Connect June 2010

SUMMER 2010 VOL: 12

NO. 2

CWU 5th Biennial Conference 2010 – Supporting a Better, Fairer Way

Gerry Curic New President

Submission into the investigation into the causes of the banking crisis

www.fairhotels.ie

Editorial

Dear Colleague,

Contents Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Organising Update . . . . . . . . . . . . . . . . . . . . . . . .

Telecoms Update . . . . . . . . . . . . . . . . . . . . . . . . . .

TNT Moves Towards 3-Day Delivery . . . . . . . . . . .

Save, Sail, Enjoy norfolkline.com . . . . . . . . . . . . .

Gerry Cuirc, New President of the CWU . . . . . . . .

ICTU Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Education Update . . . . . . . . . . . . . . . . . . . . . . . . .

ICTU Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5th Biennial Conference Photographs . . . . . . . . . .

Postal Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . anpost.ie - Online Shopping . . . . . . . . . . . . . . . . .

UNI Global Union ICTS Bulletin . . . . . . . . . . . . . . .

UNI Global Union P&L Bulletin . . . . . . . . . . . . . . .

CWU Band . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CWU Medical Fund . . . . . . . . . . . . . . . . . . . . . . . .

Halligan Insurances . . . . . . . . . . . . . . . . . . . . . . . .

ESCCU Credit Union . . . . . . . . . . . . . . . . . . . . . . .

Health & Safety Update . . . . . . . . . . . . . . . . . . . . .

Book Unionsised Hotels on new website www.fairhotels.ie . . . . . . . . . . . . . . . . . . . . . . .

FM Downes & Co Travel Insurance . . . . . . . . . . . .

CWU People . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Book Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CWU Membership Application Form . . . . . . . . . . .

2-3 4-5 6-7 8 8 9 10-26 27 28-31 32-35 36-40 41 42-45 46-49 50 50 51 52 53-55

Much of this edition of your Connect magazine is taken up with the activities at our recent Conference in Wexford.

It was extremely heartening to be part of that Conference with almost four hundred and fifty delegates from throughout the Union arguing and debating Union policy across a wide range of issues through many different companies. I genuinely believe that our Conference is the embodiment of true democracy which allows every member to partake in their Branch AGM’s and to elect delegates on their behalf to attend that Conference. Every member also has the opportunity to use the AGMs to propose Motions and Amendments to Rule, which can then be taken to Conference by your elected delegates and debated and decided upon by representatives of every member within the Union. Those Motions and Amendments to Rule then form the policy and the Constitution of your Union.

The theme of this year’s Conference was in support of “A Better, Fairer Way” the campaign run by the Irish Congress of Trade Unions last year against the imposition of unfair cuts by government on ordinary working people, social welfare recipients and public servants in particular. There was undoubtedly a palpable sense of anger at the Conference as delegates expressed their frustration at the lack of accountability by the people responsible for bringing the Irish economy to its knees and indeed the lack of accountability of government ministers who oversaw that collapse. It now seems obvious that the

56 57 58-65 66 67-68

Editor: Steve Fitzpatrick Sub-Editor: Imelda Wall Issued by: Communications Workers’ Union, 575 North Circular Road, Dublin 1.

Telephone: 8663000 and Fax: 8663099 E-mail: info@cwu.ie Incorporating the PTWU Journal, THE RELAY and THE COMMUNICATIONS WORKER The opinions expressed by contributors are not necessarily those of the CWU.

Photographs: John Chaney Printed by Mahons Printing Works, Dublin.

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Fianna Fáil party, propped up by the Green Party, will do all in its power to ensure that there is no proper public investigations into the circumstances surrounding the economic collapse, and one can only assume that the lack of an investigation is linked to the fact that they are afraid that the finger at some stage will point directly at them. It was against that background that the Conference decided that it would have a ballot of all members to give the NEC the authority to set up a Political Fund. It was the view at Conference that this fund should be set up in order to allow the Union to fight for your interests through the political arena as well as the industrial relations arena. It is now an accepted fact that most of the decisions that affect the daily lives of you, your family and your communities are political decisions and it is hoped Steve Fitzpatrick, that the membership will support the Conference view that we General Secretary, CWU need to arm the Union to more effectively fight on a political basis. We must get to the stage where we are in a position to convince political parties of the need to take into account our Union policies within the various companies where we have representation.

Our failure to do so will ultimately lead to negative impacts on each and every one of our members.

As is usual at our Conference, we had a number of guests both national and international who assisted our debates with their experiences in their own countries and spheres. We had guests from both the United Kingdom and Spain, who outlined the impact of the world economic downturn on their economies and the manner in which they were attempting to deal with the fallout on working people. We also had a speaker from TASC, Ms Paula Clancy, who outlined an alternative economic view of Ireland’s economic woes and how they could be best dealt with on a fairer basis. We once again also were addressed by Mr David Begg, General Secretary, ICTU, and his speech to our Conference is available to listen to on our website www.cwu.ie. David was also presented with an honorary life-long membership of the Communications Workers’ Union, only the second member of the Union to have achieved that award. The first person to achieve the award was Toddy O’Sullivan, on his appointment as a junior minister in the last coalition government. It is the view of the Executive that this award should only be presented to Union members who have distinguished themselves outside of the CWU, and who as a result, have brought credit to the name of the Union. There is no doubt that David more than fulfils those criteria. He has since written to the Executive expressing his gratitude and pride in being granted the award.

The speech of the outgoing President, Mr Charlie Kelly, is also available on the CWU website. I would urge people to read his speech carefully, as it clearly outlines the views of your National Executive Council and gives you a flavour of the challenges that lie ahead.

As we approach the summer, there seems to be no end to the dreadful economic news which we have been suffering from for the last eighteen months. Indeed, the impact on many of our members deepens on a daily basis and the most striking thing is that, in one of the darkest moments in our history, there is no sign of any leadership which would set us in a direction that might take us out of this mess. I believe sincerely that it is possible to rescue the situation but only when we have been given a clear direction which gives hope for the future, through getting people back to work and through spreading the pain in a better, fairer way.

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Youth Training

Top Row L-R: Trevor Mackin, Séamas Murphy, Hannah Buckley, Sarah Creedon, Eric Partridge, Natalie McDonnell Bottom Row L-R: Meg Kelly, Caroline Corcoran, Dave Gibney, Nicola McKenna, Jane Heelan

Youth Committee As announced in our previous issue of Connect, an event was held in Head Office for young members interested in becoming more active in the Union. This event was organised with existing members of the Youth Action Group with a view to encouraging more activism and involvement throughout the membership.

The event was well attended with a good mix of young members, some already involved and new faces from various sectors of the Union. Aware of the different levels of experience and training, the schedule for the day was carefully planned to ensure that all those who attended would benefit from the event.

The first half of the day was spent covering topics including grievance and disciplinary procedures and Union structure. The later half of the day was given over to discussion on setting out a ‘Youth Action Plan’. This section of the day was particularly interesting with young members

debating issues that they felt affected them and deciding on the direction the youth group should take within the Union.

Some topics that were raised included future campaigns, the role of the Youth Committee within the structure of the Union, ongoing training for young members and better cooperation with other Unions and youth groups. To reflect the new direction and energy within the group, it was decided to rename the group the ‘Youth Committee’ of the CWU. All attendees agreed that the event was a success and a number of promising new activists were uncovered. The group decided that it was important for the Youth Committee to hold an AGM-style meeting to allow for elections for chair and vice-chair positions and to finalise plans for the group. This meeting is currently being organised.

Any young members interested in becoming involved, or who are curious about the role of the Youth Committee should feel free to contact head office for more information.

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level in several hearings due to the positive negotiations at the LRC. Due to this increased presence in Global Telesales and the unwavering support of our activists within the company, our membership in GTS continues to grow.

The organisers will be revisiting the site and leafleting employees of GTS in the near future to support the work of their colleagues in recruiting new members.

Dell refusing to engage with CWU Dell Ireland continues to reject any attempts to engage with their employees collectively on the issue of recent changes to their terms and conditions and the company also maintains its position on refusing to allow their employees to avail of Trade Union representation at individual hearings.

Having referred the issue to the Labour Relations Commission, the Union received communication from the company’s legal advisers that it would not attend unless certain information was furnished by the Union on its membership in Dell. This action is a result of a recent finding in the Supreme Court and it creates new challenges for the Union in its attempts to bring reluctant companies to the negotiating table.

As part of the ongoing effort to resolve this issue, a meeting was arranged in Cherrywood for the affected employees. There was a positive attendance and the members raised several questions which were addressed at the meeting. It is hoped that this meeting will lead to more of the affected employees joining with their colleagues to tackle this continuing problem.

Website Development Having been tasked with updating the Union’s two websites, www.cwu.ie and www.callcentreunion.ie, the Organising department engaged the services of two companies – Language and Fusio – who work together to design and build modern, exciting websites. Work also continues on updating and creating new content for the sites.

Various designs have been proposed and are being finetuned with the most recent of these being presented to delegates at Conference in Wexford. There was a very positive response to this stage of the design and we hope that the final version will be available to members and potential members in the coming months.

The organisers would like to thank the outgoing Organising Committee for their support and assistance in getting the project to this stage.

Change at Barclaycard On the 1st May, the majority of Barclaycard’s employees in its call centre in Sandyford transferred to Hewlett-Packard (HP) who are to take over the activities in the centre. HP will run the existing call centre, collections and card operations activities on behalf of Barclays from the current building in Sandyford. However, a small number of employees are to remain with Barclaycard for a short period before being made redundant.

While HP are more widely known as a technology company, they are also the third largest 3rd party credit card processor worldwide.

It is planned that the call centre operation will continue for approximately 12 months and will then close, with services being transferred to Sao Paolo, Brazil. Remaining employees in Sandyford will be offered redundancy terms at this stage.

The CWU is hopeful that HP will honour its employees’ requests for Trade Union representation and as such demonstrate that it is a company that respects its workers entitlements, unlike its predecessor.

Global Telesales Following from the recent successes at the LRC, we are currently awaiting a date for a Labour Court hearing on one outstanding issue in Global Telesales - the matter of salary bands.

Despite the company’s refusal to recognise our members’ entitlement to collective bargaining and recognition, the Union has succeeded in representing staff at an individual

As mentioned in the previous journal, as part of our organising strategy pictured is the latest information leaflet to encourage new members into the Union and support our existing activists.

Remember its your Union and your voice!

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Telecoms Update Conscious that it is falling behind its economic competitors such as the US and Asia when it comes to eCommunications services and infrastructure, the EU has again examined its strategy in this area and redeveloped the i2020 action plan that it launched in 2005 which was designed to develop the digital economy in Europe so that it would become a world leader whilst avoiding a digital divide between regions within the EU. The revised plan from Kroes aims “to put the interests of Europe’s citizens and businesses at the forefront of the digital revolution and maximise the potential of Information and Communications Technologies (ICTs) to advance job creation, sustainability and social inclusion”. The revised plan will also include a proposal on high-speed networks very soon.

The following is a list of the targets that were unveiled in the plan:

Telecoms Regulation A consultation process organised by the European Commission which is designed to examine whether broadband should be included as part of the universal service obligation or not has just closed. Union Network International (UNI) has made a submission on behalf of the European telecoms Unions which fully reflects the CWU position on the provision of or lack of broadband in rural areas.

The Commission consultation document explicitly asks ‘can the market be relied on to meet demand for basic ecommunications services from all sections of society, thereby ensuring social inclusiveness?’

As we know from our experience of broadband provision, not to even mention high-speed broadband, the market will not meet the needs of every citizen, especially in the absence of a clear government strategic vision that is supported by a Regulator with a long term view of the market. The submission repeatedly underlines the importance of universal broadband provision in relation to social cohesion, competitiveness and economic development and job creation. All points which the CWU has made time and again to the relevant authorities here at home. Given that there appears to be no strategic vision from government on developing a national high-speed broadband network, despite their now hollow sounding commitment to a socalled knowledge economy, it appears that we will depend on the European Commission to force their hand on this.

As noted in the UNI submission, including broadband as part of the universal service will assist countries like Ireland.

The extension of universal service to broadband could compensate for the lack of national plans for broadband deployment, which suffer from multiple problems (lack of ambition, undesirable limitations or insufficient budgets).

The UNI paper is clearly of the view that governments have a role to play in ensuring universal broadband is available and in terms of who pays for it there are a number of suggestions. The state should channel any funds it raises from spectrum auctions back into this kind of infrastructure and there is also a suggestion that content providers e.g.

Google, should make a contribution to these costs along with mobile phone companies; both of whom will stand to profit from enhanced infrastructural investment.

The full submission can be found on www.cwu.ie

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Ultra-fast broadband by 2020: 50% of European households should have subscriptions above 100Mbps (no baseline).

Promoting eCommerce: 50% of the population should be buying online by 2015.

Cross-border eCommerce: 20% of the population should be buying across borders online by 2015.

Single market for telecoms services: the difference between roaming and national tariffs should approach zero by 2015.

ICT R&D increase: Double public investment to €11 billion.

Wear Your Union Badge

EU unveils five-year digital economy plan European Commission Vice-President Neelie Kroes unveiled her strategy to create a “virtuous and selfreplicating digital economy” on 19th May. The five-year plan concentrates on infrastructure for high-speed internet and fostering a borderless market for online music and film.

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Telecoms Update

Photo: VIRGIN

A green solution that the minister might approve of for our broadband problems (and as our lads in BT have spotted – a whole new recruitment opportunity!)

Ferrets key to bridging the digital divide between cities and rural areas Specially trained ferrets are being used to deliver broadband to rural areas following groundbreaking techniques used by an internet provider.

levy of every phone-line in the country has been proposed to cover costs.

Currently around two million homes, one in ten households, are without broadband.

Jon James, director of broadband for Virgin Media, said: “For hundreds of years, ferrets have helped humans in various jobs. Our decision to use them is due to their strong nesting instinct, their long, lean build and inquisitive nature, and for their ability to get down holes. We initially kept the trial low-key as we wanted to assess how well the ferrets fitted into our operations before revealing this enterprising scheme.”

Ferrets have been used to run cables through hard-toreach places in the past.

Events organisers in London used them to run television and sound cables outside Buckingham Palace for the wedding of the Prince of Wales and the late Diana, Princess of Wales.

A similar system was used to lay the cables for televised coverage for the Party in the Park concert in Greenwich at the Millennium.

With their long lean build ferrets have historically been sent down holes to chase rodents and rabbits out of their burrows.

Caesar Augustus is thought to have sent ferrets to the Balearic Islands to control the rabbit plagues in 6BC.

Published: 7:00AM BST 01 Apr 2010

Ferrets have been used by Virgin Media for over a year to help lay cables for its broadband service.

The animals have been used by Virgin Media for over a year to help lay cables for its broadband service, the company has disclosed.

The ferrets wear jackets fitted with a microchip which is able to analyse any breaks or damage in the underground network.

The development could help increase broadband in current Internet “dead zones”, giving access to inaccessible places, and helping bridge the ‘digital divide’.

Currently most broadband technologies are limited to short distances from central switching offices so most companies focus on cities to keep costs down.

The government has set a target of universal broadband access of 2Mbps by 2012. Analysts estimate that the cost of running fibre optic cables to all parts of the country could cost anywhere between £10 billion and £25 billion. A 50p 7

TNT Moves Towards 3-Day Delivery TNT plans to cut 11,000 employees from its Dutch mail operations in the next couple of years, replacing them with part-time workers and franchisees. It will also move to a three-day-per-week delivery service in an asset-free mail network operated largely through subcontractors.

That was the vision described at the European Postal Services Conference in Brussels by Pieter Kunz, Managing Director of TNT’s European Mail Networks.

“In the Netherlands, we will make 11,000 people redundant in the next couple of years. They will be replaced with part-timers and franchisees,” Mr. Kunz said. Mail collection and delivery will be outsourced, and TNT will become “managers of mail”.

Operations will be reorganised into deliveries on three days a week in the next two to three years, according to Mr. Kunz. “If politicians want six days a week, then they will have to finance it. As a company we will not finance

it,” he declared. He said the Universal Service Obligation was “a kind of Jurassic Park and we should get rid of it”.

TNT’s plans are the result of forecasts that mail volumes could drop by as much as 50 percent in the next five years. Mr. Kunz’s comments come in the wake of the collective labour agreement with Unions that paves the way for restructuring.

TNT has been franchising its post office network and will complete the closure of its own network next year.

Outside the Netherlands, TNT will focus its mail activity on three markets: Germany, Italy and the United Kingdom, where it will also restructure and seek partners.

At the same time, the company is developing its ecommerce activities to offer a full back office, fulfilment and delivery service to online traders. The strategic move is based on a current growth rate of ten percent in businessto-consumer parcels in the Netherlands.

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Gerry Cuirc, New President of the CWU

by Joe Moore, Secretary, CWU. This year’s conference saw the election of Gerry Cuirc as president of the CWU. This was an historic event for the Cork District Branch. It was the first time that one of our members has held the highest elected position in the Union.

Gerry has been a Union activist all of his working life, as was his father, who served on the executive of the POWU and played a leading role in the 1979 strike. Gerry began his career in the old Bandon branch of the IPOEU where he served as secretary. His tenure in this role coincided with the ‘78 strike. During this dispute senior district managers attempted to undermine us by scabbing. Due to the actions of the Bandon branch this activity soon ended.

When Gerry’s work meant he had to transfer from Bandon to Churchfield, he became a member of the Cork No.2 Section of the newly constituted Cork District Branch. He served as both chairperson and secretary of the section and has held the position of branch chairperson since 1999. At this time he was also elected to the NEC. During the past decade, Gerry has played a leading role in all major negotiations with the company and was recently nominated by the Executive as a member of the ESOP trust.

The branch is confident that Gerry will successfully lead the Union in what will be a difficult two year period for both Eircom and An Post. I would like to take this opportunity on behalf of the branch to wish him the best of luck in the difficult time ahead.

Pictured front row, l to r: John Curtin, Tom Sheehan, Joe Moore, Gerry Cuirc and John Long.

Pictured back row, l to r: Donal McCarthy, Finnian O’Sullivan, Alec Rose and Alfie Considine.

Old Friends ~ Gerry with Mick McCarthy

Gerry Chairs the eComms Conference

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President and Vice President Gerry Cuirc and Cormac O’Dalaigh

ICTU Update

ICTU Biennial Women’s Conference 2010 “Building Equality into Recovery”

position to provide the appropriate support for their members.

Therefore Conference calls on Congress to campaign for a programme on mental health awareness in workplaces and to develop a strategic approach to this issue to be adopted by affiliated Trade Unions.

Approximately 200 delegates attended the ICTU Biennial Women’s Conference, which was held in Belfast in March.

The CWU was represented by Carol Scheffer, National Officer; Susan Casey, NEC; and Ann-Marie Fadden, Eircom Galway district. The theme of the Conference was “Building Equality into Recovery” with motions debated in the areas of Women in Society, Women in Trade Unions and Women in Work. The Conference was held on the eve of the 102nd International Women’s Day, with Jack O’Connor, Congress President, opening the Conference. Congress Assistant General Secretary, Sally Anne Kinihan gave a presentation on the participation of women in the labour market with a focus on the gender pay gap. She also emphasised the importance of networking and commended the Women at Work Skillnet for their activities in upskilling women workers.

The motion was proposed by Carol Scheffer and seconded by the IBOA. Commenting on the motion, she indicated that mental health in workplaces can no longer be treated as a taboo area and needs a strategic approach so that Trade Union representatives can provide the appropriate support towards the mental well-being of members. She also stated that mental well-being is just as important as physical wellbeing and must get the same recognition in employments.

The motion was unanimously backed by the Conference.

The Importance of Mental Health

Trafficking and Discrimination

The CWU lodged a motion with Conference on the importance of mental health. The motion read as follows:

Monica O’Connor, author of “Sex Trafficking Report” for ICI, gave an informative account on the migration and trafficking of women, with the vast majority coming from poor and impoverished regions. Her presentation highlighted that the conducive environment for trafficking ranges from those fleeing from forced marriages to extreme poverty, war and violence.

Eileen Lavery from the Equality Commission in Northern Ireland gave a presentation on the types of discrimination cases being presented to the Commission ranging from equal pay claims to maternity-related discrimination.

Conference recognises the importance of addressing depression and various mental health problems in workplaces. According to AWARE, a voluntary organisation providing support through depression, women are three to four times more likely than men to have depression.

Nonetheless, depression and mental health issues in general are still treated with reservation in some places of employment. Now more than ever there is a need to develop support mechanisms to enhance mental well being at work.

Accordingly, it is imperative that Trade Unions are in a 10

ICTU Update

Joint Disability Committee Seminar Trade Unions – Mental Health in the Workplace

recent study into mental health attitudes A seminar was held on behalf of the in Ireland found that while 85% of Joint Disability Committees both North people in Ireland feel that mental health and South in the Clarion Hotel Dublin problems can affect anyone, 62% would Airport on April 23rd & 24th, the theme not want anyone to know if they had a of the conference being Trade Unions mental health problem. This translates and mental heath in the workplace. into tens of thousands of people at work Danny Long, Limerick District Branch facing ignorance, prejudice and stigma attended on behalf of the CWU. The because of their mental health seminar was introduced by Deirdre problems”.

O’Connor who is the Chair of the ICTU Mr Begg indicated that there was a need Disability Committee. Ms O’Connor to strengthen our commitment to an made a very interesting speech on effective equality infrastructure to mental health as seen as a hidden combat discrimination against people disability. She emphasised that the with disabilities. His closing comment issues of stigma and perception are very was that “Equality applies in all timesreal for people with mental health good and bad” difficulties in the workplace and that Mary Van Lieshout of the National there was a need to prevent mental David Begg addresses the ICTU Disability Authority made a health difficulties particularly those Biennial Women’s Conference. presentation on attitudes to mental arising from stress. health and Peter Purton from the TUC outlined the UK Ms O’Connor indicated that it was intended to publish experience of the issue. Seamus Mac Alastiar from Spees guidelines in relation to mental health in the workplace and Community Counselling also addressed the seminar. On the to combine this work with the newly established ICTU 24th, there were presentations from Jane Clare, Disability commission on violence, stress and bullying in the Champions Officer and Paul Oakes, Equality Commission. workplace. The CWU is also represented on this The seminar was concluded with a workshop commission. on developing a work plan on the area of mental health.

“Equality applies in all timesFinally, ICTU is now working with “See good and bad” Change - the National Mental Health Stigma David Begg, General Secretary, ICTU then Reduction Partnership. The partnership is welcomed the attendees. He stated that “as working positively to change attitudes and surveys have consistently shown, mental behaviour so that there is a reduction of stigma health remains one of the most stigmatised and discrimination associated with mental areas in our society and workplaces today. The health problems and to ensure that everyone Irish Mental Health Coalition estimates that enjoys the same rights on an equal basis”.

Danny Long, CWU one in four people in Ireland will have a mental For more information please see their website Equality Committee health problem at some time in their lives. A www.seechange.ie 11

ICTU Update

Submission to the Investigation into the Causes of the Banking Crisis Irish Congress of Trade Unions – May 2010

Recently in the media the Taoiseach came out explaining about how his Government could not be held responsible for our economic woes on the basis no one else was aware of the dangers. Therefore it is on this basis that I attach the following Congress documents showing in fact that the government had been warned of the crisis concerning the Country, but the Taoiseach chose not to listen.

Thirdly, we opposed the use of ‘tax breaks’ (or tax expenditures) for property investment.

Fourth, Congress said the government should end ‘economic growth for growth’s sake’ and refocus on integrated economic and social development.

Fifth, Congress and its member Unions were strongly critical of deregulation and privatisation.

Sixth, Congress was also strongly critical of the behaviour of banks and the financial services sector, at a time when most commentators seemed utterly in thrall to them. This was particularly true, with regard to the explosion in top executive pay, which was driven by perverse, short term incentives that encouraged reckless lending by banks and the now deeply humbled Masters of the Universe.

More recently, Congress opposed the unattainable three year period of recovery to reduce the deficit as “too brutal and too quick.” Government insisted they were correct, but were forced to revise their target when the EU Commission ‘suggested’ it be extended to four years.

When the cost of the Anglo bailout is included, our deficit stands at almost 15% of GDP – itself a shocking commentary on government policy during the boom.

“Workers do not, for one minute, believe business people when they appeal for moderation in the name of competitiveness. Most particularly they do not listen to bankers - nor should they, having regard to the disgraceful record of the banks over the last few years.”

David Begg, Congress General Secretary, 2002 Introduction Congress took a very contrary view to the liberal economic orthodoxy of rational expectations and free market fundamentalism that was dominant in Ireland from the mid 1990s. This policy was promoted primarily by the now defunct Progressive Democrats and driven within the coalition government by PD leader Mary Harney and former Minister for Finance Mr McCreevy. And despite the global collapse of the free market model in 2008 – coinciding with the demise of the Progressive Democrats – this outmoded ideology still shapes government policy, particularly its response to the current crisis.

Over the years of the boom, Congress advanced a competing vision for this country and argued that the low tax, low regulation model was unsustainable. We opposed the thrust and principle of government policy in several key areas: Firstly, Congress opposed the pro-cyclical polices of tax cuts during the boom and sought certain, higher direct taxes.

Secondly, we opposed ‘tax shifting’ – changing the structure of the tax system – whereby direct taxes were reduced and we became dependent on potentially unstable consumption taxes.

Background In the early years of Social Partnership - from 1987 to the early 1990s - Congress did trade wage moderation for tax concessions. But that policy ceased in the mid 90s, as the economy picked up. Instead, we sought improvements in the ‘social wage’: communal public services, education, health, public transport, schools etc.

We did not seek deep tax cuts in the boom and we consistently opposed taxation policies that we now know fuelled the boom and exacerbated the bust.

But throughout those years, it was only the voice of the free marketeers that was heard. This lack of diversity of opinion contributed to the depth of this crash. A crash we would have had, but ours is one of the worst in the developed world, with an unheard of collapse of 20% in GNP between 2007 and 2010. It is now impacting most on the poorest, exacerbated by deliberate government policy.

Our voice was heard, but seldom heeded. In Social Partnership we were provided with opportunities to express 12

ICTU Update our contrary views on privatisation, deregulation, taxcutting, pro-cyclical economics and excessive remuneration.

We recall people listening, but with wry, tolerant smiles.

One lesson of the Great Crash is that it is incumbent on us now to literally institutionalise dissenting voices so that they may give pause to a repeat of the brash, irrational exuberance that has broken our economy.

If taxes had not been cut so much from 1998/99 onwards, the public finances would be more stable today. We would not be borrowing so much for day-to-day spending and for huge corporate welfare for the banks. Cutting taxes during a boom, especially from 2001 onwards boosted private sector spending (accelerated by low interest rates) and so inflated the bubble.

Had Mr McCreevy left taxes at their 1999 or 2000 levels1 the bust would have been far smaller.

A number of economists and other commentators have, over the years, wrongly asserted that Congress and Trade Unions sought to narrow the tax base and were supporters of the property boom. This is untrue. Some may have seen successive Social Partnership agreements as our endorsement of government policies. The two are very different.

The erroneous commentators included an Irish Times editorial in March 2007, columnists such as Stephen Collins, Garrett Fitzgerald, and academics Barry2 and Haughton3 amongst others. For example, Garrett Fitzgerald4 asserted that populist tax cutting was “pursued without any serious criticism or even comment by most economists – or indeed

by Trade Unions.”

These errors may have originated because, under early Social Partnership, there was a reduction in then very high income taxes5 in return for wage moderation. But from 1995/96 on, Congress sought tax adjustments to eliminate ‘fiscal drag’ (impact of inflation and wage movements). We were also keen to get those on low incomes out of the income tax net and in later years to stop taxing average incomes at the top rate.

Some commentators assumed or asserted that Congress had looked for tax cuts every year since the later 1980s. In fact, we were vocal on maintaining the higher rate on income, the 20% Corporation Tax rate (which was only reduced from that rate in 2002 and then to 16%) and higher capital taxes.

1.

made income taxes much fairer. We were the driving force in their introduction arising from the report of the Expert Working Group on Tax Credits. We consistently and vociferously opposed the reduction in the top rate of income tax,8 arguing for wider bands and increased allowances/credits, in line with movements in wages. We said that the top rate should only apply to high earners, not those just above the average industrial wage. Those were the hallmarks of our pre-budget submissions over the past fifteen or so years.

Congress was against higher taxes on consumption. Trade Unions have also long campaigned against tax breaks for business, unless they are costed and the benefits clearly demonstrated. This has rarely been done by the Department of Finance and then only ex post.

There were large budget surpluses (current account) for no less than ten years. That was in spite of cuts in income tax, in corporation tax, in capital gains taxes and in inheritance tax. In fact, the aggregate surpluses on the current account totalled a staggering €58bn (see chart below).

Of course, the tax base had been shifted to spending taxes and developed an unsustainable dependence on stamp duty.

Thus it was to collapse in 2008, when the property bubble finally burst.

In a letter to Mr McCreevy, then Minister for Finance (February 13, 2004) David Begg, General Secretary of Congress, said: “Your overall policy is to reduce taxes on companies and on individuals, but also to reduce and close allowances and exemptions…….And you did reduce tax rates over time.”

But Mr Begg went on to point out that in the recent Finance Bill “you retained many of the tax breaks, especially for property.”

He said the shift to consumption/ administered taxes was driving up inflation and had contributed to a rise in the CPI, over one-third of which was caused by indirect taxes.9 In a response (February 18), Mr McCreevy was unapologetic: “I have consistently said that my priority is direct tax reduction to reward effort and enterprise and to let the taxpayer keep more of their earnings in their pockets.

This means that indirect taxation must be maintained to fund public services.” (our italics) There were a number of obvious problems with this approach. Firstly and most destructively, the Minister was cutting direct taxes during a domestically generated boom. In other words, he was stimulating spending (property investment) and thus inflating the bubble. Most serious economists,10 were aware of this, if unaware of the strong and ultimately more dangerous link to the banking system.

Secondly, the Minister appeared to be aware that tax loopholes or ‘incentives’ as beneficiaries call them, can be detrimental. He said that he had terminated several reliefs including “seaside resort relief - a very costly relief introduced by my predecessor.” And he pointed out that:

Cutting Taxes in a Boom

Congress sought major improvements in the provision of public services, education, health and investment in our poor infrastructure, public transport, etc. It was obvious that it could not happen unless taxes were maintained at a reasonable level. Almost alone, we opposed the ‘low tax economy’ - promoted by the Progressive Democrats especially low taxes on profits and (high) incomes.6 Over the years, Congress and its member Unions, sought and achieved tax credits, instead of tax allowances,7 which 13

ICTU Update “The one sure way to generate a tax code riddled with tax breaks is to pursue high nominal rates.”

Yet as the record shows, he and his successors, persisted with these incentives, especially for property. As Finance Minister, Brian Cowen took tentative steps to abolish many of them, but only over a very long time frame. Even in the 2009 Crisis Budget, his government insisted on retaining major tax subsidies for ‘private’ hospital properties, until 2013!

Thirdly, Minister McCreevy was engaged in ‘tax shifting’, which left us more reliant on less stable forms of revenue.

When the crash came, a large proportion of these taxes disappeared overnight.

expensive.” 11 He then listed many other tax breaks to investors and called for higher taxes, overall, pointing out that Ireland is “not a low tax economy for most of its citizens. It is a medium tax country for most of us and an extraordinarily low tax country for some.”

Minister McCreevy cut the rate of Capital Gains Tax (CGT) in half, in 1999. The business and economic establishment applauded this regressive move. Their line was that the low rate doubled tax revenues. They singularly ignored the economic impact of reducing taxes in a boom. At that time, the single-minded orthodoxy of the business and economic establishment and the media commentariat was shocking. Some in the business press tolerated no dissent. In short, the interests of banking and building became synonymous with Irish society as a whole.

In 2005, Congress remarked on how policy was now driven by a small, ideological minority, a “tiny group of conservatives have a clear vision – a small state, little public spending and low taxes.” 12 By contrast, Congress advocated increased taxes for higher earners to dampen the speculative boom and promoted the Nordic Model as one which represented a more equitable and sustainable example for Ireland to follow.

i. Keep the Top Tax Rate Congress was against cutting the top rate of income tax, at all times. Our view was that it should remain at 48%, but should only apply to those on high incomes. The government began to reduce the top rate in 1999, but yet continued to tax modest incomes (just above the average industrial wage) at the top rate.

In 1999, Minister McCreevy cut the rate by 2% and continued to cut it down to 42%. It was cut further by Minister Cowen in 2007. But a failure to increase the tax bands adequately meant that the rate continued to apply to average incomes.

In our 2004 briefing, Tax Cuts did not Create the Celtic Tiger http://www.ictu.ie/publications/fulllist/tax-cuts-did-notcreate-celtic-tiger/) we illustrated in some detail how the tax cuts came after the Celtic Tiger was roaring in the very late 1990s, and that it was not tax cuts which gave rise to the Tiger performance of 1987 to 2000. Low tax advocates were wont to claim that tax cuts had generated the boom.

The average effective tax rate on all incomes had been around 20-22% during the 1990s. By 2002 it was down to 15%. For industrial earnings, the cut in the average effective income tax rate was from 25% in the early to mid 1990s, to 19% in 1999/00, but then sharply down to around 11% in 2001, 2002 and 2003. Again the big cuts were made during the boom.

The property boom began in early 2001.

Congress also pointed out that regressive spending taxes were high in Ireland, with the implicit rate on consumption in 2002 at 25.8% against a weighted average of 19.5% in the EU15 and much less elsewhere.

We showed how 28% of the total price rise to August 2004, was caused by increased indirect taxes imposed by government.

In an Irish Times op-ed in Spring 2004, Congress Economic Advisor Paul Sweeney warned that “it is extraordinary that the government continues to give total tax write-offs to investors in property in an economy where property prices are overheated, where house prices have trebled since 1995 and where all property is

Did Low Corporation Tax Encourage Bad Practice?

It is almost certain that the low rate of corporation tax in Ireland was a negative influence of the behaviour of the banks and corporate standards generally.

The low taxes on profits meant higher bank profits were available for retention for building up capital reserves, or paying out in dividends. AIB and Bank of Ireland made very large profits and paid out large dividends over recent years.13 While these dividend payouts were not out of line with those in the UK, the US and the EU, the profits on which they were based arose from utterly reckless lending by the boards and executives. The boards of the Irish banks were made up of the elite in Irish business the strongest defenders of our low Corporate Tax regime.

In a recent academic paper, Congress advisor Paul Sweeney concluded: “Low corporation tax did not result in entrepreneurship that would add long term value within an economy. It can be argued that low taxes allowed the banks to keep most of their profits, and so the high after-tax profits acted as a disincentive to the boards to act responsibly and to be prudent in their lending. Thus the low tax regime may have contributed, in some not insubstantial way, to the near destruction of the banks and to the immense harm done to the Irish economy by the boards of these Irish banks.”14 14

ICTU Update ii. Congress did seek some Tax Adjustments

taxation, revenue exceeded spending except 2001 (the McCreevy ‘political stimulus’ for the election year) and marginally in 2002, until the Crash of 2008.

For the record, Congress did seek adjustments in direct taxation for workers each year, to adjust income tax in line with movements in wages and to counter ‘fiscal drag’. In addition, we called for specific reforms such as gainsharing, tax relief on Trade Union subscriptions similar to the relief enjoyed by professionals for membership of their representative bodies. While the cost of countering fiscal drag was large, due to the number of workers affected, most other reliefs we sought were quite minor in scope and cost.

Incomes generally rise faster than inflation. It is the work of Trade Unions to ensure that this is the case, taking one year with another, to ensure that workers’ real incomes and thus standards of living rise over time.

It is argued, correctly, that incomes in Ireland rose faster than those in other EU states. This was catching up. Ireland still has not reached the levels of other leading EU countries. Productivity, high in Ireland, still rose in the Noughties, but quite slowly. As wages are a factor in competitiveness - but not equal to it, as some wrongly assert – this did reduce Ireland’s competitiveness to a degree.

Total labour costs (more important than wage movements or levels, to employers) are still relatively low in Ireland and Congress has strongly emphasised the importance of boosting productivity15 if only to ensure that living standards continue to improve.

A number of commentators have said that the recession was caused by an explosion of public spending.16 But as the chart shows, despite major direct tax-cutting, current revenue exceeded current spending as a percentage of GDP and further, in many of the latter years, all capital spending was from current resources.

Source: Dept Finance & Budgets

Congress, along with our affiliated Unions argued for increased public spending in order to improve the quality of public services. It is widely acknowledged that increased spending on public services is one of the most effective ways of bringing about greater wealth redistribution and improving the value of the ‘social wage’.

The Benchmarking Process From an economic perspective, it is correct that the rise in Irish public spending did contribute to the pro-cyclical economic policies of the government. Part of the increase in public spending can be attributed to the substantial rise in population17, citizens’ demands for improved public services in a wealthier economy and some can be accounted for by improved pay rates for people who work in the public service. Congress reached agreement with government on increases in pay for public service workers as part of the Social Partnership Agreements concluded during the Celtic Tiger era and part of the increase in public spending included the process that became known as ‘benchmarking’.

In the past, pay determination in the Irish public sector had been much criticised for the practice of providing a means by which large groups of public servants sector workers could secure pay increases by reference to movements in pay for other public sector workers.

Agreement was reached with Congress on a process that would end this system of cross-sectoral relativities. In its place would be a system where the pay of workers in the public sector would be reviewed periodically, by reference to comparable grades in the private sector.

The process was designed to reflect two broad principles: that it is not desirable for public sector pay to lead pay determination in the economy and secondly,

Source: Dept Finance & Budgets

The following chart, a variation on the one above, shows the year-on-year change in both current expenditure and revenue. In most years, even with the cuts in direct 15

ICTU Update that pay rates in the public sector should be capable of attracting and retaining high quality people.

To date, there have been two benchmarking reviews of pay in the public sector. The first resulted in average pay increases of 8% which were phased in over a two year period. In order for public sector workers to receive the bulk of the first benchmarking increases they had to agree to productivity measures which resulted in cost savings. The second benchmarking review recommended no increase in pay for most public sector workers and there are still some groups who have not been paid the award that was made to them.

The payments made to public sector workers as part of the first benchmarking exercise were criticised. Critics of the payments, including many economists, argued that these payments were unjustified.

As a party to the process and as Trade Unionists, we supported these payments to our members. However, all the increases under benchmarking have been unilaterally rescinded.

Debate and criticism of the process is entirely legitimate. But few, if any commentators, devoted similar levels of attention to the hugely destructive procyclical policies pursued by government between 1999 and 2008. The cost of Benchmarking was a cumulative €1bn and was offset by increased productivity that was independently verified. It pales into insignificance in comparison to the damage done by the freewheeling, free marketers.

Had the income tax rates of 42% and 22%, from 2000/01, been maintained several billions18 extra would have been taken out of the booming economy over the ensuing years. A similar sum would have been gained in additional tax revenue for the rainy day – which is today.

Of course, the impact of income tax is affected by changes in rates, bands and credits.

Furthermore, had the rate of Capital Gains Tax not been halved overnight in December 1999, how much heat would have been taken out of the construction industry? Had the rate of Corporation Tax not been reduced progressively from 38% from March 1997, it would have also taken some steam out the economy, although not at the same rate as the other tax cuts.

invested a great deal in productive infrastructure, especially in roads, private sector investment was largely in houses, commercial offices and shopping malls. The public sector did invest in other productive infrastructure like water, waste and sewage, public buildings and public transport. In our view public investment was not at the level it could have been at, considering the revenue surpluses. There was no financial constraint on public investment dealing with the infrastructure deficit – just the ideological obstacle. The commercial state companies had a large investment programme too especially in electricity, gas and aviation.

Telecom investments have been very low. Ireland lags way behind on broadband, the core of the so-call Smart Economy. As one stockbroker economist said: “Investment by the private sector in core productive stock [was] pitiful.”19 Ultimately, an ideological obsession with privatisation on the part of government saw a profitable, debt-free Eircom sold off in 1999, even as it was investing heavily in new systems and technology. Privatised, then asset stripped it cut back dramatically on investment, to Ireland’s great cost.

iii. Unions were not Quite Alone Happily, Trade Unions were not alone in our criticism of the tax cutting regime of the government. In its 2009 report - Ireland’s Five-Part Crisis: An Integrated National Response - the National Economic and Social Council (NESC) reiterated its previously stated principles of taxation policy held for at least a decade.

These had been unanimously agreed by all NESC members, including the Department of Finance and employers’ representatives. But they were ignored by the two Ministers for Finance in the taxation policies which the government pursued since budget 1998.

Back in its 1996 report Strategy for the 21st Century, NESC said that its priority in income tax change was “the reduction of the tax burden for lower to middle income earners.” The Council noted that ‘“in practice, this implies that priority should be given to increasing the basic allowances, rather than a reduction in income tax rates, as the latter would provide only limited relief to the lowest income earners.”

Again in its 1999 report Opportunities, Challenges and Capacities for Choice, the Council restated these views and cautioned against the “proliferation of discretionary tax reliefs” which erode “the tax base and the effective progressivity of the tax system” (NESC, 1999). In its 2002-3 Strategy report, it stated that: “While Ireland continues to have a tax and welfare system that significantly reduced the degree of inequality in market incomes at any given time … the overall balance of tax and welfare changes have been more favourable to those on higher incomes.” (NESC, 2002).

Lost Investment Opportunities by the Private Sector Congress constantly pointed out that while average Irish incomes were rising they were unequally distributed.

There was much poverty, while our public buildings, schools, hospitals and our transport systems were poor.

While investment in our capital stock soared from 2000 - by a substantial 80% - most of that investment was in housing.

Ireland’s enterprise leaders are largely risk-averse, asset-backed speculators who have been rewarded by the Great Crash: the taxpayer has been forced by the Government to bail most of them out. While the state 16

ICTU Update pursued a progressive economic and social programme, but rather has redistributed upwards. Indeed its tax policies are quite regressive. Many would hold that while Mr Ahern has allowed the conservatives to control economic policy, social partnership has mitigated its worst excesses.”20 He continued: “The Irish economic miracle (1990s) was not generated by free market, tax-cutting policies, but more by a mixture of European social partnership, state intervention in the economy and state assisted investment.”

In a statement issued on August 23, 2008 Congress said government was pursuing “policies of high taxes on low incomes and on spending, and low taxes on high incomes and low taxes on corporates.”

The statement pointed out that “Irish price levels are a very substantial 14% higher than average prices in Europe. Much of the burden of Ireland’s high prices has been imposed by government with its heavy reliance on spending taxes.”

The point was reinforced with an opinion piece in the Irish Times - Irish Cost Burden still among the Worst in EUwhich argued for a concerted effort to reduce prices, including by shifting taxes from consumption to incomes and attacking tax breaks, especially those on houses which had “helped to push up the prices for years.”21 A response letter to the Editor from the Department of Finance made the valid point that there had actually been a shift away from consumption taxes since the 1970s (the key was that customs tariffs were very important then) and disputed the role of indirect taxes in its cause and pointed to wage inflation as a cause. It said that indirect taxes had not been raised in the previous two years.

However, with one of the highest rates of VAT in the world, it was by then unnecessary to raise them during a boom. The shift from direct taxes had already been made and there were substantial revenue surpluses in the artificial boom. The role of administrative taxes in boosting inflation was ignored by government.

The ESRI warned of overdependence on construction back in Winter 2004, and also warned of a sudden collapse in the housing market and the exposure of the economy to a sudden reversal. However, with large budget surpluses, it was sanguine on the pro-cyclical tax cutting fiscal policy, though it did call the budget “quite stimulatory.”

In Winter 2005, the ESRI was more concerned with pay trends, especially in the public service, than with the fact that fiscal policy was pro-cyclical. It welcomed many of the measures in the budget. A year later, it was concerned at how much higher the exchequer surplus was than it had forecast - a €2.2bn difference, but it was quite critical of the boost to consumption, due to the SSIAs, the taxpayer stimulus to the middle class. The ESRI did warn of a possible “dramatic slowdown in revenues, when the property market slows.” It also warned against cutting income tax rates.

In Winter 2007, ESRI did warn of the unsustainable nature of the recent growth experience - as the Crash began. It forecast very low growth and an implied soft landing. Regrettably, it was too optimistic and GNP collapsed by 20% between 2007 and 2010.

Unemployment soared, emigration grew, tax revenue collapsed, while demand and labour force participation fell.

2.

Tax Shifting

The point made by Mr McCreevy regarding taxpayers keeping money in their pockets flies in the face of tax as a mechanism of redistribution. It also fails to address a more critical fact: that taxpayers then have to pull more money out of their pockets to pay for essentials.

Mr McCreevy also denied that the high consumption tax regime was pushing up inflation and the overall price level in Ireland. Yet Irish consumer prices were already the second highest in the EU15 and were to rise further, proportionately.

This fact has dawned on most economists only very lately.

And their solution - cut workers wages. They are still wedded to the idea that the role of the state (and Unions) is to stay out of the way of business.

In the Irish Times on 20 November 2004, Congress Economic Advisor, Paul Sweeney called for “a rebalancing of the tax base.” He was critical of spending taxes which took up 46% of all taxes, said that income taxes were low and that the effective rate on average industrial workers had been halved from 22% to only 11% in just five years. He quoted Nobel economist Stiglitz on Ireland as saying that “all the evidence is that the low tax, low service strategy for attracting foreign investment is short-sighted.”

In a 2004 Montreal conference address on Ireland, Sweeney said: “Mr Ahern’s government’s economic and social policies have been driven by its minority partner, which is neoliberal on economic issues. The government took power with a very sound economy in 1997, but has not

3. Opposition to Tax Breaks “Property Tax Reliefs Crazy and Should be Scrapped – ICTU” Irish Independent, October 27, 2005.

“ICTU Calls for Abolition of Most Tax Breaks for Firms” Irish Times, October 28, 2005.

Congress campaigned vigorously against the tax shelters (also called tax breaks, tax expenditures, or tax subsidies) relating to property and against schemes without a proper cost-benefit analysis (such as the BES), the low CT and CGT rates and the low CAT on inheritances22.

As far back as 1982, Congress Economic Advisor, Paul Sweeney, (then an economist with the ITGWU) exposed the fact that the Irish banks paid no Corporation Tax at all. This was achieved by the use of an unintended tax expenditure.

This was when the nominal rate was 50% and the subsidy to 17

ICTU Update a cost/benefit analysis to see if it delivered value for money (VFM).

Incredibly the Department of Finance, guardians of the public’s purse, published a “survey” which “found BES benefits business.” This merely asked the beneficiaries if they like the BES. Guess what? They loved their free subsidy from the taxpayer!

Yet financial expert, Dr Jim Stewart of Trinity College, had previously done a major study of the BES schemes and found them seriously wanting25.

Ironically, government constantly preaches the virtues of VFM all the time, but only in regard to public spending of cash, not tax breaks!

Our demand for a cost-benefit analysis of the BES generated considerable hostility. It is also noteworthy in light of the subsequent economic boom/bust, generated in part, by bad fiscal policy, that Dr Stewart apart, not one academic economist took on board the concerns about waste and the necessity for evidence-based policy making.

Business interests were livid, a sentiment that was reflected in media coverage of the issue. Chambers Ireland and ISME “applauded Minster Cowen’s decision” Chambers called the subsidies “wealth enhancers.”

Meanwhile, in its usual understated manner ISME described our opposition to corporate welfare as a “pernicious threat” and “Luddite!”

The saga demonstrated how critical faculties were left outside the door during the boom years and business interests became confused with the public interest!

banks and business (it was shared) was borne by workers.

The abuse of Section 84 Leasing reduced the then nominal 50% rate of Corporation Tax to zero for all Irish banks. It was supposed to act as an Anti Avoidance measure but it was twisted into a tax avoidance scheme by one of the large accounting firms. Rather than simply lend to firms to buy plant and machinery, the banks bought it themselves and leased it back to firms, though at a rate slightly lower than it otherwise would be (subsidised by the general taxpayer).

The banks then wrote off the plant etc which they now owned against their tax. Thus the banks reduced their tax to zero.

The Trade Unions campaigned against this tax expenditure and it led to the Bank Levy and the eventual termination of Section 84 Leasing. However, it had cost the taxpayer a staggering €1,100m in tax foregone in current prices, during the lean 1980s.

It is of interest that this unintended and uncosted,23 tax avoidance scheme was supported by the IDA and state promotional bodies as a way of reducing taxes for corporations. This tells much about how policy is formulated in Ireland especially when the beneficiaries are powerful.

It is a tale that is endlessly repeated, with the government and its agencies far too quick in “donning the Green Jersey” for Irish capitalists, without thinking through the consequences and real costs of tax breaks, subsidies and deregulation. Again, the interests of private business are conflated with the interests of Irish society.

Congress was critical of the many tax incentive schemes that appeared to have been introduced without thought as to their cost or economic impact.

We were, for example, the first to call for the taxation of the Blood Stock Industry – something which was eventually (if reluctantly) implemented.

In 2003, we said of the Artists Exemption that “it should be re-examined with a view to re-structuring it to assist ‘struggling artists’.” A high ceiling was later introduced.

Lobby groups like the Institute of Taxation in Ireland (ITI), which represents tax practiconers, supported the scheme, uncritically. But, regrettably, ITI normally favours subsidies for business, without considering the real cost, the opportunity cost nor the effect on competition or on society.

In 2004 we said Capital Gains Tax on Land should be restored to 40%. We were also vocal in opposition to the very indulgent manner in which tax dodgers masquerading as ‘exiles’ were allowed to enter and leave “Ireland at will, without contributing to the State in which many have made their fortunes.” News of their presence usually came by way of the gossip columns or ‘society pages’ and they often used the opportunity to deliver a lecture on how the country should be run.

Congress opposed increasing the size of the Business Expansion Scheme (BES) in 2006, not because we disagree with subsidies24 for small business, but because we wanted

Bad for Business Over the years, Congress voiced opposition to tax subsidies for investors in Private Hospitals. It was an original study of the health system organised by Congress – The Health Report – which first revealed the true cost of private hospitals to the taxpayer and the huge losses that could result from the bizarre co-location initiative.26 Congress is of the view that some subsidies do not help business and may actually do damage, in the long run. Thus, the myriad of property subsidies which cost €3bn directly in lost taxes, ended up costing us far more because they helped inflate and wreck the economy.

When the major review of industrial policy - O’Driscoll Report – was published in July 2004, Congress criticised its endorsement of the low direct taxation policy. We said all tax breaks should to be abolished “especially those based on property”27 and argued that the group should have urged government to phase out tax subsidies for business: “Tax breaks for business are not a sustainable economic strategy.”

We argued that the focus should be on developing tangible competitive advantages.

4.

Not Growth for Growth’s Sake

In May 2006, in a review of a Congress briefing paper - The Coming Challenges of Productivity - Brendan Keenan of the 18

ICTU Update Irish Independent pointed out that we were critical of the pursuit of economic growth for its own sake and said that Congress has “noticed that the number of new jobs far exceeds the growth in the labour force” with the difference having to be being filled by immigrants.

In a 2004 pre-budget submission Congress sought the introduction of a series of linked measures which, cumulatively, would have dampened the property boom then gathering pace. These included: • • •

•

that best outcomes do not happen spontaneously.”

– David Begg, address to UCD Business students, November 16, 2001.

In a 2001 address29 David Begg said of the debacle that resulted from a privatised Eircom: “Deep concerns expressed by the Trade Unions in the company and the longterm effects of these trends were categorised as ‘sectional’ interests and dismissed.”

Eircom was taken over by a private equity firm controlled

by Tony O’Reilly and George Soros and leveraged with huge debts, which prevented it from investing in networks and services.

Eircom today is a very pale shadow of the debt-free, highly profitable and high investing company that it was prior to privatisation.

The lack of investment in broadband in Ireland has meant that government was forced to re-enter the telecommunications market. What irony!

In the speech to CIPD in 2002, David Begg was highly critical of the EU trend towards “constant erosion of the role of government in the economy.”

Indeed, in the same year, Congress made a submission to the Department of the Taoiseach as part of an official consultation on regulation and ‘reform’ of the existing regulatory framework. The Congress submission (Towards Better Regulation) http://www.ictu.ie/publications/fulllist/towards-betterregulation/ was noted in an official report on the process, issued in December 2002.

The Congress document noted: “The impetus behind this wave of regulatory ‘reform’ can no doubt be linked to the belief that equates the deregulation of markets and the privatisation of public utilities with economic efficiency and better services for citizens and customers.

“Its overriding objective is to serve the interests of property owners and shareholders and it has a firm belief, effectively an ideological one, that all obstacles to its capacity to do that – regulation, controls, Trade Unions, taxation, public ownership etc are unjustified and should be removed.”

To counteract this tendency, Congress very presciently recommended that: “Public policy should lead and guide regulators and the regulatory processes should be engineered to ensure that regulatory decisions are accompanied by a balanced scorecard, which indicates their impacts on both consumer and public interest objectives.”

Eight years on we live with the enormous consequences of government’s determination to ignore advice such as this and, instead, allow private interests and naked ideology to dictate policy.

A development or Land Value Tax; A Windfall Tax on profits arising out the rezoning of land for development; A Local Authority Levy on the added value of land arising from the development/improvement of local infrastructure (transport systems such as Motorways or rail); Legislation to allow local authorities to combine the public auction of development rights with a licensing system to ensure development actually took place.

Six long years later, in May 2009, the damage done by speculation was graphically illustrated when the CEO of AIB, Eugene Sheehy, admitted that “the bank’s mistake was to lend too much for development land in Ireland.”

Too late. Now the Irish taxpayer is stuck with a multibillion euro bill for the bailout.

In 2005, addressing the CORI social conference, Congress General Secretary David Begg dealt with government attitudes to growth. He was critical of what he called “the materialist ‘live now, live hard, while we can’ attitude of many” and said we were failing to invest in the future. He cited one exception, one concrete example of planning for the future - the National Pensions Reserve Fund (NPRF). 28 Five years later we have a major pensions crisis on our hands and the NPRF has been plundered to fund the biggest corporate welfare scheme in our history.

In a speech to the Green Party conference in Kilkenny the same year, Mr Begg said: “Maximising economic growth for its own sake no longer has a social dividend and may in fact have social deficits built in.” Economic development requires “complementary social development,” he said. That plainly did not happen.

Regrettably, governments persisted with demonically procyclical fiscal policies and transformed a vast surplus into a gargantuan financial black hole. If we meet the objective to reduce the deficit to 3% by 2014 then our cumulative current deficits will have amounted to an even greater €66.7bn than the combined surpluses of €58bn of the boom years. That’s some legacy.

5.

‘Red Tape’ & Competitiveness Congress opposed the agenda of liberalisation and privatisation at every opportunity.30 Along with Eircom, we said the break-up of Aer Rianta (now DAA) would not

Opposing Deregulation

“We believe that markets do not regulate themselves and 19

ICTU Update work, (it didn’t) and would be costly and wasteful (it was).

Congress originated the idea of nationalising the West Link Toll bridge and throwing it open to the public, toll free. It was nationalised but not in the manner in which we had wanted. In 2006, we expressed our disappointment that the state was paying so much for it, while increasing the tolls.

In 2005, Peter McLoone, then President of Congress, and Paul Sweeney were the only two members of the 16 member National Competitiveness Council (NCC) to oppose the low direct tax and anti-regulation views of the other members of the Council. In a Minority report in the Competitiveness Challenge in 2005 (p27) they said that they did not regard “the regulation of business and the labour market as ‘burdens’.”

The Council had extolled the low regulation regime in Ireland. The report of the majority said “one of the strengths of the Irish business environment over the past decade has been the light administrative and regulatory requirements faced by firms particularly compared with other EU countries.” It went on to cite financial services as one of the most successful internationally trading sectors which were attracted here because “the level of regulation on Irish industry is perceived to be light” relative to many of the other countries benchmarked. It also stated that “regulations are not perceived to significantly inhibit product market competition in Ireland.”

It went on to warn of the danger of “rising regulatory compliance requirements” and of the need to check the “Growth of Red Tape” (their capitals) and what it called the “Regulatory Compliance Burden” (again, capitals). It also said Ireland’s rankings were deteriorating, due to increased “regulatory compliance requirements” and the “impact of recent corporate governance legislation in particular.”

remuneration.” It highlighted the flight from transparency – from the disclosure of accounts, the rise of unlimited companies and listed the pay of the top bosses, including Mr Goggin of “successful” AIB with €4m, and the pay of Anglo Irish Bank’s bosses. It was also critical of the pay of top public servants.

(Congress also said the banks should be nationalised. In Autumn 2008, when the Bank of Ireland could not meet its obligation to pay a dividend on the cash injection by our members, the taxpayers, it seems clear that perhaps we were right on this too.)

The growing pay gap between an elite of overremunerated executives and ordinary workers was, in our view, an indication that something was seriously amiss in business. It is ironic as people become more educated implying convergence on incomes - the opposite happened in the neoliberal era.

The huge remuneration packages were based on a “bonus” culture driven by perverse incentives for top executives. It was not encouraging greater and smarter effort but reckless risk taking.

Nobel economist, George Akerlof of Berkeley, is scathing of ‘pay for performance’. This now standard practice in boardrooms, especially Wall St and finance, is “risky business” he argues. He is an advocate of Identity Economics, using new ways of examining risk and reward.

We pointed out in Narrowing the Pay Gap that the explosion in executive pay, supposedly linked to the performance of companies, had led to reckless lending by the bank bosses here and worldwide. The incentives were set by the so-called non-executives or independent board directors, nearly all of whom have been proven to be pussycats on a gravy train.

The incentive, as we saw it, was ‘to lend recklessly, boost short-term profits and get huge bonuses’. This was applied down the line to bank managers and they all got on the ‘incentive wagon’ and they got their rewards – unfortunately for them - paid in now near worthless bank shares.

On April 6, 2004, Paul Sweeney responded to AIB bank director and former member of its remuneration committee, Jim O’Leary, who had called for a low pay rise for workers.

Sweeney pointed to the grossly excessive pay of the AIB directors, where the CEO (Buckley) had enjoyed a pay rise sanctioned by Mr O’Leary and his AIB board colleagues of a staggering 50% - bringing it to a whopping great €1.4m.

This was when the AIB board was actually destroying the total value of the bank (and almost the Irish economy). On top of that, the non-executive directors, like Mr O’Leary, had awarded themselves a 25% increase, bringing their fee to €92,700 each. This for a few meetings a year. And what value-destructive decisions were being made at many of those board meetings!

But running Ireland’s biggest bank is a responsible job which deserves to be so well remunerated, it might have been be argued. What is not debatable is that the board of AIB ultimately destroyed the bank’s total value, reducing it

Is it any wonder the economy crashed?

6.

Opposition to the Explosion in Executive Pay, especially in the Banks

In a speech to CIPD in 2002, David Begg pointed out: “Workers do not, for one minute, believe business people when they appeal for moderation in the name of competitiveness. Most particularly they do not listen to bankers - nor should they, having regard to the disgraceful record of the banks over the last few years.”

Congress was highly critical of the banks, of banker remuneration (see below) and of top pay in both the public and private sector - but especially in the latter, where it was out of control. We dealt with these issues in our report Narrowing the Pay Gap, which was published at the start of 2008. http://www.ictu.ie/download/pdf/economic_briefing_narrow ing_the_pay_gap.pdf It explained how the determination of the top executive pay was rigged and how it “responded” to perverse incentives, calling it “inflationary and inflammatory 20

ICTU Update be confined to the immediate governance of companies and the way in which companies are run by top management.

Corporate Governance must include new assessments of their companies’ priorities, including the obsession with short-term “shareholder value,” to the exclusion of the interest of other stakeholders; accountancy standards; regulation in all other areas too; the role and system of remuneration of professional advisors i.e. lawyers and accountants (conflicts on audits and other advice) and other professional firms and the dominance, ethical integrity and conflicts of the Big Four accounting firms and the Big Five legal firms in Ireland.

Consideration must be given to replacing the Anglo Saxon model of “shareholder value” in Irish company law. This gives too much power to top management, as it did in the banks in the Anglo American economies. If the system of ‘shareholder value’ corporate governance is not radically reformed in the West, it is very likely that there will be another deep recession within 10 years.

Expert on corporate governance, Professor McSweeney of London University at Royal Holloway says that “The rise of the ideology and practice of maximising shareholder value – or more accurately shareholder wealth - is not a triumph of economic efficiency. Instead it reflects and reinforces the growing power of an increasingly assertive financial elite. Maximising share value is not equivalent to maximising corporate, national economic, aggregate social value.”31 We must radically change Irish company law from the narrow interest of shareholders, i.e. the “shareholder value model” to the broader stakeholder model, like in Germany, the Nordics or even Japan. Jack Welch, the Father of Shareholder Value, admitted that the whole basis of company law based on shareholder value was wrong. He did not just recant. He said that “shareholder value is the dumbest idea in the world”. Welch now admits that it is a result and not a strategy. He now admits that employees, customers and products matter.

There has to be a more inclusive corporate governance – where the wider interests of workers, consumers, suppliers, the communities and the environment must be considered by company boards, under law, not just shareholders.

Congress has long held the view that when the Irish Government thinks it is being “pro-business,” it can actually be working against it. For example, the pursuit of procyclical economic polices in the property boom, combined with massive tax subsidies to builders and speculators, exacerbated the boom and the bust. These policies ultimately put many builders, banks and other firms out of business.

Similarly, this government’s policy of facilitating reduced financial disclosure and transparency has worked against Ireland’s reputation. It has been destroyed by a few top company directors, aided by state regulators and some in the major professional accounting and legal firms.

This government’s policies which are ultimately antibusiness include, a) its provision of loopholes like

to below zero in a few short years. Its collapse also endangered the Irish economy. Over €11bn in cash (to date) has so far been paid in taxpayer subsidies to these once great thrusting paragons of private enterprise.

Unlike several of his board colleagues, Mr O’Leary did resign from the board of AIB. Several of the directors of two of these three banks, AIB and Bank of Ireland, still remain in situ, as Appendix 4 shows.

Several board members of the three banks had also been appointed to important public bodies, including regulatory ones, by the government. Most have resigned from the state bodies following their roles in destroying the value of the banks and in the Irish economy, but many still retain strong links with the very top Irish companies and institutions. This is in spite of their pivotal role in the collapsed banks. This tells much about the ethical attitude still prevailing at board level in some Irish enterprises.

In Narrowing the Pay Gap we warned that bank regulation had failed. We focused on one bank, Anglo Irish, before it collapsed. We listed the pay of the top bankers and we also focused on the huge disparities in wealth. We pointed out in a detailed table, that the mere ownership of enormous wealth generated massive annual incomes. At top, Sean Quinn, then the richest man in Ireland, was “earning” at least €277m a year, back in those better days, from his assets.

Something had gone seriously wrong in the world of pay and reward, we thought. The gap between the top four executives in the US in Fortune 500 companies, which had been 33 times above the average workers till around 1980, began to soar in the Reagan/Thatcherite era of inequality and so-called free markets. It rose to 100 times average workers pay in the early 1990s and peaked at a disgusting 785 times in 1999. It was still a grossly inequitable 350 times in 2004/5, the last time Fortune measured it.

7.

Congress was Correct on the Period of Recovery

The period of adjustment to meet the Growth and Stability Pact target of a deficit of 3% of GDP by 2013 was strongly opposed by Congress. It was originally planned by the government for a short, harsh three years to 2013. We said it was too short – that it would be very deflationary and too hard on the economy and on jobs. We were criticised and received no support from any other organisation.

We were proven correct when the EU extended the period of recovery to four years and we now forecast that it will be further extended. This is simply because the current deflationary policies will make it impossible to achieve the target of meeting the Growth and Stability Pact target of a deficit of 3% of GDP in that timeframe.

8.

The Need to Overhaul Corporate Governance

The crisis is so deep that a radical overhaul of corporate governance is required. Corporate governance must not just 21

ICTU Update Over the next few years Ireland will become a relatively high tax economy. This was unnecessary and would not be the case had Government pursued more sustainable regulation and incentive policies.

Now, as things stand, we have no idea how far they will have to rise to underwrite the taxpayer’ subsidies for NAMA. It will be at least €25bn according to the ESRI which is 80% of the total tax revenue for 2010.

It has been seen that Congress and its member Unions were against cutting taxes, especially in a boom. We were keen to keep a third higher rate of income tax and we were strongly against the government’s myriad 33 expenditures/subsidies, especially to property investors and developers.

The Unions were not quite alone in their opposition to the destructive pro-cyclical policies, with a few bodies like the NCC, NESC and ESRI (to a limited degree) on the prudent side. But, massed on the other side was government, its Department of Finance and the overwhelming bulk of media comment. Indeed, the failure of the financial press – in its broadest terms – to question the thrust of Government policy, is one very striking feature of the boom.

Too often they provided platforms for financial economists who were simply pumping up the boom.

If Congress was at fault, it was because we were too muted, too polite, in our opposition. Many thought that as part of Social Partnership we actually shaped policy and that cuts in direct taxation were part of our agenda. Some academics have even asserted this. This report shows that the opposite is true.

We did seek increased public spending with the growth in population, in tax revenue and to enhance the social wage through better public services.

The deregulation of financial services in Ireland all but destroyed the Irish banking sector, the construction sector, business confidence, the tax base, hundreds of thousands of jobs and the whole economy. Ireland’s experiment with free market fundamentalism has been a very costly failure.

There is a pressing need for the banking inquiry to examine the wider reasons, which contributed to the collapse of the Irish banks: why were neoliberal ideas so dominant and critical voices not heard? What role did the media play in the crisis?

Diversity of opinion can help to ensure that it never happens again.

The inquiry would be very valuable if it also examined the role of the professional advisors to the banks – the big accounting and legal firms.

A radical overhaul of the entire system of corporate governance is required. Corporate governance must not just be confined to the way companies are run by top management.

It must include new assessments of company priorities, including the obsession with short term ‘shareholder value’ to the exclusion of other stakeholders and areas like accountancy standards. The Anglo Saxon model of

“unlimited company” status (no published accounts, no matter how large the company); b) its bizarre move to reduce disclosure limits for companies, under proposed companies legislation; and c) its failure and unwillingness to introduce measure to protect whistleblowers (who could have saved the banks).

A recent Grant Thornton review on the extent of compliance with the Combined Code by Irish Companies, found many Stock exchange companies were non-compliant.

It concluded that the voluntary approach to the Code has failed and that the only acceptable solution is to incorporate governance principles into legislation.

The government must radically reform corporate governance of firms otherwise it will be difficult to restore international confidence in Ireland as a suitable place to invest and to do business. But just as importantly, the balance of power is too narrowly vested in top executives under shareholder value dominated Irish company law.

The best way to demolish ‘Cosy Irish Capitalism’ as the Financial Times described Ireland’s economic governance system, is to shift power from shareholders to all stakeholders.

In practical terms, Unions representing staff in the banking sector – Unite (Amicus); IBOA – called for staff participation in terms of bank governance arrangements and in the Financial Consultative Panels, which advised the Regulator. The proposal was ignored.

Additionally, Union calls for Whistleblower legislation were also ignored. Consequently, those that did come forward to blow the whistle on questionable practices suffered as a result.

On a more basic level Union criticism of the management developed performance-driven reward systems and target setting, both of which ignored good lending practice, were dismissed. It is worth noting that Unions also raised similar concerns and misgivings at an EU level, through bodies such as the European Trade Union Confederation to which Congress is affiliated.

9.

Conclusion

The fiscal, regulatory and governance policies advocated by Congress during the eight years of the domesticallygenerated boom have now been proven to be correct. Had they been followed by Government, this deep crisis could have been largely avoided.

The speech by Taoiseach Brian Cowen32 on (some of) the reasons for the crash is most welcome. His admission that some of his government’s policies, especially the many tax breaks, exacerbated the collapse is a constructive contribution to the debate to ensure that it does not occur again. However, his analysis is deficient. He neglected the pro-cyclical tax cutting which was the main cause of the collapse, the lack of regulation, the shareholder value model of company law and the fact that he did not abolish all the tax breaks and left them all in place for many years!

22

ICTU Update ‘shareholder value’ has not serviced Irish business, taxpayers, employees or consumers well. It should be replaced with a more European system of governance.

It was a failing of Social Partnership that Congress’ dissenting view was articulated but not acted upon with regard to the crucial economic matter of bank regulation.

Ireland’s consensus had strongly supported the idea of the ‘mixed economy’ in the past when the private sector was weak, but it moved rapidly to a particularly virulent strain of free market fundamentalism in the 1990s and beyond.

Ireland became the Poster Boy for this ideology.

The current Minister for Finance admitted in June 2009 that: “We did overheat the economy, I have always accepted that and I made that clear in my last budget speech.” He said that while he was not a member of the Government at the time, he had however supported the policies which led to the overheating34.

Ultimately, any investigation into the banking crisis should highlight the necessity to ensure a role for staff as key stakekholders and this must translate into employee participation in decision-making processes and governance.

In the 2002 Budget Congress sought: To reduce the numbers entering the tax net by removing the minimum wage from income tax liability; Increase personal and PAYE Credits; Keep workers on Average Industrial Earnings out of higher rate band; Widen the standard rate band; Develop a refundable tax credit system.

In 2004, Congress’ sought: Tax reforms to help build a more equitable society, including the expansion of tax bands and tax credits; Removal of workers on the Minimum Wage paying tax; Stop workers on the average earnings paying at the top rate of tax; End tax exemptions/loopholes for companies, with the exception of legitimate capital allowances; Commitment to tax coordination in EU to end the race to the bottom on tax; An end to new and increased ‘stealth taxes’; Reduction in spending taxes.

In 2005, Congress sought Exempting of all income up to Minimum Wage from tax; No worker on average industrial earnings paying at the top rate, and 80 per cent of tax payers to pay at the standard rate; Adjustment of tax credits and bands to preserve the value of wages; Tax relief for childcare costs/provision including a minimum tax credit of at least €20/week and tax relief up to an initial €50/week for parents using approved and receipted childcare; Existing thresholds for PRSI and levy payments adjusted in line with wage movements.

Appendix 1 Congress Policy over the Years 1996 Congress Pre Budget Submission: “…..a responsible approach to public expenditure must be taken in the Budget. This means that further progress should be made to improve the Debt/GNP ratio while reforming public expenditure to ensure better quality of services, greater efficiency, value for money and improved morale in the public service.”

The submission noted that the objectives of the then social partnership agreement, the Programme for Competitiveness & Work (PCW): “that income tax strategy will focus resources on improving the position of lower and middle incomes and, in particular will have two priority goals:-

We also said: “The many economic tax ‘incentives’ should be eliminated for both personal and corporate taxpayers.

The major tax exemptions appear to be tax breaks on investment on property.”

On the Property-Based Tax Avoidance Schemes, we said: “The former Minister for Finance indicated that he would terminate many of these schemes, but he changed his mind and extended them. In a prolonged property boom, it is extraordinary that the government continues to use taxpayers’ money to subsidise property investment.”

(i)

Alleviating the burden of taxation on workers with low incomes, particularly those with families; and (ii) Raising the income threshold at which the higher rate comes into play”.

In 1998, Congress sought: Significant tax concessions for low and middle income earners; Implementation of the Social Inclusion Programme, through increased social investment in education, health and welfare; Phasing in of the National Minimum Wage in accordance with Congress proposals.

Elsewhere we noted that “The rates of taxation on capital are lower effective rates than those levied on the incomes of workers…..”

Appendix 2

In the 1999 Budget Congress sought: To reduce tax on low and middle income earners; investment in social inclusion; Investment in education and training, information and communications technologies and public transport; Tackling tax evasion and fraud;

The Board Members of the top three Irish Banks in 2007 This is a list of the board members of the top three Irish banks in 2007, just before the Crash. Many of the board members are accountants, several were active in financial regulatory standards bodies and several were key players in 23

ICTU Update IBEC, including its President. Many had been appointed to important government bodies, including regulatory ones.

Seventeen of the same directors still remain on the boards of AIB and BOI, despite their key role in the collapse of both banks!

Many bank directors retain strong links with the very top Irish companies and institutions, in spite of their role in destroying the value of these three collapsed banks and threatening the whole economy. The combined worth of these three banks peaked at over €60bn, and is now worth nothing. They survive courtesy of support from the taxpayer.

Several of these directors remained on the boards of AIB and BOI in 2010!

John O’Donnell* FCMA, FCCA – Group Finance Director who Joined AIB in 1989 as Associate Director Sean O’Driscoll* – Remuneration Committee Chairman, Group Chief Executive, Glen Dimplex. Appointed by the Irish Government to the high-level group overseeing Ireland’s Asia strategy Jim O’Leary was Chief Economist at Davy Stockbrokers, and is a lecturer at Department of Economics at Maynooth David Pritchard* Chairman, AIB Group (UK) p.l.c. and was Group Treasurer, Executive Director, and NonExecutive Deputy Chairman of Lloyds TSB Group plc; also spent two years as secondee at the Financial Services Authority while employed at Lloyds TSB

* means still a director in 2009/10.

Bernard Somers Director of DCC plc, Independent News & Media plc, and Irish Continental Group plc (Irish Ferries) (his brother Michael ex NTMA head, is on the board in 2010)

AIB Board (2007) Dermot Gleeson Chairman Barrister, former Attorney General

Michael J Sullivan Served as US Ambassador to Ireland from January 1999 to June 2001 and as Governor of the State of Wyoming, USA, now on board of Kerry Group

Eugene Sheehy – Group Chief Executive Adrian Burke Chairman of Coyle Hamilton Willis Limited and Director of Dairygold Co-Operative Society

Robert G Wilmers* is Chairman and Chief Executive Officer of M&T Bank Corporation (“M&T”), Buffalo, New York State.

Kieran Crowley* Founder of Dyno-Rod franchise in Ireland. Director of AIB Group (UK) p.l.c. A member of the Government appointed Advisory Forum on Financial Legislation. Former Chairman of the Small Firms Association and member of the Irish Business and Employers’ Confederation (IBEC) National Executive Council

Anglo Irish Board (2007) Sean Fitzpatrick appointed Chairman in January 2005. A Chartered Accountant, he also served as Chairman of Smurfit Kappa Group plc (whose CEO was on the board of Anglo too) and is a Non-Executive Director of Aer Lingus plc, Greencore Group plc, Gartmore Irish Growth Fund plc and Experian Group Limited

Colm Doherty* Managing Director AIB Capital Markets now CEO as an internal appointment Donal Forde MD Ireland.

Lar Bradshaw was a former Director of McKinsey Inc. and former Managing Director of McKinsey Ireland. He was also Chairman of state owned Dublin Docklands Development Authority from 1997 until 2007, the state body which was involved in costly property dealing

Stephen Kingon* CBE BA,DBA, FCA, FCIM Former Managing Partner of PricewaterhouseCoopers (accountants) in Northern Chairman of Invest Northern Anne Maher* was a Member of the Professional Oversight Board (UK Financial Reporting Council); was Chief Executive of The Pensions Board for Ireland, the Irish Pension Regulator, Chairman of the Irish Association of Pension Funds, and Board Member of the Irish Accounting and Auditing Supervisory Authority

Noël Harwerth - Deputy Chairman of Sumitomo Mitsui Banking Corporation Europe Limited, and a Director of Royal & Sun Alliance Insurance plc. She was previously the Chief Operating Officer of Citibank International Europe Tom Browne an Executive Director, joined the Board in January 2004

Dan O’Connor* is now Executive Chairman and was chair of the Audit Committee and a Director of CRH plc, former President and Chief Executive Officer, GE Consumer Finance Europe, and former Senior Vice-President of General Electric Company

Anne Hearty is Chief Executive of CPL Resources plc. She was also Director of state-owned companies Bord Na Mona plc, Forfas and chaired Skillnets. She was a director of the Irish Stock Exchange 24

ICTU Update Gary McGann is Group CEO of the Smurfit Kappa Group plc, whose chair was Seanie Fitzpatrick. He resigned as Chairman of the Dublin Airport Authority, and was a Director of Aon McDonagh Boland Group and United Drug plc and is a Fellow of the Association of Chartered Certified Accountants

Declan McCourt,* Chief Executive of automotive distributor, the CHM Group, a director of Fyffes plc, Blackrock International Land plc, Dublin Docklands Development Authority (see Lar Bradshaw) Thomas J Moran, Chairman, President and Chief Executive Officer of Mutual of America Life Insurance Company. A member of the Taoiseach’s Economic Advisory Board, the boards of the Irish Chamber of Commerce in the USA, the North American Board of the Michael Smurfit Graduate School of Business

Ned Sullivan is Chairman of Greencore Group plc and McInerney Holdings plc Fintan Drury ex-RTE, joined the Board in May 2002. He is Chairman of Paddy Power plc and Platinum One Limited Michael Jacob is a Fellow of the Charterd Institute of Management Accountants. He is Chairman of Slaney Foods Limited and the Lett Group and Deputy Chairman of SIAC

Terry Neill* Former Senior Partner in Accenture the consultants and former chairman of its global Board. Now of London Business School and a member of the Boards of CRH plc and Trinity Foundation

Declan Quilligan is Chief Executive of the Group’s operations in the United Kingdom

Executive Directors

Pat Whelan was Anglo’s Managing Director for Ireland and is/was a member of the Institute of Bankers (57), who joined the Board

Brian Goggin, FCCA Group Chief Executive. Joined Bank of Ireland in 1969 John O’Donovan* FCA Group Chief Financial Officer

Bank of Ireland Board (2007) Des Crowley,* Chief Executive UK Financial Services joined Bank of Ireland in 1988 from Arthur Anderson & Co and held a number of senior management positions as Head of Systems

Non-Executive Directors Richard Burrows, Governor. Former Chief Executive of Irish Distillers Group (1978-2000). A director of Pernod Ricard SA and of Cityjet Ltd (age 61)

Richie Boucher,* now CEO, and is an insider as he was Chief Executive Retail Financial Services Ireland in 2007 and he joined the Group as Chief Executive, Corporate Banking from Royal Bank of Scotland in December 2003

George Magan, Deputy Governor. Chairman of Babcock & Brown Global Partners, Chairman Carlton Capital Partners, Chairman, Mallett plc, Chairman Morgan Shipley (Dubai)

Denis Donovan,* Chief Executive Capital Markets. He joined Bank of Ireland in 1985 from the Central Bank of Irelandro

David Dilger, Chief Executive Officer of Greencore Paul Haran* is a Former Secretary General of the Department of Enterprise, Trade & Employment. He is a Director of Glanbia plc. He is Chairman of the National Qualifications Authority of Ireland, Chair of Edward Dalton Ltd. and also chair of UCD Michael Smurfit School of Business and Principal, UCD College of Business & Law. He is on the Forum of the Economic and Social Research Institute, a Council member of the Irish Management Institute and a member of the Road Safety Authority. He chaired the Working Group on Legal Costs for the Minister for Justice

FOOTNOTE REFERENCES 1 Top income tax rates were at 46% in 1999 and 2000, being cut to 44% in 2001 and then cut further to 42% in 2002. Corporation tax was at 28% in 1999, and was cut by four per cent annually to reach 12.5% in 2003.

Capital gains tax rates were at 40% for many years and were halved to 20% in 1999.

2 “The Government has, deservedly, been held responsible as the prime architect of our economic ills. But the social partners are not without blame. They sat around the negotiating table in Government Buildings while unsustainable economic policies narrowed the tax base and fuelled public spending and the building boom.”

3 Barry, Frank, in a paper to Columcille Winter School 28th February, 2009 and ESR Vol 40 Spring 2009 on “Social Partnership, Competitiveness and Exits from Fiscal Crisis” & in Irish Times book review, 17th April,2010.

4 Haughton said “the government promised to lower taxes if wages were restrained and labour peace restored. Thus began a dynamic that has been maintained since, and that differs sharply from the European norm where government promised more welfare payments rather than lower taxes in return for wage restraint.” He was correct until around the mid

Denis Holt*, Group Chief Executive Officer of AXA UK plc and is also with Lloyds TSB Group Caroline A Marland, Managing Director of Guardian Newspapers, a former member of the main board of directors of the Institute of Directors in the UK and a former Girector of Burberry Group plc 25

ICTU Update and Research, Spring, 2010, Brussels.

16 See for example “Coming Challenges in Productivity”, Spring 2006.

17 Eg Garret Fitzgerald on Vincent Brown Programme on 9th February,2010 18 Population grew by 632,000 between 2000 and 2008 or 17% 19 In Budget 2001, estimates for both reductions were €371m in the full year, but the cost greatly increased annually. For example the cut of 1% in the top rate in 2007 cost €186m in a full year, then.

20 Davy Stockbrokers, “Years of High Income largely wasted”, February 2010 21 “The Irish Experience of Economic Lift-off” paper read at “A Colloquium to Celebrate Ireland’s Presidency of the European Union, Montreal, May, 2004 22 The NCC was consistent in its opposition to property tax breaks and indeed it called for a property tax. Further, it also drew attention to the high price levels.

23 Congress has supported some tax expenditures for lower and middle income groups such as those on pensions and some “incentives” (such as Film Relief). However, we have sought major reform of pension tax breaks for high paid persons.

24 Sweeney did cost it in a paper to the Statistical and Social Enquiry Society of Ireland, on Industrial Policy, Vo XXVI, No 4, 1992 at £857m between 1980/81 and 1990/91.

25 provided the taxpayer funded subsidies are targeted and costed.

26 Stewart, Jim, IBAR vol. 13 1992, pp. 129-149.).

27 Later published as a book. Tussing, A Dale, & Maev Ann Wren, 2006, “How Ireland Cares”, New Island, Dublin.

28 Paul Sweeney, Irish Times, 9th July 2004 29 The Budget current surplus in 2005 was €6,353m or 4.6% of GNP! 30 To Worker Directors Group, 19th October.

31 Sweeney in Examiner, 18 March 2004, Irish Times 14 July 2005, “A new Governance Structure for State Companies”, Summer 2005 Sindo 22 May 2005, Paul Sweeney “Selling Out: Privatisation in Ireland” TASC New Island 2004, etc 32 Prof Brendan McSweeney, “Maximizing Shareholder-Value: A Panacea For Economic Growth Or A Recipe For Economic And Social Disintegration”? Journal of Critical Perspectives on International Business, 4.1, pp. 55-74, 2008.

33 13th May 2010 34 See Congress’ Submission on Tax Expenditure to Dept Finance May 2005 and most Budget submissions.

35 Irish Independent, 26 June 2009

1990s but since then Congress has called for better public service with some limited (considering the resources) success. For some reason most commentators, albeit not industrial relations experts, seemed to think that Congress was looking for tax cuts every year, when in fact any adjustment which we sought on income tax was to ameliorate fiscal drag.

5 Irish Times, 7th November 2009 6 Three rates, with top at 53%, 48% and 39% in 1990/91.

7 Paul Sweeney, Irish Times, 17th April 2004 and again in 19th December, 2005 he pointed out in the article that Ireland’s current expenditure had become the lowest in the EU as a percentage of national income.

8 Tax credits are much fairer than allowances, with many high earners getting much bigger tax breaks than those lower incomes. Economic Advisor Paul Sweeney and IMPACT’s Paddy Keating, both tax experts, were members of the Expert Working Group on Tax Credits which devised the system which was introduced.

9 From 1992/93 the top rate was abolished and we sought its retention for high earners. We wanted middle earners to pay at the middle rate which became the higher rate. There were just two rates from then on, initially 48% which average industrial workers paid.

10 The CPI data allows a calculation of “administrative charges.”

11 This would exclude the then very influential coterie who were working for the finance houses, insurance and property companies, who dominated the airwaves of public broadcasting and print media.

12 Irish Times, 17th April 2004, “If we want hospitals, then we have to end the tax breaks”.

13 Paul Sweeney, Irish Times 19 December 2005.

14 In 2008, Allied Irish Banks, whose board must have known by then that they were close to collapse, still paid a dividend €720m on an aftertax profit of €885m. Thus 81% of profit after tax profit was paid out. The average pay-out in dividends from profits by this bank for the six years to 2008 was 40%. The imagined profits of AIB, which were largely spurious, amounted to a staggering €8.32bn in the period, while the dividends, which were real and paid out in cash, came to €3.3bn.

Bank of Ireland, which also failed in 2008/09 and had to be bailed out by the Irish taxpayer, paid out an average dividend over the six years to its collapse in 2008 of 40% of its profits. The imagined profits of Bank of Ireland, which were also largely spurious, amounted to €7.47bn in the period, with the dividends, which were real and paid out in cash, came to €2.93bn or also 40% of profits.

15 Sweeney, Paul, 2010, “Ireland’s Low Corporation Tax: The Case for Tax Coordination in the Union,” in Transfer, European Review of Labour

Pictured from l to r: at the dispute for sacked Connolly Shoe shop workers in Dun Laoghaire are Sarah, Fionnuala, Adrienne and Lorraine from CWU Headquarters, showing their solidarity.

26

Education Update The CWU Training Programme for the year is well underway and to date we have completed the following courses:

•

In addition to the above the Union will be running a Branch Secretary Stage 2, further Union Advisors courses and Equality Rep courses.

The Education Committee is in the process of finalising the Committee Training Courses for the rest of the year and we will finalise venues based on the level of interest. Subject to numbers, the Union is also happy to facilitate Branches who have their own individual requirements for committee training.

2010 Courses • • • • •

Committee Training o Cork o Dublin Postal Delivery Branch o Barclay Card

Branch Secretary Stage 1 Chairperson Branch Officer (including Treasurer) Youth Action Group Union Advisor

Chairperson Training March 23rd -25th The Union held a Chairperson Training Course in March, which was very well attended.

The following were present on the course: Tommy Devlin David Taylor Michael Carey John O’Carroll Sean Clarke Tony Lucey Patrick Rushe Tony Hardiman

Allan McGee Sandra Kennedy Michael Hoey Ellen Moore Anthony Horan Matthew Cullen Mary McManus Martin County Eugene McDermott

Dublin Mails Managers Eircom Naas Eircom Thurles Eircom Roscrea Killarney Postal Cork Clerks Eircom Mullingar Dublin Postal Drivers

Cork C&A Cork Mails Centre Dublin Postal Managers Portlaoise Mails Centre Waterford Postal Gorey Postal Castlebar Tels Navan Postal IO Systems

Branch Secretary Stage 1 ~ April 29th –April 23rd Back Row l-r: Jerry Condon Education Committee, Hugh Quinn Donegal South West Postal, Tom Prendergast Portlaoise Mails Centre & Cormac O’Dalaigh Education Committee Front Row l-r: Gavin Mulcahy Cork Drivers, Oliver Quigley Navan Postal & Catherine O’Neill Waterford C&A

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ICTU Update IRISH CONGRESS TRADE UNIONS Office for Debt Resolution - A NAMA for the Working People Presentation to Expert Group on Mortgage Arrears & Personal Debt 18th May 2010 Introduction

their wages forced down in lieu of devaluation and their taxes increased (to fund banks and buy the loans transferred to NAMA) are under threat of losing their home. For hundreds of thousands of working families, their inability to make their mortgage payments is a direct consequence of government’s deliberate actions to drive down wages and increase taxes. The injustice of this policy is particularly acute as developers will not have to pay their debts in full but working families will, even when their homes are repossessed.

Congress is calling for a Debt Resolution Office to provide an accessible alternative to courts with the power to address negative equity and repossessions by remodeling and revising existing loans to take account of changed circumstances, equity changes including a role for local authority equity purchase or buy and rent back. These options need to be set in a framework of rights that is supported with access to advice and representation for the borrower. Courts must be able to impose terms if parties can’t agree. Another area for attention is the protection of employees to ensure they are protected from harassment by debt collection practices and to ensure against any detrimental effects that over indebtedness and debt settlement can have on a person’s employment prospects.

The Irish Congress Trade Unions welcomes the opportunity to make a presentation to the Expert Group on Mortgage Arrears & Personal Debt. Congress is the representative voice for workers in Ireland and with over 830,000 members we are the largest representative group of citizens on the island.

Congress’ analysis is that there is a serious misrepresentation and under estimation of the size and nature of the mortgage debt problems being experienced by working families in Ireland. There is an inaccurate impression that the banks are handling the problem. This misrepresentation disguises the inadequacy of the response and the systemic nature of the problem is obscured. In Ireland the high level of private sector debt represents a systemic threat and demands a NAMA for the working people to reduce the mortgage debt burden on financially stressed families. The Code of Conduct on Mortgage Arrears represents a half measure and is not really addressing the problems faced by working families who cannot afford their mortgage repayments due to loss of employment or wages and it completely ignores the problems of negative equity. Unemployed workers with serious negative equity cannot, for example, move to take up employment.

Many people hide their debts from friends and family or sometimes even themselves (by not opening statements).

The real effects on people’s physical and mental health and on family relationships is becoming evident. More people are suffering depression, there are higher numbers at risk of suicide. Womens’ Aid has reported increased rates of domestic abuse and marital breakdown. These represent real costs to a society and economy and should be taken into account. ‘All of us are being conditioned to accept a collective guilt over the economic problems and to ignore the human cost to families and individuals’ Mairead Bushnell, President of Society St Vincent De Paul.

Official Reports Underestimate the Problem Mortgage debt for home owners in Ireland amounts to over €118bn and outstanding arrears, as reported by banks at end of 2009, amounted to €5.3bn, or 4.5 per cent. 28,603 home mortgage holders (3.6 per cent) had been unable to pay three or more monthly payments. It is estimated that a further 35,000 households have switched to interest-only payments or have had to renegotiate their mortgage terms with the banks in other ways. Combined these figures now account for some 200,000 people living in households in mortgage debt distress.

Official reports underestimate the problem, our sources highlight that many families are managing to meet their monthly mortgage payments but only at the expense of food, electricity, clothing and other basic necessities. This hidden financial distress is likely to be affecting thousands of families and other debts are also taking their toll. There are currently around 2,170,000 credit cards in circulation in Ireland with a collective debt of some €2.9bn while nonmortgage borrowing is estimated at about €35bn.

The injustice of the situation has been understated It’s not enough to save the banks; working families need to be thrown a life line too. Ordinary working families who have lost their jobs or seen their incomes cut must be protected from threats of repossession and they must be provided with realistic ways to deal with their over indebtedness. It is unfair that working people who have had 28

ICTU Update There is an inaccurate impression that the banks are handling the problem

any proceedings, and even for costs involved in selling the property.

In the US they sell a form of protection against repossession called mortgage default cover. This is essentially a form of insurance that protects the borrower in precisely the scenario outlined above. No equivalent policy exists or is available in Ireland despite the availability of 100% mortgages.

What we do have are mortgage protection policies and payment protection policies. The former pays off the mortgage if the borrower or one of them – dies; the second covers monthly mortgage payments for a certain period if you are unable to work through illness or redundancy – provided, of course, that your break in payments complies with all the associated small print. Neither, however, covers mortgage default and/or repossession of a person’s home.

Nor is voluntary surrender, where homeowners hand the keys of their property back to the bank, an adequate solution if the property is in negative equity. Banks will undoubtedly still pursue the borrower for the shortfall and there is no guarantee about how the property will be valued nor is there any obligation on the banks to obtain the best price for the property.

The number of repossession orders granted by the High Court last year (2009) increased by 66pc. Almost one home a day was repossessed. Crucially, the majority of cases dated back to 2007 and 2008 highlighting that we are only at the tip of the iceberg. Also worth noting is that 74 homes were voluntarily surrendered. The fact that home repossessions are in hundreds rather than thousands has led many to believe that the banks are handling the problem or that inability to pay to mortgage debt is only affecting a small number of ‘unfortunate’ individuals who had borrowed recklessly. This misrepresentation disguises the inadequacy of the current response and the systemic policy driven nature of the problem is obscured.

Much is made of the Statutory Code of Conduct on Mortgage Arrears. Under this Code, banks and other lenders cannot seek to repossess a property for 12 months after the first repayment is missed. This delay is only useful in so far as the person’s employment and financial circumstances improve before the end of the year. Otherwise it is simply delaying the inevitable as arrears, interest, penalties and bills accumulate with little prospect of ever being repaid. After that year has passed, there is no protection for homeowners and the gloves will be off. This is a real fear that thousands of families are living with. There is an urgency to provide a solution for families who are now at or approaching the end of the 12 month moratorium.

Disappointingly the government has not put in place the type of measures needed to develop employment.

It’s true that some limited state assistance is available in the form of the Mortgage Interest Supplement. More and more people are availing of this supplement in February 2010 and the then Minister, Mary Hanafin, T.D. told the Dáil that the number of people in receipt of a Mortgage Income Supplement had increased from 3,420 to 15,400 over the past four years. The figures represent an increase of about 450% over that period. The cost is now €60m a year (based on 2009 figures). However, for every homeowner accessing the supplement, another is being refused it and the criteria for payment seem to exclude many who need it. It is more important than ever that the supplement is made available to those in difficulty.

Problems of Negative Equity Negative equity is a major issue for a large segment of our population, especially those who bought in the last decade. It can’t be ignored and difficult as it may be, something has to be done. Negative equity prevents people from selling and moving on, even though their family circumstances may have changed. Importantly it prevents people moving home to take up job opportunities.

Some form of debt-equity swap for hard pressed homeowners struggling under the weight of hefty mortgages is needed. From the Congress perspective this should focus on banks taking part ownership of the homes of people in negative equity (where the loan is bigger than the value of the home) and in return writing off part of the outstanding debt. Giving people a lower debt, more realistically related to the present value of the home, to be repaid. It is worth reminding ourselves that the average reported write down

by NAMA is 47%.

Unfair Mortgages and Inadequate Insurance

Families with negative equity are charged more for their loans

The banks behaved recklessly by encouraging customers to take out 100+ per cent loans and the regulator stood idly by. Its true to say that in line with adverts which stated ‘your home may be at risk if you cannot keep up the repayments’ we knew our homes were at risk, but never at any stage did the ads tell us that we would be liable for the outstanding mortgage debt even when our homes are repossessed. Worse still, there was no mention that the homeless borrower would remain liable for any interest that accrues on the outstanding borrowings, for the legal costs of

Families who are trapped with negative equity are being squeezed by their lenders who know that people cannot switch to the lower rates offered by other lenders. This means that households who are in negative equity are paying the highest interest rates on the market and more than other borrowers. Non – Tracker Mortgage holders are now captive customers and have no chance of switching or shopping around. The banks know they are trapped and are increasing their interest charges, despite the ECB action of keeping the euro interest rate low.

29

ICTU Update passed laws prohibiting discriminatory treatment of debtors by both governmental units and private employers. Workers in Ireland should have the same protection, laws are needed to prevent employment discrimination against debtors with respect to employment (hiring, promotion, unequal treatment, termination, etc.).

The ECB reprieve in interest rates will soon come to an end -the outlook for 2011 is for increased interest rates and households will face increased pressure to meet their debt servicing obligations.

Protecting a minimum adequate standard of living By their very nature, debts are urgent, they compound rapidly over time, and can speedily spiral into trouble.

Creditors often have set policies and procedures on the minimum level of repayment they can accept. People who are indebted often agree to arrangements that are not sustainable and in these situations they do not keep to the arrangement. The result is often that the persons money problems get worse and their creditors become less willing to negotiate new repayment terms. Congress is therefore recommending the protection of a ‘minimum adequate’ family income that is protected to ensure a realistic living standard that affords dignity to the debtor and their family1.

The amount to be protected will vary with each individual according to their circumstances, for example those with dependants should have less deducted than those without.

The calculation of ‘minimum adequate’ standard must take account of and deal with the totality of a persons debts.

Ireland’s law has been heavily criticised when dealing with communication by creditors/owners with consumers as it does not take into account the use of methods and forms of communication such as mobile phone calls, text messages and email, and is also significantly behind in the area of the law relating to harassment.

A matter of great concern has been the failure to regulate the debt collection services at this time when many consumers are being pressurised into unsuitable and unsustainable arrangements by Debt Collection Industries.

Unfortunately many of the banks and financial organisations are paying little attention to the standards of the debt collecting agencies they are employing, and seem only interested in receiving the money owed to their organisation, even though they have responsibilities and regulations to comply with under the Consumer Protection Act 2007, the Data Protection Act, the Consumer Protection Code and the Non-Fatal Offences against the Person Act.

Protection from debt related harassment and discrimination at work

Congress Proposals for an Office for Debt Resolution (ODR)

While harassment may sound like a strong word to use, many would be surprised by what creditors practices actually are. Creditors don’t need to threaten violence or use obscene language to be threatening. Examples of creditor harassment are; • The use of official-looking documents resembling court summonses; • Contacting the debtor on their mobile phone at work; or leaving phone messages with only the name of the employee of the debt collection agency and requesting a return call; • Contacting debtors directly while bypassing their known appointed representative; • Not promptly passing on money that has been collected; • Refusing reasonable offers of repayment; • Putting pressure on debtors to raise funds by further borrowings; • Intimidation of the debtor by the frequency of demands which are calculated to alarm, distress or humiliate them.

• Contacting people at work about their debts, even on their mobile phone or by e-mail can seriously threaten and undermine a person’s position at work particularly as some employees have obscure clauses in their contracts requiring them to be of ‘good standing’ with creditors and too many employers have outdated attitudes and believe that indebtedness is a sign of undesirability in an employee. Many jurisdictions have

- a NAMA for Ordinary Families Congress is proposing an Office for Debt Resolution to provide for a non judicial debt settlement option. The purpose of the Office for Debt Resolution (ODR) is to achieve a fair balance between the right of the creditor to recover their loans and the right of the indebted person and their family to live with dignity during the repayment period.

In short the ODR will enable the over-indebted person to come to an arrangement with his or her creditors to repay as much of their debts as possible over a specific time period whilst retaining a reasonable minimum income. For the debt settlement programme to succeed interest must be frozen on loans and the debtor must be protected from any legal action during their compliance with the repayment period. A debt settlement procedure cannot hope to succeed where the debtor is still under threat of legal action or where interest is mounting on the debts during the repayment period.

The ODR will also have the power to address negative equity and repossessions by remodeling and revising existing loans to take account of changed circumstances; they will have the capacity to determine equity changes including facilitating a role for local authorities in equity purchase or buy and rent back.

The ODR will provide an accessible, affordable and simplified alternative for debtors and creditors to agree realistic repayment of debts rather than have to resort to the 30

ICTU Update courts procedures.

Requests for referral to the Debt Settlement can be either by the debtor or the lender. Refusal to attend or comply with the arrangements or recommendations made by the ODR should be admissible in future court proceedings and appropriate inferences drawn.

•

What exactly will the Office for Debt Resolution do?

• The ODR will give protection to people who are over indebted – it will protect family homes from repossession and from creditors practices that exacerbate a families financial distress; • The ODR will provide an easy to understand alternative to the courts- cutting down on costs; • The ODR will adopt a conciliation role aimed rather than the adversarial role that would be used in a normal court setting; aimed at identifying an appropriate repayment or loan modification agreement; • The ODR will be impartial in carrying out their functions and not take sides with either party(s); the Office will however have a duty to ensure balanced negotiation and to prevent manipulative or intimidatory techniques. This is particularly relevant as the debtor may have multiple creditors all seeking immediate repayment; • The ODR will have the power to consider the totality of the person’s debts and conclude a debt settlement arrangement that sets out an affordable payment schedule, suitable to the persons means and that provides a standard of living; • The ODR will have the power to modify or reduce the terms of a mortgage, and decide the schedule and order of payment across all creditors;

•

•

• •

•

• •

The ODR will have the power to suspend interest and other charges and penalties as these only exacerbate a families financial distress; The ODR will have the capacity to address negative equity and repossessions by remodeling and revising existing loans to take account of changed circumstances; The ODR will have the capacity to determine equity changes including facilitating a role for local authorities in equity purchase or buy and rent back; The ODR will have the power to freeze /modify interest rates; The ODR will have the power to consider if there has been reckless lending or excessive penalties charged and to reduce the debts accordingly; The ODR will have a range of options available including a partial local authority buy and rent back scheme; It will protect debtors and their families from undue demands and harassment by their creditors; Where payments agreed at the ODR have not been adhered to, then the current existing legal procedures can then be relied upon.

Finally, MABS, the money advice and budgeting service is a critical component of the Congress proposals to assist people to manage on a reduced income and to address their debt issues. for more information contact esther.lynch@ictu.ie This realistic living costs cannot be below the Minimum Essential Budget as outlined in the Vicentian Partnership for Social Justice publication, Minimum Essential Budgets for Six Households-Changes during the Period 1

Get into print!

Anyone wishing to submit articles or photos to appear in the Connect journal, please, either email to:

imelda@cwu.ie or post to Imelda Wall

Communications Workers’ Union 575 North Circular Road, Dublin 1.

31

5TH BIENNIAL CONFERENCE

Carol Scheffer, National Officer

Charlie Kelly gets a presentation from Steve.

Joe Guinan and Jim Browne discuss matters.

Monica Hempenstall, Finance Officer

Brendan Moorhouse and Mick Scully, National Co-ordinators

Brian Harney, O2

Deirdre Medlar, Ballina Postal

Fionnuala Ni Bhrogain Organiser

Cormac O Dalaigh, Vice-President

Ian addresses the Private Sector Session

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Breege Mulroe, Sligo District

Jim Browne, CWU HQ

Danny Long, Limerick District

WEXFORD 2010

Steve Fitzpatrick, General Secretary

John Baldwin and Monserrat Mirer

Joe Guinan, National Officer

Seán McDonagh, National Officer

Pat Kenny, Staff Side Secretary, An Post

Jimmy O’Connor addresses Conference

Terry Delany DGS addresses Conference

Margaret Jenkins chats to Sarah and Adrienne, CWU HQ

Maurice Cassidy and Steve Crilly with the CWU HA Plaque

Gerry O’Rourke, Organiser

David Begg, ICTU General Secretary

Joe Coote, Ennis Postal

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Kevin Mulligan, Owner Drivers Branch

John Flynn, Dublin C & A

5TH BIENNIAL CONFERENCE

Old Friends Paddy Redmond, Christy Brannigan with Caroline and John Morris

Pat Byrne, Nenagh Postal

Enda McGarry, Dublin Clerks

Tommy Devlin, Dublin Mail Managers Branch

Paula Clancy, TASC

Peter Fitzgerald, Joe Maher and Aidan Hourigan ex CWU Officers

Robbie O’Connor, Chairman Standing Orders Committee

Pascall Connolly, NEC

John Murphy, Cork Outdoor Branch

Martin Quinn, NEC

Timmy O Donovan and John Whelan infiltrate the Dublin Postal Districts Branch

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Francis Devine presents on CWU History

WEXFORD 2010

Some of the Vodafone delegates at Conference Pictured l to r: Mick Farrell, Caroline McGuinness, Tommy Begg, Mike O’Connor, Declan Flanagan, David Begg, and Brian Lattimore

Mick Gallagher, Anthony Mc Crave, Rory Duggan and John Wallace fundraise for CWU HA Trip

Who called for a Card Vote?!

Cyril Packenham, John Sharkey, Angela Rowntree and Joe Byrne check out new An Post Uniforms

Mick Halligan asks about an injured Claire Kelly

Top picture: CWU HQ sing Auld Lang Syne along with (pictured below l to r) Vinny Kilroy, Imelda, Lorraine, Mick Hoey, Colin Moore, Tony Harmon, Paddy Mathews and Brendan Moorhouse, led by Christy (bottom right picture)

35

Postal Update

Partnership in An Post centred, business driven change and The 28th May 2010 was a significant continuous improvement in the quality milestone in the development and and efficiency of the service revitalisation of Partnership between • Build mechanisms in which An Post and its group of Unions, management and Unions can process namely the CWU, PSEU, AHCPS and and resolve all major change issues in CPSU. The formal launch of the a timely and non adversarial fashion Regional/Headquarters Forum was • Develop a high trust relationship overseen by the principal Staff between An Post, its staff and their Representative, Steve Fitzpatrick, and Union representatives the HR Director of An Post, Mr Pat • Ensure that staff impact issues from Knight. Both acknowledged that it the implementation of the change was timely to pave the next steps in Steve Fitzpatrick, General Secretary, agenda are dealt with and resolved in revitalising Partnership at An Post CWU, addresses.......... an integrated way at the time of the which is seen as a positive change through the normal mechanisms. development emerging from the successful operation of the Central Partnership Forum established in October 2007.

The Central Partnership Forum was established in October The rebuilding process emerges from the ashes of serious 2007 and meets following the Board Meeting on an ongoing disputes in the period 2004 to 2006 and was part of the monthly basis. The next stage of the process to rollout to the resolution of the National Implementation Body which Regions was set out by Mark Graham An Post and Pat recommended: Kenny CWU. The members of the Regional Partnership “Review the operation for meaningful consultation and Groups are as follows: information sharing across An Post with a view to promoting a partnership for change within the company”.

EASTERN REGION: Furthermore the Labour Court recommended: Union “…urgent need to critically review ongoing – Vincent Kilroy, John Morris, Emmanuel Cassidy, relationship… process previously put in place to Ellen Moore, Gerry O’Regan and Anthony review…must be immediately reactivated and the parties McCrave should fully co-operate in establishing real partnership Company models to deal with all issues affecting the company and – John Brady, John Burke, Sean Dunne, Joe Howell, its staff”.

Michael O’Loughlin, Michael O’Sullivan With the skills of the agreed Facilitator, Mr Peter Cassells and a considerable effort on the part of Senior Management Facilitator of An Post and Officials of the Unions, an agreed Partnership – Pat Compton document was formally launched on the 15th October 2007.

The aims to revitalise the Partnership process in An Post are WESTERN REGION: as follows: Union • Create a shared – Charlie Kelly, John Tansey, Paul Kennedy, JOINT WORKING GROUPS understanding of the Deirdre Medlar, Gerry Ryan and Kevin Finn Health & Safety challenges and Diversity & Equality opportunities facing An Company Uniform & Workwear Post, its staff and the – Elaine Bermingham, Seamus Byrne, Pat Dunlea, Training & Development Unions who represent John Martin, Sean Madden, Aidan O’Donnell Attendance Management them Accommodation • Focus partnership Facilitator Quality of Service in An Post on customer – Jarlath Heneghan

36

Postal Update SOUTHERN REGION Union – Martina O’Connell, Ger O’Brien, Tim O’Donovan, Ray Neville, John McCarthy and Andrew Cummins Company – John Brady, Sean Collins, Con Conway, Michael Cronin, John Dandy, Denis O’Donovan Facilitator – John Boner DUBLIN Union – Frank Donohoe, Cormac O’Dalaigh, Maurice Cassidy, Frank Burke, Willie Mooney and Syl Curran Company – Kevin Cullen, Rory Delany, Damien Hunter, Matt Lennon, Cyril McGrane and Tom O’Brien Facilitator – Bill Colfer HEADQUARTERS Union – Willie Mooney, Sinead Kane, Robert Connor, Paul Moreland and Joe Gleeson Company – PJ Brigdale, Garret Bridgeman, Connie Costello, Mark Graham, Eavan O’Halloran, Gerry Ryan Facilitator – Sean Bregazzi

Among the key issues and challenges facing the parties in the immediate future are: Countdown to the full liberalisation January 1st 2011, Realignment of staffing to revised business needs; Response to the economic downturn; Quality of Service; Postcodes and Downstream Access; Pension Fund Deficit.

37

Postal Update

Postal Regulation The postal Unions of Europe descended on Brussels on the 13th and 14th of April in a final effort to postpone the date when all postal markets must open themselves to competition. Organised by UNI, this event was designed to give all Unions a chance to bring their message directly to their MEPs. In conjunction with this UNI had arranged for a protest march through Brussels, outside the offices of the European Parliament.

CWU in Brussels Centre before the march

The CWU was very well represented on the day with most of the Postal Executive in attendance. But this group was not just there to march in solidarity with our brothers and sisters from across Europe, the Postal Executive members had arranged a series of meetings with MEPs from all over Ireland so that they could bring the message on behalf of all our postal members directly to our elected representatives in Europe. Before travelling to Brussels the Postal Executive had written to all the MEPs in their constituency to arrange the meetings in advance and to ensure they would have adequate time to spend with them to get their points across.

liberalisation) that the European Parliament should call a halt to the liberalisation for the moment so that we can examine whether it really is in the best interest of the industry to proceed in the current economic climate. In addition to this they argued that the liberalisation process has severely undermined the terms and conditions of existing postal workers across Europe and that it has brought about serious social dumping throughout the sector.

The CWU called upon the MEPs to ensure the proper implementation of Recital 16 which states: This Directive is without prejudice to the competence of Member States to regulate employment conditions in the postal services sector, which should not, however, lead to unfair competition. Social considerations should be taken into due account when preparing the opening up of the postal market.

In summary the CWU representatives were calling for a moratorium on the transposition of the 3rd Postal Directive until: •

CWU Delegation join in the march Over the course of the morning and evening of the 14th April delegations of the Executive, grouped by their constituency, met with their MEPs to explain that postal workers are not satisfied that the liberalisation of the postal market is being handled properly. Your representatives explained that they were calling on the European Parliament to ask the European Commission to postpone the final date of liberalisation for a number of years so that a proper study on the social effects of liberalisation to date could be conducted.

In their discussions with MEPs the Executive members pointed out that the world is very different place today than it was when this decision was taken. In light of the collapse of the financial services sector (which itself is the result of

The social consequences are researched and the social conditions in the whole postal market are secured by proper social regulation which is valid for all

Pictured l to r: Jim Higgins, MEP, John Tansey, NEC, competitors and stops the current social dumping!

Marian Harkin, MEP, Charlie Kelly, President CWU and • The financing Damien of universal services Tuohy, NEC is guaranteed. This

38

Postal Update •

due course. In addition to these meetings the Union also met with senior department officials from the European Commission on April 13th to deliver the same message to them. Further updates on this campaign will be forthcoming as it develops but all members should remember that we will most likely have a serious battle on our hands here at home when the government reveals the legislation they have written that will liberalise the Irish postal market. As we all should know at this stage this will represent the single biggest challenge since the founding of the Company to the terms and conditions and general job security for all of our postal members – regardless of the role they play within the service.

means postal services at the same price throughout the whole country at least 5 days per week.

A way is found to compete on quality and innovation in the market. We want quality services and quality jobs in the sector and not competition based on social dumping!

In the main the Postal Executive members were well received by their MEPs, with the possible exception of Mairead McGuinness who seem more interested in time keeping than with the problems of protecting postal jobs in her constituency. Some MEPs were not in Brussels on the day and follow up meetings will be arranged with them in

HEALTH & SAFETY UPDATE

be distributed to all staff over the next few months. Initially this Guide will be circulated to all staff in the Collection and Delivery Area and subsequently staff working in other areas of the Company will be provided with similar booklets. This booklet highlights information and guidance for staff on Health and Safety matters as well as attaching the relevant Safety Task Procedures.

An Post manages its legal requirements under Health and Safety Legislation through an Occupational Health and Safety Management System (OHSMS). This is a framework that allows the Company to consistently identify and control its health and safety risks, reduce the potential for accidents, help achieve compliance with Health and Safety legislation and continually improve its performance.

Under the Safety, Health and Welfare at Work Act 2005, An Post must manage its work activities to ensure the safety, health and welfare of its staff and they do this through the Safety Statement. The Company is distributing this booklet as part of the process of making staff more aware of how the Company manages safety. In addition to outlining employees’ duties under Health and Safety Legislation the guide also highlights the following:

The Union Health and Safety Committee continues to proactively raise Health and Safety concerns with the Company. The Health and Safety Committee is led by Pat Kenny and the other members of the Committee are Damien Tuohy Galway, Maurice Cassidy Dublin Drivers, Willie Jackson Dublin Drivers, Vincent Kilroy Naas / Portalaoise Managers and Frank Burke Dublin Mails Managers. Based on feedback from Branches the Union has developed a range of issues to discuss with the Company as follows: • • • • • • • • • • • •

Provision of Defibrillators Night Work Policy Driver Safety Cycle Helmets Eye and Eyesight Assessment Traffic Management Drugs and Alcohol Policy Location and Training of Safety Reps First Aiders Personal Protective Equipment Lone Work Policy Safety Guides

• • •

The Sub Committee welcomes feedback from Branches and Safety Reps and if there are any Health and Safety issues that cannot be finalised at local level they should be referred to the Sub Committee. It is important in the first instance that all Health and Safety issues are raised with local management.

•

•

An Post Safety Guide for Staff The Union has recently concluded agreement at the Health and Safety Committee of the Joint Conciliation Council for a new An Post Safety Guide for Staff which will 39

The Company’s obligations in relation to consultation and communication The right of the staff in an office to elect a safety representative Fire evacuation procedures Accident, incident and near miss reporting Safety Task Procedures

Postal Update • • • •

What are Safety Task Procedures?

Safety Task Procedures are safety rules that must be complied with and are derived from risk assessments carried out across Collection and Delivery. Each Safety Task Procedure identifies a hazard, the risk associated with it and any control measures that should be in place to ensure that staff work safely. The Safety Task Procedures cover a wide range of issues and some of the key ones are: • • • • •

Bicycles Dog attacks Driving / transport Needle stick / sharps injury

The Union welcomes the distribution of this booklet as it highlights safety standards for staff and will assist in raising awareness of safety issues across the Company. If anyone has any concerns or issues arising from the distribution of this booklet they should raise them with Union Headquarters through their Branch Secretary.

The An Post Group of Union’s and the Company have recently completed reviews of the An Post Disability Policy and the Equality Policy at the Diversity Sub Committee of the JCC.

Welfare facilities Personal Protective Equipment Movement of Vehicles Vehicle loading and unloading Manual handling

EQUALITY UPDATE

•

•

Disability Policy

Outlining the Company’s legal responsibility for the employment of 3% of its total employee population by persons who have a disability Providing for a review by the JCC

Disability Champion

As a result of the introduction of the Disability Act 2005, the Staff Side sought to review the Company’s Disability Policy, which had previously been agreed in 2003.

The Disability Act is designed to advance and underpin the participation of people with disabilities in society by supporting the provision of disability specific services and improving access to mainstream public services. It places significant obligations on public bodies, including An Post, to make buildings and services accessible to people with disabilities. It also requires public bodies to take positive actions to employ people with disabilities.

In addition An Post has a number of legal responsibilities under the Disability Act 2005 one of which is to report the number and percentage of employees with disabilities in the workplace. An Post, as a commercial Semi-State organisation, has a disability employment target of 3% of its total employee population in order to comply with the 2005 Act.

As part of our ongoing commitment to disability awareness, the Union has highlighted the crucial role that Disability Champions play in the workplace through their support and awareness of disability issues. The Union is seeking to have their role formally recognised and at the time of writing the Company is considering its position.

Equality Policy The An Post Equality Policy had not been reviewed since 2003 and both the An Post Group of Unions and the Company felt it was opportune to review the policy given changes in legislation and case law since 2003. The newly reviewed policy recommits An Post to working together with its Trade Unions to maintain a workplace environment that encourages and supports equality in the workplace.

The main changes in the policy are as follows:

The main points in the reviewed policy are:

•

• •

• •

•

Strengthening An Post’s commitment to persons with disabilities to ensure that they are not disadvantaged by their disabilities New definition of disability as contained in the 2005 Disability Act Commitment from the Company to take all reasonable efforts to provide employees with disabilities with a workplace compatible with their particular needs Providing for Personal Emergency Evacuation Plans for all employees with disabilities

• •

A more detailed explanation of the nine grounds Updating the relevant definitions and references to legislation A commitment to provide HR Management with Equality training Include equality modules in all its induction courses.

The Union welcomes the conclusion of both of these policies and further highlights the positive work undertaken by the Diversity Sub-Committee.

40

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COMMUNICATIONS WORKERS’ UNION BAND The CWU Band is seeking new members!!!

Are you interested in joining a band and making new friends?

Are you a brass, woodwind, or percussion player?

All musicians are very welcome!

We rehearse every Sunday morning at CWU premises on the North Circular Road, Dublin 1 To find out more, please contact: Jimmy O’Keeffe at 087-7970880; Ciaran Scarlett at 087-2266640; or Email: cwuband@gmail.com

Beginners and New Members Welcome!

14th May 2010 – G.S Circular General No. 16/10

CWU MEDICAL FUND Dear Colleague, Following a review of the CWU Medical Fund it was agreed that the contribution rates would be increased from €.00 per week to €.50 per week to come into effect from 1st June 2010.

As you are aware an actuarial was carried out in 2007 which increased benefit payment by 20% and contributions by 10 cent. As per our audited accounts for 2009 the Medical Fund has shown a deficit of around € 5,000.00. The Finance Committee and the National Executive Council have agreed the increase in contribution rates which was endorsed at our Biennial Conference 2010.

Thanking you for your co-operation in this matter.

Yours sincerely, STEPHEN FITZPATRICK General Secretary, CWU.

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Are you bound to your bank? esccu credit union delivers big

savings and better service for members Are you sick of getting shocked with fees, or hit with penalties, or even earning bad interest rates on savings. Are you tired of being treated like a nuisance rather than a customer. And yet you have little hope that the bank down the street is any better. Do you have to settle for a bank? Relief could be as close as your dedicated credit union.

For further information, please call us on 01-6792344.

Choose esccu

The Board of Directors, Management and staff of esccu credit union would like to congratulate Gerard Bourke in winning a `300 Voucher at this years CWU Conference that took place in Wexford.

Well Done Gerard!

We look forward to seeing you all again next year.

52

From left – right: Patricia Kiely (Project Officer), Fergus Casey (Manager), Gerard Bourke (esccu member) and Emma Lusk (Business Development Officer).

Health & Safety Update •

Workplace Transport Safety

•

• • • •

Introduction

•

Every year up to half of all fatal workplace accidents involve vehicles. In addition many more people are seriously injured.

Common accidents involve: • • • • •

•

Being struck or run over Falling from vehicles Being struck or suffocated by a load Vehicles overturning Vehicles being driven by untrained drivers

• •

In order to control transport risks, the vehicle, the driver and the working environment must be appropriately managed.

The purpose of this article is to outline some guidance in relation to how this should happen.

•

•

Vehicles Under the Safety, Health and Welfare at Work Act 2005 employers must ensure that vehicles are designed, provided and maintained in a safe condition. The Safety, Health and Welfare at Work (General Application) Regulations 2007 expands on the requirements of the Acts by requiring the employer to take account of the specific work conditions, the characteristics and the hazards in the place of work with regard to the health and safety of employees.

Vehicle Maintenance It is important both in order to prolong the life of the vehicle and to ensure that the vehicle is safe to drive that the vehicle is regularly maintained. At a minimum this should involve basic safety checks and planned preventative maintenance.

Planned preventative maintenance will prevent accidents and delays due to mechanical failure, minimise repair downtime and prevent excessive wear and breakdown.

Drivers should carry out basic safety checks prior to driving their vehicle. These would include checking tyres, windscreen wipers, washers, lights, indicators and warning devices. Drivers should have adequate instruction and training to perform such checks and providing a simple checklist could be of assistance. In addition the following should be undertaken:

What should the employer do?

• • • •

Ensure that there is appropriate seating that is safe and allows for driver comfort Safe means of access and egress to the cab and other accessed vehicle parts are essential, e.g. slip resistant steps and hand holds Ensure that dangerous parts such as exposed exhaust pipes, chain drives etc. are adequately guarded Drivers should be able to see clearly all around their vehicles Ensure attachments are suitable for the task and compatible with the vehicle The vehicle should be stable under all foreseeable operating conditions Standard safety features such as horns, lights (including reversing lights) and seatbelts are provided. Consider having speed restrictors fitted Alarm systems that sound if the driver attempts to leave the vehicle without applying the handbrake should be considered The steering and braking systems should be suitable and effective Adequate driving protection should be provided against inclement weather, cold, noise, dust, fumes and vibration as necessary Ensure that the vehicle is capable of taking the full weight and size of everything that it may be required to carry and that adequate driver protection against shifting loads is provided Ensure that adequate anchor points are provided for securing loads

Carry out a written risk assessment of workplace transport hazards Ensure that when purchasing a vehicle assess them to ensure that they are safe and suitable for the purpose Ensure that vehicles are adequately maintained Ensure that drivers have adequate instruction, training and information to operate the vehicles and any attachments they use

•

•

Evaluating and assessing the vehicle The following should be taken into account when evaluating and assessing the vehicle:

• 53

Vehicle attachments should be regularly inspected for damage and wear. Guards, safety devices and controls must be maintained Appropriate procedures should be in place to ensure that vehicles are kept clean in order to ensure good visibility for the driver and also to facilitate detection of any loose, worn or defective parts Regular preventative maintenance, in accordance with

Health & Safety Update

• •

the manufacturer’s recommendations should be planned and carried out at predetermined intervals.

Such intervals will usually be based on time (hours of use) or distance (Kilometres) All repairs, modification, maintenance or servicing must be carried out by a competent person Maintenance and service records must be kept for all workplace vehicles. If some vehicle defects occur frequently, the root cause should be investigated

The employer should reassess the drivers training at regular intervals and provide refresher training if necessary particularly if there has been a lapse in safe driving standards. All records should be updated as training is provided and should include details of the vehicles that the employee is competent to operate.

Driver Instruction and Information The driver should be supplied with a clear job description detailing their roles and responsibilities. The driver should be provided with a driver’s handbook which details the safe systems of work and provides all company policies and rules relevant to driving. These policies should cover issues such as the use of mobile phones, in vehicle technology, drugs and alcohol, fatigue, parking, smoking, seat belt usage, driving hours and the carriage of passengers. Appropriate personal protective equipment (PPE) should be provided such as high visibility jackets, safety boots or gloves and should be provided with instruction on how to use them.

Driver Under the Safety, Health and Welfare at Work Act the employer must take into account the employees capabilities when assigning an employee to a specific task.

The employer is responsible for ensuring that when workplace transport drivers are appointed that they are not given work that they do not have the competence to undertake.

People operating workplace transport vehicles must be trained and on the introduction of new attachments or technology the driver must receive training in respect of these.

Basic Driver Rules

Driver Selection

If you drive you should:

When selecting people to drive workplace vehicles employers must: •

•

•

•

• • •

Select employees who have the correct safe attitude to workplace transport and have the ability to perform the job in a responsible, competent manner Consider the employee’s physical fitness, such as health, eyesight, hearing and mental ability to carry out the job. Where possible, match the particular vehicle requirements, the task and situation with the driver’s fitness and capabilities. Do not allow anyone who is unfit due to drugs or alcohol to drive a vehicle Carry out background checks; for instance, check the employee’s driving licence background. Ensure that driver’s licenses or certificates are appropriate for the vehicles they are driving If the driver has previous experience, assess them to ensure that they are competent

• •

• • •

Follow the designated vehicular traffic routes Always park safely Not drive when you are tired, ill or have poor vision. If you feel you are not competent or fit to drive a vehicle, don’t drive it and inform your manager Ensure you understand the operating procedures of your vehicle Wear any PPE provided and keep PPE such as high visibility jackets to hand so you do not have to get out of the vehicle to retrieve it Report any defects in vehicles Do not engage in horseplay or unsafe behaviour Keep vehicles as clean and tidy as possible

Safe Workplace A major cause of transport accidents is poor workplace design and layout. In carrying out a risk assessment an employer has the responsibility to ensure that all transport hazards are identified and assessed. The workplace itself must be evaluated with respect to the movement of vehicles and pedestrians and control measures put in place to eliminate or reduce the risks found.

Traffic routes should be suitably designed and maintained for the traffic to be carried. All traffic entering the workplace must be directed and controlled as far as practicable. The following should be evaluated during the risk assessment process:

Driver Training The driver must be trained and competent to drive the vehicle being operated. The level of training required will depend on the drivers experience and the type of work to be carried out. New employees should be provided with induction training which should include information about traffic route layouts. On the job training should be provided on workplace policies such as speed limits and parking procedures. Employers must ensure that drivers are trained in safe driving practices, basic safety checks, proper use of safety features and how to report defects. Drivers should also receive training on how to secure loads.

1.

Vehicular Traffic Routes •

54

Access and entry into the site should be reviewed.

Health & Safety Update •

• •

• •

•

For example does traffic have to cross a major road to enter or exit the site?

Pedestrians and vehicles entering the site should be controlled by the use of barriers or access gates.

Ensure that drivers can see hazards.

The need for vehicles to reverse when collecting or delivering goods should, where possible be avoided. One way systems should be considered.

Traffic routes for heavy traffic should avoid the areas mainly used by pedestrians Sharp bends and blind corners should be eliminated as far as possible. Where they cannot be avoided, warning signs and mirrors should be used to reduce the risks of accidents Passageways should be wide enough and the surfaces suitable for the safe movement of the largest vehicle likely to use them

• •

5.

Traffic Control/Speed •

• •

6.

•

Pedestrians • •

• • •

3.

• •

7.

• •

• •

• • •

•

All vehicular and pedestrian traffic routes should be signposted All road signage should comply with the Department of Transport Traffic Signs Manual All safety signage should comply with the Safety, Health and Welfare at Work (General Application) Regulations, 2007 (S.I. No. 299 of 2007) - Safety Signs at Places of Work - Part 7, Chapter 1 All signage must be clearly understood Use reflective or illuminated signage where work is performed outside of daylight hours Place appropriate signage at the workplace entrance to indicate the main site rules e.g. traffic routes, speed limits etc.

Ensure that signage are not obstructed by objects or shrubbery

8.

All vehicular routes, lighting signage and route markings should be regularly cleaned and maintained Ensure that all surfaces have a good grip Ensure that pedestrian footpaths are kept clear of obstructions like shrubbery and materials that may cause slips, trips or falls such as mud or ice

Safe Systems of Work •

•

•

Once the site has been assessed a traffic management plan should be prepared. Following the site assessment, prepare a traffic management plan As part of the plan a site map should be included which identifies the traffic routes for vehicles and pedestrians Review the site layout periodically to take account of changes in work activities, traffic volume, type and circulation

The Health and Safety Authority has published a number of pamphlets on workplace transport safety dealing with the above issues and these can be downloaded from the Health and Safety Authorities Website at www.hsa.ie. The above is not intended to be a legal interpretation of the legislation.

Lighting •

An adequate number of safe, well lit and suitably designed parking spaces should be provided.

On site parking should enable separation between work and private vehicles Parking should be easy to find and ideally should be as close as possible to where people need to go once they leave their vehicles Employees and drivers should only park in their designated areas Parking areas should not obstruct key access routes

Housekeeping and Maintenance •

Signage and Road Markings •

4.

•

Pedestrians should be separated from vehicles and suitable pedestrian routes should be marked out.

Pedestrian crossing points with good visibility for both the driver and the pedestrian should be provided Provide barriers at entrances and exits to buildings to prevent pedestrians walking directly into traffic Pedestrians should wear high visibility jackets or vests in areas where workplace vehicles operate Safe areas should be provided for drivers while vehicles are being unloaded

An appropriate speed limit should be put in place and it should take account of the route layout, the vehicles using the route and the loads being carried.

Once in place the speed limit should be monitored and enforced Calming traffic measures such as rumble strips.

Speed humps etc should be considered

Parking

•

2.

The lighting should be positioned correctly The lighting should not cause a risk of glare to vehicle traffic

Appropriate lighting should be provided on all traffic routes and yard areas 55

Book Unionised Hotels on new website

www.fairhotels.ie

David Begg addresses the launch of the Fair Hotels initiative.

Showing solidarity with low paid hotel workers is the right thing to do and it makes sense for your pocket! monitor the impact of the consumer campaign in the industry by tracking bookings made through the website.

The Fair Hotels Campaign which is a SIPTU initiative has the full backing of the Communications Workers Union.

The Irish Congress of Trade Unions has also endorsed the campaign. This campaign to raise standards for workers in the hotel industry in Ireland has received wide scale pledges of support and solidarity from Trade Unions around the world. The global federation of hotel workers, the IUF, has endorsed Fair Hotels. The IUF comprises 330 Unions in 120 countries representing a combined membership of 12 million workers. The European Trade Union Confederation, ETUC, and the TUC in Britain are among the 40 Unions and Union confederations that have put their weight behind the campaign. Fair Trade, the National Women’s Council of Ireland, the National Consumer Association, Migrant Rights Centre Ireland, Age Action and Sports Against Racism are just some of the 32 non-governmental organisations that have also endorsed the campaign.

The economic recession and volcanic ash will mean that many members will stay in Ireland over the holiday period.

Why not visit www.fairhotels.ie and see if anything suits your needs? Most of the participating hotels have offered Fair Hotels supporters a discount if they book though the website. Members who book on the site are automatically entered into a regular draw with great prizes like overnight stays in luxury 5 star Fair Hotels or a city break for 2 in a Fair Hotel or family break in a family friendly Fair Hotel.

A campaign aimed at supporting and promoting quality jobs in the hotel industry was launched in Dublin on Tuesday 25th May. The Fair Hotels Campaign aims to raise working standards in the industry by encouraging consumers to choose hotels that treat workers fairly. The hotels where staff are paid and treated fairly are being viciously undercut by hotels that have no regard for workers’ rights.

Workers in the hotel industry are the lowest paid workers in any sector of the economy. The statutory rate of pay for a fully trained adult chef, waiter, barperson, porter or housekeeper is €354 for a 39 hour week. Despite the low rates of pay in 73% of hotels inspected by the National Employment Rights Authority in 2009 workers did not receive their entitlements. In other words barely 1 in 5 hotels were operating within the law. These hotels should no longer receive the patronage of Trade Unionists or consumers who care about workers’ rights. It is the workers in these hotels that ultimately pay the price for the race to the bottom in hotel room prices.

Supporting the decent Unionised hotels is made simple by the Fair Hotels Campaign the centre piece of which is a new website www.fairhotels.ie. Supporters can visit the site and see all of the hotels on the island of Ireland that recognise Unions for collective bargaining purposes.

Supporters can browse the hotels and choose the one that best suits their leisure, meeting, training or conference needs.

Currently there are 43 hotels from which to choose.

Booking on www.fairhotels.ie also allows Unions to 56

57

CWU People

All in a Days Work Super Postmen to the Rescue

by Ger Oâ&#x20AC;&#x2122;Connor, Branch Secretary, Mullingar Postal Branch Pictured is an article that made the local Mullingar & Westmeath headlines when two Postmen from the Mulligar Postal Branch came to the rescue of members of the public that they deliver to on their routes. In the first incident, the Postman in question was Mal (Malcolm) McDonnell, cycle post and the second incident was David (Dathi) Tyrell on a delivery in the Taughmon area five/six miles from Mullingar.

What this article demonstrates is just how valuable the postman is and their importance to communities in both rural and town areas when the postal market opens up in 2011. An Post has a Universal Service Obligation so that ministers are not allowed to lose one of the last and most vital of services to the communities all over Ireland.

58

CWU People

Westport Parade

Pictured from l to r: Michael Brady, Padraig Marrey and Noel Brady Here is the team that did the Race around Ireland in 2009, doing their bit for the Westport Parade. Sean Kelly (Manager of the An Post cycling team) was the Grand Marshall and was there to promote smarter travel for the town of Westport.

Joe re-appointed to the Employment Appeals Tribunal

Joe Maher pictured recently at the Communications Workersâ&#x20AC;&#x2122; Union Biennial Conference in Wexford

Joe Maher, the former Deputy General Secretary of the CWU recently completed a successful three year period as a member of the Employment Appeals Tribunal. He was proposed by the CWU and nominated by Congress.

During those three years Joe has been involved in dealing with many difficult and complex disputes that fell to be resolved under the various pieces of legislation that come within the Tribunalâ&#x20AC;&#x2122;s jurisdiction, particularly those in the areas of dismissal and redundancy.

It has been a very busy three years and the caseload coming before the Tribunal increased substantially year on year, mainly as a result of the downturn in the economy, the closure of businesses and the subsequent job losses.

Following a proposal by the CWU and a nomination by Congress we are pleased to note that Joe has recently been re-appointed to the Tribunal by Mr Dara Calleary, T.D., Minister of State at the Department of Enterprise, Trade and Employment for a further five year period.

We wish him every success in his continuing role with the Tribunal.

59

CWU People

Retirements from An Post, Castlebar, Co. Mayo

Castlebar CWU Branch pictured making a retirement presentation to Thomas McGough, Pictured l to r: Bernie Walsh, Branch Officer, Nora McGough, Sean Corley DSU, Thomas McGough Postman, Sean Skeffington Chairman and Stephen Lynch, Branch Secretary, Castlebar.

Voluntary Severance Retirements John McGeady, Branch Secretary, Drogheda C&A presents June Gibbons (pictured on the left) with the Union Scroll and Gold Badge, and Amanda Walsh (pictured on the right) with the Union Scroll and Silver Badge on their retirements

Amanda Walsh, from Dublin, has availed of voluntary severance package after 10 years in Eircom starting her career with Eircom in TSS Dublin before moving to CSS Drogheda where she worked as a customer service rep.

June Gibbons originally from Louisburgh in Co Mayo has availed of voluntary severance package after 35 years service starting her career with P&T as a telephonist in Clifden and finished as a customer service rep in CSS Drogheda.

60

CWU People

Presentation made to David Begg

who have brought credit to the Union through their activities in the wider society. In David’s case, his work in the Irish Congress of Trade Unions and previously in Concern obviously fulfils those criteria and David was very proud to have his name added to that of Toddy O’Sullivan who was the first member to be granted this honour on his appointment as a Junior Minister in Dail Eireann.

At our 5th Biennial Conference in Wexford a presentation was made to David Begg, General Secretary of the Irish Congress of Trade Unions by President Charlie Kelly on his acceptance of lifelong honorary membership of the Communications Workers’ Union. This is only the second honorary membership the Communications Workers’ Union has awarded. The NEC only presents this award to members

Seán Jackson & John O’Sullivan retire from Limerick District Branch

Pictured l to r: Kieran O’Mahony Co-ordinator, Seán Jackson, Jimmy O’Connor National Officer, John O’Sullivan, Ger Falvey Br. Sec. Jim O’Flynn NEC

The Limerick Branch made a presentation to two retired members for their contribution to the Union. Seán Jackson, who retired after 36 years’ service, served as Section Chairman and Section Secretary in Tipperary. He also served on the Standing Orders Committee. John O’Sullivan, who retired after 42 years, occupied many positions within the Union in the Ennis Section, in his time, before retiring as Limerick Branch Chairman. Jimmy O’Connor thanked Seán and John for their time and dedication to the Union and its members and wished them well in their retirement.

61

CWU People

Dystonia Ireland ~ raising awareness Dublin No 1 Branch delegate and veteran Union activist Kieran O’Reilly, took the opportunity at the CWU Conference in Wexford to raise awareness of Dystonia, a progressive neurological movement disorder “characterised by involuntary muscle contractions, which force certain parts of the body into abnormal, sometimes painful movements or postures.” His late brother Noel, the renowned Irish soccer coach, suffered from the condition, and in conjunction with the Football Association of Ireland (FAI), Dystonia Ireland has issued a DVD, both as a tribute to Noel and his “wonderful coaching style and impact on Irish football at all levels” and also to raise awareness of the condition, which can affect anyone at any age.

The DVD costs €10 and all funds go to Dystonia Medical Research For further information please contact: Terry Concannon Tel: (01) 8348252 : Brian Kerr Tel: 087-2332557 Rose McAllorum Tel: (01) 8683323 Mobile: 085-7244958 Dystonia Ireland, 33 Larkfield Grove, Harold’s Cross, Dublin 6W. Tel: (01) 4922514 Email: info@dystonia.ie Website: www.dystonia.ie

Noel’s brother Kieran and former Irish International Manager Brian Kerr pay tribute to Noel O’Reilly’s coaching career

Kieran O’Reilly, brother of Noel, addresses CWU Conference to raise awareness of Dystonia.

Brian writes about his friend Noel

Many of you are aware of the sudden death of FAI’s Senior Coach Educator Noel O’Reilly, September 2008 from a rare virus. Noel also suffered from a neurological movement disorder known as “Dystonia”. He was one of the most respected figures in Irish football. Noel had a distinguished coaching career at club and international level and he had become one of a select group of Irish coaches to receive a UEFA Pro-Licence.

At club level he was best known for his involvement with Dublin schoolboy club Belvedere and Eircom League of Ireland sides Shamrock Rovers and St. Patrick’s Athletic.

At international level he was the current manager of the Ireland’s World Universities Men’s team. He previously managed the Republic of Ireland Under-18 squad and was also coach to various other international underage teams over the years, as well as being a member of Brian Kerr’s senior management team from 2003 to 2005.

The most beautiful story in Irish soccer is still – maybe always will be – the story of Brian Kerr, Noel O’Reilly and their youth teams. They won two European titles within two months in 1998. A year earlier, they brought Ireland to third place at the World Youth Cup finals in Malaysia.

Noel O’Reilly in conversation with his good friend and fellow coach, Brian Kerr “Noel and myself worked together for over 25 years in coaching at all levels in Ireland and abroad. We were fortunate enough to have great success at St. Patrick’s Athletic, the Republic of Ireland youth teams and with the national team. We managed to travel the world together and I was, like others, privileged to share his company, wisdom and beautiful nature so closely for so long. Sometimes I say we worked, travelled, laughed and enjoyed life together in a special way. Noel was a genius who loved life, football, people, music, books and words and he brought great joy, care and friendship to thousands of people. Like so many others I miss him hugely. We will never see his like again.”

62

CWU People

Enniscorthy Postal Branch Retirements

Pictured Back Row l to r: Ann O’Leary, Mary Gannon, Tommy Millar, Joan Dunbar, Jimmy Lynch, John Wall (CWU Chairman) Marion Dillon, Mick Condren, Matt O’Connor (CWU Secretary) and George Kehoe (CWU Social Committee) Front Row l to r: Richie Gannon, Liam Dunbar, Jean Lynch, Michael Maher and Michael Dillon (Retirees) Five Members of the Communications Workers’ Union in Enniscorthy Postal Branch retire with nearly two hundred years of service having delivered an awful lot of post, as well as working with thousands of customers at the post office counters and making sure the place was sparkling for business. At a recent retirement function to mark the occasion family and friends gathered to toast the retirees. Mails Manager Mick Maher (42 years’ service), TV Licence Manager Liam Dunbar (39 years), Postal Operatives Richie Gannon (42 years) and Michael Dillon (41 years) and Cleaning Staff member Jean Lynch (25 years). Tributes were paid to the five members by Fiachra Ryan Mails Manager, Tommy Millar Branch Manager, Matt O’Connor CWU Branch Secretary and Bill Colfer National Partnership Co-Ordinator.

Ardcheiliúradh

SLÁN LE MEAS: Paddy Costelloe, Stiurthoir, An Post, Sam Maher, Runai, Club Sóisialta, An Post, idteannta le Fergus agus Winnie Breathnach tar éis do Sam bláthfhleasc a bhronnagh uirthi

BHÍ ARDCHEILIÚRADH i gClubtheach CLG Setanta, club iománaíochta agus camógaíochta, i mBaile Munna agus slán á fhágáil le Fergus Breathnach tar éis dó 40 bliain a chaitheamh ag obair in An Post.

Tabharfaidh seo deiseanna breise d’Fhergus a chuid suime sa Ghaeilge i mBaile Muna a shaothrú. Is geal le saothar lánaimsearach atá tugtha aige do teanga go dtí seo ainneoin a chúramaí oibre á gcomhlíonad aige freisin.

Tá Fergus gafa le buanú Scoil an tSeachtair Laoch le blianta fada agus le bunú agus forbairt obair agus oifigi breátha Ghlór na nGael so phobal. Ó tógadh an clubtheach breá Setanta dornán de bhlianta ó shin bíonn an ceol traidisiúnta á mhúineadh ann agus imeachtaí teanga i gcónaí i gcroílár na n-imeachtaí sóisalta san fhoirgneamh breá. Faoi láthair tá imeachtaí Sheachtain na Gaelilge á mbeartu fud fad Bhaile Munna. Bíonn ciorcal comhrá ar siúl gach oíche Déardaoin i mbeár an chlubtheach agus mar mhealladh breise tá costas an phionta laghdaithe go €3 do gach duine i láthair, biodh siad sa chiorcal comhrá nó nach ea, a ordaíonn deoch i nGaeilge.

Go mairfidh Fergus a shaothar 63

CWU People

Willie Crimmins, R.I.P. tremendous respect for all the staff that worked on his Team.

Willie in turn was well liked and respected because of his character and personality, not just by the men who worked to him, but by all of us in Eircom who had the pleasure of knowing him. This was evident by the sizeable Eircom contingent that joined the large amount of people who attended his wake and Requiem Mass.

He had a strong social conscience and one example of this was his enthusiasm and commitment to the Niall Mellon Trust; he went to South Africa to assist with the building of houses for the local people there.

Willies’ family wish to express their sincere gratitude to all his Eircom colleagues for the kindness and support shown to them following his sudden death. They also wish to say a heartfelt thank you to everyone who called to their home, the Guard of Honour afforded to Willie and the large numbers who attended his Requiem Mass. His family wish you all to know that your presence was a great comfort to them. We would like to extend our sincere sympathy to Willies’ wife Kathleen, his daughters Michelle and Sonia and to his grandson Dara. May you Rest in Peace Willie.

It was with profound sadness that we learned of the passing of our good friend and colleague Willie Crimmins, Eircom, Clonmel.

At the time of his death, Willie held the position of CTM for the Network Engineering Team which covered the Western half of the old Waterford District.

It is almost 30 years ago now since Willie transferred from Dublin to Clonmel and took up a position with a three-man construction gang. From this he moved to the maintenance area of work and in time became Lineman for the Cahir exchange area. Willies’ next move was his appointment as CTL in charge of a Team based in Dungarvan. His final appointment was to the position of CTM to what was then called the Build Team and he was once again based in Clonmel.

Willie was a very likeable man who found it easy to relate to others and it was always a pleasant experience to meet with him or talk to him on the phone. Willie was very conscientious and was extremely knowledgeable about any area of work he was involved with for Eircom. He was well liked and respected by management and staff alike. He was a very good organiser with a great knowledge of his job and he also had a

Jimmy (Yank) Fenlon, R.I.P. Gallon” as he referred to it, nights out with his mates in Gaynor’s with table quizzes usually the order of the night and above all his family. Family was very important to Jimmy and his home was open to all, with friends of his children constantly calling and made welcome. Jimmy and Liz had a great circle of friends and this friendship was so evident with the support they showed the family throughout and after Jimmy’s illness.

The last weeks of Jimmy’s life were so packed with life it was unbelievable. He had visits from his mother, Margaret, sister, Mary, and her husband, Eddie, his niece, Felecia, his nephew, Evan, and brother, Philip, who all travelled from New York where they reside. His son, John, who is working in Melbourne in Australia, had a couple of glorious weeks with his dad, or as he called him, “The big fella”, and there was no end to old friends who called to say hello.

When the event happened, the esteem by which Jimmy was held showed in the number of people who turned up to attended the removal and funeral mass. Liz and family were so emotionally struck by the gesture of Jimmy’s Eircom co-workers who lined the route to his final resting place at St Ibars Cemetery. It is a memory they will always treasure.

Liz and her family have a great respect and deep gratitude for all the Eircom staff for their support throughout their long ordeal with special thanks to close friends Nacey Brennan, Ed Mooney, Ike Robinson, Dick Keeling, Fran Greg, and of course Willie Tyrell of the Wexford branch of the CWU who always gives 110 percent when dealing with problems for all staff and their families and Kevin Looney HR for his help.

The family would like to thank all those who called and supported them, those who prayed and offered kind words, a mass will be offered for your kind intentions.

It was with sad and deep regret that we learned of the recent passing of Jimmy (Yank) Fenlon of Wexford. Jimmy was with Eircom for 30 years and in that time had made a lot of friends both locally and throughout the country.

Born in New York in 1958 Jimmy and family moved here when he was fourteen and those that knew him did not need to know where his nickname came from as his deep drawl and pronunciation of some words gave the game away. While very proud of his American connection Jimmy was out -and-out Irish and loved the freedom of life in Wexford.The great outdoors was what Jimmy really enjoyed and up to recently hunting and shooting were his main pastimes and with brothers in law Paddy and John Donovan, Paddy O Leary and friends Richie Thomas and Ike Robinson spent many a rewarding day after duck, geese and pheasant around Wexford and Wicklow.

In latter years as age crept in he turned his leisure time to golf and was a keen member of the Wexford Golf Club.

Jimmy Married his wife Elizabeth Donovan whose family had a long tradition of association with Eircom from the days of the old P&T. They had four children, John, Laura, Philip and Emma.

Jimmy started his working career with John Grace Joinery and had finished his apprenticeship only several months when he joined Eircom in one of the big recruitment drives of the late seventies and early eighties. He was a very accomplished jointer with a great flare for lead jointing in particular and was proud of the camaraderie associated with this area of the job.

Jimmy was a very determined character and this determination showed in the way he fought his illness. When something didn’t work out it was straight on to the next option and his doctors and carers were so many times overawed by his sheer willpower and determination.

Jimmy had simple pleasures: a pint of Guinness or “quiet 64

CWU People

Paddy McLaughlin (Buncrana) R.I.P.

The 1984 Post Office Workers Union Conference in Buncrana Sitting L to R: Hubert Wilson, Buncrana/Inch. Charles Lafferty, Carndonagh, PADDY McLAUGHLIN, BUNCRANA, Paddy McLaughlin, Culdaff, Mathew Kemmy, Clonmany/Ballyliffin, Standing L to R: Plunkett Barr, Clonmany/ Urris, John Harkin, Carndonagh, Willie Doherty, Clonmany, Paddy Doherty, Malin Head, Hugh Joe Henderson, Buncrana

It is with deep regret and sadness that we have to report the death of our colleague Mr Paddy McLaughlin, Buncrana.

Paddy passed away on 2nd September 2008. Paddy was a very quiet man, kind and considerate to his family. He also loved his job, a job he did with pride and would have worked long after retiring age if he was allowed to.

Paddy started work in Buncrana Post Office as a Telegram Boy at the age of 14. Three years later he sat the Post Office Entrance Examination in Letterkenny and became a Postman in Buncrana and surrounding area where he worked in total for 51 years. He also delivered parcels in Buncrana with a push cart for five years.

He was then asked to go to Dublin to sit a driving test which he passed. He returned to Buncrana and was the first in the area to have a delivery van.

Those of a certain vintage will remember the Post Office Workers Union Conference in Buncrana in 1984. A total of 500 delegates attended. Paddy with his colleagues applied to host the conference and when their offer was accepted their fundraising drive began and was an immediate and complete success and it culminated in an historic event in Buncrana. All hotels and B&B’s were booked up for the week. Paddy also organised golf trips and bus tours for the partners of the delegates.

This provided a headline not only in Branch co-operation but in the coming together of the whole community to ensure

that the conference would be the success it turned out to be.

Paddy and his colleagues did dismiss any suggestion that they did more than their individual parts, but the consensus was that here was the leadership and the driving force that added up to a wonderful success.

Conference started on the first morning with Mass in St. Mary’s Oratory with the gifts carried by four Postmen in Uniform. Bishop Edward Daly opened conference later that morning.

To mark its appreciation of how well the conference was supported at local level, Head Office donated an inscribed silver salver. The Assistant General Secretary telling the Company that the Buncrana Conference would be remembered as amongst the best in the annals of the Post Office Workers’ Union. At all conferences from that day forward the first dance was always dedicated to Paddy and his wife Bridie in appreciation.

As stated earlier Paddy passed away on the 2nd September 2008. He was laid to rest in Cockhill Cemetery with a guard of honour from his colleagues who walked the short distance to the Church.

Paddy is survived by his wife Bridie, son Seamus and daughter Patricia.

May he rest in peace – Ar dheis de go raibh a anam dilis.

The Lifford/Inishowen Branch would like to apologise for the delay in submitting this appreciation.

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Books reviewed by Adrienne Power THE BROTHERHOOD OF THE ROSE

by David Morrell Price €5.75 The Book Depository.co.uk (Postage Free) Two orphans, Chris and Saul, are brought up as brothers and groomed to be assassins by a CIA operative known as Eliot, from boyhood. Codenamed Romulus and Remus, they become highly trained operatives in the world of espionage until the time when everything changes and they become targets themselves. It is an astonishing novel of fierce loyalty and violent betrayal.

David Morrell is also the creator of “Rambo”, was a Professor of Literature and has been christened the Father of the Modern Action Novel. He has written the most riveting thrillers in print, but The Brotherhood of the Rose, I believe to be his best work.

For suspense, superb plot, pace, great writing and credible characters you could only give it 10 out of 10!

The second book in the Trilogy is called The Fraternity of the Stone and the third, The League of Night and Fog.

A book you go back to again and again because of its sheer brilliance!

REQUIEM FOR A WREN by Nevil Shute Price €5.70 The Book Depository.co.uk (Postage Free) Alan Duncan returns home to his parent’s prosperous sheep farm in Australia after a long absence on the day their housekeeper Jessie Proctor takes her own life. When no personal papers or documents are found on the body or in the young woman’s room, Alan decides to look about and see if he can find them to understand why she committed suicide. After searching unused parts of the house he finds her suitcase and diaries and the story unfolds of Jessie’s life as a Navy Wren in World War II. Initially, I found the story a bit slow-going because of the old fashioned prose but then I became completely engrossed finding out about Jessie’s past and why she killed herself after surviving so much during wartime and finding the place she wanted to be in Australia.

Both of the two main characters Alan and Jessie are looking for their place in the world after the displacement of the war. Jessie also searches for atonement after a particular incident during her time as a Navy Wren.

This book was written over 50 years ago and even though it is fiction it comes across so real, especially the scenes set during the Second World War. Nevil Shute is an amazing storyteller. His writing is so full of compassion and his philosophizing on war and its aftermath is brilliant! He used his aircraft, engineering and wartime experiences to good advantage in this book and his other books. A Town like Alice is probably his best known work, but I enjoyed Requiem just as much.

An absorbing and moving tragic love story!

MURDER ON THE LUSITANIA by Conrad Allen Price €5.64 The Book Depository.co.uk (Postage Free) It is 1907 and the Cunard Line have launched the ship the Lusitania to great excitement. It sets sail from Liverpool where a magnificent crowd have gathered buzzing with anticipation as the elegant giant gets underway. The other ships are simply minnows beside a whale. We are transported to a bygone age of opulence and great strides in industry. George Porter Dillman is hired as a private detective on board the ship. He is enjoying befriending the first class passengers and the carnival atmosphere on board until he is informed by the purser that the ships plans have gone missing and then there is a murder to solve!

There is plenty of intrigue and suspects among the cast of characters on board like the Huberman sisters, the vivacious Genevieve Masefield, the Rymers, Cyril and Ada Weekes and the scary looking Mr Erskine who speaks fluent German as well as an annoying reporter.

An enjoyable cosy historical mystery!

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