• Chapter 9:
  Action through Partnership for Competitive Enterprises
  
  
  • Introduction
  • The Challenge
  • Support for Enterprise Partnership
  • A National Framework
    • Definition
    • Objectives
    • Linkages
    • Development a/Enterprise Partnership
    • Facilitating/Monitoring Process
    • Training
    • Presentation
    • Modernising our Industrial Relations System

Chapter 9:
Action through Partnership for Competitive Enterprises

Introduction

9.1 - An objective of this Partnership is to extend partnership arrangements at enterprise level. Such arrangements are already taking place in different ways in a variety of employments. These arrangements have not been documented systematically and consequently are probably underestimated. International and domestic experience suggest that further development of the partnership approach at enterprise level will enhance the competitiveness of firms, the quality of the work environment and the access of employees to life long learning.

The Challenge

9.2 - The NESC suggested that the challenge is to:

• encourage firms, employees and unions to advance from experiment to comprehensive innovation;
• encourage the development of new models; and
• recognise the different starting points of different enterprises and employees.

9.3 - The key to providing this encouragement lies in understanding that successful workplace innovation occurs:

• in ways which support competitive strategy in an ever changing market environment; and
• at natural opportunities for change — such as training, new investment and crisis adjustment.

9.4 - Ireland now competes in a global economy. In these conditions growth and development of Irish enterprises and the maintenance of employment demands:

• continuous innovation;
• quality and consumer focus;
• flexible working methods;
• high skilled workers; and
• life long learning in all work roles.

9.5 - Achieving this will be assisted by a combination of action by employers, employees, trade unions and Government. The NESC has concluded that competitiveness can be greatly assisted by partnerships at enterprise level which provide a "potentially powerful means for accelerating innovation". The Council called for action at national level to promote best practice in enterprise partnerships.

The parties to this agreement subscribe to the above conclusions and recommendations.

Support for Enterprise Partnership

9.6 - For some employers, employees, and their representatives, the move to a partnership culture requires a radical change in current attitudes and approaches. A qualitative change of this nature requires support in the form of:

• a facultative national framework;
• training for managers, employees, union officials and workplace representatives;
• support and technical assistance from appropriate agencies or institutions; and
• dissemination of best practice.

A National Framework

9.7 - In response to the competitive challenge and the recommendations of NESC, the Government and Social Partners agree that a National Framework be established to develop partnership at enterprise level and to provide encouragement, training, information and support to employers and employees/representatives. This National Framework adopts the following definition of partnership recognising that its ongoing operation will be enterprise based.

Definition

9.8 - Partnership is an active relationship based on recognition of a common interest to secure the competitiveness, viability and prosperity of the enterprise. It involves a continuing commitment by employees to improvements in quality and efficiency; and the acceptance by employers of employees as stake holders with rights and interests to be considered in the context of major decisions affecting their employment.

9.9 - Partnership involves common ownership of the resolution of challenges, involving the direct participation of employees/representatives and an investment in their training, development and working environment.

Objectives

9.10 - The objectives of enterprise partnerships are:

• to enhance the prosperity and success of the enterprise;
• to create the basis and arrangements for discussion of major decisions affecting the organisation's future, including future economic security;
• to engage all stake holders' ideas, abilities and commitment; and
• to enhance the quality of the work environment.

Linkages

9.11 - This Partnership emphasises the close link between this National Framework for enterprise-level partnership and a National Partnership which guarantees continued wage moderation and competitiveness.

Development a/Enterprise Partnership

9.12 - The National Framework for Partnership for Competitive Enterprises does not attempt to impose any single structure or model of partnership. The parties to this National Framework accept that there is a need to tailor the approach to fit different employment settings.

9.13 - As NESC indicated, internationally, there is no evidence that any one structural or institutional model or approach systematically out-performs others, nor that an effort to import a model from one country to another is an effective approach.

9.14 - The parties accept that employee involvement and partnership can be expressed through a range of means and methods, including those already set out in the IBEC/ICTU Joint Declaration on Employee Involvement agreed in 1991. Both ICTU and IBEC are committed to the development of appropriate initiatives at enterprise level and will encourage and support this process in every practical way.

9.15 - In this context, depending on the particular circumstances of the enterprise, topics appropriate for discussion at enterprise level may include the following:

• employee involvement for competitiveness
  (opportunities for employees to be involved in, and contribute to, meeting the challenge of global competition);
• training, personal development and support
  (enhancing competence, flexibility and innovation through skills development, professional training and employee assistance);
• equality of opportunities
  (consideration of equal opportunities and reconciliation of family and work responsibilities);
• representational arrangements
  (the role of the union and employee representatives and facilities for effective representation);
• forms of financial involvement;
• occupational health and safety and the work environment;
• composition of the workforce
  (issues relating to the employment of atypical workers taking account of such factors as competitive pressures, flexibility and security of employment);
• co-operation with change including new forms of work organisation (the mechanisms by which employees and managers can be continuously innovative and accept the need for change to remain competitive);
• problem solving and conflict avoidance (developing a co-operative culture which facilitates a non adversarial approach to problems); and
• adaptability, flexibility and innovation (the means by which the organisation can be made more flexible, innovative and adapt to changing market requirements).

9.16 - The focus of discussions under this clause is to provide for greater understanding of the challenges facing the enterprise, and an acceptance of the measures needed to meet these challenges and to ensure that adequate arrangements exist for communication. Discussions will be conducted in a non adversarial manner and will be governed by Clause 6 (Stabilisation) of the Agreement on Pay.

Facilitating/Monitoring Process

9.17 - The Parties support the establishment of a national centre for partnership. The centre will have the following roles:

• promotion of involvement and partnership;
• monitoring developments;
• technical assistance and support to organisations involved in developing involvement and partnership arrangements;
• dissemination of best practice; and
• training for management, union, employer and workplace representatives.

9.18 - The activities of the centre will utilise facilities within ICTU, IBEC and appropriate institutions and state agencies. Its activities will be directed towards facilitating trust and partnership between employers, employees and unions. The centre's role will be to facilitate appropriate agreed local arrangements rather than to prescribe particular partnership mechanisms.

Training

9.19 - The centre will work with IBEC and ICTU in developing training programmes to facilitate the development of employee involvement and competitive enterprise partnership. The implementation of this Framework will require in certain circumstances training for management, employees and their representatives to facilitate the development of enterprise partnership. Joint employee/management training has been undertaken in some companies with positive results. The work of the centre, in conjunction with IBEC and ICTU should therefore, include a number of joint training programmes on a pilot basis. The results of such pilot programmes should be assessed with particular reference to their practical contribution to the objectives set out under that heading in this Framework.

Presentation

9.20 - IBEC and ICTU will make an annual presentation to the Department of Enterprise & Employment and to the Central Review Committee (CRC) on developments.

Modernising our Industrial Relations System

9.21 - A big challenge for companies and unions will be to move in a positive way from the traditional approach to the organisation of work to more flexible and fluid work practices. Our ability to manage change, to strike a balance between flexibility and security and to develop a high trust environment between employees and managers will be crucial.

9.22 - To assist employers and employees and unions in this area, our industrial relations procedures and institutions will be modernised during the period of this Partnership. In particular:

• an Annual Survey on Industrial Relations trends will be carried out and published by the Labour Relations Commission;
• the Parties to this Partnership will seek to conclude a Framework Agreement within which issues relating to change and company restructuring would be dealt with. Also action will be taken to ensure that the Labour Relations Commission and the Labour Court will have available to them expertise in business strategy and new production systems when dealing with cases of major company restructuring;
• a High-Level Group, involving the Departments of the Taoiseach, Finance and Enterprise and Employment, ICTU, IBEC, and IDA-Ireland, will be established to consider the detailed proposals submitted by ICTU on the Recognition of Unions and the Right to Bargain; and
• this High-Level Group, which will take account of European developments and the detailed position of IBEC on the impact of the ICTU proposals, will report to the Minister for Enterprise and Employment and to the monitoring arrangement on the pay agreement provided for at paragraph 11.7 by the end of 1997.