NECI
National Electrical Contractors Ireland
Position Regarding Proposed Industrial Relations Amendment Bill 2014
My name is John Smith. I am the CEO of the National Electrical Contractors Ireland (NECI). I would like to thank the committee for affording us this important opportunity to make the committee aware of the opinions of our members regarding the proposed bill.
NECI was founded in 2008 and we represent mostly smaller electrical contractors. Our members were significantly and negatively impacted by the previous Registered Employment Agreement (REA). Despite the fact that we had no input into the 1990 agreement, and in fact were largely unaware of its very existence, large numbers of our members were brought before the Labour Court and forced to pay substantial back moneys to the Construction Workers Pension Scheme (CWPS) under its terms. The demands for these back moneys, some which were in excess of €300,000 (Three hundred thousand euro) put many small contractors out of business. The strain of dealing with the Labour Court led to Ill Health for many others and in fact we know of two contractors who took their own lives following enforcement of the 1990 electrical REA by the Labour Court.
All this was happening when there were no complaints from the contractors employees. In Fact it sometimes seemed to us that the sole purpose of the REA was to ensure compulsory membership of the CWPS. When NECI set up a competing pension scheme, every attempt was made by the TEEU to discourage membership and undermine an alternate pension scheme.
It is a fact that nothing changed in the 1990 electrical REA except upward pay rises in the 23 years of its existence.
NECI was to the forefront of the McGowan and others Vs the Labour Court case which ultimately led to the Supreme Court declaring part 3 of the 1946 Industrial Relations Act unconstitutional in its entirety.
We welcomed the Supreme Courts Decision. We have been happily agreeing terms and conditions with our own employees on a one to one basis since the 9th of May 2013. Despite scaremongering by the TEEU and other Unions, the Industry has not descended into chaos and we have not seen mass exploitation of electricians. In fact contractors have, as was necessary, become more competitive and have used the flexibility they now have to streamline their operation.
REAs by their very nature are inflexible and strangle company’s when they need to adjust to meet demanding trading conditions. It is our opinion that the REA system is anti competition and borders on cartelism. In an industry as diverse as the Electrical contracting Industry it is universally accepted that “a one size fits all” agreement does not work.
NECI are of the opinion that the 1946 Industrial Relations (IR) Act in its entirety should be consigned to the Industrial Relations Bin. It have been amended on a number of times the last being in 2012 and is clearly not fit for purpose. The 1946 act cannot deal with issues which exist in the Ireland of 2014. The Industrial Relations landscape today includes issues which were inconceivable to the legislators in 1946. If new legislation is required (and it is our opinion that it is not) it should be drawn up from scratch.
It is also our opinion, that while these global legally binding agreements might suit the large contractors who are forced to deal with unions, they are incompatible with small business who in the main employ non union labour. NECI reserve the right to agree terms and conditions with their own employees on a one to one basis. While it may be unpalatable to the TEEU, it is a fact that the employees of small electrical contractors are not in the main members of the TEEU.
We are extremely disappointed that the proposals in the heads of Bill make no attempt to define for once and for all “Substantial Representation”. It is our opinion that the lack of clarity on what constitutes Substantial Representation will lead to many challenges. We have no doubt that this matter will eventually end up before the courts in the future.
We are also disappointed that the heads of bill make no reference to mandatory education of all employers and employees of any sector into which any global agreement is introduced. The lack of education of the previous REA led to contractors being criminalised under the terms of an agreement, which they were unaware of.
We note that once again the proposals contain no provision for parties which are bound by an agreement into which they were allowed no input, to apply to vary the terms of that agreement. This deficiency of the old system was highlighted in the Supreme Court Judgement and allows for example no method for a new entrant into an Industry to ever vary its terms. We are disappointed that no attempt is made to correct this unacceptable situation.
NECI welcome the exclusion of close family members from any future agreement, the inclusion of this welcome safeguard was in fact suggested by NECI. This will ensure that as happened under the previous REA, small employers will not be criminalised and forced to pay back moneys to the CWPS for simply training their own sons and daughters to be apprentices.
NECI members are in the main happy with the Industry situation since May 2013 where they can operate their business without interference from unrepresentative trade unions. Our members are happy to compete in an open market and we are confident that without the constraints of a Registered Employment Agreement we can compete with Northern Ireland Contractors who are allowed compete in the free market.
On behalf of the Electrical Contractors of Ireland represented by NECI, Thank you for listening.
John Smith
CEO
National Electrical Contractors of Ireland.