Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

I thank the Ceann Comhairle for selecting this important matter and I thank the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, for being present to respond. I wrote to the Minister last evening and now we have the opportunity to share our thoughts on the very distressing situation in Castleblayney, a town that suffered recent significant job losses with the closure of the Cargill Integra plant, a meat processing facility in the town, where 70 jobs were lost.

On Monday, it emerged that Musgrave, the supplier to the SuperValu store in Castleblayney and despite the fact that it was engaged in direct negotiations with the owner, Mr. Jim McConnon, and his accountant over some time previously, proceeded unilaterally and sought the appointment of a temporary liquidator through the High Court.

While the consequence of that is devastating for Mr. McConnon and his family, the closure also was devastating for the 40 full-time and 15 part-time workers in this significant store located in that small Border community. I appeal directly to the Minister to use his good office, as well as that of the Department of Jobs, Enterprise and Innovation, to engage directly with the Musgrave Group in Cork and to impress on it the importance of resuming the negotiation. This negotiation was against the positive development of the securing by Mr. McConnon of certainty of tenure as a result of a previous protracted negotiation with the bank and others. On that basis, Mr. McConnon believed there was indeed a workable way forward that would have both protected his business and importantly, from a priority view in my case, would have protected the employment of the approximately 55 people who now find themselves numbered among the unemployed.

I hope the Minister is in a position to outline to Members what steps he has undertaken or intends to undertake. It is of huge importance that negotiations which are understood to be proceeding in good faith are not being undermined by duplicity whereby on the one part, there is an engagement and on the other, one of the parties is preparing literally to pull the carpet from underneath the other. This is the position that presented in this regard last Monday. Mr. McConnon and his colleagues had travelled to Dublin for what was a continuum of an engagement that had been taking place over a preceding period. Simultaneously, however, Musgrave was before the High Court and an army of approximately 30 redshirted people employed by that group was en route to Castleblayney to carry out a stock take. This is not the way to have a relationship and what is involved here is a highly serious matter in respect of procedure, disposition and attitude. Whatever about the issues and difficulties at its core, there must be some sense of straightforwardness and appreciation of what is involved in the round. People should not take decisions unilaterally that will have such devastating consequences. I hope the Minister's office and Department will impress this point on the principal in this instance, namely, the Musgrave Group as the suppliers.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

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.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

I appreciate these are early hours following on the dreadful announcement. I have corresponded directly with the Musgrave Group and received a response from that company today to my written appeal sent yesterday. I have it to say it has offered nothing and has guaranteed nothing. However, Musgrave has of course sought to recruit my support of calls for an end to the workers' protest at the now-closed store. That is about the sum total of what Musgrave has had to say. I fully understand the great upset and frustration of the significant workforce in this retail outlet. My purpose in raising this matter with the Minister is to make an appeal to him, whatever the restrictions or difficulties and whatever the limited opportunities that may be open to him, that he and his office should engage directly with Musgrave. I believe it would have been a better course had Musgrave not sought the appointment of a liquidator with all that entails but perhaps had sought the appointment of a receiver instead, who I believe would have ensured, at least for a time, the ongoing conduct of the business at that particular location. Consequently, over time, with the opportunity to elaborate further in respect of the engagement that had been ongoing between Mr. McConnon and Musgrave, a resolution could have been arrived at. I acknowledge it is not within the Minister's gift to turn around the position but his support would be greatly appreciated.

I believe I have had a cursory outline by the owner of the business of the status and the intent of that engagement. He certainly is convinced there was a workable way forward. I am of the view that he has contended with great difficulties over recent years and has managed to hold his position and to survive and is on a most definite course to ensure the continuation of his business and the great employment it has given. Moreover, I believe he is absolutely deserving of every support from the State apparatus. I again use this limited opportunity, for which I am grateful, to urge the Minister's engagement directly with Musgrave. I believe it can pull back from the brink at this stage and a very sad scenario can be set aside and a brighter prospect put in place on the main street of Castleblayney.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

I appreciate the scale of the shock involved but I must be honest and admit I do not know the detailed business background. I reiterate that this business does not come under my agencies and would not be eligible for State support in any form because of its nature. The liquidator acts under the guidance of the court which provides a forum whereby the working out of the issues between the sides is conducted under the same guidance. That should provide fairness in protecting the interests of those concerned.

I do not know the extent to which a liquidator can retrieve a business from a situation such as happened here. That is the duty of the court overseeing process, to see what can be found from this and if a fresh business can be found, to discover the state of play in terms of assets and liabilities and the viability of the underlying business. That is the process which is now in train under the guidance of the court and I do not have a direct role in it, that being the constraint on my office. If and where workers raise issues concerned with employment rights and areas where we have legal responsibility, or if our agencies can offer support in industrial relations issues that might be sorted, we would be more than happy to act. However, this case has only come to my notice as of now and I do not have the levers to deal with issues concerned.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

I ask the Minister to look at this and, at the very least, consider urging and encouraging.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

I will.