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Dáil Éireann debate -
Wednesday, 26 Oct 1994

Vol. 446 No. 4

Ceisteanna—Questions. Oral Answers. - Trade Union Rationalisation.

Mary Harney

Question:

23 Miss Harney asked the Minister for Enterprise and Employment, in view of compelling evidence that multi-union involvement in both TEAM Aer Lingus and Irish Steel contributed substantially to the difficulties in negotiating the survival packages, the steps, if any, he proposes to take to assist the development of a more rational trade union structure and one which will enable trade unions to focus on the interests of the whole workforce in any location rather than on the sectional interests of any one group of workers. [2270/94]

Mary Harney

Question:

63 Miss Harney asked the Minister for Enterprise and Employment, in view of compelling evidence that multi-union involvement in both TEAM Aer Lingus and Irish Steel contributed substantially to management difficulties in those companies which led to the recent crisis and to the problems in negotiating survival packages, the steps, if any, he proposes taking to assist the development of a more rational trade union structure and one which will enable trade unions to focus on the interests of the whole workforce in any location, rather than on narrow sectional interests. [2251/94]

I propose to take Questions Nos. 23 and 63 together.

While I agree that the difficulties encountered in resolving the disputes in both Irish Steel and TEAM Aer Lingus were exacerbated to some extent by the number of unions involved, the main reason for both disputes was the scale and extent of the changes required to return both companies to viability.

The multiplicity of trade unions can be unhelpful in an industrial relations context and it is acknowledged that there is a need for rationalisation. Responsibility for trade union rationalisation rests largely with the trade union movement itself. It has long been the objective of that movement to bring about a significant reduction in the number of trade unions. The role of Government is one of encouraging and facilitating the rationalisation process. The State has exercised this role mainly through the Trade Union Act, 1975, which was specifically enacted to encourage and facilitate trade union mergers by simplifying the procedures involved and by making grants available from the Exchequer towards the costs trade unions incur in the process. A further measure was introduced in the Industrial Relations Act, 1990, to allow grants to be paid to help defray the costs where an attempt at a merger has been unsuccessful.

Government policy in this area has been successful as evidenced by the volume of trade union mergers in the last decade or so. To date, 21 amalgamations or transfers of engagements have taken place under the Act and nearly £1.4 million in grants has been paid out by my Department in respect of these mergers. Largely as a result of rationalisation the number of unions declined from 86 in 1980 to 58 at present, a drop of 33 per cent. A significant number of these mergers involved craft unions. Despite significant progress, there is scope for further rationalisation. I am glad that the present merger trend is continuing and that further mergers are in the pipeline — some involving craft unions. We are likely to see a further reduction in the number of unions over the next few years. I am, therefore, satisfied that the existing provisions to promote trade union rationalisation are more than adequate and that additional measures are not required at this stage.

The problems which arose due to multi-union involvement in both TEAM Aer Lingus and Irish Steel are matters which fall to be dealt with by the trade union movement in the first instance. In this regard, I welcome the recent announcement by the Irish Congress of Trade Unions that it has embarked on a review of its procedures with a view to ensuring that the problems which arose in those cases do not arise again. This review is being carried out by a commission set up by the ICTU and chaired by its president, Mr. Phil Flynn. I look forward with interest to the outcome of this review and to the contribution it will make to improving industrial relations practices. If the Irish Congress of Trade Unions requires help or assistance from my Department I will ensure that full co-operation is given in this regard.

Given the Minister's acceptance yesterday of the trends of the capitalist environment, does he accept that it is an ongoing problem for those who seek to manage business, in the State or private sector, to have to deal with multi-unions on one site? Does he agree there should be changes in the labour law to ensure that one union can negotiate on a particular site and that we should provide, as suggested by IBEC, for a single postal ballot of all workers when disputes arise?

The Deputy was not present yesterday at the forum but her former colleague, Deputy Cullen was, he heard me say that capitalist economies were never designed to provide full employment and that, therefore, people who argued for it in that context should recognise the limitations of capitalist economies.

My party gives full support to open and free democratic societies and we are not in the business of compelling people to join a single union or requiring, by force of law, one union to be represented in a particular workplace. On the contrary we believe in the voluntary approach — and the concept of free association is enshrined in our Constitution. It is desirable, and Congress has been first to recognise the desirability of such a position, that there would be a minimum of trade unions in any one workplace to maximise the effectiveness of the representation of the workers in the first instance which will in turn lead to a more efficient management of the enterprise involved.

Will the Minister comment on the need for a single postal ballot of workers?

I believe the Irish Congress of Trade Unions, having regard to the different traditions of different unions and the requirement to get the consent of the members of those unions to participate in the most effective way of balloting their members, will probably come forward with a recommendation similar to the Deputy's suggestion. That is, in the first instance, a matter for the commission of the Irish Congress of Trade Unions to investigate and ultimately to recommend. I do not want to prejudice the outcome or the findings of that commission.

Will the Minister confirm there will be no problem at European Union level with the Government's proposed investment in Irish Steel?

That is a separate matter and I do not propose to answer it now. If the Deputy wants to put down a question, I will be happy to answer it.

My questions deal with the disputes in Irish Steel and TEAM Aer Lingus. I am sure the Minister is aware of reports today that the European Commission has problems with the proposed investment in Irish Steel and to alleviate the concerns of the workers perhaps he will avail of the opportunity to clarify the matter.

We appear to be going outside the bounds of the question.

It is significant that the Minister is not availing of the opportunity to confirm what I am saying. Will there be a problem or might there be a problem?

A premature answer at this stage would not be in the interests of the workers in Irish Steel or the taxpayers.

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