Timmy Dooley (Clare, Fianna Fail)
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I wish to raise the recent liquidation of Avara Shannon Pharmaceutical Services Limited and, in particular, the plight of the 114 workers. As the Minister of State well knows, and this should be well known to many, the company is operating at Shannon since 1976 under various guises and different ownerships. Prior to its takeover in 2016 by Avara, it was owned by the very well known Belgian based UCB, a highly reputable and well-respected company. However, as of 29 July, the site is in full liquidation. There are joint liquidators on site, which is somewhat unusual and adding somewhat to the concerns. It is in liquidation and efforts are being made to try to find a pathway towards the continuation of the company in some form.

The real concern is that the Shannon facility and its workers have contributed hugely to the local economy since 1976 and it is with disbelief that these workers have been informed, as a result of the liquidation, that the terms and conditions that were available under the transfer of undertaking will not apply and, as such, the terms and conditions, particularly the recognition of their service on having to leave the employment - they would have expected six and a half weeks, together with two weeks statutory redundancy – will not be paid. After that amount of commitment to the company, they will be left with just the statutory level of redundancy. That is a major blow to these workers and to the efforts they have made to sustain this company through thick and thin.

The concerns I have are rather varied but, in particular, I am concerned that in 2016, when it disposed of its site to Avara, UCB did not do the appropriate level of due diligence. I do not know what the transfer was at the time but I believe it was passed for a relatively small amount of money. While that might have allowed UCB to discharge its responsibility to the site and the environmental management of a very complex site, it takes no regard of the conditions and terms under which the workers are employed. In this liquidation process they are now left with statutory redundancy, which will have an enormous impact on their livelihoods and have wider implications, as the Minister of State will be well aware, for the wider community.

I am of the view that UCB still retains some responsibility, whether it be through its corporate social responsibility or whatever, and there is some basis for my making that claim. A similar situation happened in the UK, where AstraZeneca, another large pharmaceutical company, disposed of a manufacturing site there also to Avara and where the liquidation took place with Avara on that site. AstraZeneca through the efforts of workers was forced to recognise it had not done the appropriate level of due diligence before it passed or transferred the operations to Avara and, in that instance, I understand it kicked in about €12 million to support the workers and give them the full value of their expected terms and conditions, and that is what we want here. We want UCB to step up to the plate and to recognise it passed on a very considerable undertaking for very little and did not give due consideration to the impact that would have if it did not all work out. Clearly, for something to collapse in such a short period highlights to me that Avara was poorly structured, poorly capitalised and was not in a position to take on the burden of responsibility that UCB transferred to it. That is something for which UCB must answer.

I appeal to the Minister of State and the Government to use their best efforts and endeavours to get UCB to accept its corporate responsibility. It is difficult in that it is not located here but there are channels through our partners in Europe and through European legislation that should force UCB to make good on the commitments under which these people worked for such a long period and gave such valued service.

Pat Breen (Clare, Fine Gael)
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I thank the Deputy for raising this very important issue. Both of us are very familiar with what is happening with Avara in Shannon and I am sure both of us have been in contact with the workers.

First, it is important to point out that our thoughts are with the workers. It is a very difficult period for the employees experiencing this uncertainty, particularly in the liquidation process. That must be noted.

I am taking this matter on behalf of my colleague, the Minister, Deputy Regina Doherty. The Deputy's question in tabling this matter refers to threatened redundancies at Avara pharmaceuticals in Shannon. The Minister, Deputy Doherty, has informed me that, as yet, she has received no official notification from the company of collective redundancies. I am sure the Deputy hopes, as I do, that it does not come to that situation. It is important that every effort be made to save the company, Avara, and these jobs in Shannon. I can assure the Deputy, and I note Deputy Harty is present, that every effort is being made by the liquidator to ensure we can save the jobs in that company at this time. I do not want to say any more about that now. It is important we save those 114 jobs.

I will go through the process with the Deputy in case it comes to that but hopefully it will not. 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 sections 9 or 10, they may pursue a complaint to the Workplace Relations Commission. It is also an offence under section 11 where an employer fails to comply with sections 9 or 10. There is also an obligation under section 12 which makes it mandatory on employers proposing a collective redundancy to notify the Minister for Employment Affairs and Social Protection of the proposed collective redundancy.

An employer is prohibited from issuing any notice of redundancy during the mandatory employee information and consultation period, required by the 1977 Act, and until 30 days have elapsed from the date on which the Minister has been notified. For the avoidance of doubt, the 30-day mandatory information and consultation process and the aforementioned 30-day period from the date of notification to the Minister may run concurrently. However, since it will not be possible to complete the notification to the Minister until the identity of the employees' representatives for the purpose of the information and consultation process has been established, it is conceivable that both periods may not be entirely concurrent.

In the first instance, it is the responsibility of the employer to pay statutory redundancy and other wage related entitlements to eligible employees. However, the Social Insurance Fund provides a safety net for employees in situations where the employer has become insolvent and the company is to be liquidated. 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. In order to qualify for a statutory redundancy payment, an employee must have at least two years continuous service, be in employment which is insurable under the Social Welfare Acts and be over the age of 16.

Entitlements covered under the insolvency payments scheme include 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; and arrears of wages, sick pay, holiday pay and minimum notice are limited to eight weeks.

To date, the Minister, Deputy Doherty, has not received any applications for statutory redundancy or wage related entitlements in respect of employees of Avara pharmaceuticals.

If this was the case, my Department would ensure that the affected employees receive advice on jobseeker's payments and other income supports that may be available to them and to provide support to them in relation to returning to work, or accessing appropriate education and training and development options.

The Minister's team in the mid-west division already met employees of the company on 12 August 2019 and provided them with information on the Intreo services available locally. All jobseeker's benefit forms were taken on the day from all present, with a view to speedily processing the claims, once the date of closure was confirmed.

Timmy Dooley (Clare, Fianna Fail)
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I accept that the Minister, Deputy Regina Doherty, would not yet have been contacted by the liquidator. Even though they have gone through the consultation period with workers, they have still not reached that point because they are trying to work through a possible rescue of the operation.

Even if a new company is established and even if a new buyer can be found - there is good and hard work going on and the employees and the management of the company are doing an excellent job in trying to assist in that process - there will come a position where employees will be made redundant. They will only get two weeks' statutory redundancy, notwithstanding the amount of time they have worked for this particular operation under various ownerships. The concern I have is that, as recently as 2016, UCB discharged its very significant responsibility for very little money on that site and sailed into the wind. A similar situation happened in the UK, that I have identified, where a company, AstraZeneca, effectively did the same but it was called out by the workers and was made to pay.

All efforts will be made to assist people under the statutory terms and conditions of the legislation as set out but we need a little thinking outside the box here. We need to find a way for UCB to honour its commitments to the workers who will not be fortunate enough, if any are, to have future employment on this facility. I am aware the Minister of State, with his knowledge, has been in contact with the workers as indeed has Deputy Harty. Deputy Carey has been on the site as well, as I have, and has spoken to many of the workers on an ongoing basis. We want to see a future for that facility. We want to see people employed there. In our absolute desire and our requirement to keep employment there, we cannot allow the terms and conditions to be set aside for the workers who will not have employment in any new operation that might be there. We must be mindful of those and their families. They had their hopes and retirements pinned on such sums in the event of having to lose their job and, unfortunately, it is all for nothing now.

Pat Breen (Clare, Fine Gael)
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The Leas-Cheann Comhairle might ensure that the full reply is written into the record of the Dáil.

Pat Gallagher (Donegal, Fianna Fail)
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That is only done when it is a response to a parliamentary question. If the Minister of State wants, he may use the minute to do so.

Pat Breen (Clare, Fine Gael)
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Much of what is in the reply anyway, as Deputy Dooley will be aware, is the process and engagement that has taken place with the Department of Employment Affairs and Social Protection and the employees. As the Deputy will be aware, the Department also attended the Avara premises in June of this year to facilitate the speedy issue of the public service cards etc.

Of course, I share Deputy Dooley's concerns in relation to the employees.

I am not privy to the contacts that the liquidator has had with the original company concerned but I am sure the liquidator has made every effort. As Deputy Dooley will be aware, this is ongoing since August. The liquidator has made many special efforts to ensure that the jobs are being saved at the company itself. If the jobs are saved, it is important for us to ensure that there is continuity of employment for those loyal employees who have given long loyal years of service in that company. The company is potentially viable. The company is only operating at 30% to 40% of capacity. From that point of view, I believe there is a future for this company. I believe that the liquidator is working hard to ensure the viability of the company moving forward. Let us wait and see in relation to, first, the viability of the company.

While I am answering for Deputy Regina Doherty in her capacity as Minister for Employment Affairs and Social Protection, I am not answering it in my capacity as Minister of State at the Department of Business, Enterprise and Innovation. Of course, for me, the priority is to have these jobs saved in Shannon. Only last week in Shannon I announced 25 jobs. We do not want to be losing jobs in the mid-west region.

As I am sure the local Oireachtas Members will be aware, every effort is being made by the liquidator to save these important jobs in Shannon. Deputy Dooley will be aware the company is in liquidation and there is little anyone can do outside of that. The liquidator is the boss here, but we will try to ensure the jobs are saved. I will take on board what Deputy Dooley has said and will pass on that information to those concerned.