Dunnes strike talks end after an hour but sides hope for progress today

TALKS aimed at settling the Dunnes Stores dispute were adjourned after only an hour yesterday, but there were hopes that real progress could be made when they resume today.

Union representatives and a management team led by company director, Mr Andrew Street, met again in the offices of accountancy firm, Oliver Freany and Co, in Dublin.

Afterwards, Mr Street said the talks were at a "critical stage". There was no special significance in the fact that the meeting had been so short, he said. "The talks are still going on, we'll meet again tomorrow. The company are still optimistic," he said.

Mr Owen Nulty, general secretary of Mandate, the main union involved, described the atmosphere at the meeting as "cordial but serious". He said they were moving the negotiations as quickly as they possibly could, "but it is a very difficult situation".

One source said that while "a lot of steam" had been let off during Tuesday's five hour talks, yesterday's short meeting was more an agenda setting one in preparation for today.

Going into the meeting, Mr Nulty said it was an "essential part of any deal" that the company find a way to reassure the workforce that any agreement arrived at would be implemented.

It is believed the unions are looking for extra give from the company, following on from the weekend breakdown in talks. The unions have said they thought a deal had all but been agreed last Sunday.

Mr Nulty said the unions were still waiting for a definite response from the company on the demand that some reassurance be offered, as part of the deal, that it would be implemented. "Trust has to be restored," he said.

The main issues in the dispute, payment of a 3 per cent pay increase and the creation of new full time jobs, are issues which remain unresolved since the Labour Court recommendations that resulted from last summer's strike. That recommendation was accepted by both sides.

The dispute is said to be costing Dunnes Stores £2 million a day in turnover. Suppliers and traders hit by the strike are said to be losing £1 million a day.

A spokesman for Dunnes said the company was aware of the damage which was also being done to other businesses around the State.

The company was taking a very "businesslike" attitude to the talks and was anxious that a successful outcome be arrived at.

While neither side was optimistic about the issues involved being resolved today, they were hopeful that significant progress would be achieved.

According to one source, the deal which was being discussed up to the weekend included a clause whereby progress on the implementation of the deal would be reviewed by both sides in February.

The source said the company was anxious "to do business" and that the unions, despite the fact they were saying they were looking for "penance" from the company because of last weekend's breakdown, were also being pragmatic.

The board of Dunnes Stores, made up of Mr Street, Mr Dick Reeves, Ms Margaret Heffernan and Mr Frank Dunne, spent yesterday morning considering the outcome of Tuesday's five hour meeting. A similar exercise is expected today, following which an afternoon meeting between the two sides is expected to be arranged.

It would be early next week before the strike could be called off, even if rapid progress in the negotiations was made today or tomorrow.