The executive council of ISME, the small firms lobby group, is to meet today to consider the resignation of its chairman, Mr Peter Faulkner. Mr Faulkner has called today's meeting and his offer to resign follows sharp differences he has had with Mr Frank Mulcahy, the group's chief executive over how the organisation should be run.
Mr Faulkner said last night that if he did not have the support of the other executive members, then he would resign. However, he said he would not be pushing for Mr Mulcahy's resignation.
For his part, Mr Mulcahy said he would not comment as the matter was too sensitive for everybody concerned.
The two men, who had been close friends for more than 10 years, are understood not to be on speaking terms. ISME members were reluctant to discuss the matter, given recent media reports about the falling out.
One Sunday newspaper published details of a memo sent by Mr Faulkner to Mr Mulcahy warning him that he was considering his position and also accusing Mr Mulcahy of leaking details of an impending strike at his company, Faulkner Packaging.
However, sources say the row is not about this issue, nor several others, which have been the subject of recent media reports. It is understood that Mr Faulkner believes ISME seeks too much publicity and will not be taken seriously until it tones down its approach somewhat.
In an interview with The Irish Times earlier this year, Mr Faulkner, who took office in April, said his priority was to win ISME a place at the Social Partnership table. Others say this will not be achieved if ISME issues so many press releases on a range of issues.
"We are not taken seriously by Official Ireland," said one source, "because they say every time we have a meeting with you, we read about it in the papers the next day".
Another source pointed out that ISME was not represented on the new Enterprise Ireland board, or on FAS, as well as many other Government-sponsored boards.
"It is a shame because we were the first to raise several issues, but we never get the credit for it, because we don't have the resources to see them through," said one source.
Issues which ISME members say they were the first to raise include bank charges - at least five years ago they were complaining about hidden charges - labour shortages and the disincentives caused by tax on the lower paid.
Both men will attend today's meeting which will in fact be chaired by Mr Faulkner, who was endorsed for the post earlier this year, by Mr Mulcahy. Sources say the organisation does not want either man to resign his post.
The meeting will be followed by a meeting of the national executive on August 20th, where the same issues will be raised. It is thought that Mr Mulcahy feels he could garner a lot of support for his viewpoint at this meeting as some members were disillusioned with Mr Faulkner's attitude towards a candidate he defeated for the chairmanship.
It centres on a letter Mr Faulkner wrote to the candidate, now said to be the subject of a legal action.
