Dáil Éireann debate -
Thursday, 17 Oct 1991

Vol. 411 No. 2

Adjournment Debate. - An Post Industrial Relations Dispute.

Mr. T. O'Sullivan

In raising this matter I am hoping the Minister will intervene in this dispute in view of the failure of all efforts to date to have it resolved. The dispute has the potential to create chaos in the postal service and to do irreparable damage to An Post through loss of business which, I believe, has been quite substantial already.

The origins of this dispute date back to 1987. The relevant scheme was processed under clause 3 of the Programme for National Recovery of that year. The case against payment of this award was put forward by the company and the Department of Finance to the arbitration board and resulted in an award that was less favourable than any other provided for in strict accordance with clause 3 of the Programme for National Recovery. It is worth noting that the award of 6 per cent was one of the lowest ever in the entire public sector. Failure to pay this award in full is likely to affect industrial relations throughout the entire public service. The refusal by the company to honour the arbitrator's award is without precedent.

The current position is that the company lack credibility in their insistence that An Post are prepared to pay on condition that the unions accept certain measures contained in the viability plan. Bearing in mind that the decision of the arbitration board predates publication of that infamous document, it is even more difficult to understand the company's reluctance to pay in view of the Minister's statement that the plan no longer exists. If further proof is needed it can be got from examination of the Minister's speech yesterday on the ongoing confidence motion. The Minister said he has now got rid of the viability plan. Any reference to this should be removed from the negotiating table and the award paid in full.

This dispute is about the unconditional and full implementation of terms of the conciliation and arbitration scheme which is the cornerstone of public service and labour relations. If this is not honoured on this occasion we will for many years be picking up the pieces of the irresponsible actions of the company. Considering that the award is so small the ramifications are quite serious. If there is lack of faith on the part of the workers in the public sector, if they feel that the only mechanism they have to resolve problems within the public service is abolished, it will lead to a spate of industrial disputes which will be of no good to the country. For that reason I would ask the Minister to do everything within his power to have this matter resolved.

Minister for Tourism, Transport and Communications (Mr. S. Brennan)

An Post's cumulative losses to the end of 1993 will come to about £45 million while the company's borrowings now stand at about £16 million. Projected losses are as follows: in 1991, £4 million; in 1992, £10 million and in 1993, £21 million. It would not be reasonable to expect customers to bear increases in postal charges in addition to those which have already been put in place in 1990 and earlier this year. I have already said, and I repeat, that the provision of a State subsidy is not possible. Therefore the net effect must be the end to An Post's loss making; that is the real solution.

I have devoted considerable time and effort to preparing the ground for the necessary management union negotiations. Last spring following a meeting with the unions and protracted discussions involving the Irish Congress of Trade Unions, a formula for management union negotiations was agreed. Following that and at my request An Post decided to rescind their decision to withdraw from the conciliation and arbitration scheme. After the summer I asked An Post to withdraw their viability plan, which they did, and to replace it with a set of proposals, which they did, designed to achieve a break even position in 1992. I insisted at that time that these proposals specifically exclude the question of the closure of sub-post offices and the provision of roadside letter boxes. Despite these initiatives, unfortunately, the negotiations between management and unions did not make much progress. I should point out that the Minister for Labour has been active with me in helping to make progress in this entire area. In September and in accordance with the formula worked out with the Irish Congress of Trade Unions I requested the company and the unions to participate in talks under the auspices of the Labour Relations Commission. These talks covered the company's proposals for cost reductions and the question of the payment of the award.

As the House probably knows, the latest talks were adjourned in the early hours of Wednesday morning last after nine hours of negotiations. I understand that new proposals put forward by An Post with the assistance of the Labour Relations Commission are being considered by the executive committee of the unions. They have been asked to convey their views to the commission which is expected to meet tomorrow, Friday, to consider their response.

There are very fundamental issues to be resolved in this dispute, as I am sure the Deputy is aware. I know that everybody wants to avoid a repetition, as the Deputy has mentioned, of the unfortunate and protracted industrial dispute that occurred 12 years ago in the Post Office. That dispute caused untold hardship to the staff as well as to customers, industry and so on, but particularly to those dependent on social welfare. At this time the Post Office needs a fresh start. An enormous amount of effort has been expended over the past year to secure this. I regard the new proposals put forward by An Post last Tuesday, with the assistance of the commission, as the basis for an early resolution of the dispute. I would therefore call this evening on both sides to address these new proposals urgently with a view to securing early settlement.

The postal service plays a major part in the economic and social life of the community and in addition provides very important agency services particularly in the disbursement of social welfare payments and in attracting funds for the national savings services. I hope those words of mine this evening will be listened to by both sides.

Mr. T. O'Sullivan

What about the conciliation and arbitration scheme?