Micheál Martin (Cork South Central, Fianna Fail)

I welcome the opportunity to address the dispute at Irish Ferries: an issue which has such significant impacts for the travelling public, the workers in Irish Ferries and their families, Irish Ferries itself, exporters, importers, hauliers and many more people. It also has the potential to impact on the whole industrial relations environment, on the prospects for continued social partnership in Ireland and on the image of Ireland abroad as a stable location to invest and do business.

I welcome the withdrawal earlier this afternoon by Irish Ferries of the security staff on the Isle of Inishmore and the Ulysses ferries. This should assist the process of engagement. I hope this will lead to a more positive climate for talks in the Labour Relations Commission. This matter, which we all recognise as being of major importance, is currently with the Labour Relations Commission. The commission is working with both parties to agree an agenda to allow the parties to engage in intensive negotiations over the next week. I am appalled at the approach taken by Irish Ferries in recent weeks to the conduct of industrial relations. In particular, the Taoiseach and other members of the Government have condemned the company's confrontational tactics which are not the way that business should be done. The orderly conduct of industrial relations depends on respect for the basic norms and for the institutions of the State, especially the Labour Court. While Labour Court recommendations are not generally binding, the fact is that they should be respected as the proper means to the resolution of disputes.

This is especially the case with the Irish Ferries dispute. The court spelt out very carefully its views on fundamental aspects of negotiation and collective agreements. It upholds the basic principle that agreements should be honoured unless there are compelling reasons to vary them. In this case, having heard comprehensive arguments from both sides, the court concluded that the company had not made out a sufficiently compelling case to justify a unilateral termination of its agreement with SIPTU. However, the court went on to state that all possibilities of re-negotiating aspects of the agreement of concern to the company had not been exhausted. It was therefore recommended that the parties resume negotiations on such changes as are necessary in order to address the commercial needs of the company. Having regard to the clear risk to the conduct of ordinary industrial relations which the court stated would otherwise arise, the Government strongly urged the parties to enter into negotiations, with an independent facilitator if necessary. The issues in dispute between SIPTU and the company could have been resolved. It may still be possible to do so, but the company's tactics have not helped.

The Minister for Communications, Marine and Natural Resources is considering an application by the company to transfer the vessels from the Irish register to the Cypriot register. He is doing so on the advice of the Attorney General and has sought further information on the strength of the relationship between Irish Ferries, the ships involved and Cyprus. The protection of employment standards is an important goal of public policy. We do not want to create a low wage economy here. In particular, we do not want to foster a social division by having jobs transformed from decent employment for Irish citizens to low pay positions targeted at migrant workers. This country has invested greatly in tackling poverty and inequality. The Government is not prepared to see it replaced by short-sighted and exploitative decisions. Ultimately, the State winds up subsidising unsustainable low paid employment through family income supplement, social services and so on.

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