Micheál Martin (Cork South Central, Fianna Fail)

As my colleague, the Minister of State with responsibility for labour affairs, said yesterday evening, I regret that the House has to debate a matter as unwelcome as the situation at Irish Ferries. This society has laboured long and hard to develop change management and dispute resolution machinery to address the very kind of situation now causing such concern, not only to this House, but also to the wider Irish society. In my comments this evening I wish to concentrate on the employment rights and dispute resolution aspects of the present issue rather than on specific aspects which, of their nature, are particular to the international maritime sector.

At a time when this society has reached what is in effect full employment, it is unacceptable to come across a situation whereby long serving employees of a company are being pressurised into vacating their jobs so that these may then be offered to new employees at much lower rates of pay. The fact that the mooted rates of redundancy payment are relatively generous and apparently attractive to many does not mitigate matters. From the information available, this is a forced sale as the company appears determined to change the conditions of service at all costs. This approach to change management and industrial relations negotiations goes against the widely accepted social norms expected in Ireland in recent years.

Unwelcome as this situation is, I stress that the circumstances are quite unique in that the international rules governing employment in the maritime sector do not allow the application of Irish labour law and the Irish social protection framework to employees of foreign registered vessels serving Irish ports. Regrettable as this situation is, it does not pose a threat to conditions of employment in the wider Irish economy where Irish law and Irish social standards continue to apply and where these can and will be legally enforced.

Governments cannot prevent job losses in individual firms engaged in a market economy. The accelerating pace of change is a sometimes frightening aspect of a dynamic economy. Our response must be to maintain and renew our enterprise base, increase our skills levels and embrace the capacity to be flexible and adapt to changing circumstances.

As a society we should take encouragement from our success in surmounting the challenges of the global trading environment. From 1997, when the unemployment rate was 10.4%, we have achieved the lowest unemployment rate in the EU at 4.2%. This is all the more remarkable when set against the growth in the number of people at work, which has risen by 462,000 to 1.9 million, an increase of 31.4%. However, such hard-won gains are easily lost if we do not continue to upskill and innovate.

Some sectors and companies will do better than others in meeting customer needs and in responding to competition. However, the situation we are now facing appears, from the information available, to be quite different in that what is proposed has been contrived to enable the replacement of an existing work force by a new work force paid at a much lower level.

While Irish Ferries is not the first Irish company to face serious challenges in a rapidly changing economic environment, its proposed response appears not to have been influenced by what has worked for other companies in areas such as investment in people, employee motivation, staff training and flexible work practices. The company has done little to convince the Irish public, who constitute the bulk of its customers in one category or another, that what is proposed is absolutely necessary or, indeed, that it constitutes an effective response in the longer term. Neither is it clear what changes in work practices at the company are necessary to cope with new challenges.

Some comfort, however, may be drawn from the fact that the matters at issue are now to be considered, somewhat belatedly, within our industrial relations bodies which have commanded respect over the years by addressing the most intractable of problems. This process should have begun earlier.

These are difficult issues which are causing great distress and disquiet. It is worth reflecting on how much worse matters would be if we did not have an agreed social partnership model to underpin relationships, support dispute settlement and advance towards our agreed goals. I wish to restate mine and the Government's ongoing commitment to social partnership which, as is stated in the amendment to the motion, will give us a framework for the future, for building on our strengths and for overcoming difficult problems as they will inevitably arise. Our social partnership is adapted to our needs, enabling us to tackle the problems arising from the ever increasing pace of economic and social change, by means of tried and trusted engagement. All have benefited from social partnership; we all have an obligation to contribute to its continuation.

There are those who properly seek to test the continuation of our partnership model. The only tests I would apply are whether it has succeeded in meeting our agreed objectives — it has — and whether it will meet the challenges of the future — it will if all contribute. Social partnership, however, will fail the test if there is not an open and honest engagement now and in the future. There is no place for free riders in social partnership. There is no place for those who take the benefits but do not contribute.

My door is open to further engagement with the social partners on the employment rights framework to ensure proper compliance and enforcement. These are issues of concern to all which can be addressed effectively through social partnership rather than by abandoning it and all its achievements. In that context I have made it clear that the Government is willing to engage with the social partners to deal with the whole area of compliance and enforcement. I have allocated additional resources to the labour inspectorate. If further resources are to be made available I am prepared to discuss with the partners the best model to ensure future better compliance.

The Government is open to reform and change in the existing models. It has been in discussion with the social partners on the subject of the various approaches which might be adopted on compliance and enforcement of the labour laws. We are open to engaging with the social partnership in developing new models if this is the agreed best way forward. I have had some discussions with the social partners who have said it is not all a question of throwing more in resources but there is a case to be made for reflecting on the working of the current model, particularly in the context of any additional resources. The Government hopes to be in a position to engage with the social partners on that issue soon.

It is with the confidence that we can tackle problems arising from our commitment to social partnership that I commend the terms of the Government's amendment, which notes that Ireland has in place a full body of employment rights legislation covering workplace relationships between employers and employees. It notes there is no question of employment rights being in free-fall as they have a sound legislative foundation, active compliance systems and robust institutions for adjudication on rights and resolving disputes together with broad social support.

The amendment notes with concern the initial reluctance of Irish Ferries to engage with the industrial relations machinery of the State and reminds the parties that our dispute settlement system is based on engagement with, and respect for, our adjudication and dispute settlement bodies. To act otherwise will only exacerbate the situation.

The Government amendment notes the institutions of social partnership will continue to contribute to the attainment of agreed goals and that they have played a role in ensuring engagement with the Labour Court and the Labour Relations Commission, a process in which the Government urges all parties to participate fully. The amendment endorses the actions taken by the Government to date in supporting the Irish maritime sector. It also calls on Irish Ferries to reconsider its proposal to outsource employment on its Irish Sea routes and to examine alternative viability options for these routes.

Our amendment to the motion notes the applicability of national and international maritime law in the area of ship registration and the Government's current consultation in relation to ship registration legislation. It also recognises the importance of shipping in the handling of Ireland's imports and exports and the high cost to the economy of any interference with our strategic shipping services.

Finally, the amendment notes the Government's intention to request the Irish maritime development office to carry out a thorough evaluation of the results of existing strategies to promote the Irish maritime sector, including the successes achieved to date and the issues to be addressed going forward, particularly in light of recent developments, and to make recommendations accordingly for consideration by the Government.

Reference was made to my absence this evening, but I was informed that I was due in the House at 8.02 p.m. to speak on this matter. Last evening I was in Luxembourg, attending a meeting of the Competitiveness Council on behalf of the Government. That is why I could not attend the debate yesterday and there was no intended slight to Members. The Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, has responsibility for labour ——

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