Dáil debates

Wednesday, 13 June 2012

4:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)

I thank the Deputy for raising this matter and note Deputy Conlan also has raised concerns with me about this matter. I am really disappointed to hear of any job losses and am highly conscious of the effect those losses will have on the individuals concerned. I certainly wish to assure people the State agencies will be available to support people in any way they can. As for the substance of the business case, obviously there are legal processes in train in this regard in which the parties involved have proceeded to the courts. The issues are under the supervision of the courts and the scope for intervention is extremely limited. This is not a company supported by the agencies and consequently, my Department does not have the sort of relationship that would be involved with other firms. It appears as though a business decision has been taken by the supplier in respect of this outlet but clearly, I am not privy to the details of that decision. I cannot set myself up as arbiter of business decisions of this nature. The supplier has approached the courts, as is its entitlement under the law, and I must respect that.

I, of course, will seek to offer support in any way I can. If issues of industrial relations arise, I will use the offices I have available to me, including the agencies that are experienced in dealing with such issues, if scope exists in this regard. As for workers' positions, if it is not possible from the liquidation to find a basis for continued trading in some form, the offices of FÁS, the State training agencies and the county enterprise boards will be available to support workers, should they seek to start a new business or to retrain. In respect of access to statutory entitlements, the insolvency payment scheme established under the Protection of Employees (Employers' Insolvency) Act 1984 provides for payment of certain entitlements owed to employees by their employer at the time of liquidation. These entitlements include wages, holiday pay, sick pay, minimum notice and pension contributions. Claims in respect of such entitlements under the insolvency payment scheme can be processed if a company is insolvent within the definition of the Protection of Employees (Employers' Insolvency) Act 1984 and a relevant officer, normally a receiver or a liquidator, has been appointed and certifies the claims.

As the Deputy is aware, responsibility for the protection of employees and associated regulations is a matter for the Minister for Social Protection. The Protection of Employment Act 1977 contains a number of provisions regarding information and consultation that must be entered into before collective redundancies can be implemented, including the provision of information regarding employees to the Minister for Jobs, Enterprise and Innovation. Sections 9 and 10 of the Protection of Employment Act 1977 make it mandatory on employers proposing a collective redundancy to engage in an information and consultation process with employees' representatives and to provide certain information relating to the proposed redundancies. An employer is prohibited from issuing any notice of redundancy during the 30-day minimum employee information and consultation period. Where a liquidator has been appointed to a company, he or she takes on the responsibilities of the employer. There also are procedures in the event of disputes about the honouring of such obligations and the right to refer a case to a rights commissioner.

Comments

No comments

Log in or join to post a public comment.