Vol. 497 No. 7
1 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the situation regarding staff in Enterprise Ireland since its establishment; if an agreement has been reached with the unions about staff redundancies; the changes made in the status or rank of any staff; and if she will make a statement on the matter. [26235/98]
The current staffing level in the agency is 1,078 including legal and national metrology staff who will transfer to the National Standards Authority of Ireland. I have decided that 25 staff will transfer to Enterprise Ireland/Shannon Development, as appropriate, from the services to business section of FÁS. The process for deciding who will transfer and when is currently being finalised.
Enterprise Ireland is currently reviewing its organisation and structure within the policy framework I established for it. The Enterprise Ireland joint council, representing staff, management and unions, has been closely involved in the process. No decisions have as yet been reached on the total number of staff which the agency will require to carry out its mandate or whether this will result in a possible change in overall staff numbers. I understand from Enterprise Ireland that no discussions have taken place with unions about voluntary staff redundancies.
In the course of restructuring any organisation, the issue of changes in the status and role of staff inevitably arises as functions are redefined and personnel are transferred and/or promoted. Enterprise Ireland is having ongoing discussions with trade unions on a wide range of industrial relations issues.
Does the Minister accept that the speed with which she wanted to establish Enterprise Ireland is now one of the problems affecting its staffing? Is she aware that morale is extremely low and that there has been little or no progress in dealing with staffing issues, either grading or the possibility of voluntary redundancies? Is the Minister aware that even the internal management structures for Enterprise Ireland are still not fully established? Is it the case that there will be an announcement on that matter today? When will the Minister ensure meaningful negotiations take place with staff as opposed to what was referred to as "the slow bicycle race" which is happening at the moment — half hearted consultation and inadequate, informal focus groups which are not working?
I do not accept what Deputy Owen said. Merging two agencies with many staff overseas and adding an element of the FÁS training to business section takes time. I was anxious to enact the legislation as quickly as possible so a chief executive and a board could be appointed because it is their responsibility to put the new structure and organisation in place. That has been happening.
An extraordinary situation exists whereby there are 45 different pay levels or grades in the new organisation. To rationalise and marry some of those and deal with the industrial relations issues which arise takes time and must be done through negotiation, discussion and dialogue.
Regarding the management team, the seven directors are in place and other changes are being made. Of the directors appointed, two came from An Bord Tráchtála, four from Forbairt and one from Forfás through an open competition. Other changes will be announced. The board, under Pat Molloy and chief executive, Dan Flinter, have worked extremely hard and I am very grateful to them. They have put an enormous effort into this task. We want to get it right from the outset to have the right professional structure to help and support indigenous industry. Had the legislation not been in place, the board could not have set about the task of doing this.
One of the lessons we learned about restructuring following the Culliton report was that the long gap between the decision to do something and the subsequent enactment of the legislation caused a great deal of uncertainty and problems. It would have been better if An Bord Tráchtála had not been separated from the then Department of Enterprise and Employment in 1994. If that had not happened, the type of structure we are now trying to establish would have been established then. I accept an organisation which had to undergo changes in 1994 also has to undergo the same type of structural changes now and that adds to the difficulties.
I understand staff morale to be very high.
That is not what I have heard.
I have met many staff members from Enterprise Ireland at both senior and junior level in recent weeks. I have been abroad with them on a number of occasions and have met staff abroad. They believe the organisation is very focused and dynamic and all are very excited about the challenge ahead of them.
Will the Minister indicate when she expects discussions and negotiations with staff will be finalised? She must have some idea, having established the body, when matters concerning grading and location of staff will be completed. Will it be two, five or six months or whenever?
Some of the issues have been referred to the labour relations machinery of the State as the Deputy probably knows. I do not want to put a time on it because I will probably be back here in February saying why it did not happen. I hope matters will be concluded early in the new year. This has been under way since the summer, which is six months. I hope it does not take longer than nine months to have the type of decisions which have yet to be made resolved between all sides.
