The issue of restoring tax relief on trade union subscriptions, a benefit that was removed as an austerity measure in 2011—has re-emerged as a significant point of contention between the government and the country’s trade union movement. 

Fórsa is calling on the government to reinstate this tax relief, emphasising its importance for promoting collective bargaining and supporting union members. 

The tax relief was originally provided for under Section 472C of the Taxes Consolidation Act 1997 but was discontinued as part of austerity measures in the wake of the financial crisis.  

Fórsa General Secretary Kevin Callinan set out why this matters to unions in a letter dated July 1, 2024, addressed to Peter Burke, Minister for Enterprise, Trade and Employment. 

In the letter Kevin argued that restoring the tax relief would not only reflect the government’s commitment to collective bargaining but also signal its recognition of the valuable role trade unions play in supporting workers.

“As the timeline for the transposition of the EU directive on Adequate Minimum Wages approaches, it seems to Fórsa that there is an onus on you as the line Minister to advocate for, and secure, the restoration of this tax relief in the upcoming Budget,” the letter stated. 

This EU directive, which mandates member states to promote collective bargaining with the aim of reaching 80 percent coverage, places additional pressure on the Irish government to act. Currently, only about one-third of the Irish workforce is covered by collective bargaining arrangements—a figure that falls short of the directive’s ambitions.

The removal of the tax relief in 2011 was seen as a political choice, one that disproportionately affected union members, many of whom already face significant economic pressures. The absence of this relief is now viewed by many as a glaring inequity, especially when compared to the range of tax benefits still available to professional bodies and businesses.

In a separate earlier letter sent in May of 2023 to Minister for Finance Michael McGrath, when Kevin was President of the Irish Congress of Trade Unions, articulated this sense of unfairness, noting that the continued denial of this relief “will send a clear message to the trade union movement regarding this government's attitude to our role in advancing the policy objectives.” 

That letter went on to criticise the government’s previous justifications for not reinstating the relief, labelling them as “spurious arguments” that no longer hold up in the current economic and social context.

One of the central criticisms being made is that the government has failed to balance its support for businesses with similar support for workers. While various tax reliefs and incentives are available to businesses and professional bodies, trade unions - which play a crucial role in protecting workers’ rights and negotiating fair wages - are not afforded the same consideration.

“The sense of grievance felt by trade union members is accentuated by the range of tax reliefs, often highly lucrative, that are available to professional bodies and businesses,” Kevin wrote. 

ICTU has made it clear that the government’s response to this issue will have significant implications for its relationship with the trade union movement going forward.  If the relief is not restored in the upcoming budget, many will see it as a failure to fully appreciate and support the work that unions do on behalf of all workers, and they can expect a backlash from members who view it as a deliberate political snub. 

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