Dáil debates

Thursday, 26 April 2007

Protection of Employment (Exceptional Collective Redundancies and Related Matters) Bill 2007 [Seanad]: Committee and Remaining Stages

 

2:00 pm

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)

I am familiar with the example that was cited by Deputy Neville in the Castlemahon case. Those affected in that instance have a huge sense of injustice. Workers who are affected by restructuring have to face real questions, as Deputy Quinn mentioned. Such cases arise quite frequently. People make decisions on the basis of their family circumstances and their belief in their capacity to obtain alternative employment, etc. We are familiar with examples of restructuring not working out. It is immaterial, in some respects, whether one believes that it simply did not work out, or that another agenda was at play. Most of the workers in Castlemahon believe the latter to have been the case. Those who are made redundant as a result of insolvency or other factors are put at a disadvantage within a short period of time.

Difficult decisions will have to be taken when somebody takes action like that exhorted by Deputy Quinn. I think such action must be provided for in some way when a raft of new legislation is introduced in this area. Perhaps the easiest decision to take in legislation is to increase the level of statutory redundancy — such a decision was taken in 2003. That approach is absolute and has some advantages, but it does not address some of the difficulties which arise here. We have no idea what the proceeds of the liquidation in the Castlemahon case, for example, will be. While they may be substantial in that instance, there could well be a case in which such proceeds amount to nothing. It is quite difficult to put in place a rule that can be applied in all cases. As many workers get their redundancy payments directly from the social insurance fund, they get such payments at the statutory rate only. The circumstances which applied at Castlemahon do not apply in many cases. Employers sometimes cease trading without going into liquidation.

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