Dáil Éireann debate -
Wednesday, 25 Oct 1989

Vol. 392 No. 2

Adjournment Debate. - Clonmel Plant Industrial Dispute.

Mr. Ferris

I thank the Chair for allowing the debate and the Minister for attending to reply to it. Deputy Davern has just asked me to allow him some of the limited time available to me.

I compliment the Minister on his record in settling disputes of a difficult nature. His record is one of the reasons I wanted to bring this matter to his attention.

For more than 20 years Barlo Heating in Clonmel, enjoyed one of the best man-agement-labour relationships in the country. The good employer-employee relationship was encouraged by the trade union movement in Clonmel including the Trades and Labour Council. However, a major rationalisation programme at the plant last year led to a dispute. The company's plan was to rationalise the factory in Clonmel and develop another factory in England. This caused much concern among the employees who were told that a reduction in their workforce would be required.

At that time we, as Members of the Oireachtas, asked the Government to use every incentive to allow the company to develop and maintain their workforce in Clonmel and to give every grant assistance that would be available to every non-national company to encourage this company to remain in Ireland. This request was not granted and there were protracted discussions with the union which led by agreement to 40 redundancies, a two year wage freeze and a 25 per cent increase in production plus a change in work practices which involved putting 25 members of the workforce on permanent night shift. It was also agreed to operate new technology. That was a tough agreement for the union to accept but the company as a result agreed that the Clonmel factory would remain the major plant in the group securing the jobs of the 156 remaining employees.

The company were then launched successfully on the stock market. It was over subscribed. Everybody was pleased at their success and we wished them luck.

The company have now broken all their agreements with the union. They have broken the terms of the Programme for National Recovery and the workforce are working on a week-on week-off basis. They have eliminated the productivity clause that was agreed, reduced the take home pay of the workers and demanded that English work rates should be accepted, disregarding the different regimes in the two countries in relation to the level of income tax and the cost of living. They have also refused to honour payments that were already agreed with regard to redundancies. To add insult to injury the company have increased their workforce on the English mainland to 154 while expecting the Irish workforce, in spite of the previous agreement to work shorter hours and on a week-on week-off basis. That is the background to the dispute which has led the union by an overwhelming majority vote to have this dispute. They feel that the company have put their jobs at stake. A total of 156 people are on the street in Clonmel now, and £2.5 million has been taken out of the economy because of this action. Because of the Minister's expertise in difficult disputes I appeal to him to use his good offices or an appropriate officer from the Department to bring the parties together so that agreement can be reached, the workforce can return to work and Barlo's in Clonmel can return to their previous level of production and once again enjoy the respect and support that has been generally forthcoming for that company among the people of Clonmel.

Mr. Davern

At the outset, I would like to thank Deputy Ferris for allowing me a number of minutes to speak on this issue. As a TD living in Clonmel I am extremely concerned at the potential loss of employment in the Barlo industry there. There is grave concern that this plant may close altogether this time. We cannot afford to lose these skills because most of the products manufactured in this plant are exported.

I would like to thank the Minister for his initial response when I raised the matter with him and indeed for his response in general and his sympathetic hearing and understanding of the case today. I am anxious that the Minister would arrange, under his good offices and through the Labour Court, conciliation talks and that they be started immediately to safeguard not just the industry itself but the jobs of the people concerned. As you well know, a Cheann Comhairle, this plant is vital. Many of the people working there have commitments — mortgages — to the town and community, and there is grave danger that many of them will not be re-employed anywhere else should this plant close.

I appeal to both sides to co-operate with the Department of Labour and the Labour Court to try to reach some consensus. I will not go into the ins and outs of this agreement because I do not see it as my role, that is for more professional people. However, I would urge the Minister to arrange immediate conciliation talks to ensure that that thriving industry, and its tremendously skilled workforce will remain to benefit not only Clonmel but to Ireland as well.

Minister for Labour (Mr. B. Ahern)

First, I thank Deputy Ferris and Deputy Davern for outlining the background to this dispute. I share and appreciate their concern. For the record, the strike at Barlo Limited, Clonmel, commenced on 12 October 1989 and the workforce of over 150 people, who are represented by the Amalgamated Transport and General Workers' Union, have been employed on a week on-week off basis since June and are seeking a return to full time work. The union claim that as part of an agreement made last year the 150 or so workers were given a guarantee of full-time employment provided production was maintained at a certain level.

As Deputy Ferris has outlined, the company have commenced operation in the UK and the workers in Clonmel fear their jobs might be at risk. I share the anxiety of both Deputies. In instances like this, people can develop entrenched views which can create great difficulties for both sides. Clonmel, like any other part of the country, cannot afford to lose good and substantial employment. Whether the facts are exactly as outlined by Deputy Ferris, or perhaps slightly different, is not a matter for us to adjudicate. However, I appreciate the request of Deputy Ferris and Deputy Davern that both sides cool tempers slightly and try to resolve their differences.

I can understand people's fears when the company moved into the UK, but at the same time I would ask both sides to show restraint and responsibility and not to allow these jobs to be lost. The number of jobs concerned is substantial and it would cost a lot if we had to pay the IDA to bring that type of industry to Clonmel or elsewhere.

I have reviewed this case during the day and I know it is a matter of concern to you, a Cheann Comhairle, and the Deputies. I have asked the Labour Court to invite both sides to a conciliation meeting which has been arranged for Friday, 27 October. I hope both sides will consider what has been said in this debate, that they will have open minds, will endeavour to try to come to a resolution of the matter and will take the opportunity on Friday, which the conciliation service will provide, to try to resolve their differences.