Bertie Ahern (Dublin Central, Fianna Fail)

I propose to take Questions Nos. 1 to 11, inclusive, together.

The National Implementation Body, NIB, which has been in existence since the start of 2001, continues to meet as necessary to oversee delivery of the industrial peace and stability provisions in Towards 2016. The NIB has met on a number of occasions recently to assist in the resolution of industrial disputes. Meetings of the NIB also provide opportunities for informal discussions on some of the broader issues relating to the social partnership process and the industrial relations climate generally.

With regard to Aer Lingus, Deputies will be aware of the extensive processes, both internally between the parties and with the assistance of the State's industrial relations machinery, which have taken place in respect of transforming the company to meet current and future challenges. Having considered the concerns expressed by the parties regarding industrial relations issues, the NIB proposed a process, detailed in its statement of 16 November last, which included an analysis on its behalf of various elements of the change agenda to be undertaken by the Labour Relations Commission, LRC, using the technical assistance, as necessary, provided by Grant Thornton so as to clarify the scope and value of a number of issues in dispute. The NIB invited the parties to engage meaningfully with each phase of the process and requested that they desist from taking any action which might hinder the effectiveness of the process.

Informed by the outcome of the intensive discussions facilitated by the LRC, the NIB met again the parties before Christmas to assess progress on the process agreed in mid-November. In its statement of 21 December 2007, the NIB noted that the negotiations on change facilitated by the LRC and those on arrangements at Shannon Airport had resulted in the identification by Aer Lingus management and SIPTU of savings equivalent to those being sought under the programme for continuous improvement, estimated to be in the order of €10 million.

The NIB also recommended further engagement on the flexibility and mobility agenda and the Shannon issue, and it made other specific recommendations regarding cabin crew, pilots, IAESA, the craft group, future recruitment and grading structures and Towards 2016 and other increases.

I am encouraged that the parties have been working towards resolving their difficulties. This joint problem-solving approach will pay dividends for the company, the employees, the travelling public and the development of Ireland's aviation sector. I join the NIB and the Labour Court in emphasising the importance for the company and employees alike of managing change through partnership, consultation and agreement, and the development of appropriate structures to promote such an approach and to facilitate the speedy resolution of disputes when they arise.

Deputies will be aware that the terms of the pay agreement for the private sector under Towards 2016 are due to expire shortly and accordingly I expect that the next plenary meeting to review the agreement this month will provide the basis for the initiation of formal talks, including those on a new pay round. As provided for under Towards 2016, implementation of the benchmarking report will be discussed by the public service employers and unions in the context of the arrangements on pay and conditions to be put in place on the expiry of the current public service pay agreement.

In parallel and as agreed under Towards 2016, the steering group, representing Government and each of the social partner pillars, continues to have overall responsibility for the management of the implementation of the Towards 2016 agreement as it applies to the wider non-pay issues. The most recent meeting of the steering group, the fifth meeting under Towards 2016, took place on 29 January 2008. The main agenda items for this meeting were a presentation by Professor Brendan Drumm of the Health Service Executive on integrated health services and a presentation by the Department of Health and Children and the Department of Social and Family Affairs on the older people life cycle stage.

Quarterly plenary meetings, chaired by the Secretary General of my Department, will continue during 2008 to review, monitor and report on overall progress in the implementation of the ten-year framework agreement. Regular progress reports are presented at these plenary meetings. The most recent progress report was published in November 2007 and is available in the Oireachtas Library. The next plenary meeting will take place in Dublin Castle on Friday, 15 February.

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