Monday, April 18, 2011

The Arc of the Story

In 1913, labor unrest was creating turmoil around the world.

In Russia, it ushered in communism and we all know how that ended up. Ireland saw the industrialists push back in a massive lockout that features in A Terrible Beauty. Read the novel and you'll discover how well that ended up.

Modern day Ireland is heavily unionized, and it's in dire financial straits. In order to qualify for a bail-out from the European Union, the government has to cut costs, and the unions that fought for recognition in 1913 are not the heroes of the day anymore.

The arc of the union story is on the downward slide. Labor is no longer negotiating for higher wages with the likes of Lord Iveagh or the Protestant Ascendants who owned the tramways and the coal piles. Civil Service union members are threatening industrial action, if they don't get their way, but it's their neighbors they're railing against.

As finances fell apart, Government negotiated a new deal with public sector unions that would please the masters of the EU purse. Now those same unions are threatening to walk off the job if their wages are cut. There's been talk of bringing Ireland to a standstill if public sector union members have to accept smaller paychecks.

It'll be more than a standstill if Ireland doesn't meet EU-prescribed cost cutting goals. At the moment, Irish banks are looking at junk bond status for their long term deposits, with the markets not so sure that the Government can get all its financial ducks in a row.

Without a bailout from the European Union, there will be more than wage cuts in the offing. There will be wholesale redunancies.

The public sector unions are complaining about their members being cast into poverty if wages are cut, as if the Government is sitting on large piles of cash, hoarding greedily. In truth, the Government is sitting on a mountain of debt. If the Civil Service employees want a bigger piece of that pie, they just might get it.

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