Initiative paves way for talks to end ferries dispute

Talks aimed at resolving the dispute at Irish Ferries are expected to begin today following an intervention last night by the…

Talks aimed at resolving the dispute at Irish Ferries are expected to begin today following an intervention last night by the National Implementation Body (NIB). Chris Dooley, Industry and Employment Correspondent, reports.

It recommended that the company and Siptu immediately enter negotiations at the Labour Relations Commission (LRC), with a Wednesday deadline for a resolution.

A compromise formula, under which the company would guarantee to pay at least the minimum wage to all of its seafarers, is expected to be part of any settlement.

The NIB intervention was designed to break the logjam in both the Irish Ferries dispute and the national partnership process.

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As well as making specific recommendations on the ferries issue, it also addresses the need to enforce minimum employment standards across the economy.

The company and Siptu were studying the body's recommendations last night, but it is understood both are set to accept the proposals.

Siptu is in dispute with the company over its plan to replace up to 543 unionised seafarers with cheaper labour from eastern Europe.

The company's services remained suspended last night due to a stand-off with ships officers that began 11 days ago when it moved to implement the outsourcing plan.

Attempts by the Labour Relations Commission to establish a basis for talks had been taking place without success since last Monday.

The breakthrough last night followed discussions yesterday between leaders of the Irish Congress of Trade Unions, the employers' body, Ibec, and senior Government official Dermot McCarthy.

Mr McCarthy chairs the National Implementation Body, which is also made of up of Ictu and Ibec representatives.

Its recommendation is designed to remove a key stumbling block in the dispute to date, which is the company's intention to re-register its Irish Sea vessels in Cyprus.

This would place seafarers who work on the ships outside the protection of Irish employment laws such as the minimum wage. The NIB recommendation, it is understood, would not prevent the company "re-flagging" its vessels at some time in the future.

But it would be required to enter a binding legal agreement to uphold Irish employment laws on its vessels, including the minimum wage of €7.65 an hour.

As is permitted by minimum wage legislation, some deductions could be permitted in lieu of accommodation provided by the company.

Nevertheless, it is understood the seafarers concerned would still be earning considerably more than the €3.60 an hour proposed under the company's existing outsourcing plan.

It is also understood that the company is now prepared to preserve the pay and conditions of seafarers who wish to remain with Irish Ferries.

To date it has been offering them a choice between redundancy and continued employment, but on reduced pay and inferior conditions. An NIB statement was expected to be issued either late last night or early today.

Its intervention is designed to bring an end to one of the most intractable and inflamed industrial disputes for some time, and also to get the partnership process back on track.

An NIB statement affirming the need for measures to maintain employment standards is highly significant given that Ibec is a member of the body.

Unions had already secured assurances from Taoiseach Bertie Ahern that he shared their concerns about the need to avoid a "race to the bottom" in workers' pay and conditions.

The NIB's statement is designed to confirm that the three social partners directly involved - the Government, unions and employers - all share the view that action is needed in this area. A resolution to the dispute this week could then clear the way for talks on a successor to Sustaining Progress.