Alice-Mary Higgins (Independent) | Oireachtas source

I move recommendation No. 40:

In page 163, between lines 23 and 24, to insert the following: “Report on re-introduction of trade union tax relief

103. The Minister shall, within six months of the passing of this Act, prepare and lay before both Houses of the Oireachtas a report on the re-introduction of the trade union tax relief.”.

Recommendation No. 40 relates to a key requirement that Ireland has to meet imminently. It is not solely related to this; it is a recommendation I put forward every budget around the reintroduction of a tax relief for trade union membership. I believe it is a public good to have trade union membership. I commend, in particular, the Irish Nurses and Midwives Organisation, which in its pre-budget submission explicitly named the reintroduction of trade union tax relief as something it was calling for. The removal of this tax relief happened at the time of a number of cuts during the early years of the recession but it has never been reintroduced, even though we have the anomaly whereby people can get tax relief on membership of a professional organisation or business association. Membership of a trade union is still not entitled to a tax relief even though this was a standard practice for a number of years.

This has a new urgency now because Ireland is required in two weeks’ time, by mid-November 2024, to complete transposition of the EU adequate minimum wage directive. Within that directive, there are a number of measures, some of which I spoke about in a Commencement matter earlier today, in terms of Article 5 and the question of what constitutes an adequate minimum wage and, crucially, Article 4 and the importance of promoting and protecting trade union membership and collective bargaining. There are explicit requirements under this directive for all countries that have a trade union membership level of less than 80%. Ireland has a trade union membership level of only 22%, despite research showing that a majority of workers and, particularly, a majority of young workers would like trade union membership and would like to have access to collective bargaining.

However, they face obstacles in respect of such membership. One of those obstacles has been addressed in the Respect at Work campaign, highlighted by a number of unions working together, including SIPTU, Mandate, the Communication Workers Union and the Financial Services Union. It is a powerful campaign. They have put forward legislative proposals. Another obstacle in respect of membership, particularly for younger workers, is partly the cost of trade union membership.

This is another opportunity for the State, which will have to develop an action plan to show the European Union that the Government is serious about raising the level of trade union participation. When we raise the level of trade union participation, it is a benefit for all of society. It has been shown to lead to better outcomes, better employment standards and better wage levels. When we have better wage levels, that of course has a knock-on effect of benefiting the economy and, for example, having fewer people dependent on the benefits designed to address in-work poverty. There are huge numbers of benefits for society as well as the cultural positivity and shift when we have workplaces in which people feel empowered and respected, and can be collectively represented in engagement with their employer. There are numerous benefits to collective bargaining and trade union membership. That is why the directive is explicitly calling on states to develop action plans to encourage it.

It seems to me that one of the lowest hanging fruit, and one of the simplest and first gestures that the State could make in respect of signalling that the State understands trade union benefit and membership to be a public good and something we should promote, would be restoring the trade union tax relief. Again, it was in place for a large number of years but was cut, ostensibly as an austerity measure, despite it being raised year after year not just by me but by others and by unions. I again commend the Irish Nurses and Midwives Organisation on being one of the unions that keeps raising this issue.

Why have we not restored the trade union tax relief? It is surely one of the smallest, most obvious steps that Ireland could take if we are going to try to climb from 22% towards rates of 60% or 70%, or 80% as might be expected under the EU directive.