Tiger tales of 1990s Erin
Is this the Ireland you live in? Is it filled with happy
employees boasting of their 12 hours a day, six days a week work
shifts down at the local transnational plant? Are there thousands
of unemployed people who are ``social misfits'', and workshy
``course junkies''? Are there local communities queuing up waiting
for the IDA to come to town so they can ``ride the Celtic Tiger''.
This is the Ireland of former Fianna Fáil Minister Máire
Geoghegan Quinn, the small business group ISME and Enterprise and
Employment minister Richard Bruton.
Taken together, they showed this week that the state's political
elite and the lobbying interests that influence its policies are
not only out of touch with economic realities but are
deliberately presenting a very distorted picture of the 26-County
economy.
Quinn's Dragons
Fianna Fáil's Maire Geoghegan Quinn is revelling in her new role
as media arbitrator on RTE's whineline programme as well as
nestling side by side with Garret FitzGerald on the inside pages
of the Irish Times.opinion page columns. Last Saturday she took
issue with the much argued over Working Time Bill. She claimed
that that bill introduced by her former Government colleague
Labour Minister Eithne FitzGerald was approaching the Irish
economy as if it was ``the workplace of Industrial Revolution
England: a place of sweatshops and salving children....of
powerless and subservient workers''.
The reality according to Geoghegan Quinn is a bit different. She
told the Times readers of ``big new electronic plants'' with
workforces ``stuffed to the gills with education and earning good
salaries''. These workforces boast ``ruefully about working 60 or
70 hour weeks''.
These workers, she argues, are ``not the Dickensian downtrodden''.
They are not ``pushed to work long hours'' by their employers'
dismissal threats but instead they are driven by ``mortgage
commitments and the excitement of being in at a start-up''.
The real Ireland
It would be wrong to suggest that there are not some very
well-paid workers in the growing technology sector. Yes, many new
foreign companies do need a great commitment from their workers
to make it through their start-up periods. The quality of labour
is one of the factors that attracts many companies to site here
in the first place.
However the picture Maire Geoghegan Quinn paints is the
exception. There are just over 90,000 workers in the state
employed by IDA-backed companies. Some would not recognise the
picture Geoghegan Quinn painted. What would the redundant workers
of Packard or Semperit think of her multinational pen picture?
The multinational and technology industries are currently on the
crest of a wave with high demand for qualified workers and for
the moment they get relatively high wages compared to other Irish
workers. However, is Geoghegan Quinn proposing that 90,000
workers and their employers can dictate the hours and working
conditions of the other 1.1 million workers?
The Working Time Act is not just a leftie charter aimed at doing
down the IDA. It wasn't produced for the best of reasons but for
many part-time and low paid workers it might just might make
their lot a bit better.
Maire Geoghegan Quinn must live in a world where workers are not
on zero hour contracts, where shifts never last 12 hours, where
overtime payments, sick pay, holiday pay and pension
contributions are always paid.
She must never walk down Dublin's O'Connell Street and see the
fast food outlets who set out their terms of work and conditions
in shopfront windows. Why do McDonald's and others make an issue
out of giving workers paid holidays or a guaranteed £3 an hour
wage? The answer is simple. Hundreds of other employers don't
even provide these basic standards.
The unemployable
Putting the Unemployed Back to Work was the new document launched
by ISME this week. It claims that ``Every society has a percentage
of the population who are, for a variety of reasons, social
misfits. The percentage could easily be as high as 100,000 or 40%
of those currently classified as unemployed''.
ISME want more rigorous welfare checks on the unemployed with
recipients being penalised if they don't accept a job offer.
They also are calling for the current Fás board to be replaced by
a committee of industrialists, representatives of the unemployed
and government officials. The aim of new schemes should be how
effective they were for employers.
Here then is an interesting dilemma. ISME seems to be arguing
that a blank cheque for welfare recipients is wrong, but at the
same time lobbies the government to sudsidise the training that
employers want their workforce to have. Surely this is a form of
welfare for employers with the state taking on some of their
costs. That is not to say it is wrong but just that it should be
recognised for what it is - Welfare for business.
Riding the Tiger
``Now provincial towns can can look forward to beginning to ride
on the Celtic Tiger''. This was the view of John Higgins, chief
executive of the Western Development Commission, which welcomed
this week the announcement by Enterprise and Employment Minister
Richard Bruton that The IDA would be begin building forward
factories at regional sites in a return to its failed policies of
the 1970s and `80s. Foreign corporations that use the sites will
be offered higher grants than those paid in the more used
suburban industrial parks.
The IDA's failure to attract foreign investment to less developed
regions has been highlighted already this year. Of the 13,179 new
jobs created by the agency in 1996 only 1268 went to the west and
North West regions.
There are two glaring problems with Bruton's new plan. First is
the higher grants. For years the IDA has engaged in a costly
bidding war with the IDB, the Scottish Development agency and
others. Grants now run from £10,000 to £15,000 per job created.
Multinationals are already overpaid for the benefits they get
from siting in Ireland. The higher payments for siting in rural
areas could start a new bidding war.
Secondly what about domestic industry and enterprise. Surely they
should have access to the same funds as foreign companies Bruton
has overlooked them in his plans. Once again Bruton is merely
paying lip service to a problem. His proposals are clearly not a
solution.