Bertie Ahern (Dublin Central, Fianna Fail)

The Irish Ferries dispute shows precisely the value of social partnership. I expressed the view in the House that the behaviour of the company in refusing to engage with the Labour Court and other industrial relations machinery, and its being intent on an apparent breach of obligations under Sustaining Progress, was unacceptable. The national implementation body correctly recommended to the parties, including the company, that the invitation to attend the Labour Court should be accepted. Both representatives of IBEC put their views on the record very publicly in this regard while fully expressing the difficulties experienced by the company. We can all understand the difficulties any company can face from competition but there is still a process to be followed and this should be done.

I very much welcome the fact that the company has now decided to fully participate in the process recommended by the court, including returning to it if necessary. This is how our business should be done. My point was not that a company had difficulties; it was the process to which I objected. I accept the company has difficulties, including competitiveness. I stated the process should be followed, which the company is now doing.

I very much regret the decision of the Communications Workers Union to proceed to a national ballot for industrial action. The situation in An Post, as in all postal services, is very serious. The viability of the company in the light of technical and market changes is critically dependent on its ability to adapt, become more efficient and to exploit new technology to the full. This is the only way in which An Post workers, like those in any business, can have reasonable security of employment at the pay levels to which they aspire and need.

Along with the Minister, Deputy Noel Dempsey, I met the An Post unions at their request some time ago. I left that meeting with the knowledge that the need for change and the nature of change has been the subject of extensive discussions. An expert review has taken place in accordance with the terms of Sustaining Progress and with the direct involvement of the Labour Court. The payment of the increases provided under Sustaining Progress is contingent on co-operation and ongoing change. Provision was also made for payment to be linked to necessary changes to offset the additional costs on the basis that the Labour Court would adjudicate on that issue. That is what happened in this case with the assistance of a detailed review by independent experts.

I am disappointed with the decision that has been taken because the threat of industrial action to overturn the outcome of the process agreed under Sustaining Progress is not satisfactory either from the employer's or employees' side. Last week I criticised matters from the employer's side and this week I do so from the employees' side. Industrial action that displaces the outcome of negotiation and, ultimately, adjudication of the Labour Court risks undermining the stability on which jobs and incomes rest and it is wrong to do that.

Industrial action in An Post would only deepen the problems and put jobs and living standards at risk. I urge members of the CWU to consider very carefully the options before them. It is not open to Government to change the realities faced by the company and its employees. At the meeting we had I believed they understood that. I accept there are difficulties but the path recommended by the Labour Court is the only sensible solution and I recommend it most strongly to the employees of An Post. We will see where we go from here.

I have not had a chance to read the full script regarding social partnership from the head of SIPTU, Jack O'Connor, whom I regularly meet, but I can understand his concerns about Irish Ferries and other companies. SIPTU has had it own difficulties on the Gama issue over the years. It is important for the union that we do not get into a race to the bottom and that the protection of employment standards is an important public policy goal. The best way of dealing with that is within social partnership. Any of the analysis that has been done on this by IR people, other than those on the extreme left who are really against social partnership anyway and have never supported any of the six agreements, shows it is the best way forward. The benefits are there for all to see. I will not go through them all. Anyone looking at where we have come from and where we are would see the benefits of social partnership. Of course there are tensions from time to time but there is less tension and fewer strikes in the private sector. We will have to see where it goes. A considerable number of trade unions want social partnership. I urge those in SIPTU to see the overall benefits as well. I hope they will do that in the days ahead.

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