Written answers

Tuesday, 25 October 2005

Department of Communications, Energy and Natural Resources

Industrial Relations

9:00 pm

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 350: To ask the Minister for Communications, Marine and Natural Resources the reason An Post pensioners are not being awarded the full terms of the Sustaining Progress agreement; if he has met senior management in An Post regarding this matter; and if he will make a statement on the matter. [30745/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I am aware of the situation that has arisen in regard to industrial relations issues at An Post, in particular, the non-payment of Sustaining Progress increases to the company's pensioners and employees. I have no function in directing An Post in the matter of operational and commercial issues such as the application of national pay awards.

An Post has a remit to be financially viable and, following significant losses which amounted to €43 million in 2003 alone, An Post management invoked the "inability to pay" clause provided for in Sustaining Progress. Therefore, the key challenge for the company is to return to long-term financial stability. An agreement on a viable recovery plan is the only way forward for An Post to deliver quality services to our citizens, while at the same time providing sustainable well-paid employment for its staff.

To progress the change agenda, an exhaustive process of negotiation was entered into between An Post management and An Post trade unions, under the auspices of the Labour Relations Commission, LRC, and then the Labour Court, which has lasted almost two years. The question of Sustaining Progress payments to employees was addressed in a process brokered by the Labour Relations Commission. Assessors appointed by the LRC recommended that An Post was in a position to pay a 5% increase to its employees. This increase, backdated to 1 January 2005, was paid to An Post employees and pensioners at the end of June 2005.

To meet union concerns, a three-person expert group was formed under the auspices of the Labour Court to devise a workable agreement on collection and delivery. The process at the Labour Court recently concluded with the court's recommendation that the company accept the proposals as set out by the three-person, court-appointed technical group's report on An Post's collection and delivery arrangements and that upon ratification by both parties of the draft agreement annexed to that recommendation, the company should arrange for payment of all 2005 and future increases due under Sustaining Progress to its employees and pensioners. The court further recommended that all retrospective payments, relating to the recent 5% increase paid by An Post, be made to its employees and pensioners as soon as the company is returned to reasonable and sustainable profit and when commercial circumstances permit.

On 5 September 2005, however, the Labour Court's recommendations on the issues of Sustaining Progress and collection and delivery were rejected by the main union in An Post, the Communications Workers Union, with the result that the company is not in a position to make any further increases to its employees or pensioners. I have frequently engaged with and met the management and unions of An Post to emphasise the importance of an early start to the company's modernisation and that both sides must engage directly in order to resolve long-standing and deep-seated problems besetting the company. It is only then that the concerns facing the company, its employees and pensioners will be addressed.

Comments

No comments

Log in or join to post a public comment.