Written answers

Thursday, 23 March 2006

Department of Enterprise, Trade and Employment

Job Losses

5:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 119: To ask the Minister for Enterprise, Trade and Employment the action he intends to take to address the plight of the workers made redundant by a company (details supplied) in County Donegal. [11459/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Labour Court operates as an industrial relations tribunal, hearing both sides in a trade dispute. It then issues recommendations setting out its opinion on the dispute and the terms on which it considers the dispute should be settled.

In line with the voluntary nature of the industrial relations system in this country, Labour Court recommendations for the resolution of trade disputes are not legally binding. However, as the Labour Court is a court of last resort in the industrial relations process, it is expected that the parties come to that process in good faith and consequently are prepared to accept the outcome of the process, namely the Labour Court recommendation. Responsibility for the settlement of a dispute ultimately rests with the parties themselves.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 120: To ask the Minister for Enterprise, Trade and Employment his views, given the refusal of companies (details supplied) to pay the workers the redundancy terms recommended by the Labour Court, on whether it is necessary to increase statutory redundancy payments to a minimum of three weeks per year of service. [11460/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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Legislation to increase statutory redundancy payments was enacted by means of the Redundancy Payments Act 2003. This increased the level of redundancy payments from a half a week's pay per year of service under the age of 41 and one week's pay per year of service over the age of 41, plus one bonus week, to two week's pay per year of service, plus a bonus week. This increase resulted from the Sustaining Progress agreement between the social partners. S.I. 695 of 2004 increased the ceiling on reckonable earnings used in calculating statutory redundancy payments from €507.90 per week to €600 per week from 1 January 2005. This represents an increase of 20% in the ceiling and follows from the recommendations contained in the report of the redundancy review group published in 2002 and from the mid-term review of Sustaining Progress. In light of the foregoing, there are no plans to increase further the level of statutory redundancy payments in the foreseeable future.

Statutory redundancy has been paid to the workers in the factory named by the Deputy and a 60% rebate was paid to the company last December. Ex gratia payments are a matter of negotiation between the company concerned and the workers, represented in this case by SIPTU. The Labour Court operates as an industrial relations tribunal, hearing both sides in a trade dispute. It then issues recommendations setting out its opinion on the dispute and the terms on which it considers the dispute should be settled. Responsibility for the settlement of a dispute ultimately rests with the parties themselves.

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 121: To ask the Minister for Enterprise, Trade and Employment the mechanism he has put in place to provide training for the employees recently made redundant in a business (details supplied) in County Kildare; and if he will make a statement on the matter. [11463/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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FÁS employment services and training services, midlands region, are closely involved with all companies which have redundancies, assisting the workers in planning new careers; identifying training needs and providing training in a range of skills.

A range of services are provided. They include a top level agreement with the company on responsibilities and actions, as well as intensive interviews either individually or in groups with affected workers. These interviews outline the range of supports and services available. In addition, the services include referral by FÁS of redundant workers to jobs, training courses or other options; the establishment by FÁS of special or customised courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market.

In the case of the business in question, FÁS has initiated the process outlined above and a number of the workers made redundant on 16 March 2006 are engaged in the process. FÁS will continue to provide its services to the workers until they find suitable employment.

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