As the matters to be raised by Deputies O'Rourke and Harney are very similar it is suggested that each Deputy should make her contribution and the Minister for Enterprise and Employment will reply to both, if that is satisfactory. Is that agreed? Agreed.
Adjournment Debate. - Industrial Dispute at Rathcoole (Dublin) Plant.
I am glad we finally managed to get this matter on the clár. We were facilitated by the Ceann Comhairle earlier in the week on other matters.
This week there was very sad news for part of south-west County Dublin and unless steps are taken immediately there will be a second industrial disaster there. Rathcoole and Tallaght are only up the road from each other. The loss of 800 jobs at Packard Electric represents a very serious blow to this area of Dublin but to have another 400 plus jobs in the balance at Airmotive Ireland is beyond belief in the present climate.
The dispute has been ongoing for a month and has received constant exposure in the media but so far the Minister and the Department have adopted a hands-off attitude. In many instances that can work but from time to time there is a clear demand for a hands-on approach. This is one of them. We now face a situation where the remaining 325 staff at Airmotive will be laid off from tomorrow. During the past month an estimated £7.5 million worth of business has been lost. All of its contracts are in serious jeopardy and the company's long-term future will be irreparably damaged unless some action is taken quickly.
This aircraft engine refurbishment facility is wholly owned by Aer Lingus. As a State company one would have expected the Government to show serious concern for those about to be laid off. The Minister has power under the industrial relations Act to come forward at a point in a dispute — this point has been reached in the Airmotive dispute — and I urge the Minister for Enterprise and Employment, Deputy Richard Bruton to act under those powers otherwise my genuine fear is that we will have a very serious matter on our hands.
Airmotive Ireland does very valuable work but unfortunately an impasse has been reached. A number of staff has been laid off and by tomorrow the remaining staff are to be laid off unless something happens. My concern is for the extended area of south-west Dublin which is suffering from extensive damage to employment.
It is time to come to grips with this dispute. I am quite well aware that there are faults on both sides of the dispute. I have not taken on board just the complaints and representations made to me from one side but am aware of the serious difficulties both with management and workers in regard to this dispute. We should take an overview. If it is as serious as I think, I urge the Minister to come forward with his proposals to deal with it.
I endorse everything said by Deputy O'Rourke. The news of the ongoing dispute at Airmotive Ireland coming in the wake of the announcement that Packard Electric will pull out in July with the loss of 800 jobs is news that the people of Dublin South-West do not want to hear. As Deputy O'Rourke has said, this ongoing dispute places the entire plant in jeopardy.
Airmotive Ireland is a subsidiary of Aer Lingus and manufactures jet engines for airlines, in particular for Lufthansa. The dispute centres around 83 craft workers who are looking for a special 10 per cent approval payment which would be an extra £30 gross per week. The company has made it clear it has lost almost £8 million of business since the dispute began. Airlines will not do business with a company that cannot guarantee when jet engines will be available and these craft workers are crucial to the availability of jet engines because they sign off on the jet engines.
The dispute has been with the Labour Court on two occasions and as Deputy O'Rourke said it is not a one sided dispute by any means. Certainly, if there is not intervention and another last attempt to have independent arbitration or ministerial involvement I am very concerned that we will see the end of Airmotive and the loss of 433 jobs in Rathcoole which is very close to Tallaght. Many of the workers in Airmotive come from Tallaght and Clondalkin.
It is important to realise that time is of the essence and I appeal to the Minister to get involved directly or have the agencies of the State, the Labour Court and other agencies that deal with disputes of this kind involved straight away. Certainly from tomorrow the livelihoods of all of those workers are in doubt and Dublin South-West will suffer enormously. The Opposition are making a responsible effort to highlight this dispute. I am not suggesting it will be easy to resolve this dispute but if we do not make an effort, we stand a serious chance of losing another employer from the area in a week when we have had nothing but bad news.
I thank the Ceann Comhairle for giving us the opportunity to raise this on the Adjournment this evening. I hope that as a result the Minister will be able to intervene or involve the machinery of the State in a last ditch effort to bring an end to the dispute so that production can continue at Airmotive.
The ongoing dispute at Airmotive stems from a claim by a number of unions — the AWEU, the TWEU and SIPTU — who are seeking payment of a 10 per cent approval payment to approximately 80 craftspersons. The dispute was the subject of a conciliation conference hosted by the Labour Relations Commission. It was not possible to reach agreement at that conference and the matter was subsequently referred to the Labour Court for investigation. The court, in a recommendation dated 12 December 1995, did not recommend concession of the claim. The recommendation was not accepted by the workers concerned and strike action, involving a number of the work force, subsequently commenced on 1 April.
The company subsequently issued protective notices to the remainder of the work force. As a result, there have been a number of lay offs and it is possible that further lay offs may take place if the strike action continues. The responsibility for the resolution of an industrial dispute is ultimately a matter for the parties directly involved, availing where required of the assistance of the dispute settling agencies of the State such as the Labour Relations Commission and the Labour Court. I do not therefore consider it appropriate for me to intervene directly in this industrial dispute. This is not a novel position but is a policy calculated not to undermine the labour relations machinery which has a proven track record. This policy was adhered to by my predecessors.
Our system of industrial relations leaves it up to the parties to accept or reject a recommendation from the court. Clearly, it is not in the interests of the parties to this dispute to have disruption caused to the company or hardship caused to individuals as a result of lay off. In the circumstances, I strongly urge that careful reconsideration be given to the Labour Court's recommendation, particularly in the light of the damage being done to the company and the hardship being suffered by the work force.
The Dáil adjourned at 5.15 p.m. until 1 p.m. on Wednesday, 8 May 1996.