Seán Sherlock (Cork East, Labour)

I thank the Deputies for raising this issue. A number of points have been raised in each of the contributions. I thank the Deputies for raising this important matter and I thank the Ceann Comhairle for the opportunity to respond. I am concerned at the continuing situation at the Vita Cortex factory in Cork which has involved workers at the plant engaging in a sit-in since 16 December last arising from a dispute with their employer over redundancy payments. The workers involved in the Vita Cortex sit-in are seeking severance terms of 2.9 weeks per year of service, inclusive of statutory redundancy, in line with previous redundancy deals at the company, and they maintain this will amount to a total of €1.2 million. We know that the workers had been offered a paltry sum of €1,500 to leave the premises over the Christmas period and they rightly rejected this offer claiming that the company would use their absence to remove important machinery and stock.

The company stated that it informed workers that their redundancy would have to come from the State's social insurance fund unless NAMA agreed to release €2.5 million held on deposit by another Vita Cortex firm on foot of an Allied Irish Banks, AIB, loan taken over by NAMA. However, NAMA issued a statement that these funds were put out of reach of the Vita Cortex group not by NAMA but by AIB two and a half years ago when they were pledged as security for loans. While NAMA has stated that it empathises with the Vita Cortex workers, it has stated that: "unfortunately legally it cannot simply use charged deposit funds pledged against loans of one company to meet costs incurred by a separate legal entity". NAMA also stated that it is the responsibility of the owners and shareholders of Vita Cortex to resolve this situation. It is difficult to disagree with that contention. In the interests of achieving a resolution in this dispute, the Minister, Deputy Bruton, urged both parties to avail of the State's industrial relations machinery as soon as possible with a view to exploring ways of resolving the issues in dispute.

Officials from my Department were in contact with the workers' union representatives over the holiday period, in an effort to clarify the issues involved and to make them aware that the industrial relations machinery of the State is available to help them resolve the dispute. I understand that the Labour Relations Commission has today invited both parties to meet in Cork next Tuesday to clarify the facts and to explore with the parties the potential for moving forward. I welcome the initiative by the LRC and urge both parties to engage constructively in the process. Engagement with the State's industrial relations machinery offers the best way at this stage.

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