Alan Kelly (Tipperary North, Labour) | Oireachtas source

I propose to take Question Nos. 8, 18, 27 and 87 together.  These relate to the industrial relations dispute at Bus Éireann. Deputies will be aware that the company and trade unions are in talks at the Labour Relations Commission following from last February's Labour Court recommendation on addressing the company's difficult financial position.  It has incurred accumulated losses of €27 million in the last five years, an unsustainable position which places the viability of the company at risk. The Labour Court recommendation on changes to terms and conditions would deliver annual savings of €4.8 million in a full year. In the absence of the necessary savings from changes to terms and conditions and ongoing intercity service changes, Bus Éireann faces annual losses of more than €11 million, which are simply not sustainable.

It is important to emphasise that the issues arising had been explored through the full industrial relations machinery of the State, culminating in a Labour Court recommendation which recognised that the savings had to be made in order to protect the continued employment of the staff.  According to the Labour Court and the trades union's own independent financial assessors, Bus Éireann is in a precarious financial situation and the very viability of the company is under threat.

Under the company's business recovery plan and the Labour Court recommendation, there would be no reductions to core pay or employment levels. I acknowledge that the position is extremely difficult for both sides and there is no easy solution to the problem. I am sure Deputies share my hope that the current negotiations at the Labour Relations Commission, which are likely to continue tonight, will result in an agreement that will deliver the level of savings that was identified as necessary by the Labour Court in its independent recommendation.

The future of Bus Éireann must be secured for the benefit of its employees and members of the public who depend on its services. The company runs commercial Expressway services, which are currently loss-making and which the State is legally precluded from supporting. The viability of these services can only be secured if these savings are achieved. I extend my best wishes to those involved in the discussions at the Labour Relations Commission.

See this speech in context