Enda Kenny (Mayo, Fine Gael)
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Question 394: To ask the Minister for Communications, Marine and Natural Resources the plans to address the points put across by the CWU, now that the one-day strike of postal workers has taken place, in order to avoid the disruption which a further strike would cause; and if he will make a statement on the matter. [34148/04]

Noel Dempsey (Meath, Fianna Fail)
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As the Deputy may be aware, An Post has been in negotiations for several months with the main union in An Post, the Communications Workers Union, on the implementation of a change management programme for the company. The recovery plan presented by the board and management, and which assumed significant changes in work practices, some tariff increases and the payment of wage increases, sets out the way forward for the company.

An Post management and unions have been involved in a detailed negotiation process under the auspices of the LRC since March last year regarding the implementation of the recovery plan. In December 2004, CWU members rejected a proposal on collection and delivery arrangements, which provided for a 5.35% increase over three years, and the process is now being referred to the Labour Court for decision. The hearing in the Labour Court is due to commence in early February next.

An Post stated that unless certain changes were carried out to make An Post more competitive, it would not be in a position to pay the increases due under the Sustaining Progress agreement. In such circumstances, it is open to An Post unions to refer this to the LRC and ultimately the Labour Court where a binding ruling can be made. The rationale for the board's decision was that An Post made losses of €43 million in 2003 and any further payments would have an even more detrimental impact on the company's finances.

The way forward for An Post is the use of the industrial relations machinery of the State by both sides and while some progress has been made, I acknowledge that many more difficult issues remain to be agreed. I am convinced that agreement will only be reached by continuing with the process of negotiating a settlement acceptable to all. I have met both the board and management of An Post and the CWU to discuss the actions needed to secure the future of the company for the benefit of its customers, staff and the community at large. I have urged all parties to continue to resolve issues of disagreement in a spirit of partnership.