Written answers

Wednesday, 7 October 2009

Department of Enterprise, Trade and Employment

Company Closures

9:00 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 183: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that a company (details supplied) is planning to close 14 shops here and has refused to disclose the financial situation of the company as an entity; her views on the way employees can engage meaningfully with the company in trying to save jobs when information has been refused which is required to put a viable survival plan to the company; and if she will make a statement on the matter. [34631/09]

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 184: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that a company (details supplied) will be making an application for a Government rebate of up to 60% of the statutory pay out to employees; her views on its parent company laying people off and then requesting the Government to pay up to 60% of the cost, in view of the fact that the companies grossed in excess of €800 million in 2008; and if she will make a statement on the matter. [34632/09]

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 185: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that a company (details supplied) is proposing to downsize and not totally close down the company here and the ramifications within the local community, in particular the impact of women workers in view of the fact that in excess of 90% of employees under threat of redundancy are female; if her attention has further been drawn to the fact that the industry standard for redundancy when a travel industry company makes redundancies while maintaining a operating business is four weeks; and if she will make a statement on the matter. [34633/09]

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 188: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will respond to the correspondence (details supplied); and if she will make a statement on the matter. [34658/09]

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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Question 189: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will respond to correspondences (details supplied); and if she will make a statement on the matter. [34659/09]

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 197: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the concerns of staff at a company (details supplied) in County Waterford; and if she will make a statement on the matter. [34910/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 183 to 185, inclusive, 188, 189 and 197 together.

My Department received a collective redundancy notification in relation to proposed redundancies at the company in question on 14 August 2009.

Under the Redundancy Payments Scheme administered by my Department and funded from the Social Insurance Fund, the essential function of my Department is to ensure that all eligible employees receive the statutory minimum redundancy entitlements due to them. Currently, the statutory redundancy entitlements for all qualifying employees are two weeks pay per year of service plus a bonus week.

There are two types of redundancy payment made from the Social Insurance Fund – redundancy rebates of 60% which are payable to employers who have paid the minimum statutory redundancy payments to qualifying employees and, statutory lump sums to employees whose employers are insolvent or not in a position to pay. In the case of employers who pay the statutory redundancy payments to their employees, they are entitled, by virtue of their social insurance contributions, to avail of a 60% rebate in respect of the redundancy payments paid out.

Neither the Tánaiste nor I have any role in relation to the negotiation of ex gratia payments to employees in excess of the statutory minimum payments – this is entirely a matter of discretion for the company and an issue for negotiation as between the employees and the company.

In accordance with Sections 9 and 10 of the Protection of Employment Act 1977, companies are required to consult employees' representatives and to supply certain information regarding proposed redundancies. Should it be the case that the level of consultation and information as set down in the Act are not being satisfied, it is possible for a complaint to be taken before the Rights Commissioner Service who will hear the case and communicate the outcome to the parties involved. An appeal can lie from a decision of the Rights Commissioner to the Employment Appeals Tribunal.

Responsibility for the resolution of industrial disputes between employers and workers, whether in redundancy or other collective disputes, rests with the employer, the workers and their representatives. The State provides the industrial relations dispute settlement machinery free of charge to assist this process, which, in line with the general principles of industrial relations in Ireland, is voluntary in nature. The system of industrial relations in Ireland is designed to help and support parties in their efforts to resolve their differences, rather than imposing an extensive set of legislative conditions on the parties to an industrial dispute. It is open to utilise the Industrial Relations mechanism of the state - the Labour Relations Commission and/or the Labour Court to further claims for an enhanced redundancy package.

The Tánaiste and I are very conscious of the loss of employment which will result from the redundancies proposed at the company and would encourage staff and management at the company to engage meaningfully in the process of consultation and to use, where appropriate, the recognized IR mechanisms of the State to come to an agreeable outcome in this case.

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 186: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that a company (details supplied) has been reported to the Labour Relations Commission for failing to engage in effective and proper consultation since announcing the shop closure in September 2009 and that efforts by employees to engage in reasonable negotiation have been ignored; and if she will make a statement on the matter. [34634/09]

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 191: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will take steps to ensure that her Department together with the dispute resolution machinery of the State will be deployed to ensure that a company (details supplied) engages with its employees and their union, following the recent announcement to close 14 of its 31 shops here and that the company would be called on to provide an enhanced redundancy package to its employees in view of the fact the company, which is international, made a significant profit here in 2008; and if she will make a statement on the matter. [34871/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 186 and 191 together.

Neither the Tánaiste nor I have any role in relation to the negotiation of ex gratia payments to employees in excess of the statutory minimum payments – this is entirely a matter of discretion for the company and an issue for negotiation as between the employees and the company.

In accordance with Sections 9 and 10 of the Protection of Employment Act 1977, companies are required to consult employees' representatives and to supply certain information regarding proposed redundancies. Should it be the case that there is dissatisfaction about the level of consultation and information as set down in the Act, it is possible for a complaint to be taken before the Rights Commissioner Service who will hear the case and communicate the outcome to the parties involved. An appeal can lie from a decision of the Rights Commissioner to the Employment Appeals Tribunal.

I understand that the Labour Relations Commission has been in contact with the parties with a view to facilitating conciliation on the issues in dispute as soon as possible. The experience and expertise of the Commission offers an appropriate avenue for resolving these issues. In this context, I would encourage both parties to avail of the professional services of the Commission in their efforts to resolve their differences.

Responsibility for the resolution of industrial disputes between employers and workers, whether in redundancy or other collective disputes, rests with the employer, the workers and their representatives. The State provides the industrial relations dispute settlement machinery free of charge to assist this process, which, in line with the general principles of industrial relations in Ireland, is voluntary in nature. The system of industrial relations in Ireland is designed to help and support parties in their efforts to resolve their differences, rather than imposing an extensive set of legislative conditions on the parties to an industrial dispute. It is open to those affected in such situations to utilise the Industrial Relations mechanism of the state - the Labour Relations Commission and/or the Labour Court to further claims for an enhanced redundancy package.

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