Dáil debates

Wednesday, 9 October 2013

Topical Issue Debate

Industrial Disputes

2:30 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I thank the Ceann Comhairle's office for allowing me to raise this issue and I thank the Minister for attending. I wish to draw his attention to a gross injustice being perpetrated by a wealthy, large, multinational conglomerate against a group of some of the most decent, loyal and hard working people I am privileged to know. I am referring to the Wallis dispute in Limerick.

The Wallis shop is one of a number of units owned by the Arcadia Group, a multinational corporation headquartered in London. There is a long-standing agreement to the effect that, when the company makes someone redundant in Ireland, it makes a redundancy payment of five weeks per year's service - the statutory redundancy that it is legally obliged to pay plus three weeks of its own volition.

The company has suddenly changed the goal posts. In respect of the Wallis group of workers, it has decided that it will only pay 2.75 weeks per year's service, which is its statutory obligation plus 0.75. This is despite the fact that, only a few short months ago when the company was dealing with other redundancies in Dublin, it paid the five weeks even though the staff in question had nothing like the length of service of the staff in Limerick. These people have served the company loyally for as long as 20 years or more. They have built the business from the ground up and into the undoubted success that it is today.

The amount of redundancy is not the only issue. There are also issues about how the company is handling restructuring. While I do not have time to go into the matter in detail, suffice to say that the treatment being meted out to the employees in this regard can only be described as shoddy, shabby and contemptible.

We should look for a moment at the multinational corporation that is involved in this sort of skulduggery. The Arcadia group has over 10,000 employees and is privately owned by a gentleman called Sir Philip Green who is well known in financial and society circles throughout the world. Photographs of him are to be seen as often in the society pages as in the financial pages, besporting himself on his yacht in Monte Carlo with his rich and famous friends.

This company recently announced that it was in the acquisitions business. The announcement stated that "being debt free, gives us the balance-sheet and the flexibility for further acquisition". Incidentally, the company recently transferred £92 million from its Irish operation to its headquarters in the UK. When asked about that, the company said it was for house-keeping purposes.

This company is literally awash with cash and has benefited enormously from the loyal service of its Irish workforce, including the workers in Limerick. Is the Minister prepared to intervene in this case? Those people are walking up and down outside the store in all sorts of weather. The Minister of State, Deputy Jan O'Sullivan, knows exactly where it is. They are now in their 17th day and some of them are there for up to six days a week. They are determined to stay there for as long as it takes to vindicate their rights. Will the Government stand idly by, wringing its hands while loyal, decent, law-abiding people are being treated in this manner by an English-based multinational company?

2:40 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I thank Deputy O'Dea for raising this issue and I can certainly understand his concern. The matter involves a dispute over redundancy terms offered to ten staff who are based in the Cruises Street branch, which closed recently. Similar terms are being offered to staff based in the Childers Road branch, which is to undergo restructuring as part of a nationwide Wallis restructuring plan.

Pickets were placed at the two Wallis stores in Limerick on 23 September. I understand that Wallis, which is part of the Arcadia group, had agreed severance terms with the trade union Mandate of five weeks pay per year of service in respect of workers made redundant in 2012 in Wallis stores in Dublin, Wexford and Cork. However, I understand that for the Limerick staff, 2.75 weeks pay per year of service has been offered.

It is also my understanding that talks aimed at resolving this dispute had taken place - a development which I welcomed. The company put forward fresh proposals during these talks but I understand that these have been rejected by the Mandate trade union. I would point out that Ireland's system of industrial relations is voluntary in nature and responsibility for the resolution of industrial relations issues lies ultimately with employers and workers, and their respective representatives as appropriate.

As the Deputy is aware, the State provides industrial relations mechanisms to assist parties in their efforts to resolve any differences they may have. I urge the parties involved in this dispute to have regard to the availability of the industrial relations dispute resolution bodies to assist them in seeking a settlement and in addressing the underlying challenges of a major restructuring of the company. Experience constantly shows us that what often appears to be the most intractable of matters 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 will make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Is the Minister aware that at the recent talks, which he welcomed, the company took some of their favourable proposals off the table and offered worse terms to the workers? Is the Minister also aware that the company advanced as one of its reasons for changing tack on the redundancy payment, the change in the statutory rebate that goes to employers that was introduced in the last budget? I predicted that some acquisitive, greedy companies would seek to pass this reduction on to their workers, which is precisely what has happened in this case. Is the Minister further aware that the strike is now in its 17th day? It is appalling to watch people out in all sorts of weather. People with family responsibilities are walking up and down constantly, sometimes for as much as six hours a day and until 9 p.m., in order to vindicate their rights.

In addition, is the Minister aware that as a result of a vote taken last night this dispute is about to spread to Dublin? The places affected in Dublin will be at Grafton Street, Clery's and Jervis Street. The Minister mentioned the State's industrial relations machinery. He must surely be aware that the workers have expressed their willingness to go to the Labour Relations Commission. So far, however, there has been no response from the company. As Irish law stands, the company is under no obligation to engage in the process at all. So where does that leave the workers? If the company persists in its refusal to engage with the industrial relations machinery of the State, will those people be expected to continue walking up and down outside that store ad infinitum in order to pursue their rights?

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I must ask the Deputy to conclude.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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The workers are watching and listening to what the Minister has to say here. Can he offer them any comfort or do anything to assist them in their present plight?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Deputy is a seasoned Member of the House and will be aware that its voluntary nature has been a strong feature of the industrial relations scene in Ireland for many years. It is not open to Ministers to compel sides in respect of their position in any dispute of this nature. The Deputy will be well aware of people who are experienced in seeking to support the resolution of disputes. For good reasons, it has not been a pattern for political figures to get involved and seek to do a professional task of helping sides to find common ground.

I can understand the frustration of the Deputy and of those involved in this dispute. However, the system of professional support is there and I urge both sides to take up those opportunities. The employers should equally be open to engaging constructively with the relevant agencies. This is clearly a difficult dispute and, no doubt, its causes are many. None the less, we have professional agencies which are available to support both sides. I urge them to take up those opportunities.