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Dáil Éireann debate -
Wednesday, 26 Jun 1929

Vol. 30 No. 14

In Committee on Finance. - Vote 57—Railways.

I move:—

"Go ndeontar suim ná raghaidh thar £21,176 chun slánuithe na suime is gá chun íoctha an Mhuirir a thiocfidh chun bheith iníoctha i rith na bliana dar críoch an 31adh lá de Mhárta, 1930, chun íocaíochtanna fé Acht na mBóthar Iarainn, 1924, fén Tramways and Public Companies (Ireland) Act, 1883, etc.; agus chun crícheanna eile a bhaineann le hIompar in Eirinn.

That a sum not exceeding £21,176 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1930, for payments under the Railways Act, 1924, the Tramways and Public Companies (Ireland) Act, 1883, etc.; and for other purposes connected with Irish Transport."

The details of this Estimate are pretty nearly settled by legislation. As to the first item, liability for this service arises under the Railways Act of 1924, and the amount of that is specified in the ninth schedule to the Act. Item B also, to a certain extent hinges on the Railways Act, because under a certain section of that Act the repayments to the County Councils, except in regard to the Dublin and Blessington Steam Tramway Company, ceased as from 31st December, 1924. In regard to the third item, this represents instalments of annuities in repayment of advances made. The decrease is due to the redemption of the loan of £80,000, for which the final instalment was provided and paid last year. Item D still appears on the Estimate. It was thought it might be got rid of this year, but there are still some small questions outstanding in connection with the title of the land. It is expected that £1,000 more will clear it. Certain progress has been made during the year in clearing up title. The payments under Item E are in respect of steamer services. These are an inheritance from the Office of Works. They are founded mainly on the experience of the last couple of years. There is special attention required as regards the working of the steamer from Sligo to Belmullet. That accounts for the increase. The Appropriations-in-Aid are specified under the Railways Act.

The amount specified in respect of Sub-head A is a payment given to the Great Southern Railways Company under the Railways Act, 1924, by which the amalgamation of the southern railways was effected. That Act, while it conferred certain benefits on the railways concerned, also conferred certain obligations on them. I think it would be in order at this stage to inquire whether certain obligations imposed upon them have been carried out, and if not, why the Minister did not take steps to ensure that they would be carried out? I refer to the obligations under Section 55 (1) and (2), which I will read:—

"(1) From and after the passing of this Act the rates of pay, hours of duty, and other conditions of service of railway employees shall be regulated in accordance with agreements made or to be from time to time made between the trade unions representative of such employees on the one part and the railway companies and other persons by whom they are respectively employed on the other part.

"(2) The original or a counter-part, or a copy, certified in such manner as the Minister shall direct to be a true copy, of every such agreement as is mentioned in the foregoing sub-section shall be deposited with the Minister within one month after the passing of this Act or the making of such agreement whichever shall be the later."

Some time ago the railways posted notices at their works at Inchicore and Broadstone to the effect that new conditions of service would come into operation from a specified date, and that only those of the workmen who were prepared to accept the new conditions of service need turn up for work on that date. The men in these workshops were working under an agreement arrived at in 1922, it being the award of a tribunal established by the Minister for Industry and Commerce of that time, and presided over by a person appointed by him—the present Governor-General. That agreement was no doubt deposited with the Minister.

Was it? That is the point.

That is the point I want information on.

It was not.

If it was not deposited with the Minister, I want to be informed by the Minister why he did not take steps to ensure that it was so deposited.

I asked the trade unions to provide me with a counter-part of the agreements falling under the section.

I do not know if the Minister really discharges his obligation merely by asking the unions to deposit a counter-part with him. It is not stated in the section that the responsibility lies on the unions. I take it from what the Minister is saying that the unions refused to do so.

Or, at any rate, failed to do so. Does the section not imply also that the Minister should approach the company or take such other action as he thought necessary?

Will the Deputy read the section to justify that statement?

"The original or a counter-part, or a copy, certified in such manner as the Minister shall direct to be a true copy, of every such agreement as is mentioned in the foregoing sub-section shall be deposited with the Minister within one month after the passing of this Act or the making of such agreement, whichever shall be the later."

By the Minister, is it?

No, I am not saying that. What I am saying is that the Minister has placed upon him the obligation of putting the Act into operation, and if certain parties failed to carry out a section of the Act, it was for the Minister to take such additional power as he thought necessary to see that the section would be carried out. The point remains that the Minister did not take steps to ensure that that particular sub-section would be given effect to, and that the agreement arrived at in 1922 would be deposited with him. I submit, however, that that is a minor matter. Whether or not the agreement was deposited with him, the obligation was on the Minister to ensure that that agreement would not be departed from, except as a result of agreement between the railways company and the trade unions representing the men concerned.

When the railways company posted notices at their works terminating the agreement and announced that new terms of service would apply as from a specified date they were breaking sub-section (1) of Section 55, and it was for the Minister to take steps to ensure that they did not do so. The Minister, however, did not take these steps. There were certain conferences between the unions and the railways company, and then, as a result of a question from Deputy O'Connell, the Minister informed us that one of the parties concerned had approached him, and said that they did not think any useful result would come from the continuation of the conferences. As a result of the representations made to him, the Minister brought the parties together in conference, arising out of which a tribunal was established by agreement which made an award which has been published in to-night's papers, involving a ten per cent. reduction on the wages that came into operation after the 1922 agreement. The point I want to make is not whether the award was a just award or not, or whether the conditions of service that will now operate in these shops are all that should be desired, but that the Minister had placed upon him an obligation by this Act to ensure that effect would be given to all these clauses, and that effect would be given to the particular clause that the conditions of employment or terms of service could not be altered except by agreement made between the representatives of the trade unions representing the employees, on the one part, and the railways company on the other.

Provided that at the beginning——

There is no provision.

There is. They are regulated by an agreement made or agreements to be made from time to time, and these agreements were to be deposited.

"From and after the passing of this Act the rates of pay, hours of duty, and other conditions of service of railway employees shall be regulated in accordance with agreements made or to be from time to time made between the trade unions representative of such employees of the one part, and the railway companies and other persons by whom they are respectively employed, of the other part."

Was there an agreement?

There was no agreement. I take it that the situation that faced the company some weeks ago would not have arisen if there had been an agreement. The company was faced with a stoppage of work because of the fact that there was no agreement.

Was there an agreement regulating the conditions?

I do not know what the Minister is referring to. This sub-section merely provides that the terms of service shall be regulated in accordance with an agreement made or to be made.

And the agreements were to be deposited.

These agreements were to be deposited.

I can see what the Minister is driving at. I think he is intending to imply that the agreement made in 1922 did not come within the terms of the first sub section, because it was not deposited with him. I do not think that is a fair interpretation of the sub-section. I think the agreement was in operation in any case, and would continue in operation, whether deposited or not. I think further that the Minister was lax in his duty in not taking steps to ensure that it would be deposited in order to prevent a situation arising such as did arise within the last month. This is, I think, the only opportunity we have of raising the matter on the Estimates, when we are proposing to make a Vote of over £48,000 to the railways company. The railways company have, as I said, had this obligation placed upon them by the Act, which they departed from, and the Minister, in permitting them to do so, was guilty of a dereliction of duty.

I think this is probably the proper opportunity for directing the attention of the Minister and the House to the possibility of industrial unrest on the railways due to the recent notification of the railway companies of their intention of withdrawing from the negotiating machinery as far as wages and conditions are concerned. I would at the outset direct the attention of the House to the fact that since 1923 no strike has taken place upon the railways, as far as the grades who were parties to the negotiating machinery were concerned. It might be well, at this stage, if I pointed out the origin of this railway negotiating machinery. In 1921 there was a considerable amount of unrest on the railways, and at that time there were a number of lockouts, strikes and threats of strikes. That was when the Government gave over control of the railways and when the railway management threatened to reduce wages and salaries of employees and to worsen the conditions generally for the employees. At that time, through the intervention, I think, of the Provisional Government, a tribunal was set up, presided over by Mr. Carrigan, K.C., and the whole question was gone into. No agreement was arrived at, with the result that Mr. Carrigan made an award. As far as that award was concerned, it practically involved the setting aside of all the conditions and rates of wages which the railway trade unions had fought for for a number of years previously. It was objected to by every railway man, North and South, from Mizen Head to Malin Head, with the result that the Provisional Government again intervened, and a temporary arrangement was arrived at as far as wages and conditions were concerned, which lasted from February, 1922, to August, 1922.

On the termination of that temporary agreement the country was in, I might stay, a state of chaos, and had the railway employees at the time liked to take advantage of the situation, they could have demanded from the railways any terms they desired; and if such demands had not been acceded to the railways would have had to close down, which would have meant a lot of dislocation as far as the commercial life of this country is concerned. Certain suggestions were made at the time that negotiating machinery should be established. This negotiating machinery was established. The machinery is very comprehensive, working up from local departmental committees covering big groups of employees at places like Kingsbridge and Cork to the Irish Railway Wages Board, which is a body composed of an equal number of representatives of the companies and the three railway trade unions, with four representatives of the users of the railways, and presided over by Mr. Justice Wylie. A majority finding of the board is operative. The findings are not absolutely binding on either side, but no side has so far endeavoured to break away from any of them. As far as the findings or the awards of this Railway Wages Board is concerned, there is no gainsaying the fact that the railway companies have got the lion's share. In one finding in April, 1926, they got three cuts in wages against the whole of the traffic grades, and four cuts in the case of one section. Not long afterwards they secured a finding giving them all-round reductions in rates of pay in the case of the whole of the new entrants to the service, as far as the operative grades are concerned. Subsequently they got concessions in the case of the locomotive grades: drivers, firemen, and cleaners. As far as these findings are concerned the position of the men employed in the grades I have mentioned is much worse than the position of men in similar grades in Great Britain. However, the men loyally abided by the award, with the result that they are now in a worse position than their colleagues on British railways employed at the same class of work.

I might mention, for the information of the House, that as far as this negotiating machinery is concerned, it is similar to that in existence on the British railways, only in a somewhat modified form. Last year, in so far as the British railways were concerned, more especially the four principal groups, there was a falling off in receipts of nearly four and a half million. As a result of that the companies approached the machinery in operation in Great Britain, and asked for a ten per cent. cut in salaries and wages. After the situation was threshed out fully as between the representatives of the men and the companies, the men agreed, at any rate, to accept a two and a half per cent. reduction lasting over a period of one year. As a result of that, the Irish railway managers, although their employees were working at a much lower rate in certain grades than the employees in Britain, approached the Irish Railway Wages Board and put forward a demand for a ten per cent. reduction in the wages of the operative grades and a five per cent. reduction in the salaried grades, and that notwithstanding the previous reductions already made by the tribunal under the chairmanship of Judge Wylie. However, this application of the railway companies went to the Railway Wages Board, and the companies' advocate, Mr. Shanahan, Accountant to the Great Northern Railway, gave evidence on behalf of all the railway companies. It was shown, notwithstanding his statement, that the reductions in revenue which he said took place during the previous year were more than counterbalanced by the reductions in working expenses, with the result that the year 1928 was the best year, from the view-point of net receipts, that the railway companies have had since 1924. After a full hearing the Wages Board found as follows:—

"As such restrictions (if any) as this Board could agree to would not materially benefit the companies, and would further divorce the efforts of the employees from concentrating on improved working and popularising railway transit with the public, we refuse the application."

The Board turned down the application of the companies as far as the ten per cent. reduction in the wages of the operative grades and the five per cent. reduction in the wages of the salaried grades were concerned.

The companies took this very badly. It was one of the first adverse decisions given by the Railway Wages Board against the companies; and although numerous decisions were given against the men they had loyally abided by these decisions. The companies have now given notice to the parties concerned that they want to withdraw from the negotiating machinery altogether. In April next, I understand, this withdrawal will take place, as, according to the agreement, twelve months' notice must be given on either side in order to comply with its terms. The companies having intimated their intention to withdraw, I can see that they are preparing to make drastic attempts to reduce the wages of the employees, and if such takes place I want the House to realise that it is the duty of the Minister and his Department to see that steps are taken to prevent the railways from being brought into the chaotic condition which will be brought about if a strike takes place. It seems to me extraordinary that at a time when abnormal attempts are being made to bring about peace in industry the railway companies are flinging the sword into the industrial area as they are doing on this occasion.

As I have said, I believe that it is the duty of the Minister to see that every effort should be made to bring the railway companies to a full sense of their responsibility. The machinery that was set up has been working satisfactorily to all concerned, but because one adverse decision was given by the Wages Board against them the company is going to throw down the gauntlet and will probably withdraw from the Board and attempt to reduce the wages of the employees. If they do that, it will throw the whole railway situation into a chaotic state, with great disadvantages so far as the trade and commerce of the country are concerned.

I desire to emphasise very briefly the appeal made by Deputy Cassidy to the Minister to take serious notice of the recent action of the principal railway company in the country in giving notice to terminate the existing negotiation machinery. Deputy Cassidy has presented an accurate picture of the position so far as it dealt with the machinery which has been regulating the conditions of service of the railway men. The only reason which I can assign for the action of the railway company in giving notice to terminate the existing negotiation machinery, is that they are dissatisfied with the recent action of the arbitration board in declining an application submitted for a further reduction of wages. I dare say that the Minister has read the detailed report of the arbitration proceedings held by the Railway Wages Board on the 31st January. Everybody knows —and the railway directors more than anybody else—that the reason why they failed to secure a further reduction in wages as a result of the application, was because the advocate who presented the case for the railways before that board, really gave the railway case away. Certain questions were put to him at a certain stage by the Chairman, Mr. Justice Wylie, and he was asked whether the railway companies, if they were working under fairly healthy financial conditions, were of opinion that a wage of £2 a week for a man living in Dublin, and with the cost of living at its present high figure, would be considered high. The representative of the companies foolishly answered "Yes." Mr. William Hewat, ex-T.D. and the nominee of the Belfast Chamber of Commerce, and other representatives of the employers, were not prepared to accept that view, and they consequently signed a majority report turning down the application. The directors have sulked, and, apparently after due deliberation, have decided to adopt a provocative policy and to terminate the existing machinery, which deals with the conditions of service of railway men, without putting up any alternative proposals.

I think that it is the duty of the Minister for Industry and Commerce, as it is recognised to be the duty of all Ministers occupying a similar position in other countries, to face the problem created by the railway companies—not by the railwaymen—in presenting that ultimatum. There is no doubt, and I am not making it as a threat, that the action of the company, if not dealt with by the Minister, is certain to lead to trouble in April next. The actions of the railway company, so far as I am informed, not alone in terminating the existing machinery, but in its dealing with the men, are deliberately provocative. I ask any Deputy whether it is fair or right that the directors of a railway company, when dealing with men who have given thirty or forty years' service in responsible positions, are acting wisely in giving instructions to individual officers and servants to take their holidays, that at the end of their holidays their services will be terminated without giving the conditions of retirement. That has been going on for the last few months. The least that the directors can do to such men is to give them a friendly farewell and grant them the conditions promised when they entered the service. I do not think that the directors who are responsible for such provocative policy would themselves like to be treated by the shareholders in that manner. I hope that the directors of any company, particularly a company getting money under this particular sub-head, will be dealt with by the Minister who is responsible for making those payments. I could quote several cases to prove what I have said, namely, that individuals holding high as well as those holding low posts have been treated in that scandalous way. One would imagine that the directors would not scrap even the rolling stock in such barbarous fashion. No doubt that line of policy is bound to lead to trouble in the long run. The position with some of the companies is that as a result of men having been treated in the manner in which I have indicated some of those who are still in the service have naturally got the idea that their turn is coming next. Men in that frame of mind are not likely to fail to take action if called on to do so. Arising out of what Deputy Lemass said, I have no complaint against the Minister in regard to the action which he rightly took in connection with the recent dispute as regards the shopworkers at Inchicore. I think that the Minister has regularised his position and, whether the award is acceptable to the railway company or to the men, it is, at any rate, an award given as a result of conference, negotiation, and arbitration to which both sides were parties.

Will the Deputy say whether Section 55 applies to shopmen?

I think I have said all that I need say so far as it affects the position to which Deputy Lemass referred. I have no complaint to make against the Minister in regard to the action which he took in connection with that dispute. Even if the railway company made an attempt to evade the obligations laid on them in that particular section, I say that the action of the Minister has brought them back to the right position and that the whole position has been regularised. I do not think that I can usefully add anything to what Deputy Cassidy said. I seriously suggest to the Minister that the action of the company in giving notice to terminate machinery which has been successfully in operation, so far as the company is concerned, since 1922 is likely to lead to trouble. It is the duty of the Minister to intervene and try as far as possible to prevent that trouble coming about so far as it affects the railway transport of the country.

I move: "That progress be reported."

The Dáil went out of Committee.
Progress reported.
The Dáil adjourned at 10.30 p.m. until 3 p.m., Thursday, 27th June.
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