Tuesday, 19 February 2013

Questions (288, 295, 296)

Thomas P. Broughan

Question:

288. Deputy Thomas P. Broughan asked the Minister for Finance if he will ensure that staff at an organisation (details supplied) will be entitled to the same terms and conditions as colleagues who left on an earlier package in view of the alleged commitments given to current staff members on this matter; if he will ensure that staff are kept fully updated on their current employment situation in view of the special liquidation process; and if he will make a statement on the matter. [8802/13]

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Finian McGrath

Question:

295. Deputy Finian McGrath asked the Minister for Finance if he will ensure that all staff in Irish Bank Resolution Corporation are treated in a fair manner following the special liquidation; and if he will end the uncertainty for the staff. [8891/13]

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Derek Nolan

Question:

296. Deputy Derek Nolan asked the Minister for Finance in view of the liquidation of Irish Bank Resolution Corporation, the steps he will take to ensure that IBRC workers' rights under previous agreements are protected; if the value of their severance terms will be retained; and if he will make a statement on the matter. [8978/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 288, 295 and 296 together.

As the Deputy is aware, the legislation surrounding liquidation ranks employees as preferential creditors in respect of certain amounts owing to them on a winding up, including accrued wages and salaries, holiday pay, sick pay, statutory redundancy, pensions contributions and claims for damages arising from accidents. The special liquidators were promptly in contact with staff on Thursday 7th February and unlike in other liquidations, the majority of employees have be re-hired by the special liquidator, for a minimum period of 3 months, to ensure an orderly wind-down of the business.

The special liquidators have said that it is their key priority that all employees are fully kept up to date on all developments during the course of the special liquidation. They have indicated that their approach will be to talk with employees directly either in small groups or on a one to one basis and they also plan to communicate by email general updates to employees during the course of the special liquidation.