A threat of disruption to services operated by Irish Ferries has been lifted for the time being after the company agreed yesterday to enter new talks on its controversial redundancy package.
A strike by ships officers represented by Siptu had been threatened from today over the company's plan to lay off hundreds of Irish-based seafarers and replace them with cheaper labour from eastern Europe.
Following an intervention by the Labour Court, however, the two sides are to begin new discussions aimed at finding agreement by the end of the month at the latest.
There was no indication, however, that the company was prepared to change its mind on its plan to outsource jobs. Human resources director Alf McGrath said there would be no change in its position that seafaring costs had to be reduced by €15 million a year to ensure the company remained competitive.
The only way this could be achieved, he said, was under the company's existing cost-cutting plan. He acknowledged, however, that implementation of the plan would now be delayed for several weeks.
The breakthrough in the dispute came during direct talks between Siptu and the company, before Labour Court chairman Kevin Duffy, which lasted for less than an hour.
Mr Duffy informed the parties that he had contacted the chief executive of the Labour Relations Commission, Kieran Mulvey, and that the LRC was available to facilitate conciliation talks. It was agreed, however, that the two sides would enter direct discussions initially.
If those talks fail and the LRC is also unable to help bring about a resolution, the parties are expected to return to the court to seek a recommendation at or before the end of the month. Mr McGrath indicated yesterday it would take three to four weeks from that point for the company to implement its plan.
Siptu, however, is expected to insist that the company seeks alternative ways to reduce costs. The union's Dublin regional secretary, Patricia King, welcomed the company's decision to enter talks on the future of its workforce.
However she said, it had to find "more intelligent ways of tackling competitive issues than simply trying to replace 543 workers, many of them with 20 and 30 years service, with cheap, vulnerable, migrant labour from abroad".
While Siptu represents ships officers at the company as well as a minority of those on other grades, the new talks process will cover those on all grades. The company's ratings are represented by the Seamen's Union of Ireland.
The company has offered its seafaring workers the option of a redundancy package or continued employment on reduced pay and inferior conditions. Those who leave would be replaced by agency crews from abroad.
It claimed yesterday that more than 90 per cent of the workers concerned had opted to take the package. Siptu, however, insists many have changed their minds since doubts emerged about whether elements of the package met the criteria set out in redundancy payments legislation.
In a statement yesterday, the company said it was competing in an international shipping sector in which 95 per cent of all ships, excluding those operated by Irish Ferries, sailing into and out of the Republic of Ireland had outsourced crewing arrangements.
Ms King, however, said other companies operating on the Irish Sea were profitable "without resorting" to the "tactics" used by Irish Ferries.
"We do not want to allow a precedent by Irish Ferries that will see the arrival of floating sweat shops where gross exploitation takes place in the name of profit maximisation at any cost."
She said the company had given an undertaking to the Labour Court that it would abide by its registered agreements with the unions.
"We now look forward to raising all the issues with them through the Labour Court process. I would also like to thank people in other trade unions and the general public for the terrific support they have given our members during the dispute."
