Programme for Prosperity and Fairness 2000

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Programme for Prosperity and Fairness 2000 - Ireland

Source: Department of the Taoiseach


Foreword
Overview

  1. Framework I for Living Standards and Workplace Environment Introduction
    1. Taxation
    2. Pensions
    3. Workplace Relations and the Work Environment
    4. Modernising the Public Service - The Next Phase
      1. Civil Service
      2. Education Sector
      3. Health Sector
      4. Local Authorities

Annexes to Framework I

  1. Draft Agreement on Pay and Conditions of Employment between the Irish Congress of Trade Unions and Employers' Organisations
  2. Public Service Pay
  3. Framework for the Development of Equal Opportunities Policies at the Level of the Enterprise
  4. Framework for the Development of Family Friendly Policies at the Level of the Enterprise
  1. Framework II for Prosperity and Economic Inclusion
    1. Overall Context
    2. Public Transport
    3. Infrastructure and Service Delivery
    4. Balanced Regional Development
    5. Rural Development
    6. Small Business and Services
    7. Industrial Policy
    8. Construction
    9. Housing and Accommodation Supply and Affordability
    10. Energy
    11. Agriculture
    12. Food, Marine and Forestry
    13. Environmental Policy
  2. Framework III for Social Inclusion and Equality
    1. Social Inclusion
    2. Income Adequacy
    3. Urban Disadvantage
    4. Rural Poverty
    5. Local Governance
    6. Targeted Investments in Disadvantaged Areas
    7. Social and Affordable Housing and Accommodation
    8. Social Economy
    9. Supporting Voluntary Effort and Participation
    10. Healthcare
    11. Older People
    12. Equality
  3. Framework IV for Successful Adaptation to Continuing Change
    1. Lifelong Learning
    2. Labour Market
    3. Childcare
    4. Information Society
    5. Promoting North/South Partnership
    6. Commitment to the Wider World
  4. Framework V for Renewing Partnership
    1. Building on the Significant Progress made under Partnership 2000
    2. Monitoring and Evaluation as the Programme progresses
    3. Developing Partnership at the National Level
    4. Partnership at the Framework Level
    5. Partnership at the Level of the Enterprise
    6. Partnership in the Public Service
    7. Enterprise/Organisational Partnership - National Centre for Partnership and Performance

Foreword

When we began negotiations last November on a new national agreement, we were faced with three challenges:

This Programme for Prosperity and Fairness - the latest in a series of agreements between the Government and the social partners going back to 1987 - will enable Ireland to meet these key challenges.

It will:

I believe that if we can go forward with this Programme, we can give everybody in this country a fresh start, fit for the challenges and opportunities of the opening years of the new Millennium.

I would like to take this opportunity to thank all the many people who took part in the negotiations and who worked so hard to bring about this wide-ranging and very ambitious agreement. We in Government look forward to working closely with the social partners in making it a reality.

Bertie Ahern, T.D.,
Taoiseach

Overview

Background

The negotiations on a new national Agreement were formally launched on 9 November, 1999.

The National Economic and Social Council report, Opportunities, Challenges and Capacities for Choice, provided a background for the negotiations, which were wide-ranging and intensive.

The parties to the negotiations included the Government, employers, trade unions, farmers and the community and voluntary sector as follows:

The negotiations have resulted in an Agreement between all the parties to the negotiations over five Operational Frameworks as set out in this Programme for Prosperity and Fairness. The Programme covers a wide range of issues as set out below.

Programme for Prosperity and Fairness

The Programme for Prosperity and Fairness aims to:

The core objective of the Programme is to build a fair, inclusive society in Ireland based on:

Programme for Prosperity and Fairness

The Programme for Prosperity and Fairness consists of five Operational Frameworks:

The objective of the Frameworks is twofold:

The Programme is dependent upon achieving an average annual GNP growth rate of about 5.6% over the period of the Agreement and a goal of maintaining significant budgetary surpluses in each year. If economic growth exceeds this level, it may be possible to apply additional resources in a balanced way to accelerate progress towards the priority objectives of this Programme, including social inclusion. Equally, if growth falls below this level, it may be necessary to make more gradual progress.

The framework for addressing poverty and social exclusion is based on the overall view in the NESC Strategy Report on Opportunities, Challenges and Capacities for Choice, which states: Citizenship rights encompass not only the core civil and political rights and obligations but also social, economic and cultural rights and obligations which are embedded in our political culture and which underpin equality of opportunity and policies on access to education, employment, health, housing and social services.

The following is a brief overview of the key measures aimed at tackling some of the immediate issues confronting the economy and society at this time.

Competitiveness

The Programme for Prosperity and Fairness is anchored on the vital importance of international competitiveness for IrelandÕs continuing economic and social progress. It recognises the current domestic and international issues facing IrelandÕs competitive position. In order to enhance and sustain IrelandÕs competitiveness in the rapidly changing world of global competition, the Programme for Prosperity and Fairness sets out measures to:

People on Low Incomes

The Programme addresses the needs of people on low incomes by providing for significant improvements in their living standards. Key measures include:

Transport

The Programme for Prosperity and Fairness recognises that public transport has to be improved and the infrastructure bottleneck has to be overcome to improve peopleÕs quality of life and sustain economic growth. Key measures include:

Housing

The infrastructure bottleneck also affects the housing market. The Programme for Prosperity and Fairness addresses the growing need for social and affordable housing and the need to improve the physical condition of the existing social housing stock. Measures include:

Childcare and Family Friendly Policies

The Programme for Prosperity and Fairness recognises that policies to support childcare and family life are a cornerstone of future social and economic progress. Accordingly, the Programme aims to:

Healthcare

The Programme for Prosperity and Fairness recognises the need to provide quality healthcare services for people who are ill or who have disabilities. A greater emphasis will also be placed on improving quality of life through targeted health promotion and preventive strategies. Measures will include:

Equality

Equality of opportunity and the elimination of discrimination are key aspects of a modern, open inclusive society. The Programme for Prosperity and Fairness will support practical policies and measures to promote equality through:

The Challenge of Continuing Change

This Programme for Prosperity and Fairness sees lifelong learning as the key to a future of sustained economic growth and social development at a time of ongoing change. It contains a radical package of lifelong learning measures which will:

The Programme also contains a series of measures designed to speed up Ireland's transition to an Information Society. It includes measures aimed at:

Agriculture

The Programme for Prosperity and Fairness sees Irish agriculture and the agri-food industry remaining a cornerstone of the Irish economy into this new century. It aims to promote a strong, internationally competitive industry and to ensure that farm families enjoy increased living standards in line with the norm in our growing economy. Key measures aim to:

Promoting North/South Partnership

The social partners will seek to work in partnership with all relevant interests in realising the vision of the Good Friday Agreement and the structures arising from it through:

Commitment to the Wider World

In recognition of Ireland's changing relationship with the Wider World, the emphasis of foreign policy will be on:

Framework I for Living Standards and Workplace Environment

Introduction

Among the key objectives of this Programme are the achievement of higher living standards and improvements in the environment for work. Many and varied issues of policy impact on living standards and on the work environment. These include pay and pensions, social welfare payments, taxation, improved public services and the enhancement of workplace relations through partnership and through the development of equal opportunities and family friendly policies.

On pay, the terms of the Draft Pay Agreement are set out in Annex I and Annex II to this Framework.

The social inclusion package in Framework III includes important initiatives to improve the living standards of those dependant on social welfare.

The other issues are set out in this Framework as follows:

Section 1.1: Taxation

Section 1.2: Pensions

Section 1.3:

(a) Enhancing Workplace Relations through Partnership for Competitive Enterprises and

(b) Workplace Environment

Section 1.4: Modernising the Public Service - The Next Phase.

There are four Annexes to this Framework:

1.1 Taxation

1. Over the period of this Programme, up to and including Budget 2003, there will be increases in net take home pay, including pay increases, of up to 25% or more.

Personal Taxation

2. The Government and the social partners confirm their support for further tax reform and tax reductions to improve the position of all taxpayers, increase the real take-home pay of those covered by this Programme, especially those with below average earnings, and develop the structure of the tax system to deliver benefits and focus resources in an equitable manner.

3. Tax benefits can be delivered through increased personal tax credits, widening the standard rate band and reductions in the rates at which tax is levied. The Government and the social partners regard increases in tax credits and the development of the tax credit system as the priority areas for resources over the course of this Programme. It is an agreed policy objective of the Government and the social partners that, over time, all those earning the minimum wage will be removed from the tax net.

4. The social partners support the policy of establishing a single standard rate income tax band for all individual tax payers. They also agree that the standard rate income tax band should be kept under review in the light of increases in income levels and the objective of ensuring that, over time, at least 80% of taxpayers are not subject to the higher rate of income tax.

5. In seeking to frame tax policy, the social partners believe that tax reductions should be delivered in the most straightforward, equitable and transparent way; that all taxpayers should be treated equitably under the tax system; and that income from different sources should, as far as possible, be treated in an equivalent way. In this context, Budget tax packages will be poverty proofed. The social partners are convinced that the confidence of taxpayers in the fairness of the system must be maintained by determined action to combat tax evasion and fraud and to reduce the opportunities for tax avoidance. The social partners agree that, in framing tax policy, there is a role for enhanced consultation in examining major tax policy initiatives. The social partners note that the publication of policy papers, such as those prepared for the Tax Strategy Group, can make an important contribution in this regard.

Tackling Tax Evasion and Fraud

6. The social partners are committed to strengthening the role of the existing Monitoring Group and to measures to increase the resources applied to tackling tax and social welfare fraud and evasion. The social partners note the increased powers which have been given to the Revenue Commissioners in the Finance Act, 1999, and the commitment of the Government to make further progress in relation to increasing the efficiency of the tax collection system, taking account of the public and other Inquiries currently under way or recently completed.

Tax Credits

7. The social partners welcome the proposed completion of the move to a full tax credits system and regard the tax credits system as an effective and equitable way in which to deliver tax reductions. The social partners believe that the role, which refundable tax credits can play in the tax and welfare system, should be actively examined. They have agreed that a special Working Group, on the lines of the Tax Credit Working Group set up under Partnership 2000, should be established to carry out this examination. This examination will include the possibility of paying the Family Income Supplement (FIS) through the tax system. A progress report will be prepared by the end of 2000.

Employee Share Ownership, Gain Sharing and Profit Sharing

8. The Government and the social partners acknowledge the role of Employee Share-Option Trusts (ESOTs), gain sharing, profit sharing and other financial employee incentives in developing and deepening partnership and in increasing performance and competitiveness. A Consultative Committee, involving ICTU, IBEC and appropriate Government Departments and Agencies, will be established to prepare proposals for consideration in the context of Budget 2001.

Treatment of Work-Related Expenses and Benefits

9. It is recognised that there can be situations where the tax treatment of work-related expenses and benefits under the current regime could lead to unintended effects. There are also important differences between the treatment of work-related expenses incurred by the self- employed and by employees. The social partners have agreed that the issues involved will be reviewed by the appropriate parties, including the Revenue Commissioners, ICTU and IBEC, before Budget 2001.

Discretionary Tax Expenditures

10. The Government will continue to systematically evaluate discretionary tax expenditures to ensure that they meet their objectives in an efficient and equitable manner and make the results of such evaluations publicly available.

Medium Term Tax Policy

11. The Government will request the NESC to review the strategic options for the future of the tax and welfare systems over the next 10 years, taking account of emerging trends and policy objectives. This report will be produced by September 2001.

VAT on Labour Intensive Services

12. The Government confirms its intention to maintain the current position in relation to VAT on labour intensive services and construction, subject to EU requirements. The Government will be pressing for the maintenance of the current VAT regime in relation to labour intensive services and construction in whatever common EU VAT system may emerge in the future.

1.2 Pensions

Objectives

Actions

1. The Government has already noted the recommendation of the NPPI Report to increase the social welfare pension over a 5-10 year period to 34% of average industrial earnings. During the period of this Programme, the level of State old age pensions will be improved in line with the commitments given in the Review of the GovernmentÕs Action Programme for the Millennium.

2. New pre-funding arrangements will be established to meet part of the future costs of social welfare and public service pensions. The necessary legislation will be passed in the year 2000.

3. The new Pensions Bill will be published by July 2000. The Bill will provide a framework for the early introduction of Personal Retirement Savings Accounts (PRSAs). Both employers and unions are committed to promoting the introduction of occupational schemes for those employees without access to such schemes, subject to the costs involved not undermining competitiveness and employment in enterprises. Furthermore, nothing in this Programme shall impede the improvement of schemes where the employers and/or employees concerned are willing and able to meet the cost.

4. A survey of occupational pension coverage will be undertaken in the first fifteen months of this Programme in order to monitor progress towards the NPPI target. Details of the nature and timing of the survey and subsequent reviews will be agreed in consultation with the Pensions Board. The information generated will be reviewed to track the trends in coverage and will enable the extent and effects of the introduction of PRSAs to be monitored.

5. Following Government consideration of the Report of the Commission on Public Service Pensions, which is expected in mid-2000, a Working Group of the public service unions, relevant Government Departments and other appropriate parties will be established to advise on the implementation of the relevant Government decisions with a view to introducing, as quickly as possible, any proposed changes in public service pensions arrangements, including those for low paid workers.

1.3 Workplace Relations and Work Environment

(a) Enhancing Workplace Relations through Partnership for Competitive Enterprises

The Development of Partnership at the Level of the Enterprise

1. The period of economic growth since 1996 has been underpinned by rapid organisational change in enterprises, from which we have learned much about enterprise partnership. Working together to advance enterprise partnership has encouraged the social partners to put in place arrangements which better position them to monitor and support partnership activity in the future.

2. Under Partnership 2000, significant progress was made in enterprise partnership:

3. That progress has taken place in large and in small enterprises and in indigenous and in foreign owned companies. Those developments enable the principles set out in Chapter 9 of Partnership 2000 to be further enhanced and deepened.

Key Objectives

4. The Key objectives are as follows:

Defining Partnership

5. Enterprise Partnerships are defined as:

"an active relationship based on recognition of a common interest to secure competitiveness, viability and prosperity of the enterprise. It involves a continuing commitment by employees to improvements in quality and efficiency; and the acceptance by employers of employees as stake-holders, with rights and interests to be considered in the context of major decisions affecting their employment.

Partnership involves common ownership of the resolution of challenges involving the direct participation of employees/representatives and an investment in their training, development and working environment."

Principles underpinning the Framework for deepening Workplace Partnership

6. A focus on competitiveness

7. Building on progress to date under Partnership 2000

8. No one model of partnership

9. Employer and Trade Union Support

10. Voluntary nature of the process

11. Evaluation and monitoring

Continuing the Development of Partnership Arrangements at the Level of the Enterprise

12. The results of research carried out over the past few years, together with initiatives and programmes undertaken during the period of Partnership 2000, confirm the progress that has been made in working towards improved employee relationships. There is also clear evidence of a growing volume of partnership activities at enterprise level. Employers' organisations and trade unions agree, however, that this improvement is not uniform and that greater progress is desirable on a wider scale across the economy in order to increase employee involvement, productivity and employment. They recognise the central importance of agreement at local enterprise level in further developing the partnership process.

13. For this reason, they propose to build on the existing valuable experience gained through the National Centre for Partnership, the PACT project, the SIPTU ADAPT project, the NWO project and other work to learn and disseminate the lessons of partnership.

14. IBEC and ICTU will work together to develop guidelines to assist companies in embarking and successfully putting in place partnership arrangements.

15. The important role of institutional support in this context is recognised and the results of the current evaluation of partnership development will be taken into consideration in this context.

Partnership Topics

16. Chapter 9 of Partnership 2000 sets out a range of topics for discussion and possible partnership initiatives, activities and arrangements which can be undertaken at enterprise level. IBEC and ICTU confirm these topics as appropriate for discussion and agreed progress, depending on the particular circumstances of the enterprise. In the context of this Programme, the following topics are particularly relevant:

17. The focus of any discussions will be in the context of developing a better understanding of the challenges facing the enterprise and the measures needed to meet those challenges and to ensure that adequate arrangements for communications are in place in the enterprise.

18.

(a) Any initiatives or proposals taken directly by management in relation to any of the above topics will be voluntary and, if not resolved, may only be processed further (including reference to third parties) if agreed by all parties to the discussions.

(b) In response to a request from employees or their representatives in relation to the above topics, discussions will take place. If as a result of such discussions, there is no agreement, the matter may only be processed further or referred to third parties if agreed by all parties to the discussions.

In any event, in all circumstances in relation to both (a) and (b) above, co-operation will continue unaffected.

19. In relation to financial involvement, ICTU and IBEC recognise the part which a link between the financial performance of the company and the individual employee plays in developing and deepening partnership and in increasing performance and competitiveness. The schemes in operation include ESOTs, ESOPs, gainsharing, profit sharing and other financial employee incentives. IBEC and ICTU will work together to produce guidelines to support, facilitate and encourage this process.

20. It has been agreed in Paragraph 8 of Section 1.1 of this Framework that a Consultative Committee, involving ICTU, IBEC and appropriate Government Departments and agencies, will be established to prepare proposals for consideration in the context of Budget 2001.

Institutional Supports for Partnership

21. It is clear that employers, employees and unions play the leading role in the development of enterprise partnership and organisational capability. Their work can be facilitated and enhanced by supportive institutional bodies.

22. This approach is one which encourages each organisation to achieve the highest possible standards in its chosen approach to partnership and involvement. It also encourages active, ongoing, comparison between:

23. It is important that the appropriate institutional arrangements and resources are in place to support the development of partnership. The National Centre for Partnership has an important role to play in this process and it is proposed to enhance this role as set out in Section 5.7 in Framework V. The Centre will work with the social partners in supporting the deepening of partnership, including through:

24. The role of other organisations in both the public and private sector, which contribute to partnership development, will also be considered in this context.

25. The social partners will consult and make proposals to Government on the detailed arrangements to be put in place to give effect to the strengthened institutional structures required and the relevant funding issues.

(b) Workplace Environment

Occupational Safety, Health and Welfare

Objectives

Actions

1. The review of the Safety, Health and Welfare at Work Act will be completed by Autumn, 2000, and will include examination of issues posed by a broad definition of health and welfare at work (e.g. stress and bullying), as well as improved innovative approaches to deterrence, enforcement and consultation.

2. Codes of Practice will be developed in the areas identified by the review, including occupational health, with a view to encouraging health screening and health promotion, and measures will be considered at enterprise level within a partnership framework.

3. The case for additional resources for the HSA and for a fund for joint initiatives within high risk sectors, such as construction, will be examined during 2000, bearing in mind also the responsibilities of employers and employees.

4. Measures will be put in place to address the increasingly complex nature of issues concerning personal injury claims; in particular, the appropriateness of establishing a Compensation Board as an optional alternative to the present system will be examined.

5. The joint IBEC/ICTU Workplace Safety Initiative is acknowledged as a significant vehicle to promote a positive health and safety environment. It is important that its potential is fully developed.

Atypical Workers

6. The Bill to implement the EU Directive on Part Time Work will be introduced in the Oireachtas by June, 2000. Government confirms that the definition of remuneration in the Part Time Workers Directive will include occupational pensions.

7. The Bill to implement the EU Directive on Fixed Term Contracts will be introduced in the Oireachtas in time to permit implementation of the Directive by the July 2001 deadline.

8. Consultation and discussion will continue with IBEC and ICTU on the transposition of both Directives.

Employment Status

9. The Office of the Revenue Commissioners and the Department of Social, Community and Family Affairs, in consultation with the social partners, will seek a uniform definition of ÔemployeeÕ, based on clear criteria, which will determine the employment status of an individual.

Right to Bargain

10. The application in practice of the legislation to give effect to the Report of the High Level Group will be monitored by the parties during the course of this Programme.

Worker Participation (State Enterprises)

11. It is recognised that the mechanisms provided for in the Worker Participation (State Enterprises) Acts 1977 and 1988 have contributed to the development of the commercial semi- State companies.

12. The Government, in the first year of this Programme and in consultation with ICTU and IBEC, will review the operation, effectiveness and coverage of the mechanisms established under the Acts. The review will inform decisions affecting the future of Worker Directors in the context of the sale of any semi-State companies covered by the Acts.

13. In the interim, issues arising will continue to be dealt with on a case by case basis and suitable arrangements put in place.

Time off for Union Training

14. During the first year of this Programme, IBEC and ICTU will review their Agreement on the release of worker representatives for union representative training.

1.4 Modernising the Public Service - The Next Phase

Recent Progress

1. Modernising the Public Service is an ongoing challenge that will continue to be addressed during this Programme. The good progress of recent years provides a firm foundation on which to advance further the objectives of the Strategic Management Initiative (SMI) and enable continuous improvements in service delivery, resource management and organisational responsiveness.

2. The progress made has been based on promoting a strategic management approach, better management of resources, devolution of responsibility and accountability, increasing job satisfaction and openness and transparency in all aspects of service provision, underpinned by the commitment and contribution of public servants to the modernisation process. Complementary initiatives have been implemented to put a stronger emphasis on delivering quality services to meet the needs of recipients and to maximise the use of information and communications technologies. Additional initiatives, aimed at reforming and streamlining the regulatory process and, critically, improving all aspects of human resources management, are under way.

3. The progress to date has been driven by the sectoral strategies developed under SMI. More recently, these have been advanced through the participative structures put in place under Partnership 2000 to involve public servants at all levels in the change process. The partnership structures are leading, and will increasingly lead, to a better and shared understanding of organisational objectives and ownership of the modernisation process.

Need for Continuous Modernisation

4. While good progress has been made, there is a continuing need for modernisation of the Public Service. The recent NESC Report, Opportunities, Challenges and Capacities for Choice, identified the increasing relevance of the SMI in the current circumstances. The Council added that Òit could be argued that the pace of change arising from SMI to date is in need of being progressed with greater urgency. Given the many challenges to maintaining and further advancing the economic and social development of the country as set out elsewhere in this Programme, greater urgency in progressing the modernisation of the Public Service is clearly required. The imperatives that informed the introduction of SMI and the actions to modernise the Public Service under Partnership 2000 remain and are more valid now than at anytime previously.

5. In particular, meeting the needs of a modern, highly diversified and rapidly growing economy requires a responsive, flexible and innovative Public Service. Increasing globalisation, driven by non-stop technological advances, and the growing demands and expectations of the public, are adding to the pressures on the Public Service. The successful implementation of the National Development Plan and this Programme depends also on an efficient and responsive Public Service. The role of the Public Service remains a crucial one and, increasingly so, in relation to managing the many complex issues which are features of current economic and social development. The quality of the response of the Public Service to these challenging demands will be determined to a large extent by its efficiency and adaptability in the face of changing circumstances. This will be particularly the case in responding to and managing issues of national or regional importance which require the combined effort of two or more organisations or sectors within the Public Service. Equally, the Public Service has to respond better to the aspirations of its staff for more fulfilling work and improved career paths and create workplace conditions and relations which are conducive to increasing the job satisfaction, motivation and commitment of staff. This is relevant also in the context of promoting the Public Service as a preferred employer in the current, highly competitive labour market.

The Strategic Management Initiative

6. The primary objectives of the SMI and the related sectoral strategies continue to drive the modernisation process. These require the Public Service to continue to:

In furthering these objectives, the progress achieved to date will be consolidated and key initiatives in the areas of service delivery, resource management, regulatory reform and the Information Society will be pursued through the partnership process.

7. The achievement of the SMI objectives relies on the ongoing development and reinforcement of the strategic management approach, allied to a new urgency to realise continuous improvements in resource management and in every aspect of service provision, including policy development and implementation. This will necessitate reviewing and setting clear objectives, and targets for their achievement, in each sector and organisation in the Public Service. Such objectives will take account of Government policies, the National Development Plan, the Action Plan for Implementing the Information Society, this Programme and the sectoral requirements of the SMI modernisation programme. The strategic management framework comprising organisational statements of strategy, business/service planning and performance management provide the means of developing, and monitoring the achievement of, the relevant objectives and targets. These will be underpinned by sectoral service delivery plans, incorporating challenging service standards, which will be developed through the partnership process and in consultation with the users of public services.

Strategic Management Framework

8. Modernisation of the Public Service is a participative process, based on a strategic management approach comprising:

9. The Statement of Strategy sets out the organisationÕs goals and high-level objectives, the priorities and strategies to be pursued in achieving them, and how it will use its resources to this end. It defines the organisationÕs mission and role in the light of the needs of the users of its services and its internal and external operating environment, with a view to setting challenging objectives in relation to the services it delivers, the mode and timing of their delivery, and the use of its resources to meet these objectives. It is essential that staff at all levels are involved in its development to ensure widespread ownership of the outcome within the organisation. The Statement of Strategy normally covers a three-year period and is reviewed at least yearly to ensure its continuing relevance.

10. Business/Service Planning translates goals and high-level objectives into more detailed work programmes setting out the objectives and actions that inform the day-to-day activities of work units and staff. Performance indicators or measures, quantitative and/or qualitative as appropriate, are developed to enable the achievement of objectives to be monitored and any needed adjustments made. Business/service planning results in individual and team objectives, providing the basis for managing performance.

11. Managing performance is a continuous process directed at achieving the organisationÕs objectives by ensuring that staff at all levels know what their role is and what is expected of them in terms of targets and standards, are aware of the progress being made and that they have, or can acquire, the knowledge, technical skills and other competencies they need to carry out their work in an efficient and effective manner. Effective management of performance also enables, and assists, staff to realise their full potential. An effective performance management system is concerned with what has to be achieved and how it is achieved and with helping staff to pursue their work and career aspirations.

12. Enhancing performance is aimed at improving service standards. Improved standards of service follow from a strong focus on the needs of recipients, the setting of challenging standards in service delivery, and making the best use of available resources. In this context, it is essential to provide for consultation with, and feedback from, both the providers and users of the services in order to identify the required improvements and validate the progress being made subsequently in improving service delivery.

Next Phase - Key Objectives

13. The next phase in the modernisation of the Public Service will be to continue to embed the strategic management approach and to achieve a number of key objectives over the period of this Programme. These objectives are:

14. Achieving these objectives is essential to underpin quality improvements in service delivery and to enable the Public Service to respond more flexibly to the changing needs of the users of its services. This Programme is designed to establish clear linkages between public service pay and the implementation of the modernisation programme at sectoral and organisational level across the Public Service.

Actions to be pursued at Sectoral Level

15. An outline of the actions to be pursued in the Civil Service and in the education, health and Local Government sectors to realise the key objectives are set out at the end of this section. Corresponding actions will be pursued in other sectors of the Public Service.

Link to Public Service Pay Annex

16. The parties commit themselves, in return for the composite agreement on pay and tax provided for in this Programme, to the delivery of the modernisation programme in the Public Service. In particular, and as indicated in Paragraph 4(c) of Annex II to this Framework on Public Service Pay, certain increase(s) under this Programme will be paid in return for the agreement of specific performance indicators for each sector and the achievement of these sectoral targets, with progress in this regard being assessed at organisational level.

Quality Assurance

17. The performance indicators to be put in place for each sector will be developed and agreed through the partnership structures which were established under Partnership 2000. The assessment of verified progress in meeting these objectives will be a matter for the relevant Secretary General, Health Board Chief Executive Officer, County Manager, etc. as appropriate subject to, in the event of disagreement, reference to the arrangements provided for in General Council Report No.1331 in the case of the Civil Service or its agreed equivalent in other sectors.

18. It is accepted that there is a need to provide for appropriate arrangements to ensure quality assured improvements in each sector. It has, accordingly, been agreed to establish a Quality Assurance Group in each sector. The structure and composition of each Group will be agreed between the parties not later than six months after ratification of this Programme but will include suitable people from outside the sector/public service and, where feasible, representatives of the sector's clients/customers.

The agreed sectoral indicators will be supplied to the relevant Group for confirmation that, in its view, the indicators meet the requirements outlined in this Programme and the associated Pay Agreement, and are sufficiently challenging in that context. At a later stage, as each organisation confirms that its targets have been met, it will submit a report to the Quality Assurance Group outlining the basis upon which the decision had been reached. It would be open to the Group to examine the outcomes in the case of a number of selected organisations. If the Group considers that the indicators or the subsequent progress reports are not satisfactory, they will be referred back to the partnership structures to be reviewed.

Performance Management

19. Achieving continuous improvements in performance will require the implementation of an effective performance management system in each sector and organisation. Implementing such systems, based on clarity of roles and responsibilities and on developing the knowledge, skills and other competencies of individuals and teams, will be a priority. Each sector will develop, as a matter of urgency, a performance management system relevant to its needs and circumstances and implement it over the period of this Programme. Implementation will be underpinned by:

Human Resource Management Strategies

20. Sustaining and improving efficiency and effectiveness in a rapidly changing environment require increasingly innovative and flexible human resource management policies and strategies. The implementation of new performance management systems will need to be complemented by the development of integrated strategies addressing all aspects of human resource management. These strategies will be linked to, and be informed by, the overall sectoral and organisational business strategies to ensure alignment between the management of human resources and business strategies and objectives. They must also take account of the aspirations and career development needs of staff. The development of effective strategies will require a refocusing of the existing human resource function in many areas of the Public Service to provide for, among other things, a more strategic approach to human resource management issues and greater involvement by line managers in the management of their staff. An action programme to achieve such refocusing will be an immediate priority.

21. The Public Service needs also, in the light of the current highly competitive labour market, to improve and streamline recruitment procedures and promote itself as a preferred employer if it is to continue to attract and retain high-calibre staff. In this context, the parties to this Programme accept that there are situations where recourse to open recruitment at various levels to, and within, the Public Service is necessary. While open recruitment at the existing levels will continue to be the norm, the parties accept that, in order to acquire skills and expertise which are in short supply within the sector, the need to resort to external recruitment at levels other than the norm can arise and the Public Service must be able to respond to such needs in an efficient and timely way. The parties commit themselves to establishing mechanisms in each sector which, while addressing the concerns of both sides, will be sufficiently flexible to enable decisions to be made in respect of individual cases.

Organisational Flexibility

22. Continuous improvements in performance will require greater organisational adaptability and flexibility in responding to changing service needs and circumstances. Changing consumer preferences and expectations will increasingly influence the timing and mode of delivery of services. Equally, the effective management of complex issues will require prompt and innovative responses necessitating new and more effective approaches to policy formulation and implementation. The parties to this Programme recognise the necessity to examine issues such as new forms of work organisation embracing innovative work practices, multi-grade and cross-stream teams, and flexibility in grading, including broad-banding, complemented by imaginative reward and recognition systems including an examination of gainsharing. It is also recognised that these issues are likely to arise in any event from the Benchmarking exercise agreed to under this Programme. While recognising that there are existing agreements on these issues, the parties are committed to addressing them during the currency of this Programme.

Training and Development

23. Organisational flexibility is heavily dependent on the adaptability and skills of the organisation's staff. Enhancing performance is equally dependent on the knowledge, skills and other competencies of staff being developed to the levels needed to undertake their jobs to best effect and to enable them to realise their potential, enjoy greater job satisfaction and advance their careers. Career-long development and learning are now increasingly important in many areas of the Public Service. The objective must be to ensure that training and development is better targeted at job-related needs and individual and team development, while helping staff with their work and career aspirations. Accordingly, training and development will be integrated with performance management systems and, in turn, aligned with organisations' human resource management strategies. This will result in training and development needs being better defined, enabling them to be addressed in a co-ordinated, coherent manner.

Organisational Capability

24. The strategic management approach and better management of resources are helping to enhance the organisational capability of the Public Service. The need to build better capability at the individual organisation level is critical to improved responsiveness. Strategic goal-setting, devolution of authority and accountability, improved internal management systems and better targeted training and development will make organisations more effective and increase their capability and capacity to respond to changing needs and circumstances. It will be the responsibility of each organisation to use these developments to enhance its capability to anticipate needs; adapt to change; develop, implement and evaluate the required responses; and develop innovative and imaginative ways of motivating staff and managing performance.

Partnership

25. Experience to date of the partnership approach at the organisation level in the Public Service demonstrates its benefits. These include a growing and shared understanding of organisational goals and challenges, the need for and purpose of change, the importance of training and development for both individuals and teams, and the necessity for an open, participative approach to addressing the business and work needs of the organisation. This is borne out by studies which report on the benefits of partnership at the organisation level and highlight good practice and the lessons to be learned. The participative approach, introduced under Partnership 2000, will continue to be developed and refined under this Programme to better meet sectoral and organisational needs and circumstances.

1.4.1 Modernisation in the Civil Service

Strategic Management Initiative (SMI)

Considerable progress has been made in advancing and implementing the SMI in the Civil Service. The programme of change for the Civil Service was set out in Delivering Better Government (1996), following on from which a series of developments and initiatives has been implemented. These include for each Department and Office:

Significant, new legislation - the Freedom of Information Act 1997 and Public Service Management Act 1997 - was introduced to underpin key elements of the modernisation process. The Freedom of Information Act ensures openness, transparency and accountability in all aspects of service delivery. The strategic management framework is underpinned by the Public Service Management Act which provides formally for devolution of authority and responsibility within Departments and Offices, the preparation and publication of Statements of Strategy (at least every three years), business planning and the publication of annual reports.

Other developments include a new performance management system, which was designed in consultation with staff and unions, and consideration of a wide range of human resource management issues with a view to updating and modernising existing practices and policies. Information technology developments to support improvements in service delivery and give effect to the GovernmentÕs Action Plan for Implementing the Information Society are also being pursued on an ongoing basis.

Partnership Structures

Under Partnership 2000, participative structures have been put in place in each Department and Office to facilitate involvement by management, staff and unions in the change process, in ongoing business developments and in identifying and addressing organisational and work-related issues and challenges generally. Action programmes to give effect to SMI and change initiatives were agreed within the partnership structures to comply with the local bargaining clause of the Partnership 2000 Pay Agreement.

Next Steps

The Civil Service is committed to progressing further the SMI/Delivering Better Government programme of change during the period of this Programme. Key objectives will be:

Initiatives to improve policy analysis and formulation and the management of complex policy issues will also be pursued. In particular, improved and more extensive use will be made of techniques to anticipate and explore better the breadth and depth of emerging policy issues.

Training and Development

The Civil Service is committed to enhanced training and development for management and staff at all levels in the context of implementing and developing the performance management system, ensuring better quality in service delivery and enhancing policy analysis, development and implementation. A spend of 4 per cent of payroll on training and development by 2003 will be the aim, compared with a spend of 2 per cent in 1998.

Partnership Implementation of the modernisation programme will continue to be advanced under the partnership arrangements now in place. These arrangements will be developed and improved in consultations between management and unions. The review provided for under the Civil Service agreement on partnership will be undertaken and will consider, among other things, the support needed to facilitate the continued development of the partnership structures.

1.4.2 Modernisation in the Education Sector

The education partners are committed to improving the quality of education provided in our education institutions. An important factor in improving performance is the development of performance management systems.

First and Second-level Schools

In the case of first and second-level schools, the basic element of a performance management system is contained in the School Development Planning initiative. Such a system will be fully developed through the following procedures.

Every school will partake in a school development planning process involving a school plan dealing with total curriculum and with the organisation of all the schoolÕs resources including staff, space, facilities, equipment, time and finance. It will also include the schoolÕs policies on a diverse range of administrative and organisational issues and, in accordance with the Education Act, 1998, it will set down Òthe objectives of the school relating to equality of access to and participation in the school and the measures which the school proposed to take to achieve those objectives. (It is noted that the Education Act, 1998 provides that every school must prepare a School Plan).

The School Plan is a collaborative process and its preparation must therefore involve consultation with all the partners including parents. A factor which must be taken specifically into account is how the needs of parents in regard to information on their childrenÕs education might be more conveniently catered for.

Over the period of the Plan, it will be subject to ongoing review internally and at the end of the period it will be evaluated in relation to the extent to which the objectives it set out have been achieved.

School Development Planning, School Self Review and an assessment of the PlanÕs outcomes are designed to enhance school performance through the involvement of all the education partners. In summary these processes, working together, will provide that every school:

The Department of Education and Science will engage in the assessment of the PlanÕs outcomes and advise on future plans. During this process, good practice will be identified and affirmed and a support programme will, where necessary, be put in place.

Other Education Institutions In the other areas of the education sector, e.g. the Vocational Education Committees, the third level and other institutions, it will be a matter for each institution to develop its own plans. These plans will provide for:

1.4.3 Modernisation in the Health Sector

Introduction The Health Strategy, Shaping a Healthier Future, launched in 1994 had at its core the principles of:

While very significant progress has been made towards achieving these principles through major initiatives such as the Cancer Strategy, Cardiovascular Health Strategy and the establishment of new organisations with defined roles (OHM, HSEA, ERHA), there is still significant work to be done to deliver the remaining areas.

The health care area is quite different from the commercial sector. The relationship between the patient and the health care institution or provider is usually much different to that of the customer in the commercial area who can often make choices and shop around. These important differences underline the need for a conscious patient-focused approach to realigning services in a way that puts patients first.

The emphasis on patient care is an accepted cultural ethos of health service staff. A performance management approach to building on the quality of service for patients, utilising partnership structures, will be a unifying force for both management and staff.

Service Planning/Business Planning is an essential element of any system of performance management. As a first step, therefore, it will be necessary to ascertain the views of the public regarding their experiences of the health service. This will focus on the users of the service.

Service Delivery Plans for the health service have been in use for some years. Significant work has been done in improving the service planning process and current plans are now suitable for the creation of conditions which will allow performance management systems to be put in place.

Aside from setting out the high-level objectives of the organisation, the service planning process will allow team objectives to be set which will reflect what the patients require from the unit and from the organisation. In order to guide the preparation of future plans, it is essential to validate the improvements made.

Service Plans should lend themselves to being used as a management tool for monitoring the performance of the organisation.

It is also essential, when drawing up the Service Plans, to involve staff at every level of the organisation so that they can have a meaningful input into the process at unit level. Advancing these objectives will require working through the partnership process at both national and local level. The Service Plan process should therefore be significantly improved through the contribution of staff who are in closest contact with members of the public.

Traditional work patterns in what is a 24 hour service have grown up around normal office hours attendance regimes. There is a need to create a shift in the way the service is delivered. We must move from the present position where institutions are often configured around the way people have traditionally done things to one where the patient is at the centre of how the service is organised. There is a need to develop performance standards against which the level and quality of service to members of the public can be measured.

Key Elements of a Change Programme for the Health Sector

The next phase of implementation will require a carefully co-ordinated and focused change implementation programme which would have within it, for example, a number of elements, as set out below:

These are practical examples of areas in which real progress, resulting in improvements in services for patients, can take place.

Any of these performance measures must, of course, be agreed between the social partners at health sector level. The most suitable vehicle for this would be the partnership arrangements which are now being developed both nationally and locally.

Performance management systems would then operate at agency level where senior management and staff would agree arrangements for setting targets and monitoring outcomes.

1.4.4 Modernisation in the Local Government Sector

Introduction

The Local Government sector has a clear commitment to placing ever greater emphasis on performance and on the delivery of quality services. This is reflected in Better Local Government - a Programme for Change (BLG), in the strategic plans being developed under SMI and in the new financial management system being introduced in the Local Authorities. The local bargaining agreement reached on the application of a 2% increase for all employees of Local Authorities, in accordance with provisions of paragraph 4 of the Annex on public service pay in Partnership 2000, reaffirmed the Local Authority sectorÕs partnership approach.

Explicitly, commitment was given to the provisions of Chapter 10 of Partnership 2000 including continuing flexibility and responsiveness in order Òto respond more rapidly to the changing needs and preferences of the recipient of its services, as was a commitment by management to respond Òto staff aspirations for more fulfilling work and improved career paths, and to provide training and development as part of the process of modernisation.

Following on from this, significant progress has been made in the Local Authority service on the introduction of a partnership approach. Facilitators have been appointed in each local authority, charged with establishing local partnership committees and implementing change through incorporating elements of Chapter 10 of Partnership 2000, and progressing the Local Authority strategic plan.

Framework for Development

The Local Authorities are committed to the implementation of the GovernmentÕs policy for a strengthened and reinvigorated local government system which will be at the centre of the provision of a wide range of services to the community at the level of the county and city.

The core principles of this policy are to serve the customer better and to enhance local democracy. To meet these principles, Local Authorities are bringing their services closer to the customer, strengthening management and staffing structures, providing higher levels of staff development and training and eliminating obstacles to flexibility and efficiency such as the dual structure. It is also recognised that customer needs and demands require additional flexibilities including extended opening hours and arrangements for carrying out activities such as street cleaning, refuse collection and road maintenance at times which cause the least interference with the public.

The ultimate test of the efficacy of the new initiatives in the Local Government sector will be improved efficiency and high levels of customer satisfaction. The new Local Authority financial management system, which is being developed and is currently being tested on a pilot basis in a number of Local Authorities, will enable performance indicators to be developed which will identify best practice and encourage Local Authorities to improve their own performance levels.

The principles of customer service and local democracy have always been at the centre of the local government service, through the intimate involvement of local public representatives in the operation of their authorities. This unique feature will be strengthened through the involvement of representatives of community and other interest groups in the strategic policy committees (SPCÕs) which form a core element of Government policy. The SPCÕs will play a major role in determining the Local AuthorityÕs policy and in overseeing the implementation of that policy. Local Authorities are also developing a variety of means by which customer satisfaction and levels of performance can be measured.

SMI/Performance Management Performance management is a step in the SMI process. Strategy statements and business plans are a necessary foundation for performance management. These define the objectives and individual and team responsibilities and will provide the basis for measurement of achievement.

In accordance with the SMI process, Local Authorities generally have prepared and adopted strategic management plans which incorporate:

Action/business plans to deliver the content of the strategic management plans have been or are being completed. These action/business plans, which will have a strong customer service focus, incorporate four core elements:

Following on from this, the next step in the process is the systematic development and implementation of a performance management system to implement the strategic management plan and business plans. A sector wide performance management advisory and monitoring group is being set up under the auspices of the Local Government Management Services Board to oversee the implementation of the system. This group will have a central co-ordinating and advisory service role for local authorities to assist in the implementation of performance management in the local authority sector. The group will look at issues such as:

Annex I

Draft Agreement on Pay and Conditions of Employment between the Irish Congress of Trade Unions and Employer Organisations

Introduction

1. This Agreement is part of a composite agreement on pay, conditions of employment, tax reform, lifelong learning and family friendly policies, including childcare. The tax elements are set out in Section 1.1, while the framework agreements on lifelong learning and childcare are set out in Sections 4.1 and 4.3 respectively. The parties to this Agreement accept as essential, adherence to the terms of the Agreement with particular reference to the clauses on pay, economic, competitive and commercial circumstances, partnership and industrial peace and stabilisation and are committed to:

Date of Implementation and Duration

2. Except where otherwise agreed at local level, this Agreement shall come into force on the expiry of the Pay Agreement under Partnership 2000 in each individual employment or industry and shall last for two years and nine months.

Pay

3. It is agreed by the parties that basic pay shall be increased by the following amounts:

4. Where the application of this formula would result in increases in basic pay for full-time adult employees of less than:

the appropriate percentage increase for these particular phases will be adjusted to these levels. These minima will apply on a pro-rata basis to part-time employees unless existing agreements apply more favourable terms.

Statutory Minimum Pay

5. It is agreed to put to Government a position accepted by both ICTU and IBEC that the National Minimum Wage be adjusted to £4.70 from 1 July, 2001, and to £5 from 1 October, 2002. The parties accept in this connection the terms of Section 39 of the National Minimum Wage Bill.

6. The parties agree that no repercussive claims related to or following on from the application of the National Minimum Wage will be made by trade unions or employees.

Economic, Competitive and Commercial Circumstances

7. Clause 3 shall be negotiated between employers and unions through normal industrial relations machinery, due regard being had to the economic, commercial and employment circumstances of the particular firm, employment or industry, whether arising from exchange rate movements or otherwise. The need for ongoing co-operation with change and for continued adaptation and flexibility accepted by the parties may include necessary measures to sustain competitiveness and employment on the implementation of Clause 3.

Pension and Sick Pay Schemes

8. Unions are not precluded by Clause 11 from making claims for the introduction of pension or sick pay schemes where none exist or from making claims for the improvement of such schemes where these are substantially out of line with appropriate standards in comparable employments. Arrangements will be agreed to facilitate the introduction of the PRSAs in accordance with the National Pensions Policy Initiative. Insofar as the public service is concerned, no claims shall be submitted or processed further pending the Report of the Commission on Public Service Pensions.

9. Having regard to the cost and other implications of pension and sick pay schemes, negotiations on these matters shall be governed by the capacity of the enterprise to absorb the cost involved and, additionally, in the case of sick pay schemes, the implications for attendance.

10. Agreements under Clauses 8 & 9 may therefore include appropriate phasing and other arrangements (which may exceed the timescale of this Agreement) to take account of these considerations.

Industrial Peace and Stabilisation

11. This Agreement:

12. Where the parties cannot reach agreement through negotiations on any matter covered by this Agreement, they shall jointly refer the matter to the LRC/Labour Court or, where appropriate, to other agreed machinery. Where a dispute arises as to what constitutes a breach of the Agreement, that will be referred to the Labour Court and the parties shall agree to comply with its findings.

Partnership

13. The Parties re-commit themselves to extending and deepening the Partnership process set out in Chapter 9 of Partnership 2000. As set out in Section 1.3 of the Programme, the principles of partnership have been developed further in the light of experience under Partnership 2000. The Parties support the further development of the process in the light of the positive experience to date through discussions initiated at enterprise level between management and employees/trade unions.

Annex II

Public Service Pay (the term public service does not include commercial State sponsored bodies.)

1. The parties commit themselves to full and ongoing co-operation with change, continued adaptation and flexibility and the delivery of the modernisation programme in the Public Service set out in Section 1.4, in addition to the other issues mentioned in the Introduction to Annex I.

2. It is accepted that change is a requirement of a modern high-performing public service and is not, in itself, a basis for claims for improvements in pay and conditions.

3. Section 1.4 of the Programme and the associated Sections outline the key objectives to be achieved over the lifetime of the Programme in relation to the ongoing modernisation of the public service. As indicated therein, this will involve:

It will also require greater organisational adaptability and flexibility in responding to service needs and that issues such as changes in grading, broadbanding and teamworking be addressed.

4. It is agreed that:

(a) pay increases shall be calculated on the basis of:-

(b) Where the application of this formula would result in increases in basic pay for full-time adult employees of less than:

the appropriate percentage increase for these particular phases will be adjusted to these levels. These minima will apply on a pro-rata basis to part-time employees unless existing agreements apply more favourable terms.

(c) the third phase increase of 4% will be paid not earlier than 1 October 2002 and will be dependent on the specific performance indicators as outlined at paragraph 3 above having been established by 1 April 2001, and these sectoral targets having been achieved by 1 April 2002, with progress in this regard having been assessed at organisational level, by 1 October 2002.

5. A mechanism providing for independent quality assurance of the agreed performance indicators and the achievement of these targets has been agreed between the parties.

6. It is accepted in the context of the agreement between the parties on the establishment of the Public Service Benchmarking Body, that any outstanding claims or commitments in relation to pay, analogue or other reviews, in whatever form, by or in respect of any grade, group or category will be subsumed within the benchmarking exercise and will be dealt with solely in that context.

Relationship between Pay in the Public Service and in the Private Sector

Relating Public Service Pay to the Market

7. The need to find an appropriate way of benchmarking Public Service pay to the market is accepted by the parties to this Agreement. This is necessary to ensure, particularly in the context of the current rapidly changing labour market situation, that the public service is in a position to attract and retain the staff needed to deliver the quantum and quality of services that the public are entitled to expect. Such an approach would also provide a basis for ensuring equity between employees in the public service and the private sector.

8. The traditional approach to pay reviews in the Public Service, based on analogues and relativities, has given rise to serious difficulties in the past. The parties are committed, therefore, to making arrangements for an alternative approach which will be grounded in a coherent and broadly-based comparison with jobs and pay rates across the economy, which can be dealt with within the overall context of programmes agreed between the social partners at national level.The existing conciliation and arbitration schemes, and other normal industrial relations machinery, will continue to operate as before subject, of course, to the terms of this Pay Agreement.

Benchmarking Body

9. A Public Service Benchmarking Body will be established within three months of the commencement of this Agreement to examine Public Service pay and jobs in the manner outlined below and to make recommendations thereon.

10. The benchmarking exercise will cover both pay and jobs, i.e. it will examine existing roles, duties, responsibilities, etc. in the public service and across the economy, and not just the pay rates applicable in the private sector to jobs with similar titles to, and superficially similar roles as, jobs in the public service.

11. It would be impractical to examine every single grade across the entire Public Service within the agreed time frame. Instead, the Body will be asked to examine all the major groups and categories within each sector. A list of such groups will be agreed between the parties, together with details of how the remaining grades will be dealt with in the light of the outcome of the benchmarking exercise; a copy of this agreement will be supplied to the Benchmarking Body.

12. The Benchmarking Body will be asked to arrange in-depth and comprehensive research, examination and analysis of pay levels across the private sector. This will include an examination of overall public service and private sector pay levels as well as an examination of the pay rates of particular occupational groups (such as clerical/administrative staff, engineers and technicians) and other identifiable groupings (such as graduate recruits).

13. This examination will cover the overall pattern of pay rates in the private sector and employments across a range of type, size or sector. It will also take account of the way reward systems are structured in the private sector.

Approach

14. It is accepted by both sides that cross sectoral relativities are incompatible with the operation of benchmarking; in practice, wide variations would be unlikely to emerge between the various sectors in the pay of common groups such as clerical/administrative staff, engineers and technicians.

15. Within each sector, it is accepted that internal relativities would be a relevant criterion but it will be made clear in the terms of reference that traditional or historical relativities between groups in a sector would not prevent the Benchmarking Body from recommending what it considers are appropriate pay rates on the basis of existing circumstances.

16. The Benchmarking Body will be asked to produce its report and recommendations by the end of 2002 so that the parties will be in a position to discuss the implementation of its recommendations within the context of any successor to this Programme which might be agreed between the social partners, or whatever other arrangements may be in place on the expiry of this Programme. It is agreed that any additional increases (i.e. over and above those agreed as part of this Agreement) which might emerge from the exercise would not take effect during the period of this Agreement. A single report will be produced covering all grades, groups and categories within the Benchmarking Body's terms of reference.

Procedures

17. The composition of the Benchmarking Body will be discussed and agreed between the parties. While the procedures which might be adopted by the Body are issues which will need to be considered at a later date, it is envisaged that the process will involve

  1. an initial input by employers and trade unions followed by
  2. the necessary research being arranged by the Body with
  3. a further input from employers and unions in advance of
  4. the Body coming to conclusions and forming recommendations.

18. Terms of Reference to give effect to the foregoing will be agreed between the parties.

Public Service Monitoring Group

19. It has been agreed to establish a Public Service Monitoring Group (PSMG) to oversee implementation of any future public service pay agreements (whether forming part of an overall national programme or otherwise). The PSMG will deal with any overarching issues that arise in implementing these agreements as well as any other issues which both sides agree would help to improve the operation of public service pay and industrial relations arrangements.

20. Membership of the PSMG will comprise an equal number of Employer Side and PSC representatives. The PSMG will determine its own procedures in relation to substitutes, co-option of additional members, appointment of joint secretaries, establishment of subcommittees, etc. It will be open to representatives of either side to raise any issues relevant to its terms of reference at the PSMG, including alleged breaches of the terms of the relevant agreements.

Supporting the Established Industrial Relations Machinery

21. The parties reiterate their commitment to using and supporting the established industrial relations machinery, and agree to take whatever steps are necessary to protect the primacy of these institutions.

Health and Local Authority services

22. The parties are committed to agreeing appropriate arrangements in the Health and Local Authority services (in place of the former National Joint Councils) to provide agreed mechanisms for Òin-house discussion of claims and other issues prior to them being referred to the Labour Relations Commission. It is agreed that such arrangements should be in place by 30 April 2000.

Code of Practice on Dispute Procedures

23. The parties are committed to agreeing voluntary codes of practice to address in particular the maintenance of essential services. These codes should reflect the Code of Practice (Dispute Procedures Including Procedures in Essential Services) prepared by the Labour Relations Commission (S.I. No. 1 of 1992).

24. Discussions will take place as a matter of urgency within each sector, under the auspices of the appropriate negotiating machinery, on the adoption of a voluntary code of practice for that sector. The parties are committed to these codes being agreed by 30 June 2000. A copy of each agreed code should be lodged with ICTU, the Department of Finance and the Labour Court/Arbitration Board as appropriate. In the event of the parties encountering problems in agreeing the code of practice, the matter should be referred to the LRC/C&A Facilitator and, if necessary, the Labour Court/Arbitration Board.

25. All of the other provisions of the Agreement in Annex I apply equally to the Public Service.

Annex III

Framework for the Development of Equal Opportunities Policies at the Level of the Enterprise

1. Objective The objective of this Agreement is to eliminate discrimination and to promote equal opportunities in the workplace.

2. The Challenge The Employment Equality Act, 1998, which came into force in October 1999 introduces many new elements into employment equality legislation in Ireland. The Act replaces the Anti- Discrimination Pay Act, 1974 and the Employment Equality Act, 1977.

The Equality legislation now covers 9 distinct grounds of discrimination, gender, marital status, family status, sexual orientation, religious beliefs, age, disability, race and membership of the traveller community.

Discrimination is outlawed in all areas relevant to employment e.g., access to employment, conditions of employment, training or work experience, promotion or regrading or classification of posts. Positive action is permitted to promote equal opportunities geared to remove existing inequalities which affect womenÕs opportunities to access to employment, vocational training and promotion and working conditions. Positive action is also permitted in relation to people over 50 years of age; people with a disability; and members of the traveller community.

3. The Equal Opportunities Workplace The Equal Opportunities workplace recognises the talents and skills of workers to the mutual benefit of both employer and employee. The employer has access to the talents and skills of all the employees and the employees have equal access to the conditions of employment in the enterprise. This results in greater job satisfaction for the employee and greater productivity for the employer. The EEA/IPD NOW Project ÒEquality & Diversity in the Workplace confirms the value of equal opportunities for employer and employee.

4. Framework In response to the challenges faced by both Employers and Unions arising from the implementation of the Employment Equality Act, 1998, and in assisting the promotion of equal opportunities in the workplace, a framework will be established, comprising representatives from IBEC, Public Service Employers, ICTU and the Department of Justice, Equality and Law Reform and will be supported by a secretariat provided by the Equality Authority.

The activities of this framework will be supported by a specific budget. The framework will assist in the development and implementation on a voluntary basis of equal opportunity policies at enterprise level and provide encouragement, training, information and support to employers and employees/representatives.

5. Developing Equal Opportunities at Enterprise Level ICTU, IBEC and Public Service employers are committed to the development of equal opportunities policies and practices and will encourage and support their development in every practical way.

At enterprise level, Equal Opportunities policies/practices should be developed and implemented, on a voluntary basis, at enterprise level by agreement between employers and unions.

The following are examples of issues that are appropriate for discussions at enterprise level:

Other appropriate issues may arise at enterprise level and where there is agreement between the employers and unions they may also be discussed at that level.

All employment policies and practices must comply with the provisions of the Employment Equality Act, 1998.

6. Monitoring and Review Mechanisms The Framework will monitor and review progress on an annual basis.

Annex IV

National Framework for the Development of Family-Friendly Policies at the Level of the Enterprise

1. Introduction The objective of this Agreement is to support and facilitate the development of family-friendly policies at the level of the enterprise. The achievement of this objective will be supported by the National Framework for Family Friendly Policies to be established within the context of this Agreement. This National Framework will focus on supporting and facilitating family-friendly policies through the development of a package of practical measures that can be applied at the level of the enterprise.

2. Context The development of appropriate measures to assist in reconciling work and family life is important to underpinning economic, social and equality objectives. At a policy level the 1999 EU Employment Guidelines have detailed the importance of designing, implementing and promoting family-friendly policies. Similarly, the National Economic and Social Council (NESC) has indicated a need for striking a balance between work and family responsibilities. As articulated in Section 4.3, the development of an accessible, affordable, quality childcare infrastructure is critical to supporting the reconciliation of work and family life. This Agreement considers, however, that there are a range of other measures that can contribute to the reconciliation of work and family life.

The emergence of a tightening labour market and the increased emphasis on human resources as a key competitive element serve to underpin the importance of developing innovative ways of maximising the available labour supply. Similarly, the importance of facilitating equality of opportunity for men and women in the workplace also underscores the desirability of developing policies that can assist parents in reconciling work and family life. Family-friendly policies can serve a dual purpose of contributing to the needs of the business as well as meeting the needs of employees with family responsibilities.

The challenge in developing family-friendly policies relevant to the level of the enterprise is to find ways of developing approaches that reflect the reality of the workplace. Identifying different options that have the potential to meet the many diverse needs of different employers and their employees is especially problematic. In order to be effective, such options must meet the following objectives:

3. Family-Friendly Policies Appropriately designed Family-Friendly Policies can bring benefits to both employees and employers. For employers, the benefits can include:

From the perspective of employees the benefits can include:

This National Framework does not attempt to impose any single measure or model of non- statutory family-friendly policy or practice. Both ICTU and employers (IBEC and Public Sector employers) are committed to the development of family-friendly workplaces and will encourage and support the development of such workplaces in every practical way. There are many examples of family-friendly workplace policies and practices to choose from, depending on the needs of both employees and employers. The following are examples of family-friendly practices that are appropriate for discussion at enterprise level by agreement between employers and unions:

Within the provisions of existing legislation, the following issues are also appropriate for discussion at local level:

4. National Framework For Family-Friendly Policies The Government and the Social Partners agree that a National Framework for Family-Friendly Policies should be established to support family-friendly policies at the level of the enterprise. The purpose of this National Framework will be to identify actions to be undertaken by the social partners at national level which support the development of family-friendly policies in the workplace. The focus of this activity will be to support and guide the voluntary development and implementation of family-friendly policies at the level of the enterprise in accordance with the objectives detailed in paragraph 2 above.

5. Key Activities IBEC, Public Sector employers and ICTU agree to undertake the following actions within the National Framework:

6. Support Structures for Implementation A National Framework Committee will be established charged with the task of implementing this agreement. The Committee will be comprised of representatives of IBEC, Public Sector employers and ICTU. The Committee will be supported by a secretariat provided by the Department of Enterprise Trade and Employment and additional support, where appropriate, will be provided by the Department of Justice, Equality and Law Reform . The activities of the National Framework for Family-Friendly Policies above will be supported by a specific budget to be provided within the Human Resources Development Operational Programme.

7. Monitoring and Review Mechanisms The National Framework Committee will monitor and review progress on an annual basis.

Framework II for Prosperity and Economic Inclusion

2.1 Overall Context

The key objectives of this Programme are:

Macroeconomic Policy

1. The central macroeconomic policy goals of this Programme can be summarised in terms of stabilisation, growth and social justice. In particular, the Programme aims to further enhance living standards and reduce social exclusion over the Programme period on a basis which will prove sustainable over the longer term, and to position the economy for further advance thereafter.

2. The Programme is predicated on, and dependent upon, achieving continued strong non- inflationary economic growth. GNP can average about 5.6% per annum over the period 2000- 2002 on the basis of sustained improvements in productivity, provided international competitiveness is maintained and emerging supply-side constraints are overcome. Given our EMU membership, stability-oriented policies are even more vital than heretofore to achieve this outcome in the increasingly globalised and integrated international economy.

3. It is recognised that the capacity to realise the goals of this Programme depends on achieving this level of growth. If economic growth exceeds this level, and subject to the principles below, it may be possible to apply additional resources in a balanced way to accelerate progress towards the priority objectives of the Programme, including social inclusion. Equally, if growth falls below this level, it may be necessary to make more gradual progress in order to maintain the principles below.

Key Principles

4. Sustaining economic advance will accordingly require continued observance of the following key principles in order to maintain the competitiveness of the economy and both domestic and external confidence in its potential for growth:

5. In conditions of strong growth and against a background of particularly favourable demographic trends, fiscal policy will be conducted with the goal of maintaining significant budgetary surpluses in each year of the Programme. This fiscal parameter will lead to a further reduction in the burden of national indebtedness, freeing up further resources to underpin the sustainability of public policies. It therefore constitutes an overriding principle in the implementation of the Programme.

Competitiveness

Competitiveness and Social Inclusion

6. It is necessary to work towards the creation of a society in Ireland which responds effectively to the constantly evolving requirements of international competitiveness understood as the necessary condition of continuing economic and social success. At the same time, the Programme recognises that there is a reciprocal relationship between competitiveness and social inclusion. Competitiveness helps to generate the resources to enhance social inclusion, increased social inclusion facilitates enhanced competitiveness.

Competitiveness Challenges

7. The recent report by Forf‡s Enterprise 2010: A New Strategy for Enterprise in Ireland in the 21st Century provides a comprehensive analysis of the environment facing the enterprise sector over the next ten years. Competitiveness challenges facing Ireland include:

Competitiveness Priorities

8. These challenges will be addressed by measures contained in this Programme and effective implementation of the National Development Plan. Priorities will include:

Euro Changeover

9. The Social Partners are agreed that the changeover to euro notes and coins from 1 January 2002 cannot be used to justify price increases.

Sustainability There is a need to ensure that the achievement of improvement in living standards in the shorter term is consistent with the long-term sustainability of economic and social progress, including protection of the environment

10. NESC will be requested to consider the development of a framework by June 2001 to bring into operation national progress indicators to measure economic, social and environmental development. This will encompass the availability and use of new forms of data sources, including Time Use Surveys, National Household Accounts and National Satellite Accounts.

2.2 Public Transport

Objectives