Collective Bargaining: Government sets out new Action Plan

On 5 November 2025, the Minister for Enterprise, Tourism and Employment, announced the launch of Ireland’s Action Plan to Promote Collective Bargaining 2026–2030 (the Plan).

Commenting on the Plan Taoiseach Micheál Martin has said that it “strengthens our voluntarist tradition, fosters constructive dialogue, and ensures Ireland remains a leader in social cohesion and competitiveness,". However, the Plan is intended to fulfill Ireland’s obligations under Article 4 of the EU Adequate Minimum Wages Directive 2022/2041 (the AMWD). 

Article 4 of the AMWD provides that each member state with a collective bargaining coverage rate below 80% must act. In such cases, the state is required to establish a ‘framework of enabling conditions’ for collective bargaining. It must also prepare an action plan by the end of 2025 to promote collective bargaining. This action plan will then be subject to review every five years.

The Plan has issued despite the Danish government claim in the Court of Justice of the European Union (CJEU) against the European Parliament and the Council to annul the AMWD on the basis that it infringes on the principle of Article 153(5) Treaty on the Functioning of the European Union.  The outcome of that claim to the CJEU is expected shortly. As stated in the Plan preamble, the Irish Government committed to an Action Plan in the Programme for Government 2025, and reaffirmed its commitment to developing a Plan regardless of the CJEU ruling.

Ireland has a long standing system of voluntary industrial relations with an extensive range of statutory provisions designed to back up the voluntary bargaining process. This includes the provision independent services of the  Workplace Relations Commission (WRC) and the Labour Court to assist parties in dispute. The Plan recognises that existing legislation offers limited scope for statutory bargaining rights.

Trade union membership in Ireland, and across Europe, has seen a decline over the years. In Q2 2024 the proportion of the national workforce in unions or trade union density in Ireland stood at approximately 22% [1]. The Plan outlines measures to enable and expand collective bargaining coverage and was developed in collaboration with the Irish Congress of Trade Unions (ICTU) and Ibec.  It sets out five strategic action headings with multiple aims under each heading, including:

• Understanding Collective Bargaining and its impacts
  Closing data gaps through targeted research to measure the economic and social benefits of collective bargaining. This includes collaborating with the WRC, Labour Court, ICTU and academic and policy researchers.
• Empowering and Encouraging
  Developing capacity-building programs (for unions and employers), funding for productivity-enhancing agreements, and recognition of best practices.
• Promoting
  Public awareness campaigns, a new Code of Practice on collective bargaining, engaging with Ibec and the ICTU and exploration of:
  • tax incentives to support union membership and
  • role of Joint Labour Committees
• Protecting
  Legislative reviews including:
  • assessing feasibility of mandatory mediation process between notification and industrial action
  • a review of the Unfair Dismissals Act through the employment law review group and commitment to safeguard workers’ rights
  • strengthen protections for trade union representatives
• Supporting Industrial Relations Institutions
  Investment in digitalization and modernisation, including:
  • enhanced dispute resolution, for the WRC and Labour Court
  • review of the ERO/ SEO mechanism
  • updating the Codes of Practice on employee representatives’ duties and responsibilities, and the 1990 Code on Disciplinary and Grievance procedures

Employers will need to stay alert to the potential changes introduced by the Plan and be aware that it may lead to greater awareness of collective bargaining and employee engagement with unions. Employers should also keep abreast of the reviews of various Codes of Practice and employment legislation and be aware of any changes to ensure their policies and procedures are up to date.

For further information in relation to this topic please contact Emer Murphy, Senior Associate, or any member of the ALG Employment team.

Date published: 11 November 2025