Dáil Éireann Debate, Tuesday - 8 February 2005
92 Mr. Deasy asked the Minister for Communications, Marine and Natural Resources the extent to which he has been informed by An Post in respect of the company’s future intentions in regard to the payment of wages and pensions in accordance with legisation and previously established rules and practices; and if he will make a statement on the matter. [3620/05]
View answer294 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which he has been informed by An Post in respect of the company’s future intentions in regard to the payment of wages and pensions in accordance with legisation and previously established rules and practices; and if he will make a statement on the matter. [3957/05]
View answerI propose to take Questions Nos. 92 and 294 together.
First, the provisions applicable to staff transferred to An Post are set out in section 45 of the Postal and Telecommunications Services Act 1983. Implementing wage increases to An Post employees is an operational matter for the company and one in which I have no function.
An Post is a commercial State body with a remit to be financially viable. We must not ignore the fact that the company made an operating loss of €43 million in 2003 which followed on from losses of €17.4 million in 2002 and €6.7 million 2001. Following on from the scale of the losses in 2003, An Post management invoked the inability to pay clause contained in Sustaining Progress in respect of wage increases due under this agreement to An Post employees.
The key challenge for the company is to return to financial stability so that issues arising from the non-payment of Sustaining Progress can be resolved. The way forward is agreeing and implementing the strategic recovery plan which was approved by the board in 2003. This strategy sets out a road map to return An Post to profitability by 2005. It includes significant restructuring in terms of work practices and job losses amounting to approximately 1,730. However, buy in from the unions is crucial to agreement and implementation. This has not been an easy process — change is not easy.
Following the industrial dispute last March, the Labour Relations Commission put forward a framework to resolve the differences between management and unions. The length of the negotiation process indicates the difficult and deep seated issues to be resolved within An Post. Thankfully, during 2004, management and unions working together have made some progress in dealing with the crisis situation and, despite the negative comments that we have heard on the issue, there is a joint commitment by all parties to restructuring. All sides are to be commended for their efforts to date. I am not trying in any way to ignore or minimise the significant disagreements that exist between the management and the Communications Workers Union but we must concentrate on the process to take us forward to resolve the issues subject to dispute. That process is well under way.
Nevertheless, I recognise that we are not yet in the position where we can say that the necessary restructuring programme to secure the future of An Post has been agreed. This is essentially the nub of the problem we face today. The intervention of the national implementation body has ensured that the issue of Sustaining Progress increases will be addressed by the Labour Court as a matter of urgency on 11 February. In particular, the court will investigate the inability to pay clause adopted by the company.
It is essential that both sides continue to work together in conjunction with the State's industrial relations machinery to broker a deal that will allow the company to deliver quality services to our citizens, while at the same time providing sustainable well paid employment to its staff. That is the challenge facing the board and management, together with the unions, and they should not allow themselves to be deflected from meeting that challenge.
With hearings in the Labour Court under way or due to commence shortly on the restructuring programme, Sustaining Progress increases and SDS reintegration, I urge both parties to embrace this opportunity to reach agreement on how best to work together to secure the future of the company.
