Tony Killeen (Clare, Fianna Fail)
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On 12 December 2002, following the announcement of the closure of the Comerama factory with a loss of over 160 jobs, the Tánaiste, together with officials of the Department of Enterprise Trade and Employment, met a SIPTU delegation representing the Comerama workers.

From the official minutes of that meeting, it appears that the main concern of the workers, many, if not most, of whom had already been made redundant, was that if a deal on enhanced redundancy rates under partnership were made, it should be retrospective to the workers concerned. In that context, the Tánaiste gave an undertaking to do everything she could to ensure that the Comerama workers would get the retrospection. That undertaking was recorded in the official note of the meeting prepared by the official attending as follows: "An Tánaiste said that talks were on going regarding the Statutory Redundancy issue. She gave an undertaking that if the legislation is changed she would do everything she could to ensure that the Comerama workers would be included in any amendment".

At the time neither the Tánaiste nor the officials attending the meeting were aware of the legal principle established by the courts that the legislature cannot impose retrospective financial obligations on employers, or indeed anybody else. That was subsequently confirmed in legal advice to the Department. The legal advice from the Attorney General was that the enhanced statutory redundancy payments require legislation to be enacted to be brought into effect and as the payment of a statutory redundancy lump sum is a legal requirement on employers, it could not be imposed on them with retrospective effect. Employers are entitled to due notice, usually about two months, of the intention legally to require them to pay enhanced rates. That legal position was communicated to the Comerama workers.

The factual position regarding the Comerama workers in the Castlecomer plant is that 154 of them had been made redundant long before the new rates of redundancy came into effect. As I understand it, they received substantially more than the then statutory rate in settlement with the company. Thirteen workers made redundant by the liquidator of the company since May 2003 have been paid the new enhanced statutory rates by the Department. However, those amounts were less than the settlements received by the 154 workers who were made redundant before the company went into liquidation and received ex gratia payments.

There are no legal provisions for making additional payments from the public purse either to the 154 workers or those made redundant by the liquidator.

The Comerama facility was purchased by IJM Timber Engineering Limited, the Monaghan-based timber-frame housing company, in March 2004. That project is expected to create 50 jobs over the next 12 months and has the potential to create significant additional employment thereafter.

Of those made redundant, 150 attended interviews with FÁS. Subsequently, 136 people were called for training and 98 of those attended. Most of that training took place between February and June 2003. Some further training was provided for a total of 35 individuals. Training was completed in 2003 and at that time FÁS records indicated that 50% of the workforce who had engaged with FÁS on training programmes had progressed to employment.

I am satisfied that everything possible was done to ensure that the Comerama workers got their full redundancy entitlements and that no commitment was given, nor could one be given, to enhance statutory redundancy payments retrospectively. My colleague the Minister for Enterprise Trade and Employment met the unions some time ago and discussed with departmental officials all the issues raised at that meeting, in particular, the issue of ring-fencing. The Minister did not consider it possible to facilitate the award of redundancy payments to one set of workers without extending them to everybody else made redundant before the new enhanced rates were introduced, and I fully concur with that decision.

There have been numerous representations made on this matter by both union and public representatives, and a large number of parliamentary questions have been tabled regarding the Comerama workers over the past three years, in addition to Adjournment Debates in both Houses of the Oireachtas. The position remains unchanged. There are no legal provisions for making additional payments from the public purse either to the 154 workers or to those made redundant by the liquidator.