Seanad debates

Thursday, 2 May 2024

Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Bill 2023: Committee and Remaining Stages

 

9:30 am

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank the Senator for his amendment. I genuinely appreciate its rationale. However, as the Minister of State, Deputy Richmond, said to the Senator's colleague, Deputy O'Reilly, during the Bill's passage through the Dáil, we do not accept this amendment. It appears to require the employer or responsible person to initiate consultations with a European Works Council, where established, on proposed collective redundancies. This is in addition to the consultation with employee representatives. Under law, EWCs have a specific remit, which is to facilitate information-sharing and consultation with employees on transnational issues. The operation of EWCs is governed by the Transnational Information and Consultation of Employees Act 1996.

We have a number of concerns about the Senator's proposal. First, as he noted, the European Commission, in January, published its proposal for an amending directive underpinning the operation of European Works Councils. The general objective of this initiative is to improve the effectiveness of the framework for the informing of and consulting with employees at transnational level. My understanding is that the Belgian Presidency has convened several working parties on this matter, the fourth of which took place last Tuesday. The ambition is to reach a general agreement by the end of this Presidency.

I do not necessarily accept the Senator's view that action will not be taken for five years. He might be better placed than most of us to pursue the matter. I wish him well in the race for the European Parliament. I do not accept his view that it could be five years before this issue is addressed. We have seen files move very quickly. The artificial intelligence file is one example. In that context, it is best to ensure that the legal provisions relating to transnational employer obligations maintain a level playing field. Therefore, it is appropriate that developments at EU level, which I think will happen more quickly than the Senator envisages, are ultimately reflected in the Transnational Information and Consultation of Employees Act 1996.

Second, the amendment would require consultation with an EWC, where established, even if collective redundancies are only proposed in the Irish establishment and not in establishments in other member states. That is not the context in which EWCs were designed to work. If collective redundancies are proposed by an employer in two or more member states, the employer is obliged to follow the local jurisdiction's law in each case. If there is a transnational element to the proposed collective redundancies, information-sharing and consultation with employees under the EWC may also be required. That is already codified in the 1996 Act.

Finally, it seems likely that adding a direct requirement to consult with an EWC could extend the timeline and complexity of the consultation process significantly. This is not in the interests of employees in a redundancy consultation process, who already are facing a protracted period of uncertainty and stress. For these reasons, I cannot support the amendment.

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