Seanad debates

Wednesday, 14 May 2003

Redundancy Payments Bill 2003: Second Stage.

 

There is a wider dimension with regard to the rights of employees in the event of liquidation. In the case of Peerless Rugs, workers with mortgages had money deducted from their wages by the company for payment on their behalf to building societies. That was a sensible approach from the workers' point of view as the money routinely went to the building society. However, when the company went into liquidation, the cheques sent to the building society were no good. It is to the Tánaiste's credit that on several occasions she spoke to the relevant parties and was ultimately successful in getting the company to honour the cheques. In addition, weekly deductions from wages were being made by the company towards a holiday fund, which was also prudent financial management on the part of the employees. They lost everything they had saved. We must look at the law with regard to such matters, in terms of how employees rank with other creditors when it comes to liquidation.

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