Séamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

Austerity comes in many different forms and is all pervasive for the ordinary people in the country who are the vast majority of the population. The past four years of austerity have come from a Government which has absolutely no mandate for it. During the last general election we heard it was going to be Labour's way and not Frankfurt's way, there was not going to be another cent for the banks, the bondholders were going to be burned and we were going to have a democratic revolution. What has happened? In this country a total of 30.5% of households now suffer from deprivation and 130,000 more children live in poverty. Social Justice Ireland tells us 750,000 people, including 232,000 children, are living in poverty. A total of 360,000 people are unemployed, and 90,000 families are waiting for homes on local authority housing waiting lists. We have seen 100,000 people emigrate. We have house tax, water tax, universal social charge and whatever other tax. We have had savage social welfare cuts, the withdrawal of medical cards, wage cuts, pension cuts, pension levies and disability benefits cuts, all from a Government which has absolutely no mandate for these cuts.

Another specific form of austerity measure is the destruction by employers of defined benefit pension schemes, which is now widespread throughout the country. The employer's motto seems to be never to waste the opportunity afforded by a recession to attack workers' rights and make changes detrimental to workers to defined benefit pension schemes. Such a scenario is now unfolding at a Coillte wholly-owned subsidiary, Medite Europe, in Redmondstown, Clonmel. The company is unilaterally and in breach of procedures attempting to change the existing terms and conditions of its defined benefit pension scheme. The company has already changed to a defined contribution scheme for all new entrants and now proposes to increase the age for pension payment. It also proposes to reduce pension benefit, in some cases by as much as 40%.

On 13 February the company applied to implement these changes under section 50 of the Pensions Act. The company and workforce were at the Labour Court on 14 January and are awaiting the outcome of this hearing and the court's recommendation. In advance of this, the company has applied under section 50 to implement unilaterally the changes. The company has shown absolute disrespect for the workforce and the Labour Court, which is the industrial relations arm and machinery of the State. It is now clear the company's involvement at the Labour Court and in negotiations has been a complete charade. Strike notice has been served. The workforce is very efficient and committed. The company has been in Clonmel for 33 years and there has never been any form of industrial action on the site. The workforce contributed an additional 2.5% of a wage increase to the pension fund. Coillte has funded its own defined benefit pension scheme, but has now unfairly and with great disrespect refused similarly to fund the Medite Europe scheme at Redmondstown.

I call on the Minister for Agriculture, Food and the Marine, Deputy Coveney, and on the Minister of State with responsibility for forestry, Deputy Tom Hayes, to intervene urgently with Coillte to ensure the existing terms and conditions of the defined benefit pension scheme at Medite Europe in Clonmel are continued. It is urgent because the workforce has been forced into a situation where it has had to serve strike notice, which expires early next week. Immediate action is necessary and I demand this be done. This is another form of austerity which is widespread throughout the country, and in this particular instance it is in operation in my constituency. This type of austerity, which attacks workers' rights and changes benefits and defined benefit pension schemes to the detriment of employees, must be stopped. The Minister must take action to do so urgently.

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