Dáil Éireann debate -
Wednesday, 18 Oct 1995

Vol. 457 No. 2

Adjournment Debate. - Threatened Closure of Cork Company.

Mr. Martin

Thank you, Sir, for giving me an opportunity to raise this matter. It is no secret that the unemployment position in Cork city is particularly bad, especially in certain areas. The Liebert company can be rescued and the jobs saved. The workforce at the company have given a loyal and dedicated commitment to the company for many years and they and their families want the company saved.

SIPTU is seeking a Labour Court hearing to resolve the impasse. It rejected a survival plan because of overtime conditions, a pay freeze and sick pay clauses. Agreement has been more or less reached on the number of redundancies and the methodology of their implementation. In SIPTU's view the problems are not insurmountable and if progress were made on a number of issues the package could be made more attractive to the workers and approved.

I call on the Government to intervene directly in this dispute, to bring all sides around the table and to resolve the matter. We cannot afford another factory closure in Cork. The differences between the sides are not beyond resolution. Rather than the present stalemate, with some sides wanting to resort to the Labour Court, direct intervention is required to alleviate the difficulties. Another factory closure for Cork would have an immense psychological impact on the people there, and the prospects of a replacement industry are not great. We have already heard news this week of a private sector development at Horgan's Quay not going ahead at this stage, with the developer in question pulling out. That project had the potential for 800 jobs and it is a matter of deep regret to me that the project has been shelved. It is the type of project involving the private sector that can lead——

An Ceann Comhairle

I hesitate to interrupt the Deputy. I granted permission to raise a specific matter, the Liebert company and its difficulties and the Deputy is now straying into other areas. That is not permissible.

Mr. Martin

I was making the point in the context of trying to save the jobs at Liebert and the importance of so doing, because I do not see any projects for the city or region on the horizon. Can the Minister advise me if that is the position? The jobs are critical and the wrong signals will be sent out if Liebert closes. I have spoken to many families affected and I discovered a commitment on behalf of the workforce to save this plant. The workers are anxious to retain their jobs. There are different views as to whether the company is anxious to continue. I suspect it is, it entered into negotiations. The company has not yet been wound down. We learned that we have a few weeks to save the plant, if we can, and I urge the Minister — I know he will be genuine in this — to do everything possible to do so.

Minister of State at the Department of Finance (Mr. Coveney)

I want to thank Deputy Martin for raising this issue on the Adjournment. It is an important and topical issue for the country and for Cork. I, too, am deeply concerned about recent developments at the Liebert plant in Cork. The company is a wholly subsidiary of the Liebert Corporation of Columbus, Ohio, and is a division of Emerson Electric Corporation of St. Louis, USA.

Liebert is one of the world's leading suppliers of computer support systems. The facility in Cork, which was established in 1983, manufacturers air conditioning units for computers and approximately 130 workers are currently employed at the plant. Unfortunately, there has been a history of poor industrial relations at the Cork plant for some years. There was a major strike there in 1990 which lasted for 13 weeks. The advisory service of the Labour Relations Commission recently carried out an examination and prepared a report on industrial relations in Liebert and a review of the company's operations was also carried out by the Irish Productivity Centre recently.

The current dispute arises from proposals put forward by management to effect cost savings. Among the issues covered by the cost saving proposals were redundancies, a pay pause, a peace clause, reduction in overtime rates, reduction in shift premia and elimination of attendance bonuses. Following rejection of the proposals, the dispute was referred to the Labour Relations Commission. A series of negotiations took place under the chairmanship of a senior industrial relations officer of the LRC and proposals which emanated from these discussions were put to the workers and rejected in a ballot last weekend. Despite the rejection of the overall package, I understand that agreement was reached on a considerable number of the issues in dispute, as Deputy Martin said. Regrettably, as a result of the rejection, management announced it would commence the phased closure of the plant.

I was deeply concerned and disappointed to learn of these developments at the beginning of the week, as I still believe that the company can become viable because it produces a quality product for which there is a considerable international demand. The Labour Relations Commission has, I understand, become involved again in this dispute, with a view to assisting the parties to resolve their difficulties and to saving the plant. I have just been informed that revised proposals are being put to a vote of SIPTU members tomorrow morning. That, apparently, was on the RTE news.

Mr. Martin

That is good news.

Mr. Coveney

I earnestly hope, as I know the Deputy does and, indeed, pray that the outcome will result in the saving of this important Cork industry. On the Deputy's recommendation that the Government and myself or both should become involved, I recently spoke with the regional representative of SIPTU and with the managing director of Liebert and I am keeping in close touch with the situation, as is my colleague the Minister for Enterprise and Employment, Deputy Bruton.

It is difficult enough to attract international industrial investment to Ireland and Cork and, therefore, it behoves everybody — employer, employees, unions and the Government — to do everything possible to hold on to existing industrial jobs of this kind. I earnestly hope and believe that will be the case at Liebert. On the point made by the Deputy about the difficulty of getting employment creating industry into Cork, to my knowledge there is a high level of industrial inquiries coming through the IDA at present. I cannot say for sure whether that will result in substantial announcements of industries for Cork in the coming weeks and months, but I am told by the IDA that it has a relatively high level of industrial inquiries for the Cork region. I hope that will result in further job creation which, as the Deputy said, is necessary.

The Dáil adjourned at 9.45 p.m. until 10.30 a.m. on Thursday, 19 October 1995.