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Seanad Éireann díospóireacht -
Tuesday, 5 Jul 1994

Vol. 140 No. 19

Adjournment Matters. - Irish Steel.

I thank the Cathaoirleach for allowing this matter to be raised in the House. With no disrespect to the Minister of State, Deputy O'Shea, I am annoyed that the responsible Minister is not in the House for the debate. I understood as early as 1 p.m. today that he would be here. I am surprised he is not present as I saw him in the vicinity in the past few minutes. If he wishes to treat Irish Steel with such contempt it is an insult to this House and to the workers in Irish Steel. I hope that is not his way of dealing with the matter. It is unfair that the Minister who is dealing with the problem and is up to date with it is not present. The House deserves an explanation.

The current state of affairs of Irish Steel is very serious. I would not want to undermine discussions that are, I understand, to start in the morning. I welcome that the relevant parties pushed to bring in the ICTU into the matter. Why was Congress not brought in sooner? The goalposts were changed speedily on Sunday and to expect an agreement to be reached in six to eight hours is not realistic. It is obvious that agreement could not be reached between management and particular unions. Management was having discussions with one union in one part of the building where the meeting was taking place and with other unions in another part of the same building. I welcome Congress intervening because all unions should have met for discussions.

Irish Steel is important to the Cork region, particularly to the lower harbour area. It is not just the 550 people who work there or the number who will be working there if it is saved that is in question, but Irish Steel is important to many semi-State bodies, to many people in the Cobh area and in the lower harbour area of Cork. It is important to the ferry companies and to Irish Rail — its loss could mean the end of the Cork-Cobh line.

There is a general impression that there is a death wish, whether on the part of management or workers. Some Oireachtas Members met both parties yesterday for discussions about the situation. It is disturbing to think that after 27 meetings between the parties involved nobody could say that anything had been agreed and that people can get together again within a short time of Congress becoming involved.

I would appreciate if the Minister of State would convey to the Minister for Enterprise and Employment that in discussions Congress should be talking to both parties, and report directly to the Minister. A total of 27 meetings have taken place, 25 of which were called by one group and not by management. There was an agreement on Sunday that basic pay would be left as it was. Another suggestion being considered is that more workers should be let go. It baffles me, and anybody who has any sense of logic, that there should have to be an agreement on that within six hours, and that we were brought to that point before a management decision, whether in discussion with the Department or not.

Obviously, discussions took place with the Department on Monday to put the workforce on protective notice and the plant is now only working at half strength. No raw materials were bought today. That is bad when people are prepared to compromise and there will have to be a compromise. I do not deny that fact because I am a realist. People should come together and discuss matters. I agree that as many jobs as possible should be saved. Irish Steel's costs are too high, but everybody is responsible for that situation, including the management and the Department. This issue raises a number of questions, such as whether the Department wants Irish Steel to continue in existence. Does it think Ireland should have a steel plant? We have a duty to tell the EU and others that there should be a steel plant on this island.

The crisis does not just involve the workers at Irish Steel but the entire area. Approximately 600 other people are directly involved in providing services to the company. For example, the harbour commissioners will lose somewhere in the region of £500,000-600,000 a year in Cork port. It also has implications for Irish Rail freight, involving a loss of £700,000 a year. Hammond Lane, which employs 50 people outside the door of Irish Steel, will close. Serious consideration must be given to this aspect.

The attitude of both sides late on Sunday night is also a cause for concern. Admittedly both sides may have been tired but they should have rested. Instead a situation was created where protective notice was issue and the plant is without half its workforce. It is most unfair and bad policy. Why were moves not made earlier to get congress involved? Was the Labour Relations Commission really committed to the problem? Can it operate in a way that will ensure people come together? How is it, after 27 meetings, that nobody can say progress was made?

We met the unions and management yesterday morning. Both sides were at loggerheads to such an extent that I believed they had a death wish for the company. The people who have put their lives into Irish Steel and the people of the region deserve better. Questions must be posed. Were the Department's actions sincere and why was congress not brought in earlier? Congress is capable of bringing all trade unionists together. We understand there was a problem with the craft unions in that they were not prepared to enter discussions with the other unions. If that is incorrect, I would like clarification. Of the 27 meetings held, 25 were called by the workforce while management only called two. Does the management have a commitment to Irish Steel or has it been told to forget about the company, that we would be much better off without it? That is the concern.

The Minister of State knows that I hold him in high regard but the Minister, Deputy Quinn, who is in the vicinity, should be here to discuss this matter and to explain exactly what is happening. It is a very serious situation and I do not want it to go the same way as TEAM Aer Lingus. People are committed to the success of the company. Of all the people Oireachtas Members from Cork met yesterday, not one said they did not want the company to succeed or that it was not worth it. It is a vitally important firm to the area.

It is also important that we receive proper answers and that all sides are brought together to work through the problem. We must ensure there is rational thinking. Neither side has engaged in such thinking. I do not carry a flag for anybody but I met the management and unions yesterday. The unions specifically said that management walked out of the meeting early on Sunday morning, stating it was closing down the plant. That is most unfair, given that it moved the goalposts a mere six hours earlier. The workforce said it was prepared to consider anything, so long as every effort was made to ensure the plant remained open. There is a demand for a 20 per cent reduction in the basic rate. It is unfair to expect anybody to agree to that without something in return. It took 27 meetings before a compromise was reached and the management agreed that the workforce was entitled to the basic rate and could retain the 20 per cent. However, six hours later, management walked out. Somebody must be held responsible. They have a duty.

We need proper answers. The Department is responsible on behalf of the taxpayer. It is the owner and therefore in a position to tell people to get their acts together. There is sincere commitment on the part of all those concerned but the risk is that over 200 people will lose their jobs. Those involved are conscious of that fact and it is not easy to eliminate any job. There should be proper commitment on everybody's part and I ask the Minister of State to bring this point to the senior Minister, who is not prepared to come into the House. That is an insult to the Cork region.

The Senator has slightly exceeded his time.

I appreciate that, a Chathaoirligh, but this is a matter of serious concern to the Cork region. Congress is capable of bringing both sides together and it has the opportunity to do so. It should report back directly to the Minister.

I thank Senator Cregan for allowing me the opportunity to address this most important issue. I am very aware of the concerns of all the Oireachtas Members in the Cork area. I have been asked by the Minister for Enterprise and Employment, who unfortunately cannot be here, to make the following statement.

The Government's position on Irish Steel is well known. It regrets that to date it has not been possible to reach agreement on the £8.4 million cost reduction package needed to achieve viable commercial operation. It welcomes the initiative from congress earlier today, which has allowed for the reopening of negotiations. It also welcomes the executive chairman's statement that talks will recommence tomorrow. The Minister for Enterprise and Employment and the Government hope that the resumed negotiations can be speedily and successfully concluded.

I know that Senator Cregan and the other Members join me and the Government in that hope.

I appreciate the Minister of State's concern but that position is known. Ultimately, we are discussing £2.1 million. I ask the Minister of State to emphasise to the senior Minister and the Department that congress is in a position to tell both sides to get their acts together. The Minister should recommend that congress report back to him and hold discussions with both parties. I understand that discussions between both sides will be held in the morning.

The Senator has made his case.

Congress should be in the middle. This is vital. I will not broaden this issue but I think the Minister of State understands my point.

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