Trump's tariff threat reignites union push in Ireland's billion-euro pharma sector
Among them is Ireland's mammoth pharmaceutical sector, a cornerstone of the national economy, which, since US President Donald Trump's 'Liberation Day' announcement, has remained stuck in the cross-hairs of his global tariff onslaught.
Ireland is one of the largest pharmaceutical exporters in the world due to the several large US firms operating here, with their earnings contributing significantly to the Exchequer's corporation tax receipts.
While initially excluded from punitive measures, the booming industry now faces renewed scrutiny from Mr Trump, which, in his view, has flourished at America's expense.
After calling out Ireland specifically for benefiting from US companies, Mr Trump last month said tariffs on pharmaceuticals would come 'very soon,' which would help bring multinationals back to America.
Historically, Ireland's pharmaceutical sector has been defined by stable demand and high-paying salaries, particularly within the industry's epicentre in Cork, which hosts pharma giants Merck, AbbVie, Gilead Sciences, Pfizer, Johnson and Johnson, Thermo Fischer Scientific, Eli Lilly and GE Healthcare, among others.
The concentration of these firms has made Ireland's southern region the wealthiest area in the European Union (EU), recording the largest GDP per capita in 2022, according to Eurostat.
Despite this economic strength, collective bargaining in the sector has remained relatively limited. However, with rising uncertainty and looming tariff fears, momentum for unionisation is growing.
'We saw a sharp spike in union membership following Trump's 'Liberation Day' announcement,' says Siptu Manufacturing Divisional Organiser Neil McGowan.
The trade union currently counts some 13,500 members from the pharmaceutical industry, the majority of whom are based in Cork.
'There's a lot of uncertainty in the air at the moment. I think Liberation Day made a lot of workers sit up and think, 'Are we really ready for what could happen?' Mr McGowan told the Irish Examiner.
However, unionisation efforts have presented mixed results, he said, with some companies refusing to recognise or interact with Siptu when addressing worker disputes.
'It can be incredibly frustrating at times. We have members who want us there, who want to bargain collectively, and their company refuses to acknowledge us,' Mr McGowan said.
But the fight doesn't stop there. Last month, trade union members at the Kinsale branch of US pharmaceutical giant Eli Lilly welcomed a Labour Court recommendation urging their employer to allow for collective representation by Siptu during workplace disputes.
Union members at the Kinsale branch of US pharmaceutical giant Eli Lilly welcomed a Labour Court recommendation urging their employer to allow for collective representation by Siptu during workplace disputes.
'[Eli] Lilly staff are on a journey for recognition, but senior management doesn't want to acknowledge us,' says Siptu sector organiser, Andrea Cleere.
'It has been denying our members the right to be supported by the union in individual workplaces, which is contrary Workplace Relations Commission's Code of Practice."
But as Ms Cleere points out, Labour Court findings are reliant on the company choosing to acknowledge them.
'This is the problem with Ireland's weak voluntarist model of industrial relations.
'It allows companies to flout the Labour Court whenever it sides with workers seeking their basic human right to bargain collectively.' In May, workers at the Cork branch of pharmaceutical giant AbbVie served a notice of industrial action after the company refused to engage with employees' chosen trade union.
Ms Cleere says AbbVie opted not to acknowledge the union despite workers securing two Labour Court recommendations urging the employer to recognise Siptu for collective bargaining purposes.
"Numerous attempts to resolve issues of pay and union recognition through negotiations were refused by management,' Ms Cleere told the Irish Examiner.
'Companies simply don't need to do anything, meaning circumstances are always stacked against the worker.' 'Employee rights can be so easily forgotten. We pump money into big firms through the IDA or Enterprise Ireland without any requirement that they take care of their workers.'
An AbbVie pharmaceutical manufacturing facility in Sligo. In May, workers at the Cork branch of pharmaceutical giant AbbVie served a notice of industrial action after the company refused to engage with employees' chosen trade union.
In a statement to the Irish Examiner, Eli Lilly said: "Lilly does not comment on specific employee relations matters. "Our direct employee engagement model promotes open communication and teamwork, creating an inclusive work environment where all voices are heard. We prioritise transparency and mutual respect, empowering our employees to contribute to our mission."
AbbVie did not respond when contacted for comment.
While layoffs in the pharmaceutical sector remain unlikely, Mr McGowan says worker concerns extend far beyond just job cuts.
'Pay is always a significant issue, but more than anything, people just want to have their say. Oftentimes, large multinationals operating in Ireland have decisions made by their foreign headquarters, which can be very frustrating for those here on the ground.
'Irish pharma remains particularly exposed to Trump's tariff threats, as do these workers. They deserve to have a voice.' But as the organiser notes, sometimes not having a union recognised is the least of their concerns.
'Union-busting is extremely prevalent in the pharmaceutical industry and happens on nearly every site.
'We have outside meetings where members fear being followed by senior management. We've heard cases of staff being guilt-tripped and being made to feel like they're damaging the company's reputation.
'Life at work can be made very difficult for union members. From bogus disciplinary measures to exclusion, people often pay the price for being part of a union. We've even seen cases of people being paid off by their company for taking part in union activity.' At around 35%, trade union coverage in Ireland is notably weak in a European context, falling far below the EU average of around 60%.
Despite implementing an EU Directive last year requiring an action plan to raise coverage to over 80%, Ms Cleere says the Government has done the 'bare minimum' to increase the strength of trade unions.
The EU Directive of Adequate Minimum Wages calls on the governments of EU Member States to draw up an action plan to increase collective bargaining coverage in their economies to over 80%.
Countries below the mandated 80% figure will be asked to provide a framework to further enable conditions for collective bargaining as well as establish an action plan to promote collective bargaining and increase coverage rates.
Although the directive does not set a specific deadline for the adoption of the action plan, the European Commission has urged member states with a collective bargaining coverage below 80% to establish them by the end of 2025 'at the latest'.
Approached by the Irish Examiner, a spokesperson for the Department of Enterprise said the Government was committed to publishing the action plan by the end of 2025.
'A public consultation on the possible content of the action plan was held by the Department of Enterprise, Tourism and Employment recently.'
'The outcome of the consultation process will help guide the Department in finalising the proposals, both legislative and administrative, which may be considered for inclusion in the action plan,' the spokesperson concluded.
But as Ms Cleere argues, bold measures are needed to bring Ireland's coverage rate to the EU requirement.
'If the Government is serious about increasing coverage, companies need to be penalised if they refuse to recognise unions.' 'We've seen time and time again that unionised companies are more productive than their non-unionised counterparts.
'It is in the pharma industry's best interest to do this, it's just a shame it can't see that on its own.'
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