Dáil Éireann debate -
Tuesday, 18 Jun 2002

Vol. 553 No. 2

Written Answers. - Company Closures.

Ruairí Quinn

Question:

101 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in regard to the announcement, for the second time within months, of the planned closure of a company (details supplied) with the loss of 375 jobs, she will use the powers available to her under the Protection of Employment Act, 1977, to require the company to enter into discussions with her on the proposed redundancies; and if she will make a statement on the matter. [13630/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

Following the initial announcement of closure last February, the Labour Relations Commission invited unions and management to discussions with a view to securing the future of the plant. After intense negotiations, a proposal was agreed involving significant changes in work practices and voluntary redundancy for 50 people. There was reason to believe that this agreement would secure the survival of the plant.

When the company failed to secure sufficient orders from customers at satisfactory prices a final decision to close the plant was taken. I described the announcement at the time as a blow to all concerned, all the more so as there was reason to believe that the plant would survive after agreement on the restructuring plan. At the time I also acknowledged the determined efforts of the LRC to facilitate the survival of the plant.

In recent days the workers at the plant in question voted in favour of Labour Court recommendations on a redundancy deal in excess of the minimum statutory requirements. The deal provides for five weeks pay per year of service, inclusive of statutory requirements, and takes into account length of service and other related matters. While the recommendations are not binding it would be expected that all the parties concerned would give serious consideration to the court's recommendations.

In the light of the interventions made by the LRC and the Labour Court, both under the aegis of my Department, I did not consider it appropriate to invoke section 15 of the Protection of Employment Act, 1977.