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NECI WELCOMES ECA DECISION TO SEEK REA CANCELLATION

PRESS RELEASE FROM NECI                                    28TH MARCH 2011

NECI welcomes the ECA (Electrical Contractors Association) decision this week to seek the cancellation of the Electrical Contracting Industry's Registered Employment Agreement.

Regrettably for our industry, it has taken three years for the ECA and AECI to see the light and to concur with the stance taken by NECI and the Non Aligned Group, during the Labour Court hearing back in 2008. For the record, in 2008 the ECA and the AECI were opposed to the cancellation of the REA stating instead that they fully supported the REA even though the country was in the grip of recession.  Had these two associations been courageous and stood up for the industry in 2008, NECI believes many jobs and Electrical Contractors’ businesses could have been salvaged.

It is of paramount importance that the ECA and AECI do not deviate from their current positions by accepting anything less than the full cancellation of the REA.

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LABOUR COURT CHAIRMAN APPOINTED TO CARRY OUT REVIEW TO SAVE HIS OWN JOB !

PRESS RELEASE FROM NECI                                    10TH FEB 2011

The National Electrical Contractors Ireland (NECI) have condemned the appointment of Kevin Duffy, Chairman of the Labour Court. Mr Duffy is to be involved in the "independent" review of the Registered Employment Agreements (REAs) and Employment Regulation Orders (EROs). How can an independent and transparent review take place when Mr. Duffy’s daily workload entails enforcing the very wage agreements he is now being asked to review?

Employers cannot be expected to honestly and openly participate in the process if they are in fear of later being victimised in the Labour Court by Mr. Duffy. A review of the wage agreements was identified as the second priority action for the government in the IMF agreement, the first was a review of the banking system. The IMF have required that the wage review by carried out by the end of Q1 2011. In recent correspondence to Mattie McGrath TD seen by NECI the IMF explicitly stated, “ our intention is to ensure that this review will be an independent, balanced and highly professional one, so that it can form a sound basis for possible policy intervention in this area”.

NECI believe the IMF/EMU have clearly identified how urgent and important this issue is as it is directly affecting job creation. NECI first became aware of Mr Duffy’s possible appointment back in December and we objected strongly at the time.  Subsequently a number of other employer organisations also expressed their deep concerns at his nomination.  It appears the inclusion of Dr Walsh has been an attempt to dilute the unsuitability of Mr Duffy.

In correspondence with Government ministers and back benchers, NECI clearly stated that employers would not be satisfied with Mr Duffy’s appointment. Kevin Duffy first came to prominence as the head of the bricklayers union, he was also Assistant General Secretary of ICTU, and worked with Bertie Ahern in the development of the flawed partnership process. This was a system which paid over 10’s of millions of euro of tax payers money, into various Union controlled bank accounts. These practices were done to ensure harmonious relations with unions and are currently under investigation.

Currently small family businesses who are creating employment are being put to the wall every day in the Labour Court for alleged breaches of employment law, under deals made by Unions. Instead of their Constitutional "right to be presumed innocent until proved guilty according to law", employers have to prove their innocence in a court where Mr. Duffy sits as Chairman with a worker representative on one side and an employer representative on the other.

In 2008, NECI was involved in a case in the Labour Court, which was presided over by Mr Duffy. NECI were seeking the cancellation of Registered Employment Agreementsbecause they were causing havoc in the sector. 

At that time, two senior economists who have both acted as government advisors, Dr. Moore McDowell and Dr Alan Ahearne, gave expert evidence on the economic circumstances affecting the electrical contracting industry and said that pay cuts were required.

However NECI believe, Kevin Duffy ignored this evidence and choose instead to listen to the Union economist Mr. Paul Sweeney, who promoted the concept of the REA’s and disagreed with the view given from Dr. Moore McDowell and Dr Alan Ahearne.  NECI believe allowing the agreements to stand has contributed to the large amount of Electrical Contractors closing and with major job losses as a result. The Minister for Trade and Enterprise subsequently commissioned an independent review of the REA’s which was carried out by Finbar Flood and Peter Cassells in 2009, its findings annihilated the system of REAs.

It is ludicrous that the Government should appoint Mr. Duffy to this position.  It is the same as a match referee reviewing his own decisions after the game. To make matters worse, the delay in the appointment means that the review will be a rush job as the IMF want it completed by the end of this month and the process will be even further undermined.

The terms of reference are very vague and lack substance. The issues are very clear for the sector , Legislation, Regulation, Education, Implementation, and Enforcement.

The EU Directive called the 'Posted Workers Directive', seeks to prevent free movement of labour within the EU from causing distortions of competition and from bringing in forms of "social dumping".The basic principle of the Directive is that working conditions and pay in effect in a Member State, should be applicable both to workers from that State, and those from other EU countries posted to work there. The host country companies will be faced with "unfair competition", notably in the areas of labour costs and the respect of rules governing working conditions.

This is a clear admission by the EU that the Posted Workers Directive is not fit for purpose, and merely leaves the Irish Electrical Contractor vulnerable and exposed, unable to win contracts due to there uncompetivness brought about by REA’s & ERO’s.The initiation of this review also raises a bigger question. Is the Labour Court itself fit for purpose?

There would be no need to review REA’s & ERO’s  had all  these protection mechanisms already been in place. As it stands employers and employees have been and currently are constantly under attack by out of state companies and contractors working in the black economy.  

As stated by Denis Judge CEO NECI,  'It is not or never has it been NECI’s objective to attack workers pay and conditions. In fact the opposite is very much the case as the current system is flawed and is forcing electrical contractors out of business and forcing their employees to emigrate, join the unemployment line, or delve into the black economy, thus further damaging Irish electricians' jobs and Irish employers business'. 

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FATAL BLOW TO REGISTERED AGREEMENT 

PRESS RELEASE FROM NECI                                     29th Oct 2010   

The National Electrical Contractors Of Ireland (NECI) welcomes the positive outcome of the recent Ballot carried out by AECI (Association Of Electrical Contractors of Ireland). Their members have overwhelmingly voted in favour of removing AECI from the Registered Employment Agreement (REA) which operates in the Electrical Contracting Industry

The AECI has informed the other parties to the REA, and also the Unregistered National Joint Industrial Council (NJIC) for the industry of the outcome of their members’ ballot. They have also advised the Chairman Of The Labour Court of their members wish to be removed from the Registered Employment Agreement.

 

NECI believes this mandate has delivered the Fatal Blow to the mechanism which has maintained terms and conditions and wage rates in the industry at unrealistically high levels. This has restricted direct employment and forced employers out of business resulting in employees going onto the dole or becoming sub-contractors.

 

At a time when all other sectors implemented restructuring and pay cuts to regain competiveness, the Electrical Registered Employment Agreement maintained wages at a grossly inflated level which had been  awarded to electricians during the ‘tiger era’. The unions’ inaction and insulting mantra, “What We Have We Hold,” over a long number of years, did nothing for job creation or for competiveness within the sector. Instead of tackling the issues of the day they seemed to instead be more focused on occupying and enjoying highly paid positions of power on state boards, as was the order of the day.

 

This extremely controversial REA was entered into the Register of Employment Agreements on 24 September 1990. It has been the subject of a number of legal cases over the last number of years.

 

The whole legality of this REA’s very existence and it registration remains legally questionable.

 

In 2009 NECI and the Unaligned Group sought an order from the court under Section .29(2) of the 1946 Industrial Relations Act, to cancel the registration of the REA in its entirety. This application was made by the NECI and the Unaligned Group and opposed by the TEEU, the ECA and the AECI.

The court applied a three-part test, set out in Section .29(2) of the 1946 Act. It decided that all three parts of the test must apply before a decision can be made as to whether the registration of the REA should be cancelled:

 

1•  The court must be satisfied that there have been changes in the circumstances of the electrical contracting industry since 1990;

 

2•  The court must be satisfied that any such changes are substantial;

 

3•  The court must conclude that any such substantial changes make it undesirable to maintain the registration of the REA.

 

The court concluded that the sector has experienced substantial change since the REA was registered. However, the court concluded that those changes had not made it undesirable to maintain registration of the REA. Accordingly, the court rejected the application to cancel the registration of the REA.

 

NECI is now calling for the immediate cancellation of the Registered Employment Agreement in the electrical contracting industry as there is no question that this new development has categorically satisfied the three-part test, set out in s.29(2) of the 1946 Act. This new development means that only the TEEU and the ECA (an English trade association affiliated to the CIF, with an estimated 40 electrical contractors as members) are now the remaining parties to the agreement. The majority of electrical contractors are now definitely opposed to this agreement. The minority can no longer dictate the terms for the majority.

 

NECI believes the cancellation of the REA will achieve a more positive industry where direct employment will immediately reoccur instead of the subcontractor culture which this REA promoted. This will result in better quality and standards for the customer and increased revenue for the state and a reduction of the black market contractors a growing problem in this sector.

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NECI CALLS ON MINISTER TO APPLY REPORT RECOMMENDATIONS

PRESS RELEASE FROM NECI                                     07th September 2010   

In August 2009, a report was commissioned by the then Tanaiste and Minister for Enterprise, Trade & Employment to enquire into and report on matters in the dispute (excluding pay) between the union representing electricians and employers in the Electrical Contracting industry.

The enquiry followed a one week strike and was undertaken under Section 38(2) of the Industrial Relations Act 1990 which provides that: “Where the Minister is of the opinion that a trade dispute is of special importance, he may request the Commission or Court or another person or body to conduct an enquiry into the dispute and to furnished report to him on the findings”

Mr Peter Cassells and Mr Finbar Flood were appointed by the minister to carry out the report. The report was completed in December 2009 and the main recommendations include:

·        Reform of the unregistered Electrical National Joint Industrial Council (NJIC) to afford representational rights to any permanent body which is representative of employer interest in the sector.

·        The REA should be reviewed, updated and rewritten by the reformed NJIC to reflect the reality of the changed circumstances of the Industry. Under this section the report also states "Consideration should be given to the application of the agreement to differentiate by size of firm, size of contract or type of work (e.g. domestic, industrial, commercial)"

·        Enforcement of the REA and promotion of adherence to employment standards within the sector should be undertaken by the National Employment Rights Agency (NERA)

 

Despite NECI informing the Department of  Enterprise, Trade & Employment in January 2010 that it was happy to proceed with the full recommendations in the Cassells / Flood report no change has been implemented and NECI is still excluded from the decision making process. In the meantime small electrical contractors who mainly employ 3 or 4 electricians find that their business has become un-viable because they are legally obliged to apply the terms of an outdated Registered Employment Agreement, which they are excluded from having any input into.

 

NECI now call on Minister O Keeffe to force the Trade Union and the other employer bodies in the Industry to immediately apply all recommendations contained in the report before any further damage is done to our members. The obvious question arises “What is the point in the Department of Enterprise, Trade & Employment commissioning a report if no action is to be taken to apply its recommendations?”

 

In the absence of any action NECI would now respectfully inform the Minister and the Labour Court that its members will no longer apply any of the terms of the Registered Employment Agreement into which we are allowed no input. We will also proceed to instruct all Electrical Contractors to ignore any summons or recommendations produced by the Labour Court.  It is already too late for many, NECI know of 12 Electrical Contracting Firms employing 56 people who have ceased trading in the month of August. There have also been a number of suicides resulting from the pressures been applied by a Trade unions and the Labour Court to pay back moneys, under an agreement many contractors knew nothing about.

 

NECI are shocked by the apparent facilitation by the Labour Court to a Trade Union which takes a case under section 32 of the 1946 Industrial Relations act after an unlawful investigation by EPACE a private Limited Company. The paperwork normally submitted by a Trade Union Official (who is also a Director of EPACE) includes letters from EPACE which have been photocopied with the letter head covered up. This situation is made worse by the fact that the Trade Union represents no worker and no complaint has been made by any employee against the Contractor. 

 

NECI now also “demand” that the Minister move to stop the unlawful actions of the private company Pensions & Conditions Electrical Ltd. (EPACE). This private company employs Union Officials as inspectors and through its trickery and bulling tactics has destroyed an industry and resulted in mass unemployment and company closure. As recognised in the Cassells / Flood report the small contracting companies operating in the domestic sector cannot survive while applying an agreement negotiated by multi-million euro companies who operate in a market place where larger profits are available.

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NECI CALL ON TEEU TO RETURN PENSION FUNDS

PRESS RELEASE FROM NECI                                     17th June 2010

The National Electrical Contractors of Ireland (NECI) have asked the leadership of the TEEU (Techicinal Engineering & Electrical Union) to return in excess of €290.000.00 which the Union received from Employee and Employer pension contributions. The vast majority of Employees and Employers had no idea that part of their weekly pension contributions were being diverted to a private limited company. This private company passed the funds onto the Union in what is described as administrative expenses. Details of the payments to the Union are available in the private company’s returns (attached) to the CRO (Company’s Registration Office) The returns show payments of €4000 in 2002, €25,500 in 2003, €48,640 in 2004, €23,000 in 2005, €60,850 in 2006, €58,400 in 2007 and €72,250 in 2008. The Total amount handed over up to 2008 is €292,640,00.

NECI believe that these funds explain the Zeal with which Union Officials operated in order to ensure that Electrical Contractors enrolled their employees into the pension Scheme. Some employers were forced to make 5 years back payments into the scheme not knowing that some of these payments were being diverted directly to the Union. Employers and Employees were not informed that these payments were optional and in fact the payments are described as “authorised deductions” in the Memorandum of Associations of the private Company. (Copy attached) The funds which have been given to the Union have not been authorised and therefore NECI would call on the Union to return all money to the pension fund.

 

NECI also call for the Private Limited Company, Pensions & Conditions Electrical Ltd who handed these funds to the TEEU to be disbanded. In a report into the Electrical Industry commissioned by the minister for Trade & Enterprise, it is clear there is no role for this private Company in the Electrical Industry. This private company has taken millions of euro from Electricians and their Employers  none of which has been authorised.  This Company still has well in excess of €100,000,000 in the bank and this money should also be returned to the Electricians Pension Fund.

 

ENDS

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UNION PLAY AS EMPLOYERS PAY

PRESS RELEASE FROM NECI                              18th FEBRUARY 2010

On the 19^th of February the Labour Court will consider an application from the TEEU Union to increase the hourly rate for electricians by €1.05. This follows a non-binding recommendation from another division of the same Court to apply this increase to settle last Julys one week strike by electricians. The Courts recommendation was accepted by the Union and the 49 ECA members but was rejected by employer organisations representing the majority of Irelands 5250 Electrical Contractors.

NECI are at a loss to understand how any cost increase can be even considered in the current economic climate particularly, as Electrical Contractors operate in the Construction Industry which has been the hardest hit. At the moment at least one Electrical Contractor a week is going out of business. It would be particularly unfair to impose this increase on NECI members as despite requests to be involved, we were excluded from talks leading to the Courts recommendation.

This wage increase can only become a legal obligation if it is sanctioned by the Labour Court. The effect of this is to make the increase legally binding on all of Irelands 5250 Contractors. If the increase is rubber stamped by the Court NECI will immediately instruct its 700 members not to recognise the Labour Court System and the Registered Employment Agreement. Any wage increase will only achieve major job losses and result in non-repairable damage to our members businesses. Wage increases will have the effect of driving even more electricians into the growing black economy resulting in further damage to Contractors.

We will also refuse get involved in the proposed new Industry Implementation Group which has the potential to allow a voice for all and correct the current position where the majority have no input into the terms and conditions under which they must operate.

The current outdated agreement lacks the flexibility to allow Contractors to modify their business to ensure survival. All costs need to be controlled in the current difficult economic climate and we will not sacrifice our members and their employee’s livelihoods simply to ensure Industrial Stability for a few Large Unionised Contractors. ____________________________________________________________________

TEEU WITHDRAWS FROM HIGH COURT CHALLENGE

PRESS RELEASE FROM NECI                              1st DECEMBER 2009

The TEEU this morning made an application to withdraw from the High Court challenge to the Electrical Registered Employment Agreement (REA). The stated basis for the application was that the Union was not in a position to fund any further legal case. This followed the non appearance of any legal representation by the other two parties to the agreement AECI and ECA. The application to withdraw was opposed on the basis that the TEEU have already exposed other parties to legal costs. Council went on to state " The TEEU should have made Justice Kearns aware of their intention to walk away at the hearing in July to fix todays date for the full hearing"

Justice Hedigan has decided to allow TEEU to withdraw and will decide on the issue of costs when judgement is made. This now means that all the three parties, who between them set up the REA, and fully supported it for the last 19 years are not defending the agreement when its very existence is being challenged. The TEEU AECI and ECA fully defended the core concept of this agreement at the historic 13 day Labour Court hearing last January. NECI has always been of the opinion that this agreement was registered illegally in 1990 and we welcome the fact that the injustice it has caused to small and medium electrical contractors, who were never party to the agreement or even aware of its very existence will soon be addressed by the High Court. NECI have no doubt that the present legal examination of the setup of the REA in 1990 will expose its many legal flaws. The fact that a non registered , non substantially representative  NJIC (National Joint Industrial Council) was allowed to register the agreement on behalf of the other 90% of contractors without their knowledge is a clear violation of the 1946 Industrial Relations Act. Many other aspects of the agreement and the Labour Courts handling of the legitimate claims of the majority to at least have some input into an agreement to which they are legally bound will also be highlighted and examined during the 2 weeks set aside by the High Court to hear the case. The 3 parties which illegally registered the agreement in 1990 and have illegally varied it (only by increasing wages by 310% ) need to closely examine their exposure when it is deemed that the agreement has been illegal from the start. The fact that the employer bodies have never held a negotiating licence , which prohibits them from negotiating wages for any employees other than their own will also be highlighted. The lesson to be learnt is that any agreement which attempts to enforce the views of a small number on the majority is doomed to failure. This is particularly true when one employer body has no effective voice and is only given a seat at the table to gloss over the fact that the Union and the big boys always got their way.

The Electrical Industry can always be grateful that NECI was formed to correct this imbalance and the ECA and the TEEU have now realiased that we at NECI will no longer accept that we are obliged to operate our business under terms and conditions into which we have no say. It is clear to any educated observer that there will be casualties in the employer representation in the near future. Those who have not represented employers interests and who have in fact made a Trade Unions task easy will continue to lose more members, Those who have stood up to the injustice of this unrepresentative agreement will leap into the future as a strong Employers Association whose number one objective is to ensure a viable environment in which its members can earn a living.   

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NECI WELCOMES INVESTIGATION INTO INDUSTRY

PRESS RELEASE FROM NECI                              23rd JULY 2009

NECI welcomes the announcement by the Tánaiste and Minister for Enterprise, Trade & Employment that an investigation into the background of the recent industrial relations dispute between electricians and their employers will be carried out. The Minister stated today on RTE News that she would carry out the investigation under Section 38 (2) of the 1990 Industrial Relations Act, she also stated that it would be an independent investigation. NECI will contact the Ministers office and would expect not only to be fully involved in this investigation but to also have input regarding the “Terms of Reference” that the investigation will operate under.

NECI would expect that this investigation will examine closely the structure of the industry in 1990 when to agreement was registered by the Labour Court thereby making it legally binding for every contractor operating in the sector. We would also expect a full examination of the activity and financial practices of the Private Limited Company EPACE. (Pensions & Conditions Electrical Ltd).

We would expect that the outcome of this process will be a realisation that the problems NECI members have with the current agreement are real. NECI have spent the last 14 months attempting to highlight the problems which have only now been recognised by the existing Trade associations, The Union, The Government and the Labour Court. We would also expect that the fact that approx 200 employers speak for all of Irelands 5275 registered contractors thereby putting in excess of 5000 Contractors in the position that they are legally bound by an agreement they have had no input into will be addressed.

We will be the voice for those contractors who had no voice in the past and we will no longer be dictated to by the large contractors & a Union who operate in a totally different market place. This investigation if carried out with full participation by all parties has the ability to correct the problems in our Industry and allow all contractors large & small to sustain jobs and be ready to grow when economic conditions improve.

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ELECTRICAL INDUSTRYS’ BALLOT OF REALITY

PRESS RELEASE FROM NECI                              22nd JULY 2009

National Electrical Contractors Ireland (NECI) welcome the decision by the members of AECI to reject the 4.9% pay increase (€1.05) as proposed in the non-binding recommendation from the Labour Court for the electricians working in the electrical contracting industry.

By now it should be clear to all, that any agreement which deems it compulsory for all Electrical Contractors, large and small, to operate their companies under the same business model, is flawed from the outset.

NECI identified this issue clearly to the Labour Court in 2008. During the last 12 months while our industry has been further devastated, NECI has been highlighting to the Union and to the other Employer Associations and also to Senior Government Ministers that any pay increase in the current economic climate is unviable for the small contractor.

It is obvious now that the minority larger contractors can afford to pay the increase to ensure industrial stability. This is understandable as they can recover the cost of this increase from their customers which in most cases is the government (ultimately the Irish taxpayer).

However they too may soon find this is a price too high to pay, as the Government has issued edits to contractors that it is to reduce all charges by 8% and ".....there shall be no negotiation on the proposed reduction of 8% and it shall apply to all contracts".  In government letters to contractors, it has been stated that ".... a decline in the economy has occurred which threatens the well being of the State...". This is a national emergency, and we need to support our industry and employers to ensure maximum employment is retained.

It is difficult to understand how the Labour Court recommended this 4.9% increase in the first place, particularly when they were presented with evidence that electricians are already paid 3% more than all other construction craft workers and the same increase was rejected by the same chairman of the same court in February of this year.

NECI would also take this opportunity to point out that a member of the Labour Court who had input into the 4.9% recommendation, was removed from the record breaking 13 day hearing held in January 2009 for meeting outside the court with the TEEU representative.

We are horrified at hearing yet again the phrase by the TEEU “What we have we hold” in their response to the An Bord Snip report. This is this same mantra that the Union has been repeatedly reciting for the last 19 years, in relation to any change to the Registered Employment Agreement. Their unwillingness to change these terms for the betterment of both employers and employees, within the sector, has forced an industry to become uncompetitive, This uncompetitiveness has been displayed clearly by the Element Six job losses today.

This is the same Union who encouraged their members to vote against the Lisbon Treaty and gloated on their website when it was rejected.

This Union seems to be in complete denial regarding the effects of the current economic trading conditions and we call upon our government to use this opportunity to support the small Electrical Contractor who actually is creating employment and distance themselvs from the Trade Unions who by their intransigence and blinkered attitude are costing jobs at a time we need them most.

We call on the Government to intervene before a strike is reconvened, which will threaten the stability of the nation and damage further our reputation internationally.

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LRC Talks Regarding Electrician’s Proposed Strike on 6th July 2009

PRESS RELEASE FROM NECI                              02nd JULY 2009 

 

In a letter sent to the LRC (Labour Relations Commission) today 2nd July 2009 National Electrical Contractors Ireland, in response to the LRC intervention to avert the proposed strike, NECI states this process is clearly operating outside the law and express their dissatisfaction at not being included in the talks as recommended by the Labour Court .
 
National Electrical Contractors Ireland (NECI), want to state, we are dismayed and completely in disbelief that the LRC has invited The TEEU, AECI with a membership of 150 and the UK based ECA with a branch in Ireland of less than 50 members, into talks to avert strike action on Monday 6th July 2009. 
 

Both the AECI and ECA are not the lawful holders of a negotiation licence as required by law. The need for a licence is clearly stated in the Trade Union Act 1941 (Section 6 part 1). The requirement for a licence was clearly highlighted in a 2001 case in the Supreme Court, the highest court in the land. In that case ILDA Vs. CIE, the Supreme Court judgment deemed it unlawful to negotiate terms and conditions of employment and wage rates without being the lawful holders of a negotiation licence.
 
National Electrical Contractors of Ireland, is Ireland’s largest trade association with a membership in excess of 600 members. This Association is based in Ireland, registered in Ireland and its members operate electrical contracting in Ireland.
 
NECI were involved in a substantial case regarding the Registered Employment Agreement in the Labour Court. This case lasted an unprecedented 13 days, and is now the subject of Judicual Rewiew proceedings in the High Court.  Because we have been excluded NECI members have decieded not to recognise any outcome from current talks for the following reasons:
 
1.   This NJIC is not lawful and two of the parties are not holders of a negotiation licence. As part of the Labour Court recommendation by Chairman Duffy, he clearly stated:
 ‘The Court recommends that the parties consider applying to the Court, pursuant to s.61 of the Act, to register the Council. Since s.65 of the Act provides that a Registered Joint Industrial Council is an excepted body for the purposes of the Trade Union Act 1941, as amended, registration of the Council would overcome any difficulties which might otherwise arise by the participation in negotiations of bodies which are not the holder of an negotiation licence. 
 

2.   NECI have not been invited to the table therefore will not recognise whatever decision arises from this process because our members have had no input into the decision making process.
 
As part of the Labour Court recommendation by Chairman Duffy, he clearly stated:
 ‘The current parties to the Council should also consider affording representational rights to any permanent body, which is representative of employer interest in the sector. Should any issue arise as to the extent to which any body is representative, that issue should be referred to the Court for final adjudication.’
 
This course of action by the LRC and the invited parties is further throwing the industry into disarray.

 

YOU CAN DOWNLOAD A COPY OF THE LETTER TO THE LRC ON OUR DOWNLOAD PAGE CLICK HERE

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NECI RESPONSE TO TEEU ONE DAY STRIKE

PRESS RELEASE FROM NECI                              25th JUNE 2009 

 

NECI with is excess of 700 members is Irelands largest trade association representing electrical contractors. In response to the proposed TEEU one day strike NECI has instructed its members to cease processing TEEU membership fees through their payroll systems. It is not a legal obligation to deduct these moneys from employees and forward them to the TEEU union. It is clear by the Unions demand for an 11% pay increase that the Union does not want to face reality. This reality is that pay reduction is the order of the day in this current difficult economic climate.  NECI has decided not to facilitate the TEEU in collecting their members Union dues and would encourage the two other Trade associations which have a combined membership of 250 to do the same.

Maybe when the TEEU has to deal with the difficulty of collecting its own dues from each and every member they will experience to a small degree the difficult trading conditions which each and every Irish electrical contractor has had to face up to.

Almost all of Irelands Contractors work within the construction Industry and it is clear that with a 70% decline in work available something has to give. We have already had mass Job losses in the Industry and it would be more sensible for the TEEU to work with employers to shore up existing jobs. Instead the Union seems hell bent on increasing costs which will ultimately cost more jobs.

On the issue of the renegotiation of the terms and conditions in the existing outdated agreement NECI is of the opinion that the Unions refusal to adjust anything except pay rates in the agreement since 1990 has caused the agreement to be totally out of tune with the current modern Electrical Industry. TEEU by its solid intransigence and its “what we have we hold attitude” caused the situation where the agreement now needs to be totally revamped.

Despite a clear recommendation from the Labour Court to afford representational rights to any permanent employer body, the majority of Ireland’s 5275 contractors are being represented at the current talks by ECA and AECI whose combined membership is less than 250. While NECI are encouraged that at last these employers have recognised the problems within the outdated agreement, it is clear that any agreement is doomed for failure if it is only has input from a small minority.

NECI calls on the TEEU to abandon this one day strike and enter meaningful all inclusive talks with the objective of stabilising and improving conditions for all in the Industry.

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ELECTRICIANS RESCUE BID TO RETAIN JOBS

PRESS RELEASE FROM NECI                              22nd April 2009

Electricians have come up with what can only be termed an "ingenious" job survival plan.

 

The rescue plan involves electricians giving – ONE FREE HOUR OF WORK PER DAY - this will help their employers to remain competitive and in business during these extremely difficult times.

This means that electricians are only charging their employers for 34 hours per week, as they are wilfully working the other 5 hours free, in a bid to support their employers to reduce their labour costs and therefore retain their jobs in the industry.

 

These electricians have clearly identified the seriousness of the situation and diagnosed a creative interim solution, to the unsustainable labour costs as laid out in law by the electrical REA.

This drastic measure is due to the fact that neither government nor unions have seen fit to do anything to sustain jobs in this sector. Unions continue to call for wage increases, and nonsensical anti-employment, anti-competitive regulation. They have failed to listen to the needs of the industry and the clear distress calls from companys in survival mode. Now these these ‘patriotic’ electricians have taken matters into their own hands and have been brave enough to fight for their right to work.

 

The Electrical Contracting Industry is bound by its own Registered Employment Agreement (REA). This agreement does not have an ‘inability to pay’ clause therefore it does not recognise excessive labour costs. Furthermore, it does not have any mechanism within it to introduce, or implement any reduction on the hourly rate, on the contrary, it only allows for wage increases.

 

This agreement binds the 5,257 Irish registered electrical contractors to all its terms in relation to pay and conditions for electricians / apprentice electricians working in that industry / sector.  Any Irish registered electrical contractor breaching this agreement or the terms within this agreement will see the contractor being brought before the Labour court and face fines penalties and interest. Failure to pay these will result in the contractor being criminalised in the local District courts, as this is the law.

 

NECI is of the opinion the Electrical Registered Employment Agreement should be cancelled. Notwithstanding the fact that it may have served the industry well in the past, there has been substantial change in the industry / economy and in the way in which electrical contractors conduct business today.  It is most undesirable to retain registration of this agreement, as it is detrimental to both employment and competiveness, within the industry.

We have seen increasing pressure being forced upon the industry from the economic downturn, the slowdown in the construction industry and increasing competition from out of state contracting firms, which are not bound by any Registered Employment Agreement. The industry is under massive pressure with increasing numbers of electrical contracting firms being forced to breach the law (REA), to remain viable and competitive to secure and maintain employment for employees within the sector.

 

NECI, Ireland’s largest trade association for electrical contractors, commend those electricians for their loyalty and commitment to their employers and their trade, for adopting this approach, in clearly what can only be called, "the worst economic time in the electrical contracting industry".

 

This interim approach may just prevent a large number of electrical contractors going out of business and highly trained electricians leaving the country or joining the dole queues. ____________________________________________________________________

N.E.C.I. Calls For Mr. Owen Wills General Secretary of the TEEU Immediate Resignation

PRESS RELEASE FROM NECI                              19th March 2009

The National Electrical Contractors of Ireland (NECI), calls for Mr Owen Wills immediate resignation from all State Boards and as General Secretary of the TEEU.

In a recent Irish Times article (March 15th, 2009) , Mr Wills attacked the Minister for Finance and Dr Alan Ahearne after the Ministers’ decision to appoint Dr Aherne as his Special Advisor. One of Ireland’s leading and most eminent micro-economist, Dr. Alan Ahearne lectures in economics at the J.E. Cairnes School of Business and Economics at the National University of Ireland, Galway. He also holds an appointment as a Non-Resident Fellow at Bruegel, the influential Brussels-based economics think tank, and is a Research Associate at the Institute for International Integration Studies at Trinity College Dublin. He is an invited member of the Financial Times Economists’ Forum, the EMU Monitor group of monetary experts, and the RGE Europe EconoMonitor. He is Associate Editor of The Economic and Social Review.

Mr Wills outburst, citing various phrases such as “race to the bottom” and “champion of pay cuts”, can only be called bizarre in light of Ireland’s current financial crisis. The Minister for Finance clearly recognises the expertise, extensive knowledge and vast experience that Dr Ahearne possesses and believes that he can clearly help Ireland, in its darkest hour of need.

Mr Wills (who holds many seats on State boards including FAS, and who was one of the party who enjoyed the comforts of the infamous FAS Florida trip paid for by the taxpayer), calls Dr Ahearne the “champion of pay cuts”,but forgets to mention the fact that many employees in the electrical industry were generously rewarded with substantial wage increases of 373% during the Celtic Tiger era (in comparison to 251% in the Construction industry) and that today these generous wage increases have made Ireland’s manufacturing companies and especially the electrical contracting industry, hugely uncompetitive and has left our market wide open, for cheaper foreign competition.

Mr Wills has insinuated there is a “race to the bottom” for employees, when in reality Mr Wills and the TEEU are driving the true ‘race to the bottom’ of our industry, through their actions in supporting the Registered Employment Agreement, resulting in employers going out of business and employees joining the dole queues.

The recent Labour Court case, at which Dr Ahearne was an expert witness, was a case regarding the Registered Employment Agreement in the electrical contracting industry. Dr Ahearne only confirmed the true fact that the NECI has been stating over the last 12 months - that our pay rates are simply too high and Irish electrical contractors are priced out of the marketplace. Dr Ahearne also recognized the fact that the inability to cut wages under the Agreement was a serious problem for company’s in the survival mode.

Also Mr Wills failed to recognise the fact that the TEEU has negotiated and applied for registration of this Registered Employment Agreement and has been part of its 14 variations, knowing quite well that the other two parties to the agreement were not legally entitled to either negotiate or register this agreement in the first place, as they lacked two fundamental instruments to entitle them to do so.

Namely, they must be representative of the industry, trade or sector and they must be holders of a negotiation licence. It is the belief of NECI that this Registered Employment Agreement is null and void and illegal from its inception. The question must be asked how Mr Wills and the TEEU could allow the industry to be involved in an unrecognised National Joint Industrial Council, when two of the parties were unlicensed to negotiate terms and conditions of employment and pay rates for employees in the sector. For this reason and for his recent outburst attacking Dr Ahearne for clearly coming to the rescue of the electrical industry with his expert evidence, the NECI call for Mr Wills immediate resignation from State boards and as General Secretary of the TEEU and from having any involvement in representing the electrical industry in the future. His statements and his dogmatic approach are simply causing more damage to an industry and a country both on their knees.

CLICK HERE FOR LINK TO IRISH TIMES ARTICLE