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Company Closures.

Dáil Éireann Debate, Tuesday - 8 November 2005

Tuesday, 8 November 2005

Questions (315)

Brendan Howlin

Question:

402 Mr. Howlin asked the Minister for Enterprise, Trade and Employment the status of efforts by the workforce of a company in liquidation (details supplied) in County Cork to secure a fair redundancy package from this company; his efforts regarding same; and if he will make a statement on the matter. [32381/05]

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Written answers

From inquiries made in my Department, 18 former employees of the company concerned were paid their statutory redundancy entitlements out of the social insurance fund. Two were refused on the ground that the claimants were not fully insurable for all benefits under the Social Welfare Acts and, therefore, not entitled to statutory redundancy. The payments were made direct to the 18 former employees out of the SIF on the basis that the company was in voluntary liquidation, insolvent and not in a position to pay the employees the statutory redundancy entitlements. In accordance with the provisions of the Redundancy Payments Acts 1967 to 2003, I have sought recovery of 40% of the amount paid to the former employees from the liquidator of the company.

Responsibility for the resolution of industrial disputes is a matter for the parties involved. 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.

When the Minister, Deputy Martin, met the workers, he informed them that the services of the Labour Relations Commission were available to help and support the parties in their efforts to resolve the dispute. To date, neither the employer, the employees or their representatives have been in contact with the Labour Relations Commission. Mr. Damien Cannon, regional manager, south and south west, of the Labour Relations Commission — telephone no. 086 8388 183 — remains available to assist the parties in resolving their differences.

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