State Enterprises • Expanding Public Services • SME Sector • Construction and Allied Industries

The Way Ahead

• Concerted review of “T16” • Inflation, productivity, competitivness • Compliant Employment Rights Strategy • Remove infrastructural bottlenecks • Develop enterprise human resource strategies – employees as assets – • Re-assessment of public policy goals • Managing Migration

NESC – Managing Migration In Ireland – A Social and Economic Analysis – Sept. 2006

• Ireland has largely benefited from immigration in recent years. The extent to which Ireland will continue to benefit from immigration will depend on a broad range of factors including economic conditions and the socio-economic profile of migrants. Much will depend on policy and how migration is managed. • Immigration did not create the Irish economic miracle, but, properly managed, migration can sustain Ireland’s economic growth and generate many other benefits. Immigarion coupled with successful integration strategies is likely to make Irish society more tolerant, and, ultimately, more resilient and adaptive. • It should be remembered that it is good to have the “problem” of managing immigration, since immigration reflects the fact that foreigners want to come and work, or settle in a country.

Irish and Non-Irish employment levels by sector Q4 2006 (000s) Sector

Agriculture

Irish nationals

111.0

Non-Irish nationals

4.9

Total

115.8

Non-Irish as % of total 4%

Production Industries Construction 256.7

243.9

35.3

37.7

292.1

281.6

12% 13%

27.6

288.3

10%

Wholesale & Retail Trade Hotels & Restaurants Transport & Communications Financial & business services Public Admin.

260.7

83.8

107.2

251.2

103.9

Education Health Other Services 132.7

190.5

108.9

32.8

9.9

26.7

1.2

6.9

19.7

12.7

116.6

117.2

278.0

105.1

139.6

210.2

121.6

28% 8% 10% 1% 5% 9% 10%

Social Partnership and “Towards 2016” – a mid term healthcheck

This Process needs to adjust in a fast changing domestic and global economy !

Is this realistic in the context of “realpolitik” and domestic policy formation ?

Summary

• “Towards 2016” needs to be revisited with agreement on priority issues.

• The new “Programme for Government” will clearly impact on Industrial Relations.

• Review of Decentralisation and public service delivery objectives.

• Increased legalisation of employment and contractual relations.

• Need to maximise human resources • Employees as assest • Learning training initiatives