Vol. 223 No. 14
asked the Minister for Transport and Power if he will state in regard to the proposed redundancy at the CIE wagon works at Limerick (a) the reasons for the redundancy, (b) the number of men who will become redundant between now and 1970, (c) the redundancy compensation payable to each category of worker, (d) the efforts made to provide alternative employment for the redundant workers, and (e) the cost of the recent reconstruction of the wagon works.
2.
asked the Minister for Transport and Power the amount of money expended on improvements in the wagon shop in the Limerick locomotive works; the date on which he performed the opening ceremony; the date of the guarantee of constant employment given to employees in the workshop; if it is now a fact that these employees are being declared redundant over a period; and if he will consider compensating those skilled and unskilled workers under the redundancy provisions of the Transport Acts.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 1 and 2 together.
Because of replacement of over-age wagons by new wagons and a change from timber to steel in the construction of wagons, there has been a reduction in wagon repair work at Limerick. This has resulted in redundancy of 19 employees in the Limerick workshops and the Board estimate that about 30 more employees will become redundant between now and 1970.
The capital cost of the improvements in the wagon works, which were officially opened by me on 21st June, 1963, was £93,000. The modernisation and improvement of the workshops was undertaken in the knowledge that the present redundancy would arise in due course. The Board have assured me that the resulting economies have fully justified the expenditure.
The redundancy has been fully discussed by CIE with the trade unions concerned. Arrangements have now been agreed with the unions for the transfer of some of the redundant staff to alternative employment and on the conditions applicable to staff whose employment will be terminated. The redundant employees do not qualify for statutory redundancy compensation under the Transport Act, 1964, but an ex-gratia lump sum payment of one week's pay for each year of service up to a maximum of 40 years' service will be paid to redundant regular employees. They will also be paid the surrender value of their endowment assurance policy under the Board's staff welfare scheme. Employees who are over 55 years of age and who have a minimum of 20 years' service with the Board will receive a proportionate pension. Those not qualifying for a pension will receive a refund of their pension fund contributions.
I have no knowledge of any guarantee of constant employment having been given to the employees in the Board's workshops at Limerick.
Could the Minister say why this change of policy, that is, the utilisation of steel rather than timber in the construction of wagons, was not envisaged three years ago before this costly expenditure of £100,000 was incurred in modernising the workshops? Surely it was possible to envisage this change three years ago?
The capital expenditure of £93,000 will be fully remunerated, and was related to the improvement of the workshops, whether or not steel or timber wagons were to be used. It was envisaged that there would have to be a rationalisation of the whole operation of the wagon works. That was made perfectly evident, and there was a reduction of staff during the period before the capital expenditure was undertaken. A considerable reduction of staff took place as a result of the rationalisation of the methods of operation in the workshops. There is nothing new in it.
Did the Minister give a guarantee of constant employment to these people?
I gave nothing of the kind. I actually looked at the speech I made at the time, and there is no reference to it whatever. I was aware of the fact that this was part of a general improvement and rationalisation scheme in relation to the very heavy cost of the whole repair system of CIE, and it related also to the rationalisation of the number of wagons in use. The number of wagons in use when the 1958 Act was passed, was far in excess of what was required. Therefore, it would have been quite absurd for me to make a promise of that kind. I was also aware of the fact that the Committee on Internal Transport, the Dr. Beddy Committee, pointed out that the utilisation of wagons and coaches per 1,000 ton miles or per 1,000 passenger miles was grossly in excess of what should be considered the norm for the operations of CIE. There was bound to be a rationalisation of the whole system.
The Minister is aware that just three weeks ago he did give a guarantee in this House that certain employees on the B & I vessel Dundalk would be re-employed, and that has not been done? Would something like that not have been done in the Limerick case?
I gave no guarantee whatever.
The Minister could put it in a way that it would be considered a guarantee.
I take it from what the Minister says that this is inevitable, but would he say if there is any possibility of providing alternative work in the Limerick wagon works, in view of the difficulty of obtaining alternative employment for these men in other industries? Surely CIE could make some type of work available for these men?
There have been arrangements for the transfer of some of the redundant staff to alternative employment, and then, as the Deputy knows, there are a number of men of age 55 and over, for whom retirement arrangements have been made. There is now complete agreement between CIE and the unions concerned in regard to this whole rationalisation operation.
Is the Minister saying the unions have agreed that men should be laid off without any compensation?
I have said there has been a general agreement in regard to the method of laying-off the men, the arrangement for compensation for redundancy, retirement on pension and lump sum compensation. The whole matter has now been agreed between CIE and the unions.
Could the Minister say when that agreement was reached?
I have called Question No. 3.
My information is that no such agreement has been reached.
It is rather recent. I cannot say the exact date, but I have it very definitely that the agreement has been made.
