Oireachtas Joint and Select Committees

Friday, 24 July 2020

Special Committee on Covid-19 Response

Covid-19: Impact on International Travel

Mr. Neil McGowan:

We have included in our submission that the extension of the wage subsidy scheme absolutely must include binding commitments from employers that are availing of the scheme that there would be no compulsory redundancies or permanent reduction in employees' terms and conditions of employment. We believe that for the aviation industry, the rate of payment should be adjusted. Many workers in Aer Lingus who are working on 30% of their normal salary are receiving the wage subsidy only. People who have built their financial obligations around their pre-Covid earnings now find themselves in a situation where they are earning €700 a fortnight. People are trying to raise families and meet their obligations with that. I believe that where a company abuses the scheme by availing of the wage subsidy scheme and subsequently breaching any binding commitments that may be entered into regarding compulsory redundancies and so on, the company should be fined and Revenue should take back any support that has been given to those employers and pursue them in the courts for the same if necessary.

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