The transformation of pay determination in Ireland

The collapse of social partnership in 2009 and several ensuing years of concession bargaining forced Irish unions to innovate in order to restore pay growth and improve conditions. Drawing on a unique dataset of over 1,600 pay agreements, alongside interviews and case studies, this paper provides the first comprehensive analysis of Ireland’s decentralised and primarily firm-level pay-bargaining system since the global financial crisis. Contrary to international portrayals of pay determination in Ireland as uncoordinated and fragmented, the paper reveals how unions have maintained effective pay coordination mechanisms. The analysis traces the shift from company-level ‘pattern bargaining’ to a ‘flexible coordination’ model, shaped by evolving economic and institutional conditions. Findings show that unions have delivered sustained real pay growth, contained pay dispersion, and secured significant improvements in working conditions, while preserving industrial peace. The paper also examines emerging efforts to institutionalise social dialogue and assesses the likely impact of these efforts on the future trajectory of collective bargaining in Ireland. Overall, the study highlights the adaptability and resilience of Irish unions in navigating a liberal market economy, while safeguarding workers’ pay and conditions.