Dunnes strike could hurt small firms by payment delay

DUNNES Stores creditors could face similar delays in being paid to those they faced during the 1995 strike if industrial action…

DUNNES Stores creditors could face similar delays in being paid to those they faced during the 1995 strike if industrial action goes ahead from next Monday. As well as sales staff in over 60 branches, clerical staff at head office will be involved in the strike.

A company spokesman said rumours that middle management will be put on protective notice if the strike goes ahead are pure invention".

The director of the Small Firms Association, Mr Brendan Butler, said yesterday that small suppliers cannot take another strike". The three week strike last summer cost them £15 million and the dispute at Christmas cost another £3 million.

One hopeful sign for today's talks is that the director of information systems and logistics, Mr Andrew Street, is expected to head the Dunnes management team. He initiated contacts with the unions last week, when they voted overwhelmingly to reject management's latest offer.

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If Mr Street or his colleague, the director of food, Mr Dick Reeves, attend the talks, it will be first time that a board member will have engaged in direct negotiations with the unions in recent years.

Over the weekend, Mr Reeves issued a strongly worded statement warning the unions that jobs could be put at risk if next Monday's strike goes ahead. But his statement also said that the company was determined to avert confrontation if at all possible.

The pro active approach being adopted by Mr Street and Mr Reeves, and the speed with which they have put their stamp on the new peace initiative, gives some cause for hope that a third major strike within the company in 15 months can be avoided. Talks are likely to be tough, however, when they begin at the offices of Oliver J. Freaney and Co, chartered accountants, in Dublin today.

The key issue in dispute is the payment of a three per cent productivity deal awarded to the unions as part of the settlement to the 1995 strike. The Labour Court said this should be paid with retrospection to September 4th, 1995.

The unions want full retrospection agreed before negotiating on the productivity to be given in return. The company offered retrospection to January 1st in its last offer, but that is now off the table. It also wants the productivity concessions agreed in advance of any payments.

The unions are also expected to table detailed procedures for dealing with other outstanding issues such as pensions and sick pay.