Written answers

Tuesday, 29 November 2005

Department of Enterprise, Trade and Employment

Job Losses

9:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 256: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the situation which has arisen at a company (details supplied) in County Cork; if he will investigate the serious concerns that what are really redundancies, are being presented to the workers as lay-offs, a fact that will result in the workers being denied proper statutory terms; and the actions he intends to take to address the plight of the workers at this company. [36390/05]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 257: To ask the Minister for Enterprise, Trade and Employment the grants received by a company (details supplied) in County Cork from either Enterprise Ireland or IDA Ireland in the past ten years; and the actions he or the relevant agencies intend to take to recover the State's investment if the company relocates to another jurisdiction. [36391/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 256 and 257 together.

The company in question has issued notice of temporary lay-off to 19 temporary employees in order to reduce costs until trading conditions improve. The company has informed the agency that it is awaiting word over the next few weeks on a number of potential contracts which, should the company win them, would require the reinstatement of the employees currently on protective notice.

In a genuine lay-off situation, an employee can terminate his or her employment for redundancy after four weeks on lay-off if the employer, within a further four week period, is not in a position to offer him or her 13 weeks unbroken service in the employment. In such a case, the employee would be entitled to a statutory redundancy lump sum payment, based on age, length of service in the employment and at the gross weekly wage, subject to a ceiling on wages of €600 per week. No claims have been received this year from the company in respect of statutory redundancy.

The company in question has received €696,123 in grant assistance from IDA Ireland since 1970. IDA Ireland is not aware of any plans by the company to relocate to another jurisdiction. In the event of a decision to relocate, IDA Ireland would take all appropriate action to recover outstanding liabilities. This company has not received any grant assistance from Enterprise Ireland. However, another company currently owned by the company in question received grant aid amounting to €170,870 from Enterprise Ireland, for which there are liabilities outstanding. I understand that an agreement has recently been reached regarding payment of the outstanding liabilities.

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