John Perry (Sligo-North Leitrim, Fine Gael)

I thank the Senator for raising this important matter. Industrial action by 110 workers at the Irish Cement production plants at Platin, County Meath and Castlemungret, County Limerick began on 3 April. I understand the Labour Court's most recent recommendation of January 2012 in the dispute was the culmination of protracted dialogue between the company and the group of unions representing the workers on restructuring issues that had already involved three successive Labour Court recommendations, the previous two being in August 2010 and December 2011.

In its recommendation in January the Labour Court recommended the company pay to the staff concerned the bonus amounts outstanding for 2011. In addition, the court concluded that it was not in a position, on the basis of the information provided through a report of the financial assessor undertaken following agreement between the parties, to make a definitive recommendation on an adjustment of pay rates and pay structures for the future. Accordingly, it urged the parties to engage with each other on the total cost base of the company.

The Labour Relations Commission was subsequently closely involved in facilitating talks between the company and the group of unions which were aimed at finding an agreed solution to the matters in dispute. That process of dialogue proceeded to the stage at which proposals for a settlement of the dispute were rejected by the trade unions concerned and a work stoppage commenced.

According to the company, pay rates have remained unchanged since 2008 and are currently 60% higher than the average industrial wage for unionised staff, despite the unprecedented deterioration in the construction sector. According to the Irish Cement group of unions, the company has insisted on a pay cut before outstanding bonuses are paid. The Labour Court previously noted in its first recommendation of August 2010 that it was clear the company was facing severe market conditions that required significant changes to enable it to compete and survive. It was equally clear that the unions were prepared to engage seriously on these issues with the company with a view to reaching agreement on a viable way forward that would optimise employment levels and conditions of employment, consistent with the current and medium-term financial and trading environment. With the exception of the issue of the pay cut sought by the company, it appears it was possible for the parties to reach agreement on a number of issues in dispute.

I urge the parties involved to have regard to the continuing availability of the industrial relations dispute resolution bodies to assist them in seeking a settlement and addressing the underlying challenge presented by a major restructuring of the company in the face of the dramatic changes in the building industry. I urge them 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 employers, workers and their representatives. The State provides the industrial relations dispute settlement mchinery to support parties in their efforts to resolve their differences. Even what 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 will 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 impasse by utilising the established dispute resolution machinery which is available to assist at short notice.

I again compliment the Senator for raising this very important issue. I hope the parties involved will take the clear message from the Government that there is a mechanism in place to resolve it.