Mr. Liam Berney:

We are pleased to accept the invitation to address the committee and to outline the views of Congress on the Companies (Protection of Employees' Rights in Liquidation) Bill 2021. This is important legislation and has the full support of ICTU. We understand that the Bill seeks to change the law in two regards. First, it seeks to put workers at the head of the queue when it comes to the distribution of moneys from the liquidation of a business. Second, it seeks to make an unpaid collective redundancy agreement a recognised debt in the eyes of the law and one that must be taken into account in the liquidation process.

The proposed legislation comes against the backdrop of a number of high-profile cases that demonstrated the need to provide great protection for workers in the event of their employers going into liquidation. The lack of legal protection for workers in such situations was highlighted with the closure of Clerys in 2015. The circumstances surrounding the closure of Clerys are well known. The treatment of workers in that case was universally condemned.

Following the closure of Clerys, Congress led a campaign seeking legislative changes that would prevent any company from treating workers in that way again. As a result of this campaign, the Government commissioned Ms Nessa Cahill and Mr. Kevin Duffy, both law experts, to review relevant legislation with a view to identifying what changes could be made to give greater legal protection to workers. In March 2016, what has become known as the Duffy-Cahill report was published. This wide-ranging report made a number of recommendations. Among other matters, it recommended that employers be legally obliged to consult employees not less than 30 days before any collective redundancy could take effect regardless of whether the employer was insolvent. The report also made recommendations on sanctions and remedies arising from non-compliance with the requirement to consult workers, including the ramifications for directors under the Companies Act 2014.

The committee should note that Congress argued strongly through the Company Law Review Group for the adoption of the Duffy-Cahill report. While some progress has been made, the main recommendations have never been implemented. In April 2020, Debenhams announced that its business in the Republic of Ireland would be placed into liquidation with the loss of thousands of jobs. The failure to implement the recommendations in the Duffy-Cahill report meant that the Debenhams management had no legal obligations to its Irish workforce and could simply walk away.

It has been acknowledged by all political parties in the Oireachtas that the law regulating the liquidation of a business is unfair on workers and needs reform. The Duffy-Cahill report provided a fairer and more balanced approach and provided for the equitable treatment of workers. The Bill that we are discussing here is an attempt to ensure that what happened to workers in Clerys, Debenhams and Connolly Shoes can never happen again. We urge all political parties to support it.

If the Chairman does not mind, my colleague, Mr. Light, will make some additional comments.