With your permission, a Cheann Comhairle, I propose to take Questions Nos. 1 and 2 together.
Because of replacement of over-age wagons by new wagons and a change from timber to steel in the construction of wagons, there has been a reduction in wagon repair work at Limerick. This has resulted in redundancy of 19 employees in the Limerick workshops and the Board estimate that about 30 more employees will become redundant between now and 1970.
The capital cost of the improvements in the wagon works, which were officially opened by me on 21st June, 1963, was £93,000. The modernisation and improvement of the workshops was undertaken in the knowledge that the present redundancy would arise in due course. The Board have assured me that the resulting economies have fully justified the expenditure.
The redundancy has been fully discussed by CIE with the trade unions concerned. Arrangements have now been agreed with the unions for the transfer of some of the redundant staff to alternative employment and on the conditions applicable to staff whose employment will be terminated. The redundant employees do not qualify for statutory redundancy compensation under the Transport Act, 1964, but an ex-gratia lump sum payment of one week's pay for each year of service up to a maximum of 40 years' service will be paid to redundant regular employees. They will also be paid the surrender value of their endowment assurance policy under the Board's staff welfare scheme. Employees who are over 55 years of age and who have a minimum of 20 years' service with the Board will receive a proportionate pension. Those not qualifying for a pension will receive a refund of their pension fund contributions.
I have no knowledge of any guarantee of constant employment having been given to the employees in the Board's workshops at Limerick.