Union leaders have given a cautious welcome to the Labour Court's formula to avert the closure of Tara Mines. The court has opted for the unions' proposals to make the plant viable, but with the proviso that the company's own survival plan be accepted unconditionally by the workforce if cost-saving targets are not met within three months.
It remains to be seen if the company will accept the Labour Court recommendation, which was issued yesterday afternoon. Tara Mines' parent Finnish company, Outokumpu, warned the court 11 days ago that the Navan facility could close temporarily if its own "Tara Survival Plan" was not accepted unconditionally by the unions. Last night, it was reserving its position on the recommendation.
The company had originally set a deadline of June 1st for the implementation of its survival plan, which aims at cutting costs by 15 per cent and boosting production by more than 20 per cent.
Last Friday it issued "one day" protective notice to its 630 employees in anticipation that the Labour Court recommendation would not meet its requirements.
While the recommendation does not meet all its requirements, it contains some very positive aspects from the company's point of view. Although it proposes that the alternative cost saving proposals put forward by the workers be implemented, it adds that the unions' plan must reach the necessary cost saving targets or there will be a review after three months.
"In return for the company accepting this recommendation, the unions must agree to immediate implementation of the management's survival plan, if the unions' plan fails," it states.
The formula therefore provides a real test of commitment to social partnership for both sides. The chairman of the craft group of unions at the mine, Mr Eamon Devoy, said as much in his response to the recommendation.
"As far as I'm concerned the unions' partnership approach to the mine's problems has been vindicated and we expect the company to give us the time and space to achieve the production targets proposed in accordance with the recommendation," he said.
MSF acting national secretary Mr Jerry Shanahan, who represents clerical, administrative and technical staff, said he believed "the court has taken a reasonable approach in the interests of preserving jobs and preserving the company. It's up to the parties now to make sure it works".
But it is SIPTU's response to the plan that is crucial from the trade union point of view. It represents the majority of the work force, including miners. Navan branch secretary Mr Christy Mc Quillan said last night while he was unhappy with some aspects of the recommendation, he accepted that "the bottom line is that the union plan be implemented. The court has taken our plan in preference to the company's.
"The recommendation goes in the direction we wanted to go and it certainly has the potential to keep the mine operational. It will take good faith and trust by all sides." He believed that the prospect of having to implement the company's survival plan, if the unions' alternative failed, provided "the best incentive for ensuring that our members try their level best to meet the targets".
It will be some days before it is clear if the workers are willing to accept the Labour Court proposals and the company may announce that the terms are unacceptable in the meantime. However, as the Labour Court recommendation says, "It would be unfortunate if the plant was to close with two proposals on the table, the dispute being on which was to be implemented to ensure the viability of the operation."