Seanad debates
Tuesday, 14 February 2012
Job Losses
8:00 am
Fidelma Healy Eames (Fine Gael)
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The Minister is very welcome on this St. Valentine's night. It is really good of him to be here replacing the Minister for Social Protection.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I am delighted to be here on this very important night.
9:00 am
Fidelma Healy Eames (Fine Gael)
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Great.
I wish to ask the Minister for Social Protection the background to the decision to lay off 20 people from Rehab Recycle in Galway, which is part of Rehab Enterprises, in view of the fact that the majority of the people who have been made redundant have special needs. They have intellectual and physical disabilities. I would also like the Minister to elaborate on future Government subsidised work placements for people with intellectual disabilities. This is the first example, in the current recession, of people with intellectual disabilities being laid off. That is what makes this case unique.
Rehab Recyle, in Parkmore, Galway, is part of Rehab Enterprises, and currently has a total workforce of 45. Of these, 33 are classed as general operatives and 80% of these people are classed as having special needs. This week, between 17 and 20 of the employees received redundancy notification and of these, between 14 and 17 are special needs employees. Many of the employees being made redundant have worked for the Rehab company in Parkmore since its start-up in 1995, 17 years ago. Only three of those known to have been made redundant do not have special needs.
These redundancies will have a devastating effect on the employees themselves but, most importantly, on their families. I have already met three of these families. Their concern is what they will do with these adults, young and middle-aged, at home. These special needs employees depend on their jobs to allow them to integrate fully into society and to feel a sense of worth and identity. Without employment they will be left in a vulnerable position with a loss of dignity, sense of identity and self worth, leading, in some cases, to a rapid deterioration in their mental and physical health. That cannot be underestimated.
It is difficult to understand this decision. It makes very little economic sense because the majority of the employees' pay is subsidised by the Government. The very name Rehab Recycle suggests employment for people with special needs, yet the criteria Rehab has put forward for selection for redundancy include words such as, "lack of flexibility, innovation, dexterity, motivation and experience", words that would never be applied to people with special needs. They would not have those capacities. The criteria do not include length of service or loyalty, which these employees have demonstrated during their years of service with the company.
When I met one of the families, whose brother received redundancy notification this week, they asked me to describe the man to the Seanad. I will call him "Terry". He is 50 years of age and has been employed as a general operative by Rehab Recycle since it started in 1995. Last week, he received notification that he was one of the employees at risk and this week, following a meeting with management, he was notified that he was one of the people being made redundant. He works three days a week and lives an independent life in a house that is partly supervised.
The family feel that when Terry loses his job, there will be a rapid deterioration of his mental and physical health. They also have very real fears that there appears to be no solid structure in place once he is made redundant. What structures are in place for these people? They feel that those most vulnerable in society are being neglected and that this issue needs to be highlighted and given top priority. In the current environment, the chances these people have to avail of other work opportunities are diminished. Even in the boom times, people with disabilities were the least likely to be employed, so in the midst of a recession, they are really undermined.
The opportunities afforded to people with disabilities by Rehab placement have been invaluable. Being able to play an active role in the community is something that most of us take for granted. We should promote the active involvement of people with intellectual, physical and mental disabilities and I urge the Minister for Social Protection to do all she can to intervene and to ensure that this situation does not go from bad to worse.
There appears to be little or no support structure in place to help these vulnerable people now or in future. For those wishing to move on to new employment, Rehab has promised that a full labour market service tailored to their individual needs will be put in place to assist them to secure alternative employment, either within companies of the Rehab Group or otherwise. However, it is the view of the families that this is just a PR gesture and they do not believe that it is true, even though I clarified it for them. I understand that this transition will help them for up to six months under the National Learning Network. After this the employees will be left to fend for themselves.
Fidelma Healy Eames (Fine Gael)
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What supports are being put in place? What is the role of SIPTU in this case? I understand SIPTU were slow to come in. This has been a real shame. These are people with disabilities and some of them had membership in SIPTU. Is their redundancy tax free? Will their jobs be offered back to them in a better climate? If they take redundancy, which they have done in some cases, will that prevent them from taking other jobs? I am talking about people with special needs.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I must apologise for the fact that the Minister is not in a position to attend. I am here to reply on her behalf.
The Department of Social Protection has recently taken over full responsibility for the wage subsidy scheme as the previous FÁS employment services division joined the Department of Social Protection on 1 January 2012. This scheme plays a valued role in supporting employers to provide job opportunities in the open labour market for people with disabilities, and demonstrates the Department's commitment to increasing the employment of people with disabilities in a more mainstreamed work environment.
The wage subsidy scheme is available to employers who provide more than 21 hours of employment per week to disabled workers. The financial supports for employers are structured under three separate strands and companies could benefit under one or more of the stands simultaneously, as appropriate.
Strand 1 is a general subsidy paid to an employer in respect of a disabled person who has a productivity shortfall in excess of 20%, in comparison to an able-bodied peer. The rate of subsidy is €5.30 per hour and is based on the number of hours worked, giving a potential annual subsidy of €10,748 per annum based on a 39 hour week. Strand 2 is intended to cover additional supervisory, management and other work based costs that may arise when employing two or more eligible people with disabilities. Strand 2 is a percentage top-up of the wage subsidy and is based on the overall number of disabled employees employed under Strand 1. For example, three to six disabled employees get a 10% top-up of wage subsidy paid, seven to 11 employees get 20%, 12 to 16 get 30%, 17 to 22 get 40% and 23 employees and more get 50%.
Strand 3 is an additional grant for employers who employ 30 or more disabled workers with the support of the wage subsidy scheme. This element is a contribution towards the employment and expenses of an employment assistance officer, who is employed in a supportive role to assist the employees with a disability. The focus of the EAO's work concentrates on the personal, social, health or family circumstances of disabled workers which might inhibit them from remaining in employment. The grant for this strand is €30,000 per annum.
The Rehab recycling group in Galway has 34 employees for whom it receives a strand 1 wage subsidy of €5.30 per hour, subject to a maximum of €10,748 per annum in respect of each employee. The company also receives the maximum 50% top-up subsidy under strand 2. Nationally, the Rehab Group employs 192 people with disabilities, for whom it receives WSS funding. It is the only employer currently eligible to receive a strand 3 subsidy. This hourly subsidy rate of €5.30 per hour was originally index linked to the minimum wage. However, the hourly rate was not altered when the minimum wage was last reduced.
I would also like to stress that the wage subsidy scheme continues to be available as an incentive for employers who provide jobs for people with disabilities. I take on board what the Senator said in respect of redundancy and other issues, and I will ask the Minister for Social Protection to reply directly to her on that matter.
Fidelma Healy Eames (Fine Gael)
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I thank the Minister for taking the Adjournment, given that it is not within his brief, but I have a raised a number of questions that are not answered in this reply.
Denis O'Donovan (Fianna Fail)
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The Minister has said that the Minister responsible will respond. There is no point in hammering him on this issue.
Fidelma Healy Eames (Fine Gael)
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I would never hammer the Minister. He is too big. I thank him, because it is late. I would appreciate if he would relay the other questions I raised to the Minister for Social Protection.