An Post's difficulties

Commercial realism must form the basis for talks aimed at settling the dispute at An Post

Commercial realism must form the basis for talks aimed at settling the dispute at An Post. Even as negotiations over work practices and the terms of a recovery plan at the loss-making State company open at the Labour Relations Commission this morning, continuing belligerence by the Communications Workers' Union (CWU) and An Post management offers only limited hope for long-term industrial peace.

A disillusioned public may be forced to endure a further breakdown in services.

The company lost €46 million last year and operating losses of €30 million are expected to accumulate this year. In spite of that dire financial position, the CWU and management became embroiled in an industrial dispute two weeks ago that closed down major portions of the postal network and caused serious disruption elsewhere. Post boxes were re-opened yesterday but services are not expected to return to normal until next week.

Following the success of the Labour Relations Commission in negotiating terms on which settlement talks will begin today, the management adopted a provocative attitude by initially refusing to re-instate 89 postal workers. Now, the CWU is insisting that, in accordance with a 1992 agreement, any temporary workers hired to deal with the backlog of mail should be employed for a minimum of seven months. The separate responses reflect the poisonous atmosphere within the company.

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The situation at An Post is a mess, with militant workers and a forceful management in open confrontation while, at the same time, they attempt to second-guess the Minister for Communications, Mr Ahern. Ill-judged government intervention in response to disruption in commercial State enterprises can place managements in an intolerable position, undermine their authority and generate long-term difficulties. Mr Ahern appears to have been more circumspect than his predecessor in this regard.

However, talks on a recovery plan for An Post face considerable difficulties because of changes in work practices and the need to achieve savings on overtime pay. They originally broke down when the management postponed a 3 per cent national pay award, pending agreement. That issue is amongst several to be addressed now but reducing overtime remains the principal stumbling block.

It is to the credit of the Labour Relations Commission that it has succeeded in coaxing such intransigent participants to the table. But its work will be difficult, if not impossible, unless representatives of both sides exhibit the good will which has been lacking to date.