Richard Bruton (Dublin North Central, Fine Gael)

I thank the Senators for raising this issue. I met the Lagan Brick workers when I was there last month. The workers 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 in the plant and secure satisfactory redundancy terms for any of the workers who would lose their jobs. Subsequently, representatives of the company and of SIPTU attended conciliation talks at the Labour Relations Commission on 10 January and 16 January. These talks were reconvened on 6 February following consideration by both sides of an examination of the trading position of the company, undertaken by an independent expert.

Following the hearing on 6 February, SIPTU stated that it would be seeking the intervention of the Labour Court in the dispute, following the failure to reach agreement in the LRC talks. However, I understand that Lagan Brick subsequently issued a statement to the effect that the company did not intend to pursue further negotiations with worker representatives on the matter. In a ballot conducted on 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 seven days' notice of strike action was served on Lagan Brick by SIPTU on 2 March. An official strike began on 10 March. Since then, I understand the parties have engaged in direct discussions in an effort to resolve the dispute with the assistance of a mediation panel, under an agreed independent chairman appointed jointly by ICTU and IBEC. Unfortunately, that process has failed to reach a resolution. It is of great regret that the parties have not been able to reach an agreement to resolve this long-running dispute.

The Senators have raised the issue of whether we should reconsider our laws in this area. We would have to be very careful about it. Our entire approach to industrial relations has been based on a voluntary system. The State does not impose on either party. It does not make decisions that have a binding effect. What we have is very experienced services in both the Labour Relations Commission, LRC, and the Labour Court, which over long difficult periods such as that in which we are at present, have succeeded in bringing the two sides together to resolve such disputes. Ultimately, disputes must be solved by the two sides reaching an agreement. I strongly urge the parties involved in this dispute to work together to break the current impasse by using the machinery we have that is available to assist at short notice. The experience and expertise of the Labour Court offers the most appropriate and effective avenue for resolving such issues.

The Senator also raised the issue of Flair International. I understand that the High Court appointed a provisional liquidator to the company on 6 June and the assets, goodwill and undertaking of the business were advertised for sale on 8 June. I am conscious of the anxiety that the appointment of a provisional liquidator to the company concerned creates for the workers involved and their families, as well as the local community. People understand the concerns this action has raised. However, one of the powers given by the court to the liquidator was to grant a licence to continue to trade in the short term. A licence agreement was concluded between the liquidator and a new company on 7 June. Sales operations commenced on 8 June and the employment of key people and further recruitment of staff for operation of the factory is anticipated. Obviously if there are industrial dispute issues we have the machinery and the employment rights provisions to deal with them.

The company is a client of Enterprise Ireland and the agency is continuing to liaise with the agency concerned and will offer any assistance it possibly can to explore opportunities to maintain and develop the business. I hope that out of the unfortunate appointment of a liquidator we can see something re-emerge that would provide a future for the workers concerned.