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Dáil Éireann debate -
Thursday, 2 Apr 1992

Vol. 418 No. 2

Private Notice Question. - Banks Industrial Dispute.

asked the Minister for Labour, if, in view of the escalation of the industrial dispute in the banks as a result of statements by two banks, the Bank of Ireland and the Irish National Bank, that they will start suspending staff from tomorrow and the clear threat that now exists of an all-out dispute leading to the closure of the banks, he will say if he intends to intervene or to try to assist in any other way in finding a solution to the dispute, and if he will make a statement on the matter.

This dispute centres on a claim by the IBOA for a 6.5 per cent salary increase. The claim has been the subject of intensive negotiations considered by a number of tribunals before eventually being the subject of a Labour Court hearing. The Labour Court in its recommendation did not find in favour of the IBOA claim for a straight salary increase and recommended an alternative approach under the terms of the Programme for Economic and Social Progress which involves a 6 per cent increase from 1 May, 3 per cent basic and 3 per cent local bargaining, a lump sum of £750 and an extra day's annual leave in return for increased opening hours. The recommendation has not been accepted by the IBOA and only the salary claim element of the recommendation is being put to a ballot with the Executive Committee of the union strongly urging members to vote against.

I would point out that the Labour Court is the major industrial relations institution in this country and recommendations of the court should be given full and due consideration. I am therefore disappointed that only the salary claim element is being voted on.

The banks, for their part, have written to staff asking them to accept the terms of the Labour Court recommendation. They have also indicated that they propose to introduce longer opening hours with effect from 4 May next but this has been rejected by the IBOA.

In the final analysis a resolution of this dispute rests with the banks and with the IBOA and I would now ask both sides to sit down immediately and make every effort to sort out their differences. The continuation of the dispute cannot be in anyone's interest, least of all that of the banks themselves and their employees.

Would the Minister for Labour not agree that this dispute is now in a state of free fall, that we are about to crash into a very serious situation where the likelihood is that the banks will close, which will have an enormous impact on this economy and indeed on jobs at a time when we are supposed to be attempting to deal with the jobs crisis, and that the action of the banks in this particular instance — I am not commenting on the dispute in general — in issuing an ultimatum to staff is escalating it and would seem to be more of an attempt to break the IBOA than to reach an amicable resolution of the issues between them.

The Labour Court could not accept the approach of the IBOA in terms of their pay claim only, so they provided an alternative approach. The point now is that the IBOA have decided that the alternative approach will not be addressed until members have an opportunity to vote on the Labour Court's decision on the salary claim only. That is the part of it that they put to the ballot for the members with a recommendation to reject. Now that there is a ballot ongoing in relation to part of the recommendation it would be inappropriate for me to say anything other than that it is important that both sides resolve this dispute. It is in the national interest that they do so.

I would point out that the Labour Court is a valued institution in our industrial relations. It is also a valued part of our disputes settlement procedures. The voluntary approach to the settlement of our disputes is an important facet of our industrial relations and I am asking both sides to sit down and resolve their differences. It is inappropriate for me to say any more than that on the basis that the full recommendation of the Labour Court has not been put to the members. That was for the IBOA to decide and they have decided to put just the pay claim element at this stage and that the alternative approach will not be addressed until the members have decided on pay.

My concern, and I am sure the Minister's concern, is that this dispute should be brought to an end. The latest action of the banks in unilaterally issuing ultimatums to their staff is worsening the situation. Mr. Kieran Ryan, the Chief Executive of the IBOA, has said that his statement that they were not interested in all-out strike could no longer be guaranteed at this stage. In view of the latest development and that this big stick approach to industrial relations is simply not acceptable today, would the Minister at least undertake to approach both sides, apart from making a public call here in this House, to see how a more reasonable approach can be adopted in relation to the dispute at issue?

There is sufficient flexibility within the broad terms of the recommendation to allow for a settlement within the terms of the Programme for Economic and Social Progress. We must remember that the Programme for Economic and Social Progress is a cornerstone of our whole economic policy. I would reiterate the voluntary nature of our industrial relations procedures and, if both sides are agreeable, the Labour Relations Commission are available to sit down and find a solution to this problem within the broad terms of the recommendations. There is sufficient flexibility to do that. It will require both sides to discuss anything. It is a matter for themselves. They should sit down and resolve the dispute. It is difficult for me to say more than that because there is a ballot going on at the moment in relation to only part of the recommendation.

This is a very important issue. In the context of getting a resolution I was pleased to hear the Minister say that there is sufficient flexibility in the Programme for Economic and Social Progress to have this resolved, but will the Minister not accept that the ultimatum given by the National Irish Bank and the Bank of Ireland is not helpful? Will the Minister appeal to the two banks and if necessary ask the Labour Relations Commission to intervene immediately so as to resolve this dispute? It should go from this Chamber that we want a negotiated solution and not an all out dispute which will affect the economy.

Should both sides agree, the Labour Relations Commission is available. Flexibility is available within the broad terms of the recommendation. The problem is that the IBOA membership do not have an opportunity in this ballot to make a decision in relation to the alternative approach being proposed by the Labour Court. It is somewhat unusual not to put the full recommendation, but the IBOA made that decision and the alternative approach will not be addressed until the members have had an opportunity to vote on the Labour Court decision in relation to the pay element of the claim. I can do no more than suggest that the Labour Relations Commission is there and in any event they should sit down and resolve this dispute within the broad terms of the recommendation. The Labour Court recommendation was the final phase of a long, protracted negotiations procedure.

Could I ask a brief——

We have already spent a quarter of an hour on this.

I will be brief. The Minister said that it was unusual for only part of a proposal to be put to a ballot. Would the Minister not also state that it is very unusual for a company like the Bank of Ireland to issue documents to their staff asking them to guarantee that they will not participate in a dispute and that it harks back to William Martin Murphy in 1913? Is it not very unusual in the middle of a ballot to issue an ultimatum to staff that unless they returned to normal work they would be suspended? Does the Minister agree that that is not helpful and that that kind of ultimatum should be withdrawn?

I cannot add to the remarks I have made. I am only interested in the settlement of the dispute. There is a basis within the broad terms of the recommendation of the Labour Court so that both sides can sit down to settle the dispute.

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