John Perry (Sligo-North Leitrim, Fine Gael)

I thank the Deputies for raising this matter on the Adjournment. Aetna Ireland Incorporated is a subsidiary of US-based Aetna Incorporated, a leading company in the health care benefit sector. Aetna Ireland Inc. provides customer service, claim processing and plan sponsor support services for Aetna Global Benefits, the international insurance products and services division of Aetna Inc.

The company has had a branch at Tralee Road, Castleisland, County Kerry since 1988. Aetna Inc. acquired the company in 1998. In 2008, Aetna Ireland celebrated 20 years of operation in Castleisland and also announced its expansion for an additional 70 positions with the inclusion of a 24-hour support service for members of European based multinational corporations. It currently employs 105 workers in Castleisland, which is one of three claims processing and operations centres for the group, the others being in Tampa and Manila.

As required under section 12 of the Protection of Employment Acts 1977-2007, the company notified the Minister for Enterprise, Trade and Innovation of a collective redundancy situation on 8 March 2011. According to the company, it was proposing a cessation of its customer service, claim processing and plan sponsor support service operations in Castleisland, as part of a global initiative to reduce overall operating expenses, while achieving service efficiencies and maintaining a high level of service and support for AGB customers and providers. Aetna indicated that it was proposing to transfer the functions and operations currently performed in Castleisland to vendors located outside of Ireland. According to the company, the review of its international operations is still ongoing and no final decision on the Castleisland operation has been taken.

I assure the Deputies that IDA Ireland is engaged in discussion with the company in efforts to secure its Irish operation.

If the proposed transfer of functions and operations occurs, the company stated that it would no longer require the services of 102 employees in Castleisland. Aetna advised that the collective redundancies, if progressed, would be expected to arise during the period of late June to late October 2011. The company confirmed that it intended to consult employee representatives concerning matters related to the proposed redundancies, including the selection criteria that would be applied should the redundancies proceed as well as the method for calculating any redundancy payments, other than statutory redundancy.

Section 9 of the Protection of Employment Act 1977, as amended, makes it mandatory on employers proposing a collective redundancy to engage in an information and consultation process with employees' representatives, with a view to reaching an agreement. This process requires the employer to give the representatives a reasonable opportunity to revert with their proposals, having had an opportunity to consider the employer's initial proposals.

I understand the workers have elected an employee representative committee that, with a view to the mitigation, or avoidance, of the proposed redundancies, has responded to the company's proposals. Unfortunately, I understand that the parties have so far been unable to agree on any proposals to mitigate the proposed job losses. As well as being dissatisfied with the information and consultation process and its failure to mitigate the job losses, the employees have expressed dissatisfaction with the redundancy package offered by the company.

I understand that the employee representative committee has formally sought the assistance of the Labour Relations Commission in the dispute. The conciliation service of the commission has invited Aetna Ireland Inc. into talks and I understand that the company is considering the invitation and will revert to the commission as soon as possible.

Ireland's system of industrial relations is, essentially, voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, whether in redundancy or other collective disputes, rests with the employer, the workers and their representatives. The State provides the industrial relations dispute settlement services to support parties in their efforts to resolve their differences.

Even what often appears to be the most intractable of disputes is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides in a dispute make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences.

I urge the parties involved in this dispute to work together to break the current impasse by utilising the established machinery for dispute resolution.

I thank Deputies Fleming and Spring for raising this important issue. The Minister will work closely with IDA Ireland to ensure something can be done positively to ensure their concerns are dealt with decisively.

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