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Dáil Éireann díospóireacht -
Thursday, 29 Jan 1998

Vol. 486 No. 2

Adjournment Debate. - Ryanair Dispute.

I thank the Leas-Cheann Comhairle for permitting me to raise this important matter and I apologise to him and Members of the House for having been unavoidably detained.

Although this matter involving the dispute at Ryanair and the numbers involved in it may be relatively small, the issues involved are, I believe, of enormous importance. If not resolved, they have the capacity to inflict significant damage on our industrial relations procedures and to undermine the entire system of social partnership on which so much of the country's recent economic success has been built. Indeed, the generation of such negative publicity in an otherwise stable industrial environment can only have adverse implications for the ongoing work of IDA Ireland.

It is shocking that, as we approach the end of the twentieth century, a very successful and profitable Irish company should be refusing to recognise the right of its employees to join, and be represented by, the trade union of their choice. Regrettably, Ryanair's attitude to industrial relations seems to be rooted in the Victorian era and contrary to all the best management practices. The latest development in this dispute — the refusal of Ryanair to accept an invitation to attend at the Labour Court — suggests the company is not only prepared to deny workers what most people would regard as a fundamental human right, but is also thumbing its nose at the institutions established by the State to try to resolve industrial relations problems. This is not a normal industrial relations dispute in which a Government would be expected to maintain a neutral position. What is involved here is an issue of principle — the right of workers to join, and be represented by, a trade union if that is their wish. It is a principle the Government should actively seek to uphold.

The right to join a trade union is enshrined in the Constitution but this right is rendered virtually meaningless if employers such as Ryanair are permitted to use their power to frustrate the exercise of that right. The Ryanair case is not directly comparable with international companies located here which generally pay their workers above the odds, in stark contrast to the Ryanair policy. The treatment of its workers in Ryanair also stands in stark contrast to its treatment of the company's directors who were paid £23.65 million between 1995 and flotation. Ryanair's chief executive, Mr. O'Leary, who is responsible for the macho stands towards SIPTU, made an immediate killing of £17 million on the flotation.

Much of this country's recent economic success has occurred as a result of social partnership and one of the positive spin-offs from this has been a significant decline in the number of industrial disputes. Social partnership will not continue unless it is translated to the workplace. It seems that a small number of employers, including Ryanair, and a number of multinationals are prepared to put the partnership approach at risk in their desire to see the industrial relations clock turned back.

When Ryanair was a young company struggling to get off the ground, direct intervention by the State with regard to access to routes contributed enormously to its survival and growth. The junior partner in this Government often point to Ryanair as the kind of company which emerged as a direct result of the deregulation policy it promoted in the late 1980s. Now that it is a very successful company making huge profits, it is not unreasonable that the Government should ask it to abide by the industrial relations norms of the State.

It is also regrettable that, despite its generally honourable role in social partnership, IBEC should be backing the stance of Ryanair. It is a short-sighted position because if this dispute is not resolved, it could well reap an industrial relations whirlwind which employers may come to regret. The position of SIPTU and the Ryanair workers has, on the other hand, been cautious and generally responsible. Industrial action was only resorted to after a long period when the union was unable to get the company to open negotiations of any kind about the wages and conditions of its members. When it was felt that industrial action was the only option, that action was of a limited nature. Plans to escalate action were deferred when the chairperson of the Labour Court, Evelyn Owens, extended an invitation to both parties to come before the court.

Against this background and the exceptional issues involved, a much more proactive position is required by the Government. It cannot stand aloof. Moral and practical pressure must be exerted on the company to come to the negotiating table. A very strong public Government statement of disapproval at the company's approach would be a start.

Airline customers should exercise the options open to them to show their disapproval of the company's position by refusing to travel on Ryanair flights while the dispute continues. Departments are also major users of air transport and they, too, should exercise a similar right of choice.

I thank Deputy Rabbitte for raising this important issue and I welcome the opportunity to discuss it, however briefly, on the Adjournment.

I understand approximately 50 ground handling staff employed by Ryanair have joined the SIPTU trade union. The union wrote to the company before Christmas seeking improved pay rates and working conditions for its members. The company refused to meet SIPTU to negotiate the issues in dispute. Its position is that it prefers to deal directly with its staff of 950 on such issues.

The ground handling staff who are members of SIPTU voted in favour of industrial action which commenced on Friday, 9 January. I understand some 35, or perhaps fewer, staff are engaged in work stoppages for three hours per shift. There are conflicting statements from the company and SIPTU as to the effect on the airline's flight schedule. There are also counter claims concerning the pay rates of ground handling staff employed in other companies and those employed in Ryanair. Last weekend I encouraged the parties to use the labour relations machinery to overcome differences, even in relation to the facts on pay and conditions of employment.

On Monday the Labour Court invited the company and SIPTU to separate meetings on Friday, 30 January. Ryanair notified the Labour Court on 28 January that it will not accept the invitation to attend. I am informed that SIPTU will attend the Labour Court on Friday. Ryanair's decision not to attend the Labour Court tomorrow is disappointing. It is not in the interest of the parties to this dispute that it should be prolonged. The invitation by the Labour Court to the parties provided an opportunity for them to state their case to an independent third party.

The Labour Court and the Labour Relations Commission have an impressive track record in helping parties to a dispute find a resolution. They provide tactful and helpful mediation. I was particularly disappointed Ryanair did not see the powerful possibility to solve the basic issues the court could have provided. In the final analysis, no third party can solve a dispute. There is no way the parties in a dispute such as this can be forced to accept particular outcomes, recommendations or even a clarification provided by a mediator. Where there are wide differences between the parties in a dispute on matters of fact, either the parties themselves, or an outside party, should set about establishing the facts. I do not see that happening in this case. I want to hear from Ryanair that it and its employees are engaged in a dialogue on a fair and open basis. I am still convinced that dialogue, especially if mediated by the Labour Court, could assist in arriving at clarification on the grounds for the dispute and could contribute to a solution.

The issues in this dispute are sensitive and the parties to the dispute are required to reflect carefully on their actions. It is time for cool heads all round.

I have been carefully monitoring developments in this dispute and have encouraged the parties to seek a resolution at the earliest opportunity. I will continue to make whatever contacts are necessary to encourage the parties to reach a settlement. The State's dispute settlement machinery remains available to them. I urge the company to reconsider its decision not to attend the Labour Court tomorrow

The process of social partnership has benefited our economy greatly, particularly in the past ten years. ICTU and the trade union movement have contributed substantially in an enlightened way to that process. As a result, the economy and the people have benefited. The process of partnership should be put into practice in this dispute. I urge the parties to find a resolution through the process of dialogue and I would like to see evidence of that in the crucial days ahead.

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