Adjournment Matters

Industrial Disputes

Senator Thomas Byrne

I thank the Cathaoirleach for allowing me to speak first. I also thank the Minister of State, Deputy John Perry, for coming into the House to respond. I know the Minister, Deputy Richard Bruton, is abroad promoting the country, about which I will not complain.

My Adjournment matter concerns the strike at the Irish Cement plants in Platin, County Meath and Limerick. Over 100 workers are on strike over the refusal by Irish Cement to implement a recommendation of the Labour Court which partially found in favour of both the workers and the company. The Labour Court's recommendation read:

Taking all matters into account, this court recommends as follows:

1.) The company should pay to the staff concerned the "bonus" amounts outstanding for 2011

2.) The Court notes that while pay costs have been significantly reduced in line with the decline in over production levels, the pay structures and/or pay rates have not been reduced to date. From the information made available to it the Court was not in a position to make a considered or definitive recommendation on this basis. Accordingly, the Court takes the view that the parties should, on an on-going basis and where appropriate with the assistance of the appropriate advice, engage with each other regarding the total cost base of the company with a view to bringing it into line with the levels necessary to protect the maximum number of sustainable jobs in the two plants. Depending on the precise information exchanged between the parties and developments in the company itself and/or in the sector that affect the company's trading position and any consequent threat to jobs or profitability, this may involve a review and adjustment of the pay rates structure of the coming year.

3.) The Court will remain available to assist the parties in this process.

The recommendation is short and to the point. In one respect, it benefits the workers and in another gives them a huge challenge. This was fully accepted by them but not by Irish Cement.

The workers went through all of the formal procedures available to them in the industrial relations mechanisms of the State. Mediators and financial analysts were involved. The Labour Court recommended that the company pay the bonus which has been treated as pay, not an extra, and, if necessary, enter into negotiations on its cost structures. As I understand it, Irish Cement has refused to pay the workers the money owed until they accept a wage cut of 18%. The workers have already accepted significant changes to work practices in terms of hours worked and, as such, are earning a lot less, as acknowledged in the Labour Court's recommendation.

This is the first serious breach of industrial relations in the company for over 20 years. I grew up beside it and it commands tremendous respect across the region and country. People are reluctant to give out about Irish Cement because of the employment it provides, but in this case it is my considered view the workers are being treated shabbily. It is not right that the company is withholding wages as a bargaining chip to secure a considerable reduction in pay and that companies can refuse to comply with Labour Court recommendations when they do not suit them. During the years the majority of Labour Court recommendations went against workers. However, when one partially goes against a company, it refuses to implement it. We have to have a fundamental examination of labour law and labour relations.

What is the point of the Labour Court if workers who go to it to look for their rights and entitlements and find that it agrees with them then find the company does not implement its recommendations? I appeal to the Minister and the Minister of State to intervene in the dispute and talk sense to Irish Cement which has a good export business, which we welcome. Something needs to be done to support the workers. As I said about another industrial dispute in the same sector in my constituency, it is a pitiful sight to see men and women on a picket line throughout the night and during holiday periods. When I travel home at midnight from meetings in my constituency, they are on the picket line. They need help and support from the Government.

Minister of State at the Department of Jobs, Enterprise and Innovation (Deputy John Perry)

I thank the Senator for raising this important matter. Industrial action by 110 workers at the Irish Cement production plants at Platin, County Meath and Castlemungret, County Limerick began on 3 April. I understand the Labour Court's most recent recommendation of January 2012 in the dispute was the culmination of protracted dialogue between the company and the group of unions representing the workers on restructuring issues that had already involved three successive Labour Court recommendations, the previous two being in August 2010 and December 2011.

In its recommendation in January the Labour Court recommended the company pay to the staff concerned the bonus amounts outstanding for 2011. In addition, the court concluded that it was not in a position, on the basis of the information provided through a report of the financial assessor undertaken following agreement between the parties, to make a definitive recommendation on an adjustment of pay rates and pay structures for the future. Accordingly, it urged the parties to engage with each other on the total cost base of the company.

The Labour Relations Commission was subsequently closely involved in facilitating talks between the company and the group of unions which were aimed at finding an agreed solution to the matters in dispute. That process of dialogue proceeded to the stage at which proposals for a settlement of the dispute were rejected by the trade unions concerned and a work stoppage commenced.

According to the company, pay rates have remained unchanged since 2008 and are currently 60% higher than the average industrial wage for unionised staff, despite the unprecedented deterioration in the construction sector. According to the Irish Cement group of unions, the company has insisted on a pay cut before outstanding bonuses are paid. The Labour Court previously noted in its first recommendation of August 2010 that it was clear the company was facing severe market conditions that required significant changes to enable it to compete and survive. It was equally clear that the unions were prepared to engage seriously on these issues with the company with a view to reaching agreement on a viable way forward that would optimise employment levels and conditions of employment, consistent with the current and medium-term financial and trading environment. With the exception of the issue of the pay cut sought by the company, it appears it was possible for the parties to reach agreement on a number of issues in dispute.

I urge the parties involved to have regard to the continuing availability of the industrial relations dispute resolution bodies to assist them in seeking a settlement and addressing the underlying challenge presented by a major restructuring of the company in the face of the dramatic changes in the building industry. I urge them to put their difficulties and differences behind them and approach the process in good faith with a view to accepting the outcome of the process. Ireland's system of industrial relations is essentially voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, whether in redundancy or other collective disputes, rests with employers, workers and their representatives. The State provides the industrial relations dispute settlement mchinery to support parties in their efforts to resolve their differences. Even what appears to be the most intractable of disputes is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides in a dispute will make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences. I urge the parties involved in this dispute to work together to break the impasse by utilising the established dispute resolution machinery which is available to assist at short notice.

I again compliment the Senator for raising this very important issue. I hope the parties involved will take the clear message from the Government that there is a mechanism in place to resolve it.

Senator Thomas Byrne

What has to happen is that the Government must put pressure on Irish Cement to implement the Labour Court's recommendation. The workers have been through the process and the Labour Court has acknowledged that pay costs have reduced significantly. Shift allowances and overtime payments have been withdrawn. While rates of pay are still the same, what workers are taking home every week is much lower because of the various changes made to work practices. The workers are prepared to talk about pay cuts, which is what the Labour Court recommended. However, they must be paid what is due to them immediately. No Irish company should be allowed to get away with this. It is, therefore, incumbent on the Government to put serious pressure on the company to pay the money owed. The staff must then respond and deal constructively with the second part of the recommendation of the Labour Court which they have accepted and which refers to pay cuts.

Deputy John Perry

To clarify, I urge Irish Cement to take action and pay the bonuses due. The system of industrial relations is essentially voluntarist in nature, with the terms and conditions of employment of workers being determined, in the main, by a process of negotiations to reach agreement without direct intervention by the State. Nonetheless, I hear clearly what the Senator is saying. In general, the law does not try to impose a solution on parties to an industrial relations dispute, rather it is designed to support them in resolving their differences. The State takes a supportive role by providing a framework and institutions through which good industrial relations can prosper, rather than taking an interventionist course. Institutions such as the Rights Commissioner Service and the Labour Court were established to assist in the resolution of disputes between employers and workers. It is important to indicate the expertise of the State's industrial relations machinery offers the best avenue for resolving issues in dispute. It is expected the parties to a dispute will come to the process in good faith and, as a consequence, are prepared to give serious consideration to the decisions or recommendations made. Even what appears to be the most intractable of disputes is capable of resolution where both sides engage constructively and in good faith. As I said, the principle of good faith implies that both sides will make every effort. However, responsibility for the resolution of disputes remains with the parties involved and as such, there are no plans to make changes to the Industrial Relations Acts to compel either party to accept a Labour Court recommendation in disputes referred to the court under the Acts.

Third Level Scholarship Schemes

Senator Trevor Ó Clochartaigh

Cuirim fáilte roimh an Aire Stáit anseo. Tá mé ag ardú ceiste a bhaineann leis an Roinn Oideachais. Tuigimid go bhfuil ciorruithe ar siúl agus go bhfuil sé tábhachtach beart a dhéanamh de réir briathar ó thaobh airgeadais de agus déileáil go cothrom ó thaobh buiséad agus mar sin de ach ag an am a bhfuil na ciorruithe seo ag tarlú, tá sé níos tábhachtaí ná riamh go mbeadh sparántachtaí agus tacaíocht ar fáil do dhaoine éagsúla le dul i mbun cúrsaí ollscoile. Go stairiúil bhí sraith de sparántachtaí le fáil faoin Roinn Oideachais, na sparántachtaí teoranta, na sparántachtaí neamh-teoranta, sparantachtaí Gaeltachta agus sparantachtaí Sheachtain na Cásca 1916 agus sparántachtaí Donogh O'Malley. An cheist atá agam don Aire ná cén luach a bhí leis na sparántachtaí sin le roinnt blianta anuas, cé mhéad díofa a bronnadh agus cá seasann siad ag an bpointe seo?

I welcome the Minister of State. The issue is one for the Department of Education and Skills and concerns third level scholarships. We have had an illustrious history of providing scholarships through the Department for various reasons. However, times are tough and I seek clarification on the scholarship schemes in existence. I am aware of five — the limited, unlimited, Gaeltacht, Easter week and Donogh O'Malley scholarships which are awarded for different reasons to student who show great skill in the work they are doing in school or do particularly well in their examinations. What was the value of these scholarships? How many of them have been awarded and what are the future intention for them? In these financially difficult times it is more important than ever that we have very good scholarship schemes available to act as a great incentive for young leaving certificate students to try harder, do better and pick up a scholarship to allow them to proceed to third level to complete their education.

Bheinn an-bhuíoch den Aire Stáit freagra agus soiléiriú a fháil maidir leis na scolaireachtaí seo.

Deputy John Perry

I thank the Senator for raising the issue of the need for the Minister for Education and Skills to make a statement on the future of the important third level scholarship schemes known as the unlimited, limited, Gaeltacht, Easter week and Donogh O'Malley scholarships. I am grateful to have the opportunity to outline the changes to the schemes and refer to the introduction of the new bursary scheme.

As the Senator is aware, in addition to the student grants scheme, the Department of Education and Skills also operates a number of scholarship schemes to assist students at third level. Each year undergraduate scholarships are available from the Department through five scholarship schemes, namely, the Easter week 1916 commemoration scholarship scheme, an scéim scoláireachtaí tríú leibhéal do scoláirí on nGaeltacht, an scéim scoláireachtaí Gaeilge tríú leibhéal (neamh theoranta), an scéim scoláireachtaí tríú leibhéal (trí Ghaeilge: teoranta) and the Donogh O'Malley scholarship scheme.

The total number of new students awarded scholarships under the five scholarships schemes for the 2011-12 academic year was 60. The value of the Easter week and Donogh O'Malley scholarships in the 2011-12 academic year is €6,053. The three Irish scheme scholarships are awarded at two rates, the adjacent and non-adjacent rates which for the 2011-12 academic year are €1,230 and €3,067, respectively. The total allocation for these schemes in the 2012 financial year is some €1.7 million.

The Senator has referred to a commitment announced in budget 2012 to replace the five scholarship schemes for higher education with a new scheme of bursaries. The current scholarships, with one exception, were awarded without the application of socioeconomic criteria. The new bursaries, on the other hand, are designed specifically to target students attending DEIS schools in disadvantaged areas and also indicating a level of personal or family disadvantage by virtue of having qualified for a medical card. Awards will be made regionally on the basis of the leaving certificate examination results achieved by the students. The awards under the new scheme will be fixed at €2,000 per student per year and recipients will also be entitled to apply for student grants towards the cost of maintenance and the student contribution or fees. The bursary will be an extra support and incentive to recognise high achievement for such students.

It is envisaged that some 60 students will receive a bursary this September. This number will rise in each of the next three years, with over 350 students a year benefiting by 2015. This change has been made to make the best use of scarce resources so as to focus on the best performing students in the cohort of those most in need of financial help.

The bursaries will include a small number focused on students who undertake studies in the STEM areas. These bursaries will be named the Walton bursaries after Mr. Ernest Walton, Ireland's only Nobel laureate in science and the man who, with Mr. John Cockcroft, became the first person to split the atom. We hope they will help to ensure a new generation of Irish people will strive to replicate his achievements. These changes will not impact on those who already hold scholarships under the existing schemes.

Senator Trevor Ó Clochartaigh

Go raibh maith ag an Aire Stáit agus fáiltím roimh an soiléiriú. I welcome the clarification. I am attempting to do some basic mathematics but it was not my strongest subject at leaving certificate level. Although I welcome the fact that a new scholarship scheme will be put in place for DEIS programme students — they certainly need a scheme — it is disappointing that the other scholarships have been scrapped. Some children in Gaeltacht areas are not linked to a DEIS programme school but can do very well and are certainly in a position of disadvantage. They would have accessed the other schemes previously.

There appears to be a considerable cutback in funding. Some €1.7 million was available in 2012 for the five existing schemes. According to my rudimentary mathematics, only €120,000 will be spent and there is only €62,000 available in grants this year. Even in three years when we reach the full cohort of 350 students, the amount comes to €700,000. That is a cutback of €1 million to €700,000. At a time when families are finding it difficult to make ends meet and given the increasing costs of sending children to school and college and the increasing costs of transport, etc., it is a shame that these other scholarship schemes have been cut back. I called on the Minister of State to contact the Minister for Education and Skills, Deputy Quinn, and ask him to reassess the funding available and to return it to the level of €1.7 million at a minimum. He should consider that students who do not attend DEIS programme schools may also be in a position of disadvantage and may need support. They may need a scholarship as well.

Deputy John Perry

I have listened carefully and understand the message from the Senator. I will take the message clearly to the Minister responsible, Deputy Quinn. Unfortunately, given the financial austerity everywhere, the fact is that by 2015 there will be less money but recognition is given. In many cases it is a matter of giving recognition to students. A student may have won a special award but he or she may still qualify for support in other areas and for maintenance and grant fees as well.

Let us consider the allocation by the State to students attending third level colleges. There is a great sense of pride in a student if he or she is given a special designated scholarship even though the money may not be as much as in previous times. By 2015 there will be 350 students recognised by the State as being exceptional. The DEIS programme areas of greatest need will be given accelerated funding. It is all based on the funding and scholarship. The payment of maintenance allowances and fees is based on family support and income as well. The Minister, Deputy Quinn, is mindful that the scheme put in place by Donogh O'Malley has been in place for a long time, for several decades. It is no harm to revisit it now. The Minister will carry out an ongoing evaluation of the scheme. I have no doubt the Senator's concerns will be taken note of by the Minister in any future evaluation. One encouraging factor is that by 2015 a greater number will be acknowledged by the Department as being exceptional students from disadvantaged areas. Of itself, this recognition can be a great accelerator for further education.

Services for People with Disabilities

Senator Michael Comiskey

I welcome the Minister of State to the House. My motion relates to cuts in funding to Cregg House, Rosses Point, County Sligo. There was a large turnout in Sligo town last night to protest against the cuts, which amount to approximately €1.3 million. This is on top of a cut that the order of nuns, the Daughters of Wisdom, were subjected to last year. They look after approximately 214 residents with severe disabilities from the area. They have been looking after people in the area for up to 50 years. It is important that these cuts are reversed if possible to allow them to continue to provide the services. In addition, there are more than 200 people employed in the service. It is a vital employer in the region around Sligo.

Minister of State at the Department of Foreign Affairs and Trade (Deputy Joe Costello)

I am thankful for the opportunity to respond to this important issue. I am replying on behalf of my colleague, the Minister for Health. I thank the Senator for raising the matter and I am pleased to take the opportunity on behalf of the Minister to outline the position on Cregg House.

Wisdom Services is a voluntary body operated by the Daughters of Wisdom. It provides services for people with a disability in the north-western region. It supports more than 200 service users, with 111 on campus, 75 in the community and 20 day attendees. The disability budget was cut by 3.7% nationally in 2012. The HSE national service plan states that at least 2% of this should not impact on services and must be generated from other savings and increased efficiencies. Through its national consultative forum on disability, which includes representatives of organisations and agencies from the disability sector, the HSE is seeking to identify and agree a framework to address the savings required with minimal impact on front line services. The HSE has assured the Minister that it will endeavour to ensure that residential, day, respite and personal assistant services are protected where possible from reductions in front-line services. Some reduction in services will be unavoidable even with such efficiencies. However, this will be done in such a way as to minimise the impact on service users and their families as much as possible. As a first step, the HSE has introduced a general reduction of 3.7% from the budget of disability agencies, pending the outcome of its discussions with agencies at local level.

Wisdom Services has indicated to the HSE that it is experiencing financial difficulties and has estimated that it will have a significant budget deficit in 2012, even before cost containment measures take effect. The HSE has been working with Wisdom Services for some time to try to reduce the deficit which has been building up since 2010. Although Wisdom Services has a cost containment plan for 2012, and has had some success, it still faces significant challenges to address the deficit. Wisdom Services advised the HSE that it could not sign a service agreement for 2012 and may have to transition from the service if the HSE could not provide additional funding to address the deficit. The Minister for Health shares the HSE's disappointment that a service level agreement has not been agreed at this point for 2012. The reduction in the Wisdom Services budget for 2012 is consistent with other disability service providers in the region. Unfortunately, in the current financial climate, it is not possible for additional funding to be allocated to address the deficit in Cregg House. However, the Minister for Health is reassured that the HSE and Wisdom Services are working together to ensure that all service users will continue to receive the care and support they require, and that discussions are taking place on the most appropriate arrangements and funding for the various services, including the scope for savings. I understand that the Minister of State at the Department of Health, Deputy Kathleen Lynch, along with HSE and departmental officials, will meet Oireachtas representatives tomorrow evening on this matter. In this context, it is vital that all providers of disability services work creatively and co-operatively to ensure that the maximum level of services are maintained for service users within the funding resources available.

Senator Michael Comiskey

I thank the Minister of State for coming into the House again this evening and look forward to the meeting with the Minister of State, Deputy Kathleen Lynch, tomorrow evening. I am disappointed that the Minister is not in a position to give us the additional funding on this occasion but we will see what happens at tomorrow evening's meeting and we will press the issue with the Minister of State, Deputy Lynch.

The Seanad adjourned at 6.35 p.m. until 10.30 a.m. on Wednesday, 25 April 2012.

Seanad Éireann debate - Tuesday, 24 Apr 2012