Jim Walsh (Fianna Fail)

Under the transfer of undertakings legislation, it is customary that, even in circumstances in which private companies are transferred to new owners, the employees' terms and conditions are taken on board. There is good reason for this provision, namely, protection for employees. However, this does not mean that if the commercial challenges facing the company change in future, it cannot revisit the transferred employees' terms and conditions as if they were continuing employees in the company. Should we not examine this matter to ensure that such would be possible?

I raise this matter in the context of the disproportionate action taken by air traffic controllers who held the travelling public to ransom. It turned out that the Irish Aviation Authority, IAA, was paying 30% of salaries as a contribution to pensions. This situation would not be sustainable in any company. It may be a carryover from this type of legislative clause, an issue that was not addressed by management. We can never expect to extricate ourselves from our serious economic difficulties if we allow bad practices to continue within the semi-State and State sectors. There are reasons to be fair to people, but there are also reasons to be sensible in what we do.

I am making this point in the context of recent events, as a similar legislative clause would have been used as the basis for the inaction of management and that company's board to tackle an obvious anomaly that has had serious implications for the State sector. When we are undertaking transfers, they should comply with the European legislation but they should not ignore commercial realities and the requirement that people on boards or at senior management level within the bodies in question should operate them properly, efficiently and in line with best managerial practice.