Dáil Éireann díospóireacht -
Tuesday, 23 Apr 1996

Vol. 464 No. 3

Private Members' Business. - Irish Life Industrial Dispute.

Mrs. O'Rourke

I am glad of the opportunity to speak on this matter. I call on the Minister of State, Deputy Rabbitte, to immediately take an interest in the serious industrial dispute at Irish Life. Unless the Minister intervenes a major strike could develop at this former State company.

Some 30 staff at Irish Life currently find themselves in the situation where their jobs are being abolished and they are being demoted. This is not because of anything they have done wrong; in fact, the company has been making record profits over the past number of years. However, staff in Irish Life have been facing new and pernicious industrial relations regime since the company was privatised. Before it went on the stock market staff were assured their interests would be protected and commitments were given by Irish Life management and by politicians.

Staff are now being forced to accept radically different work practices but the Government is disclaiming any interest in the matter. The Minister for Finance issued a statement on 12 April saying that, even though he holds a golden share in Irish Life, he could not intervene in staff matters. I accept the bottom line but surely there is a moral obligation on a Government holding a golden share to at least ensure that matters are proceeded with in a civil way.

The Minister for Finance is interpreting his reponsibilities to Irish Life staff on a very narrow basis. The golden share was one of the keys to the staff accepting privatisation as they believed it guaranteed their interests would be protected. By disowning Irish Life staff, the Government has put in jeopardy any hope of workers' support in future privatisations.

Change is possible, and indeed necessary, in all sorts of companies. However, change is one thing but if unilateral decisions are taken and there is insufficient consultation, the hope of achieving change disappears. Both sides in the Irish Life dispute should step back and think about it anew.

Last week talks involving MSD members at the Labour Relations Commission broke up. There is now an ultimatum from Irish Life to the effect that if the necessary arrangements are not in place by 1 May, it will go ahead and put them in place anyway. Irish Life staff have given loyal service and have worked hard for the company but they are now being told unilaterally to accept altered circumstances at work and to submit to them forthwith.

In a recent Sunday newspaper there was a good précis of the particular executive who has come to take over Irish Life and in so doing has brought many of the methods used in UK privatisations. In the article she announced rather proudly, charmingly or disarmingly, that she cycles to work each day. While we would all applaud her healthy view of getting to work, somebody told me that on Fridays she takes the plane back to the UK: talk about Norman Tebbit's phrase "On your bike".

Irish Life staff have been treated disgracefully in this instance. I call on management to treat people in a civil and proper way. If that is done they will get the results they want. It is not too much to expect that employers who have given long service should be allowed to have matters sorted out in a democratic and civil way.

I wish to share my time with Deputy Martin.

Mr. Martin

I thank Deputy O'Rourke for allowing me to contribute to this debate. I want to place on record my support for the staff at Irish Life and my sympathy and empathy with their grievance over the manner in which they are being treated by the company's management and chief executive in relation to the implementation of changes and the unilateral downgrading of staff who have given life long service to the company. Their outstanding contribution to the company's profits has made Irish Life the success it is today. If the company is not careful, staff could be lost thus harming Irish Life's future prospects.

In Cork, a number of staff are being badly affected by the dispute and by the manner in which management is approaching it. They are deeply concerned about their own future positions and they are also upset that a company to which they had great loyalty and allegiance is treating them in a shabby manner.

I share Deputy O'Rourke's concerns that, whether we like it or not, this has serious implications for future privatisations and the sale of equity or shares in other State firms. Employees in other State companies will be looking at the experience in Irish Life and will make their own judgments. What happens in this case will inform their future decisions and the Government should take a keen interest in it.

I am upset by the manner in which the Government seems to be distancing itself from the plight of Irish Life workers. The Minister of State, Deputy Rabbitte, should bring the full force of the Government's moral and political pressure to bear on this. He should ensure that the spirit of our industrial relations machinery is adhered to.

When executives from outside our environs come here to manage and operate companies, they should endeavour to fit in and apply themselves to the context of sophisticated industrial relations machinery that we have established over many years. They should share in the sense of social partnership that has driven our economic performance both in the semi-State and private sectors for so many years.

Minister of State at the Department of Enterprise and Employment (Mr. Rabbitte)

The dispute in Irish Life arises as a result of proposals by the company to revise and reorganise the role and responsibilities of certain grades of its existing sales staff. I do not propose to second guess Deputy O'Rourke's or Deputy Martin's assessment of the dispute. What has been said about the loyalty and commitment of the staff is true.

The responsibility for resolving industrial disputes lies primarily with the parties concerned. In those instances where parties require assistance to help them to resolve their differences, the services of the State's dispute settling agencies — the Labour Relations Commission and the Labour Court — are available to them free of charge. I do not, therefore, consider it appropriate for me to intervene directly in everyday industrial disputes. This is not a novel position but is a policy adhered to by my predecessors and is calculated not to undermine the labour relations machinery which has a proven track record.

With regard to this particular dispute, I understand the Labour Relations Commission, as part of a series of conciliation conferences, recently convened a two day conference with the parties. Unfortunately, it was not possible to reach agreement at that conference. I understand the parties are currently considering their positions in relation to the dispute. I join Deputy O'Rourke in urging them to continue to negotiate to try to resolve their differences. In this regard, the services of the Labour Relations Commission and, if necessary, the Labour Court, continue to remain available to assist them.