As the Deputy for East Cork and a former Irish Steel worker, I welcome the opportunity to speak on this important Bill. It marks not only an historic milestone in the history of Irish Steel but also a milestone for the people of East Cork.
In recent times the East Cork region suffered high levels of unemployment. Had Irish Steel closed, it would, I have no doubt, have signalled the final nail in the coffin for East Cork.
As the House will be well aware, Irish Steel's troubles have been ongoing for decades. In fact, the company made profits in only three of the past 20 years. In the trading year 1993-94, Irish Steel lost well over £1 million a month and total losses for the year amounted to over £20 million. Experience has shown that the State has not been the ideal partner for Irish Steel. Acceptance of this fact led to the crisis in Irish Steel in the summer of 1994. The survival plan drawn up to deal with the problems besetting the company was an absolute precondition to its very survival. It provided for a reduction of 205 workers, the introduction of flexible work practices, the achievement of efficiencies and a pay freeze.
The difficulties experienced in reaching agreement with the unions on the implementation of the plan were well documented and the industrial relations problems surrounding these negotiations brought the company to the brink of closure on a number of occasions. It is with great pleasure, therefore, that I debate this Bill today.
This survival plan was instrumental in securing a viable future for Irish Steel. I take this opportunity to acknowledge the sacrifices and efforts made by the workers of Irish Steel in its implementation. That it was difficult to accept is beyond doubt but it was a precondition to survival. The change accepted by the workers represents a transformation of the culture that prevailed in the company. The survival of the company is, to a large extent, due to the conviction and mettle of the workers involved. Another workforce of lesser conviction would have refused to accept such a watershed plan.
Credit must also be given to Mr. Pat Dineen for his vision and leadership throughout the crisis. When he became chairman of Irish Steel the future of the company was, to say the least, very bleak. However, with characteristic commitment and skill he steered the company through those troubled times and transformed it to the extent that ISPAT International agreed to purchase 100 per cent of the shares in Irish Steel and thus ensure its future. The management must also be commended for its commitment to securing a viable future for the company.
During the summer of 1994 it seemed Irish Steel was about to close and many people took great pleasure in saying "I told you so". However, thanks to the efforts of the Tánaiste, Deputy Dick Spring, and the then Minister for Enterprise and Employment, Deputy Quinn, the negotiations proved fruitful.
Not surprisingly the Progressive Democrats called for the closure of Irish Steel as the only sensible solution. This, however, was more a reflection of their short-sightedness than a realistic assessment of the situation at the time. Left to the Progresive Democrats we would not have any semi-State companies.
I pay tribute to Deputy Quill who took a very sensible stand during the crisis. She contacted everybody and was very concerned for the workers although her party was opposed to supporting Irish Steel and wanted to close it down.
This debate, however, proves what can be achieved when there is commitment. I did not doubt that Irish Steel could survive. What was in doubt was whether those directly involved would receive the support needed to ensure survival. They received this from the Labour Party.
Those dark clouds which for so long hung over Haulbowline have thankfully become a thing of the past and the problems which seemed to be the defining characteristic of Irish Steel have been resolved once and for all. Irish Steel today is an example to all Irish industry of how change, no matter how painful, can be managed.
The cultural change witnessed in Irish Steel is almost unbelievable. Its shortcomings have been well documented by its critics. However, the majority of its detractors are from outside the East Cork region and are unable to appreciate just what the closure of the company would have meant for the region.
Not only is it a traditional employer in the region but it is one of the main sources of revenue for many support industries. At the time of the crisis confidence was already at a low ebb in the region. However, the closure of Irish Steel could have been the final death blow to a region already suffering more than most. It was in these harrowing circumstances we in the Labour Party committed ourselves to ensuring that Irish Steel survived. The success of the change made is reflected in that Irish Steel is now on course to break-even this year and the new owners have already taken on more workers.
Today, Irish Steel is an example to Irish industry of what can be achieved by adopting a consensus approach to the management of change. Change is not an easy pill to swallow at the best of times and the terms of the survival plan put to the workers made that pill all the harder to swallow.
The workers and management alike had to deal with complete change of company culture and structure. The problems which beset the company were mainly grounded in the low trust level between management and the workforce. However, the transformation from a company based on outmoded perceptions of "good industrial relations" to a world class manufacturing organisation is a vindication of our faith in the workers and management of Irish Steel in those dark days of 1994.
I congratulate the trade unions involved on the contribution they made to the success story that is Irish Steel today. It took a great deal of courage to embrace work practices which not so long ago were considered to be outside the remit of "good industrial relations". However, in doing so the unions representing the workers of Irish Steel signalled a new departure in industrial relations and helped the trade union movement in general to face the challenge facing them as we enter the 21st century.
With regard to the readaptation fund, money is still due to those workers who were made redundant as a result of the implementation of the survival plan. This needs to be addressed as soon as possible and I call on the Minister to ensure that it is.
I also call on the Minister to publish the report of the Cobh and Harbour Task Force which was set by the then Minister for Enterprise and Employment, Deputy Ruairí Quinn at the time of the crisis in Irish Steel. East Cork remains a region of high unemployment and this task force report would help in formulating a strategy to address this problem.
