Dáil debates

Thursday, 29 March 2007

Protection of Employment (Exceptional Collective Redundancies and Related Matters) Bill 2007 [Seanad]: Second Stage

 

4:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)

Labour costs are somewhat cheaper in the North. For example, access to medical facilities is free of charge, paid for through general taxation. House prices are not roaring ahead as they are in this State. An all-Ireland economy, with harmonised taxation on the island and some of the social protections available in the North brought into this State are some ways of tackling these issues. The sooner that happens, the better for all workers on this island. Speed the day.

Sinn Féin welcomes the Bill as it has been needed for some time. It has arisen out of the disgraceful Irish Ferries dispute of little over a year ago. More than 500 Irish workers were given a payment that was masked as a voluntary redundancy when they were actually coerced into accepting it.

Under the Redundancy Payments Acts, redundancy does not merely arise where a business closes or an employer reduces the size of the workforce. The definition includes circumstances where the employer decides different or additional skills and qualifications are required for a job. With the 500 Irish Ferries redundancies, the business neither closed down nor did management downsize its operation. The same number of workers are with Irish Ferries now as before the lay-offs. The management successfully managed to replace Irish seafarers with more than 500 low-paid, non-unionised workers from eastern Europe. To top it off, the Government subsidised this callous exercise by giving Irish Ferries €4.3 million from taxpayers' pockets.

This colossal sum of money was paid to a company which claimed it needed to make over 500 crew members redundant to make the company directly more competitive. This is the same company that gives its chief executive, Eamonn Rothwell, 2.5% of the company's earnings and an annual bonus of over €420,000. This legislation is long overdue to prevent an Irish Ferries on land scenario occurring.

While Sinn Féin welcomes the Bill, there are some concerns over some provisions. Section 3(1) states the exceptional collective redundancy section will only last for three years. There is no reason to allow for this three-year trial period. There is nothing to indicate that at the end of the trial period, industrial arrangements will be such as to not require the provisions of the Bill. It is pathetic that the redundancies panel, as envisaged in the Bill, can only continue if IBEC wishes it to do so. A body that represents employers in this State should never have a veto over legislation that has been designated with the aim of protecting workers. After the Irish Ferries debacle, workers certainly need protecting. Another issue that raises an element of disquiet is contained in section 10(3) that specifies:

An employer who effects a dismissal in pursuance of a proposal for collective redundancies before the expiration of such of the periods specified in subsection (1) and in sections 9(3) and 12(1) of the Protection of Employment Act 1977 as are applicable is guilty of an offence and liable on conviction on indictment to a fine not exceeding €250,000.

Given that Irish Ferries has stated the redundancy package cost its parent company, the Irish Continental Group, €29.1 million, a fine of €250,000 seems paltry. I will seek to amend this section.

Section 15, which provides for the amendment of section 4 of the Redundancy Payments Act 1967, is welcome. This will enable employees who have reached the age of 66 years to be entitled to statutory redundancy payments. Sinn Féin has long campaigned for the abolition of this discriminatory provision.

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