Colm Keaveney (Galway East, Labour)
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I recently brought an urgent matter concerning a forced, contested redundancy situation in Galway to the attention of several Ministers, including the Minister for Social Protection and the Minster for Jobs, Enterprise and Innovation. Rehab Enterprises plans to make 18 employees in its recycling centre in Galway redundant. Only a limited number of employees have indicated that they will partake in voluntary redundancy, with 14 or 15 employees to be forced out the door. Many of these employees have been on short time for the past two and a half years, despite the significant increase in the Rehab Group's operating surplus from €1.9 million in 2009 to €2.3 million in 2010.

Most of the employees affected are unskilled and some have a disability. Both of these factors will make it difficult for them to find alternative employment. Workers have contacted me concerning this case and are looking for ideas from the Government with regard to an attempt to engage with the employer to seek a positive outcome. Worker representatives have asked for a three-month pause in the redundancy process to allow for a working party from the community to attempt to find a way to maintain the viability of the Galway plant. To date, Rehab has not acceded to the wish of the workers to give them a window of opportunity to retain the jobs of the vulnerable people affected.

SIPTU has also asked or the accounts of Rehab to be opened in order that an open assessment may be made of the merits of the case for redundancy, but to date nothing has been forthcoming and unsubstantiated accounts of the company's position have been related.

On its website, the Rehab Group claims to be "a leading non-governmental organisation which works towards a world where every person has the opportunity to achieve their potential". It further claims that "Rehab enables people to make the most of their skills and talents, to take up employment or further education and to live more independent lives". It makes a virtue of "directly employing a further 200 people with disabilities in our commercial division". However, when it comes to determining who should be made redundant, it uses selection criteria that seem predetermined to be punitive on those with a low-skill base, which Rehab never sought to address over the years of its existence by offering vulnerable workers an opportunity for retraining or reskilling. Other selection criteria used were irrelevant to the skills needed for the job at the employment.

This approach was not appropriate in terms of the care of vulnerable workers where a genuine effort is intended to set out and to help to achieve their potential. They are entitled to have dignity in the workplace. To date all those affected by this proposal have been affected by poor communications from the employment. There is a lack of transparency with regard to the company's position in respect of their representatives. At most we are seeing an unpaid transition from employment to a process of support, possibly without as much as a curriculum vitae.

I call on the Minister to assist in some resolution of the redundancy situation in Galway for these vulnerable people. Some of these people have worked for Rehab for almost 20 years. It has been their life. Time must be given for a possible working group to give solutions to Rehab with regard to the long-term viability of the facility in Galway. I call on the Rehab group to actively participate in a discussion with the Department, which plays a critical role in subsidising vulnerable workers in society. It is unacceptable that Rehab would put in place corporate selection criteria based on people's skills and their capacity to be in work on time and to use their skill-set as an opportunity to retain or force them out the door, especially in light of the fact that we underpin this organisation and we support the hourly rate of pay. I call on the Minister to examine this situation carefully.

Joan Burton (Dublin West, Labour)
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I thank Deputy Keaveney for raising this important matter. I heard about the redundancies in Rehab with great regret. However, I emphasise that they do not arise as a result of any reduction in funding by the Department of Social Protection. As Deputy Keaveney is aware, the Department of Social Protection has recently taken over full responsibility for the wage subsidy scheme since the former FÁS employment services division joined the Department of Social Protection with effect from 1 January last. The funding available to Rehab under the wage subsidy scheme from the Department of Social Protection has not been reduced in any way.

I emphasise that as a result of these redundancies the employment services unit of the Department of Social Protection will engage with the workers being made redundant to assist them to find alternative employment or appropriate training. I have been informed by the Department of Social Protection local team in Galway that in total, 19 posts have been made redundant. A total of 16 of these were supported through the wage subsidy scheme and local departmental offices are working with the wage subsidy scheme clients to provide them with ongoing support in what is, I realise, a most difficult time for the workers involved. I have been assured that the local office in Galway will work vigorously to ensure that as many of these individuals as possible are given the necessary further training, guidance and support that they may require.

I wish to give some context in respect of the wage subsidy scheme, which plays an important and valued role in supporting employers to provide job opportunities in the open labour market for people with disabilities. The objective of the scheme is to increase the numbers of persons with a disability in employment. The scheme provides payment of a wage subsidy to the employer to compensate for the reduced productivity of the disabled worker. The wage subsidies are designed to provide an incentive to employers to consider more closely the potential of disabled people to meet their labour force requirements. The wage subsidy scheme is applied to all commercially oriented enterprises in the State which provide employment to disabled workers. It does not include the voluntary sector.

The RehabRecycle group in Galway has 34 employees for whom it receives a strand 1 wage subsidy of €5.30 per hour, subject to a maximum of €10,748 per annum in respect of each employee. The company also receives the maximum 50% top-up subsidy under strand 2. Nationally, Rehab employs 192 people with disabilities, for whom it receives wage subsidy scheme funding. It is the only employer currently eligible to receive a strand 3 subsidy. This hourly subsidy rate of €5.30 per hour was originally index-linked to the minimum wage. However, the hourly rate was not altered when the minimum wage was last reduced. Subsequently, as Deputy Keaveney is aware, the minimum wage was reinstated.

Arrangements have been put in place by the Department of Social Protection in the event that an employee for whom a wage subsidy is payable can no longer continue in employment for any reason. If this arises, their income support payment will automatically be restored without the need to re-apply. I understand that SIPTU will meet the director of Rehab Enterprises on Friday to discuss the matter further. I hope these discussions will be positive.

I wish to restate that the Department of Social Protection will continue wage subsidy scheme funding to Rehab. I emphasise that the wage subsidy scheme continues to be available as an incentive for employers which provide jobs for people with disabilities. I look forward to hearing a report from the meeting on Friday. As Deputy Keaveney stated, Rehab is in receipt of considerable funding from various organs of the State in respect of its activities. I hope there is a positive outcome for the workers concerned.

Colm Keaveney (Galway East, Labour)
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I am pleased that the Minister has expressed an interest in looking forward to the outcome of Friday's discussions concerning the affected workers. I draw the Minister's attention to the fact that Rehab posted a surplus of €1.9 million in 2009 and a surplus of €2.3 million in 2010. I note the commitment by the Department of Social Protection to the wage subsidy scheme. However, I am at a loss to understand how these redundancies could be legitimate in the first instance if the State is subsidising €5.30 per hour of a €9.10 hourly rate based on €10,700 per annum. I call on the Minister to bear this in mind when she receives her report on Friday. How authentic are these redundancies? These are vulnerable people forced out the door. They have not volunteered for this process. I call on the Minister to take a particular interest in this situation.

I welcome the Pathways to Work initiative launched last week. It is a great policy innovation for the Department and the country. However, I hope it does not afford opportunities for organisations such as Rehab to consider shedding vulnerable workers and shift the liability of how people with disabilities are supported and maintained in employment. They make an invaluable contribution to employment. The organisation does not pay for raw materials. It is paid to take in raw materials and sell them on with an hourly subsidy of €5.10 per hour. I call on the Minister to give as much attention as possible to the outcome of Friday's discussions.

Joan Burton (Dublin West, Labour)
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I await with interest the outcome of the discussions between SIPTU and the Rehab director. I take the points made by Deputy Keaveney. We have just taken over the wage subsidy scheme since the relevant division of FÁS joined the Department on 1 January. Recently, I launched the EmployAbility Service, which provides job coaches and other supports to individuals with a disability seeking employment and employers. This includes a range of possible subsidies. Currently, we are re-advertising this scheme to employers. As the Deputy noted, the subsidy is significant and helpful, so I hope there will be a positive outcome to the discussions. Rehab has been a trailblazer with regard to the employment of people with a disability and I would be concerned by any redundancies within that company. I expect to receive further reports on the situation and hope the outcome of the discussions will be successful for the workers involved.