Tara Mines has formally agreed to defer introduction of its controversial survival plan to allow Labour Court intervention. However, the board of directors has also told the court and the company's trade unions that it "requires an urgent recommendation".

The company had threatened to introduce the new work practices required by the survival plan on June 1st, but local management agreed to defer action until today's board meeting. While the board decision was not unexpected - it has created a breathing space to reach agreement with the 620-strong workforce - company sources indicated yesterday that it needs an outcome from the court within the next 10 days.

At yesterday's board meeting the company is also understood to have agreed in principle to lodge an expression of interest with the receiver of Bula Mines, Mr Laurence Crowley. Today is the closing date for companies interested in acquiring Bula to contact Mr Crowley.

The Bula reserves at Nevinstown adjoin the Tara Mines ore body and are of significantly higher quality. However, they are also estimated at no more than a third of the reserves already owned by the company and would not extend the life of Tara Mines by more than four years.

After the board meeting the company wrote to the Labour Court and the trade unions, telling them: "As a result of a recommendation from local management, and in the light of the Labour Relations Commission's request, the board of directors of Tara Mines has agreed to defer implementation of the Tara survival plan until the Labour Court heard the case and issued a recommendation.

"Tara Mines Limited however would require an urgent recommendation on the survival plan, given that the company is losing approximately $200 per ton of zinc mined. Current levels of efficiency have dropped since negotiations with the unions began in April."

Whether the Labour Court can accommodate the company and its unions remains to be seen. It has a very heavy schedule over the next fortnight and time devoted to other urgent disputes, such as that at the Dublin Fire Brigade, has added to the backlog.

SIPTU regional secretary Mr Jack O'Connor, who represents the majority of the workforce, has already indicated that the unions will attend the court hearing.