Unions Prepare for Industrial Action Over Section 39 Pay Dispute

A long-standing dispute over pay parity for workers in Section 39, Section 56, and Section 10 organisations has escalated, with unions preparing for industrial action due to continued government inaction.

The roots of the issue date back to when previous governments outsourced work traditionally performed by civil servants to various healthcare organisations, charities, and NGOs as a cost-saving measure. The government had promised to restore pay parity when national finances improved, but many organisations in the sector continue to struggle due to funding cuts and grant reductions. While some salaries have been partially covered by state funding, many organisations have had to rely on fundraising and internal resources to sustain operations and pay staff.

SIPTU and Forsa, the two primary unions representing workers in these organisations, have been campaigning for better pay and improved working conditions for years. The Irish Congress of Trade Unions brought their pay claim to the Workplace Relations Commission (WRC), resulting in a framework that outlined pay increases up until March 2024. However, many organisations affected by funding shortfalls have been unable to meet these commitments.

During last year’s general election campaign, the issue gained national attention after a heated exchange between Charlotte Fallon, a disability worker in a Section 39 organisation, and then-Taoiseach Simon Harris. The confrontation, widely covered by the media, highlighted the frustrations of workers in the sector. While Mr. Harris expressed his intent to prioritise disability services and carers, no concrete commitments were included in the current programme for government, leaving many workers disillusioned.

As a result, SIPTU has launched a ballot among its 5,000 members in the sector for industrial action, including the possibility of an all-out strike. The ballot, which began last Monday, is expected to garner significant support and could lead to major disruptions in essential healthcare and social services.

Union representatives have expressed their disappointment with the government’s failure to honour its commitments and are calling for immediate action to address pay disparities. “Our members have been patient for years, but the lack of progress has left them with no choice but to consider strike action,” a SIPTU spokesperson stated.

If the ballot results in a strike mandate, significant disruptions are expected across the sector, affecting clients and service users who rely on these essential services. The government has yet to respond to the latest developments, but pressure is mounting for a resolution before industrial action takes effect.

Employer Legal Responsibilities and Compliance

The main body of legislation to be considered here by employers in the sector is the Industrial Relations Act 1990, employees engaging in a lawful strike are protected from dismissal or penalisation. As required by law, SIPTU have already served notification of their intention to commence a nationwide ballot for industrial action from Monday 27^th January. It is expected that the result of this ballot will not be known for some time.

In the event of a successful ballot for action and given the importance of the sector to the provision of essential services, there is likely be an early intervention by the Workplace Relations Commission or the Labour Court to get both employer and employee representatives around the collective bargaining table

If the ballot is passed in favour of some form of industrial unrest, SIPTU will still have to obtain consent from their strike committee, which given the sheer numbers of employees working in the sector, and the essential services provided by the sector, it is unlikely that all out strike action will result.

Employers who have already received notification of ballot action, should make best endeavours to facilitate this process without any disruption to service. In the event of some form industrial action being approved, employers should be aware of their legal and statutory obligations, namely, that they cannot coerce employees to pass picket lines, nor penalise those who engage in some form of industrial action.

Employers should also be aware that they do not have to pay employees who participate in any strike action, but there is also a contraction obligation with the government agencies to continue to provide essential services.

Of equal import, concession of a pay claim of this magnitude could lead to inequity in impacted organisations, where funded roles could in essence be paid more than their counterparts in non-funded roles, despite them carrying out the same or largely similar roles.

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