(Wexford) asked the Minister for Labour the initiative he has taken in an effort to resolve the Ross Company dispute at New Ross, County Wexford.
Ceisteanna—Questions. Oral Answers. - New Ross (Wexford) Company Dispute.
14.
In my approach to the situation at Ross Company Limited I was concerned above all to ensure that employment at the yard would be preserved without prejudice to the processing of whatever claims the workers had. Shortly after taking up office as Minister for Labour I therefore had meetings with the receiver and with some of the trade union officials concerned to examine the problems and difficulties inherent in the situation. The workers had already been paid the redundancy money to which they were statutorily entitled and had also been paid holiday money and pay in lieu of notice. Claims for severance money, over and above the statutory redundancy money, had been made and there were suggestions that Government funds should be used to satisfy these claims. My predecessor had clearly indicated to a representative of the workers in May last, however, that there were no Government funds from which the payments in question could be made. I had the matter further examined and I had to conclude that the legal constraints precluded the adoption of a flexible approach in the matter of any initiatives.
I understand that the IDA are at present considering proposals put forward by a number of concerns interested in taking over the operation of the company.
(Wexford): Is the Minister aware of the present high unemployment levels in New Ross? Is he aware that 809 people in that area are now on the live register? Is he further aware of the effects of this on the town and district? Is he also aware that if this yard stays closed many contracts that can only be handled by this yard will have to go abroad? Because of this could special concessions be given to this yard in this dispute?
I am well aware of the situation in the New Ross area and the problems created by the closure of the yard. But in my position as Minister for Labour I cannot give incentives out of funds in my Department. The only fund available to me is the redundancy money and this is covered by statute. I have told the Deputy that the IDA are at present considering proposals and every effort will be made by the Tánaiste to see that this comes to a fruitful conclusion.
When the Minister made his speech on the budget in July he mentioned that he was going to introduce a Bill for the protection of workers where the employer was insolvent. Does that mean that he intends to make funds available for the payment of severance pay as distinct from redundancy payments?
Though it may not arise specifically on this question, I would say that the intention in that Bill is that, where a company is insolvent, debts which were not paid by the company would be paid. That is the main thrust of the change in the legislation.
Would that include severance pay?
As I understand it, severance pay would be negotiated by the unions and it would be up to individual companies to negotiate it.
(Wexford): In view of the situation in New Ross would the Minister consider giving special concessions? This is a very unique yard and work that is carried out in that yard at present cannot be carried out elsewhere in the country. Is the Minister aware that a rights commissioner in a preliminary report came out in favour of the workers? Because of this I would ask him to increase interest in this matter. I know that he has been interested and I would ask him to increase his interest in order to come to a speedy solution to the problem.
I have met Deputy Byrne and other Deputies from the area and we have gone fully into the problems mentioned in this question. My difficulty is that the funds in my Department are very strictly covered by legislation and I am not in a position to provide funds to solve this problem. The redundancy funds are the only funds we can talk about in connection with this question.