THE Minister for Enterprise and Employment has been accused by the ICTU of undermining the Programme for Competitiveness and Work (PCW) and jeopardising the chances of a new national agreement.
In a strongly-worded letter to Mr Richard Bruton, Congress's general secretary, Mr Peter Cassells, said he was dismayed to learn from the European Commission that the Minister was blocking the adoption of a European company statute which would allow for greater consultation and information to be given to employees.
The letter is a major embarrassment for Mr Bruton and the Irish EU Presidency. The informal Social Affairs Council at Dublin Castle today is to hear submissions from European employer and trade union bodies on what they see as the priorities to be tackled during the next six months.
The Irish consensus model of social partnership has been held up as a model by, among others, the President of the Europeans Commission, Mr Jacques Santer. But Mr Cassells effectively accuses Mr Bruton of attempting to renege on the national agreements upon which that approach is based.
After outlining the commitment in the PCW to opportunities for consultation participation and information disclosure to employees, Mr Cassells went on: "You will understand our shock and dismay, therefore, when we were informed by the European Commission at a recent meeting that the Irish Minister for Enterprise and Employment is block.ing the adoption of the European company statute, which would allow companies to be incorporated at EU level, on the grounds that it includes a section providing information and consultation rights for employees.
"We also understand that you requested the European Commission not to press for the adoption. EU proposals information and consultation during the Irish presidency.
"Your approach of espousing the notion of social partnership at home, while blocking proposals in Brussels that would make this Ia concrete reality, is not acceptable.
"Irish workers have made an enormous contribution to recent improvements in competitiveness through their willingness to accept change and new production methods. This commitment to continuous change can only be sustained if your Department and the employers' organisation IBEC, accept that workers must be given a real say in the organisations which they have helped to
"Congress is seeking an assurance that you will drop your objections to the European, company statute and support the adoption of the EU communication on worker information and consultation during the Irish presidency. If your Department continues to oppose these consultative proposals, you will undermine the consensus approach which has been painstakingly built over the past 1O years and which has brought enormous benefits to the Irish economy."
The letter shows the deep suspicion that now exists in Congress about the Department's industrial relations agenda. Last year Mr Cassells clashed with Mr Bruton over the phasing-in of extra holiday leave for Irish workers. Mr Bruton initially adopted the IBEC position of deferring all extra leave until 1999, but he subsequently agreed to phase in the extra five days due under EU law from next year.
Ireland and Germany are in a minority in the EU in opposing the company statute. The Department is concerned about the effects that this and other proposals could have on the competitiveness of the Irish economy.
Last night, a spokesman for Mr Bruton declined to say if the Minister would change his stance. He said that the statute was being examined "in all its aspects, in the context of Mr Santer's Confidence Pact" (on Employment).
