The escalating dispute between Irish Aviation Authority employees and the semi-state agency may set the tone for public sector employment relations over the coming months.

Impact, the largest public service trade union, responded swiftly to moves to suspend 15 members who refused to operate a newer system to monitor and control air traffic in Irish airspace.

Discussions last week at the Labour Relations Commission (LRC) failed to secure a compromise and the issue has been referred to the Labour Court.

Management contends that the new procedures are part of  normal air-traffic control work but there is a  backdrop of a union claim for a 6% pay rise based on the national ‘partnership’ agreement which has been either repudiated or abandoned  in recent weeks by its main participants.

It will be interesting to see how much management autonomy is allowed in this dispute by the Minister for Transport if industrial action is expanded from tomorrow’s (Wednesday, Jan 20th) planned four-hour ‘stoppage’ for Impact consultations meetings.

Its 300 members at the IAA, who rank among the highest-paid public sector employees in the state (along with staff at ESB and Bord Gais) have not been affected by the public service pension levy or the cuts in standard pay rates imposed in Budget 2010 for the 315,000 public service employees.

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The demise of Ireland’s ‘social partnership’ between the government, Irish Congress of Trades Unions (Ictu) and the main employer bodies (Ibec/CIF) presents new challenges for successful people management.

Managers in the public service will have to engage much more closely with their employees and shift away from the partnership process of mainly dealing with mid to senior-level trade union officials and representatives.

Public service unions are in a tough position as their dispute is essentially a political one with government policy but their industrial muscle is largely restricted to service quality for the general public. They are under pressure to ‘be seen’ to be defending the  earnings and conditions of their 300,000 members while also conscious of their repeated assertions that they want to see improved public services – especially in health, education and housing – for all citizens.

“The pre-Budget negotiations in December 2009 effectively ran out of time with key players holding back on their offers until well past the 11^th hour.“

The Ictu Public Services Committee is in a difficult position as its proposed 12 days ‘unpaid holidays’ or additional leave  formula – allied to improved efficiencies and flexible work practices – was poorly presented and failed to secure either political or public support. The pre-Budget negotiations in December 2009 effectively ran out of time with key players holding back on their offers until well past the 11^th hour.

Even if an agreement had been reached to avoid reduced public service earnings there is no assurance that the trade union leaders could actually ensure delivery of the proposed efficiencies and cost savings. There is also a serious risk of disruptive industrial action further alienating public perceptions of public sector employees.

The unions’ fall-back position is likely to centre on recovering the 2010 Budget pay cuts in exchange for implementation of the generally agreed potential cost savings.

These were valued alone at about €500m in the health sector and potentially at over €1.2 billion throughout public service agencies, schools, colleges, security, government departments and healthcare.

Now is the time for public service managers to clearly identify the efficiencies achievable in their specific workplaces and detail the requirements for their employees rather than waiting for some renewed form of national deal-making.

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Disagreements over redundancy terms or selection processes for involuntary job cuts have been key to most employment disputes over the past three months.

The occupation of premises by staff at Thomas Cook Travel in Dublin and by staff at 4Homes retail outlet in Mitchelstown, Co Cork, centred on disputes over both redundancy payments and very short notice given to employees. Both attracted extensive media coverage and impacted on the reputation of the travel company and on  the Dairygold group which has an interest in the 4Homes  retail network in Munster.

Many similar disputes have arisen in the construction and related sectors of builders suppliers this year. It highlights the need for clear management decision-making and communication in advance with employees when job cuts are on the horizon.

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