Seanad debates

Wednesday, 14 May 2003

Redundancy Payments Bill 2003: Second Stage.

 

12:30 pm

Photo of Terry LeydenTerry Leyden (Fianna Fail)

The Tánaiste clarified the matter. She tried to find a way out of the situation and assist workers made redundant over that period. I recall situations where ex gratia payments were made. The Talbot workers in Dublin were well looked well, before the Senator's time. Also, in the Minister of State's constituency – I welcome Deputy Michael Ahern – Irish Steel had special arrangements.

In regard to retrospection, I accept that it would be almost impossible to impose the requirement on employers who could not be legally responsible for financing it. Under the law, there is a 60:40 divide as between the Government and employers. We cannot impose this responsibility retrospectively on employers but we may not be tied to the same extent and could make an ex gratia payment of our percentage if required. I make that point to the Minister of State and his officials.

I accept the bona fides of the Minister of State and the Tánaiste. Senator McDowell will accept that if one was addressing a group of workers affected by a difficult redundancy situation, one would endeavour to assist them in any way possible. I concede the difficulty and accept the situation but from my experience the Government could make ex gratia payments in difficult circumstances. In the taxi drivers case there was hardship involved arising from the sale of taxi plates. A forum has been set up to establish a compensation fund from which ex gratia type payments will be made.

Between now and Committee Stage in the Dáil, I ask the officials to look at the arrangement agreed for the Talbot workers, which was unique and satisfactory in the resolution of a major issue, and also at Irish Steel. In a redundancy situation in my constituency I pointed out there might be some way of coming up with an ex gratia payment.

The new legislation will come into force on 25 May. This is fast-tracked legislation. On a technical point, Senators may recall legislation to introduce the representative allowance for members of local authorities, from which I benefited. That allowance was made payable from the date the Bill was published. It was funded by the State whereas 40% of redundancy payments are funded by employers. The Attorney General advised the Tánaiste that the Bill would only come into force, as far as payments were concerned, when passed by both Houses and signed by the President. The earliest date is 25 May.

I am delighted the Tánaiste and the Minister of State came to the House today to cover this important legislation. I hope the media will recognise the work and contribution of the Tánaiste, the Government and the social partners in bringing forward the Bill. The social partners, including Senator O'Toole, president of the ICTU, played an important role in this development. There has been a radical change from a figure of half a week's per year to two weeks per year plus a week's bonus. The Bill also dispenses with the criteria relating to those aged over and under 41 years of age.

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