Dáil Éireann debate -
Tuesday, 16 Feb 1999

Vol. 500 No. 4

Priority Questions. - Enterprise Ireland.

Nora Owen

Question:

28 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the offers, if any, made to the staff of Enterprise Ireland following its establishment; the efforts, if any, made in the past week to bring an end to the industrial action by 750 staff of this organisation; if her attention has been drawn to the low staff morale as a result of delays in negotiating a settlement with staff on an equitable and fair basis; and if she will make a statement on the matter. [4298/99]

Ms Harney

Following a series of discussions between the management of Enterprise Ireland, the SIPTU union and the MSF professional union, facilitated by the Labour Relations Commission, a framework for a proposal was outlined by management to SIPTU on 12 December 1998 regarding some of the grades it represents. On 14 December 1998 a general meeting of SIPTU members considered the framework and the outcome was to initiate a ballot for industrial action up to and including strike action. A formal proposal was subsequently sent to the union by management and rejected. On 20 January 1999 a further proposal was made by management to SIPTU and MSF in respect of senior management grades represented by these unions. These proposals are part of the ongoing negotiation process and it would not be helpful to these negotiations if the detail were discussed at this time.

A number of informal contacts were made during the week following 1 February designed to recommence discussions between the parties involved in the dispute. A framework was agreed for direct discussions between management and SIPTU and a general meeting of SIPTU members decided on 8 February 1999 to suspend the industrial action. Mr. Derek Hunter, formerly of the Local Government Staff Negotiations Board, and Mr. Billy Attley, former secretary general of SIPTU, are assisting the parties in the discussions.

I am conscious of the negative impact the industrial relations issue has on the morale of the staff of the agencies. Both management and SIPTU are committed to engaging actively in the direct discussions currently under way to secure a resolution of the issue.

Mrs. Owen

Does the Minister accept that, in her haste to establish Enterprise Ireland last year by appointing the chair of the committee, the chief executive, and then introducing the legislation, all within a period of two to three months, she failed dismally to ensure the first year of operation of Enterprise Ireland would not be spent in sorting out staffing problems? Will she confirm that before the Authority was established, she was aware there was a difficulty with grading levels in the agency and that she had been warned the issue should be sorted out before the agency was established? Does she accept she failed to heed those warnings and established the agency, resulting in the current impasse? While the talks taking place in Malahide today are welcome, staff morale has been shattered by the fact that, for the first eight months of operation, it has not been possible to undertake decent, effective talks. Does the Minister accept that those of us in Opposition who warned her in July last year that the first six, eight or 12 months would be spent sorting out staffing problems, something which should have been done before the agency was established, have unfortunately been proved right?

Ms Harney

No, I do not accept that. It is a matter for the Minister to lay down policy and put in place the legal framework. It is not a matter for the Minister to negotiate with staff about conditions and grades. As the Deputy knows, these problems date back to when the agencies were established in 1993-94. There are 45 different grades in the agency as a result of a lack of decision making at the time. The Minister lays down policy and puts in place the legal framework. That required in this case putting in place a board which in turn put in place the management and chief executive. None of that could have happened if the organisation and legal framework had not been in place. There would have been no one to negotiate and sort out problems. I hope they can be sorted out quickly. Matters should be conducted in the spirit of partnership. All the parties subscribe to Partnership 2000 and I hope, in the spirit of that partnership, matters can be resolved. It is good the parties have returned to direct discussions and that the industrial action has been withdrawn. In that context, a resolution will be found.

Mrs. Owen

Will the Minister confirm that the industrial action is only withdrawn for a period of four weeks? Is she aware that some staff in the new agency earn as much as £10,000 more than others? What permission does the Minister have from her colleague, the Minister for Finance, Deputy McCreevy, to allow her negotiate an upgrading of those currently working with people who earn £10,000 more than them? That is the crux of the issue.

Ms Harney

It is extraordinary that one organisation had very different terms and conditions from other organisations in the same group. I do not know why or how that happened. It dates back a number of years as the Deputy knows.

The matter can be resolved within four weeks. The assistance of Mr. Hunter and Mr. Attley, together with the responsible attitude taken by the trade unions involved and management, will resolve the problem once and for all. It is important matters are settled in the calm atmosphere of direct discussions rather than on the floor of the House. As the Deputy knows, industrial action has only been suspended. That is normal in such matters, but the timeframe is sufficient to allow agreement to be reached.

An Leas-Cheann Comhairle

Priority Question No. 29 will be taken in ordinary time.