Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Employment Policy Convention, 1964 (No. 122) - Ireland (Ratification: 1967)

Articles 1 and 2 of the Convention. Employment policy measures implemented under the adjustment measures. The Committee notes the information provided by the Government in its report received in August 2012 and the information provided by the Department of Education and Skills. The Committee notes that the previous report was received in 2005, and since then the country has been hard hit by the economic and financial crisis and has experienced a sharp rise in unemployment. It notes that the Irish Government has received financial support from the European Union and the International Monetary Fund (IMF) in order to address the banking crisis. The Government indicates in its report that around 325,000 jobs have been lost since employment peaked at 2.14 million in the final quarter of 2007, a fall of 15 per cent (real GDP, by comparison, declined by 12.5 per cent from its peak). While both male and female employment has declined, the impact on the former (-20.4 per cent) has been more significant than the latter (-8.4 per cent) given their dominance in the construction sector. The impact on young persons (aged 15–24) has also been substantial, accounting for more than half of the total employment decline. The Committee notes the training and education measures introduced by the Government and notes that in 2011, there were approximately 276,000 training and further education places available for the unemployed to access. It also notes the Eurostat statistical data indicating that unemployment reached 15 per cent in Ireland in August 2012. The Government indicates in its report that it believes that the bottlenecks in the Irish labour market include weak labour market demand, particularly in domestic services; long-term and structural elements of unemployment, with long-term unemployment accounting for 51.5 per cent of total unemployment; access to opportunities for up-skilling and re-skilling; the challenge of targeting cost-effective activation programmes to those most at risk of losing contact with the labour market and drifting into long-term unemployment; developing a more effective and streamlined response to the needs of the unemployed and removing disincentives to participation in training, education and employment opportunities. While many labour market bottlenecks need to be addressed, the Government’s key focus remains on employment creation through export growth and improved competitiveness. The Committee notes that initiatives outlined in the National Recovery Plan 2011–14 in relation to activation policies include a rationalization of the National Employment Action Plan towards greater capacity and efficiency; more frequent and intense intervention with priority cohorts; the development of a Profiling and Case Management system in 2011; sanctions in the cases of unemployed persons on the Live Register unreasonably refusing to cooperate with the plan and/or with appropriate training, education and employment interventions; changes to the provision for One Parent Families to alter the passive nature of income maintenance that prevails currently. The Government indicates that it is committed to creating an environment that will create new jobs as well as support existing ones. To further this aim, a Ministerial portfolio has been created with a focus on jobs. In addition, the Government announced its intention to bring forward a Jobs Initiative and committed the Government to adhere to the structural reforms required to accelerate growth, job creation and debt sustainability broadly in line with the provisions of the EU/IMF/ECB programme of financial support for Ireland. In this regard, the Government is committed to reversing the recent cut in the national minimum wage, while offsetting any effect on business costs through a reduction in the amount of pay-related social insurance that employers must pay. Taking into account that the next report is due in 2013, the Committee invites the Government to further specify how, pursuant to Article 2 of the Convention, it keeps under review the measures and policies adopted according to the results achieved in pursuit of the objectives of full, productive and freely chosen employment, specified in Article 1. It recalls that, in the terms of that Article, an active employment policy should be pursued “as a major goal”. It also invites the Government to include in its next report information on the impact of its active labour market measures adopted in order to address labour market bottlenecks and overcome the negative effects of the adjustment measures.

Article 3. Participation of the social partners. The Committee notes that there is no information in the Government’s report concerning the participation of the social partners in the formulation and implementation of employment policies. The Committee recalls that in its concluding remarks of the 2010 General Survey concerning employment instruments, it emphasized that social dialogue is essential in normal times and becomes even more so in times of crisis (General Survey, 2010, paragraph 794). It therefore again asks the Government to provide information on consultations held with the social partners, both at the formulation and implementation stages of employment policies.