SIPTU representatives have called out the Government for ‘bottling’ the challenge to improve Ireland’s economic productivity in its new Competitiveness Action Plan published today.
SIPTU Researcher, Michael Taft, said: “This Competitiveness Action Plan fails to explain the reasons for Ireland’s poorly performing domestic sectors while ignoring some of the key drivers of competitiveness.
“The Government failed to build on one of the strengths of the Irish economy, the skills, knowledge and experience of the workers who produce the goods and services. Bringing workers into the decision-making process at business level, through collective bargaining, worker directors, employee participation and enterprise councils has been proven to boost productivity and enterprise performance.
“However, the Government has just bottled this challenge to change the way we do things at enterprise level, as such they have missed a crucial opportunity to improve our economic productivity. We cannot build a modern, competitive economy with high levels of low pay, wage inequality, and in-work deprivation. Poor job quality undermines living standards, reduces consumer spending and suppresses business revenue. Improving job quality is a critical component in generating productivity.
“Among our EU peer group, Ireland’s domestic sector has the lowest level of productivity, the lowest level of business investment, and low levels of goods exports and decarbonisation investment. There is little explanation for this in the Action Plan. If we don’t know why it is broken, we will find it difficult to repair. Throwing more public subsidies at businesses is not going to solve this problem. Supports, grant and tax breaks should be targeted on those companies that pursue good practice through their investment, decarbonisation, workplace training and collective negotiation.
“Ireland has one of the least regulated economies in the EU. Yet, the Government is preparing to launch a de-regulation drive across the economy. SIPTU is concerned this will impact on workplace health and safety, consumer safety, financial accountability and environmental goals. The Government’s agenda could launch a race-to-the-bottom in social and economic standards.
“While the emphasis on public investment is welcomed, this is merely a restatement of the National Development Plan. The failures of the Action Plan could undermine the productivity gains from an enhanced infrastructure and some of the positive proposals around innovation investment.”
He added: “It is now up to opposition parties, trade unions and civil society organisations to put forward an alternative plan to boost competitiveness and productivity, emphasising the role of workplace democracy, job quality and evidence-based policy making.”