An Post is to pay Sustaining Progress wage increases to some of its workers following three Labour Court recommendations issued this evening.
Noel Dempsey cancelled a planned trip to the US to try to achieve a resolution in the An Post dispute
The announcement came as talks continue a bid to avert a postal strike from next Friday.
An Post is to meet representatives of the Communications Workers' Union tomorrow. The union and the company will meet with the National Implementation body following an intervention by the Minister for Communications Noel Dempsey.
The pay increases that were the subject of today's Labour Court recommendations will be paid to staff who are members of the Civil and Public Service Union (CPSU), the Association of Higher Civil and Public Servants (AHCPS) and the Public Service Executive Union (PSEU).
An Post said the payments would add €4.8 million to its annual payroll costs.
In a statement, An Post said the recommendation was made on the grounds that An Post staff who are members of the CPSU and AHCPS have already agreed and are in the process of implementing programmes of change in work practices and staffing.
The PSEU has agreed in advance to accept an imminent Labour Court decision on a programme of change for their members at An Post.
An Post said the rejection by the Communications Workers' Union of a Labour Court recommendation linking payment of Sustaining Progress increases to changes in work practices had effectively blocked payment to members of the other three unions.
"In line with the May 2005 Labour Relations Commission appointed Assessor's Report on the company's finances and its ability to pay, An Post agreed to pay all staff five per cent of outstanding Sustaining Progress increases, backdated to January 1, 2005."
Postal workers voted in October to strike in pursuit of a pay claim. Strike notice was served by the Communications Workers' Union after 90 per cent of its 8,500 members had backed strike action in a ballot.
Workers are owed an additional €30 a week under the deal, while pensioners should be receiving an extra €15, the union said.
In a 65-page recommendation in July, the Labour Court said the increases should be paid - but only after the union had agreed to a major rationalisation of the company's collection and delivery service.
But the CWU has said this will not have any effect on Friday's strike deadline as the back payments only involve a few members of management at An Post.
The Minister for Social and Family Affairs said yesterday he had put in place contingency plans for social welfare payments in the event of a postal strike.
Some 970,000 welfare payments are made by the Department each week. A total of 58 per cent of the payments are made at post office counters, while 10 per cent are paid by cheque through the post. The remaining 32 per cent of payments are made by direct electronic transfer into the recipients' bank accounts.