A SHUTDOWN of all 73, Dunnes Stores outlets begins this morning, sending a "surge of despair" through suppliers and small businesses and disrupting shoppers.
Mandate, SIPTU and the Marine Port and General Workers Union members go on an all out strike over issues which remain unresolved from the strike that closed Dunnes last summer for three weeks, and weakened the company's market share.
The Minister for Enterprise and Employment, Mr Bruton, said last night he regretted the breakdown and believed there was a basis for a settlement. It was clear significant progress had been made, he said, and while there were still differences, "it seems to me that they are not beyond resolution".
A spokesman for the Small Firms' Association said 8,000 jobs in suppliers' businesses, and small outlets at complexes dominated by Dunnes, will be affected.
Union management talks over pay, conditions, jobs and the use of industrial relations machinery collapsed at noon and left both sides with markedly different views of what had occurred.
Union spokesmen said a deal had all but been agreed between them and a management team led by company director Mr Andrew Street, but the "rug had been pulled" from under the management negotiating team by other board members.
A company spokesman rejected this version.
A Mandate spokesman said the board seemed to have difficulty with the principle of third parties, such as the Labour Court, becoming involved in Dunnes Stores disputes. Again this was denied by the company spokesman.
The key issue in the talks was payment of a 3 per cent productivity deal awarded to the unions as part of the settlement of the 1995 strike. Agreement on this and the hiring of additional staff was reached during the talks.
The unions said procedures for the involvement of third parties to help end disputes were also agreed. These procedures involved referring disputed issues to the board before referral to the Labour Relations Commission.
There was strong condemnation of the company from Opposition parties and the Irish Congress of Trade Unions.
The chairman of the Progressive Democrats, Senator John Dardis, accused the Dunnes board of gross industrial irresponsibility in their ham fisted approach to industrial relations.
He called for the immediate appointment of an independent arbitrator with the two sides agreeing to be bound by that person's recommendations.
The Fianna Fail Labour Affairs spokesman, Mr Tom Kitt, said it was disgraceful that the Minister for Enterprise and Employment had not intervened. He said it was time for Dunnes Stores to accept normal industrial relations procedures.
Mr Peter Cassells, for the ICTU executive council, said hue deeply regretted the intransigence" of Dunnes Stores and called on the public to show the same support for the workers in this dispute as they did in 1995." Management's refusal to implement the agreement agreed last July marks a new low in industrial relations in this country."
Both sides last night said they were available for talks. The company asked the unions to defer the strike but was told this was not possible. This is the fourth time in two years staff have picketed Dunnes. The 1995 strike led to the company losing £50 million to competitors.
