ESB industrial action threat
Dara Calleary warns that a proposed ESB strike over pension arrangements could cause widespread disruption and power outages. The Minister says negotiations remain ongoing and that Government intervention would be considered only if circumstances require it.
The ESB unions served strike notice last Friday and the notice is due to expire on Sunday week. We understand there is a wide gulf between ESB management and unions on the pension fund. This morning's edition of the Irish Independent has outlined some of the so-called contingency plans that have been put in place by public bodies, State companies and private companies around the country in advance of this. If this action proceeds, it will have a very detrimental effect on every citizen in the country and on businesses. The next few weeks for businesses will make the difference between opening and closing their doors after Christmas and keeping people in employment. It will have a huge effect on our transport utilities in the run up to Christmas and on so many operations.
Given that the clock is ticking and that there has been no progress in the talks to date, what action has the Government taken, apart from monitoring the situation? Is there any intention to involve the labour relations mechanisms of the State to stop this from happening? By the time the House convenes again next Tuesday, we will be five days away from the expiration of the strike notice. People and businesses need to know where they stand and certainty needs to be brought to the situation. There needs to be an understanding that the Government is on top of the situation.
Comment on this
Last Friday, the ESB group of unions served notice of their intention to take industrial action starting on 16 December. However, the ESB executive director team and the unions continue to meet under the company's established procedures for dealing with industrial relations issues. At this point there is ongoing dialogue between the parties, and while that process continues I believe it would be inappropriate to make further comment. However, the Department of Communications, Energy and Natural Resources will remain in ongoing contact with the company on the situation, and the Government will be kept informed.
The Government is acutely aware of the seriousness of this situation. We hope that notwithstanding the service of notice on the company last Friday, ESB management and the unions will work together to resolve the various issues through direct discussions within the framework of well-established procedures. The ESB, in co-operation with EirGrid, has a robust contingency plan in place in the event of industrial action. There is ongoing proactive engagement between EirGrid, the ESB and the energy regulator to ensure that if there is industrial action, appropriate and co-ordinated mitigation measures are taken to safeguard security of supply. There is a joint obligation on the company and the unions to have in place agreed contingency plans and other arrangements to deal with any emergency that may arise during an industrial dispute, including the provision of emergency services required on humanitarian grounds and all matters concerning health, safety and security, including that of plant and equipment.
My understanding is that pension scheme measures adopted under an agreement between the ESB and its unions in 2010 have had a positive effect, with the scheme actuary reporting that the scheme is now in balance on an ongoing actuarial basis.
Comment on this
The Pensions Board has confirmed that the scheme is on track and will be in surplus by 2018. The Minister for Communications, Energy and Natural Resources said that there is no risk to the pension scheme and that employees retiring between now and 2018 will receive their full entitlements. I also welcome the fact that there are ongoing negotiations, but at what stage does the Government intend to knock heads together and ask for an assurance that these negotiations are going somewhere and that there will not be disruption? The contingency plan will involve power outages. The plan as outlined cannot guarantee to citizens that there will not be a power outage ten days before Christmas. At what stage is the Government going to intervene with the labour relations mechanism? Will it allow things to drag on to the very last minute and not give any certainty to people during this very important two weeks?
Comment on this
I think the Deputy knows from his own experience in the Department of Jobs, Enterprise and Innovation, which has responsibility for the machinery of industrial relations, that the Government has at its disposal an array of instruments and institutions that can be mobilised at the appropriate time. The Minister for Communications, Energy and Natural Resources is of the view that at this stage, ongoing discussions between both parties are taking place and it would be inappropriate to take any action outside those talks until such time as there are further developments. If an intervention is required, then that will be considered in due course.
Everybody in this House shares the concern about disruption of supply at this time of the year, coming up to the Christmas period. One of the factors that gave rise to this unease is the position of the pension fund, and the Deputy has already concurred with my own observation on that. Hopefully, the talks will produce a positive, constructive settlement. If an intervention is requested or required, then the machinery for that intervention is available.