Gerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Tá mé buíoch den Cheann Comhairle as an seans seo an ábhar tábhachtach seo a phlé. Tá a lán daoine agus a dteaghlaigh i nDún Dealgan buartha tar éis an droch nuacht faoi The Authentic Food Company an deireadh seachtaine seo caite.

I first wrote to the company on 21 September having been contacted by workers and their representatives about rumours that The Authentic Food Company was closing. The company did not respond to my initial correspondence or to representations from Sinn Féin councillors, Ruairí Ó Murchú and Anne Campbell. Instead, on 19 October, the company went to the High Court. Staff at then received notice that the company was allegedly insolvent and unable to pay wages. I met the liquidators this morning.

The managing director of The Authentic Food Company, Nik Basran, claims that management carried out a comprehensive review of the business to try to find a way to make it profitable over the long term but he said this was not possible. The Minister of State has a responsibility to ask what type of review it is that excludes the workers' representatives and refuses to engage directly with Unite. What kind of review is it that it can be manipulated by employers so that these workers have no notice pay, P45s, references, redundancy payments or income for six weeks. This is very calculated, and it is sharp practice. Will the Minister of State give the Dáil a commitment that he will investigate whether this is a tactical insolvency? We need to establish whether the British-based The Authentic Food Company deliberately wound down the Dundalk plant. The workforce has been treated shamefully. They cannot gain access to social welfare. I urge the Minister of State to use his discretion to ensure the workers get their social welfare payments as soon as possible.

I have spoken to Enterprise Ireland to encourage it to find a buyer for the plant and to assure it of Sinn Féin support for this. I ask the Minister of State to do everything possible to have the workforce re-employed as quickly as possible. The workers need their social welfare entitlements anois.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputies for raising this sensitive issue, which has arisen as a result of the closure of The Authentic Food Company in Dundalk. Our thoughts, like those of the two Deputies, whom I know have been in touch with the employees, are always with the families affected by the closure of a company. It is a difficult time for them. We all understand that very much.

The Protection of Employment Act 1977 imposes a number of obligations on employers who are proposing collective redundancies, including an obligation under sections 9 and 10 to engage in an information and consultation process with employees' representatives and to provide certain information relating to the proposed redundancies.

Section 11A of the Act provides that, where an employee believes the employer to be in breach of section 9 or section 10, he or she may pursue a complaint to the Workplace Relations Commission, WRC. It is also an offence under section 11 of the Act where an employer fails to comply with section 9 or section 10.

Following contact from my Department, the joint provisional liquidators of the company have advised that the consultation process with employees began on Friday, 19 October and will continue for a period of 30 days.

My Department will continue to engage with the provisional liquidators as required.

In cases where an employer is insolvent, the Social Insurance Fund provides a safety net for the employees. It is the liquidator’s responsibility to seek, on behalf of employees, payment from the redundancy payments scheme in respect of statutory redundancy and from the insolvency payments scheme in respect of wage related entitlements. An eligible employee is entitled to two weeks' statutory redundancy payment for every year of service, plus a bonus week. Compensation is based on the worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week. To qualify for a statutory redundancy payment, an employee must have at least two years of continuous service, be in employment which is insurable under the Social Welfare Acts and be over the age of 16 years. Entitlements covered under the insolvency payments scheme are arrears of wages, holiday pay, sick pay, payment in lieu of minimum notice and certain pension contributions. Payments are calculated by reference to an employee's wages and are subject to a limit of €600 per week. Arrears of wages, sick pay, holiday pay and minimum notice are limited to eight weeks.

My Department will ensure that the affected employees receive advice on jobseeker's payments and other income supports that may be available to them and will provide support to them in returning to work or accessing appropriate education and training and development options. The team in the north-east division met employees of the company yesterday and provided them with information on the lntreo services available locally. An information and recruitment event for the workforce will be held in the Crowne Plaza Hotel in Dundalk on Thursday, 1 November next. The event will be supported by other key service providers. Local employers with job vacancies have also committed to attend. The key message for employees is that the Department will provide any redundancy, insolvency and jobseeker payments to which they may be entitled in a timely manner and will proactively help them to access opportunities available for employment.

Finally, the Workplace Relations Commission's customer service section provides information on the rights and obligations of employees and employers, respectively, under employment rights legislation. WRC information officials are available to meet the staff concerned, either individually or collectively, to discuss their employment rights, including matters related to redundancy.

Gerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

First, the Minister of State's response bears no relationship to my question. I ask him to study my question and revert to me on it. There is a small chink of light with his statement that: "The key message for employees is that the Department will provide any redundancy, insolvency and jobseeker payments to which they may be entitled in a timely manner". How will these people pay their rent? Last week they were in work, this week they are not. Where will they get the money to pay the rent? The Minister of State has the discretion to send a very clear signal that they should be paid now.

I raised other issues which I do not have time to discuss now. They relate to liquidations such as this. There is a responsibility on the Minister if this is a tactical liquidation which is to the advantage of the company and the disadvantage of the workers. The company ignored the unions and communications from me and other local representatives. It was wilful, deliberate and tactical. The company went to the court. The people who are the salt of the earth and who gave loyal service to this company are being abandoned. The Minister might not have had the chance to study what I said but I ask him to take up this matter and make a difference in the lives of these workers and their families.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Our first thoughts are with the families affected. Some 180 people have lost their jobs as a result of this. Our response plan was put into place immediately after the liquidator was appointed. It was put into place on Monday but the process started over the weekend. The emergency response plan was put in place by our teams in Dundalk. As the Deputy correctly pointed out, the first issue is that the affected employees quickly receive access to all income supports that are available. These will be provided, as will job opportunities. The agencies have been informed of the situation with regard to any job opportunities for people who have been affected by this. In addition, they will get priority in the area of education and training.

We have acted very quickly on this, as has the Intreo team in Dundalk. The team met the workers on Monday afternoon at Ballymascanlon House Hotel. The priority was to expedite payments and to offer help and assistance with registration for the public services card and so forth. As I said earlier, an information and recruitment event will take place in the Crowne Plaza Hotel on 1 November next between 10 a.m. and 1 p.m. That is important because all agencies will be attending the event, including the education and training board, Dundalk IT, the local enterprise offices, the National Learning Network, the Revenue Commissioners, the Money Advice & Budgeting Service and the Citizens Information service, to help and assist the people who have found themselves in this unpredictable situation. We will ensure-----

Gerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

When will they be paid?

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

-----that the 180 employees will get priority with regard to any upskilling that is necessary. I promise I will take note of what Deputy Adams said earlier.