Seanad debates

Tuesday, 6 March 2012

5:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)

I thank Senator Byrne for raising this matter on the Adjournment. As he stated, the workers at the Lagan Brick factory in Kingscourt, County Cavan, have been involved in a protest outside the company's premises in a dispute over the decision by the company to close its operation on 15 December last, with the loss of 29 jobs. The union wanted to retain maximum employment at the plant and secure satisfactory redundancy terms for any workers that lost their jobs. Subsequently, representatives of the company and the trade union SIPTU attended conciliation talks at the Labour Relations Commission on 10 and 16 January. Following those talks, the company and SIPTU accepted proposals put to both sides to the commission to progress the issues in dispute. In line with these proposals, an independent assessor, agreed by both sides, undertook an examination of the trading position of the company, including an assessment of the viability of continuing manufacturing in Kingscourt.

It was envisaged that the assessor would provide a report to both sides within a period of two weeks and that the parties would reconvene under the auspices of the commission on 30 January to consider the implications of the assessor's report and other outstanding issues, including the question of severance terms for required redundancies.

The assessor subsequently sought additional time to complete the report and the reconvened hearing took place on 6 February. Following receipt of the assessor's report, further progress was, I understand, made at the Labour Relations Commission on a number of issues, but agreement on the central issue of redundancy terms was not achieved. Following the hearing on 6 February, SIPTU stated that it would be seeking the intervention of the Labour Court in this dispute following the failure to reach agreement in the talks at the commission. However, I understand that Lagan Brick subsequently issued a statement contending it had fully engaged and made all reasonable efforts to settle the dispute, and that acceptance of the terms on offer was now best left as a matter for each employee to decide on as reasonable negotiation had, in the company's view, come to an end.

SIPTU claims the failure of the company to attend the Labour Court is in breach of the private sector protocol agreed by IBEC and ICTU in 2010, stipulating that parties utilise the machinery of the State - the Labour Court and Labour Relations Commission, or other agreed machinery - to resolve disputes.

I understand that, in a ballot conducted on Thursday, 1 March, SIPTU members in Lagan Brick voted almost unanimously to take strike action in response to the company's decision not to attend the Labour Court, and that seven days' notice of strike action was served on Lagan Brick by SIPTU on 2 March.

I regret that the company has decided against attending a Labour Court hearing, contrary to good industrial relations practice in that regard. The experience and expertise of the Labour Court offers the most appropriate and effective avenue for resolving such disputes. I urge the company to agree to avail of the services of the State's industrial relations machinery and I urge both parties to engage fully in the process. I urge the parties to put their difficulties and differences behind them and approach the process in good faith with a view to accepting the outcome of the process.

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 being resolved 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, which is available to assist at short notice.

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