Dáil Éireann Debate, Thursday - 21 February 2013
72. Deputy Joanna Tuffy asked the Minister for Finance the way he proposes to deal with the redundancy entitlements of the former employees of the Irish Bank Resolution Corporation (details supplied); and if he will make a statement on the matter. [9348/13]
View answer82. Deputy Michael McGrath asked the Minister for Finance his plans to improve the redundancy terms available to the employees of the Irish Bank Resolution Corporation, in special liquidation, in view of the fact that other staff members recently left the bank on significantly better redundancy terms and some of those who remained did so on the basis they would receive the same terms on the eventual wind down of the bank; and if he will make a statement on the matter. [9484/13]
View answer84. Deputy Robert Troy asked the Minister for Finance if he will take steps to restore the value of the severance terms previously agreed with the Irish Bank Resolution Corporation employees; if he acknowledges that employees of the firm continue to work for the best outcome for taxpayers in very difficult circumstances and that equality of treatment would imply that they receive the same terms on redundancy as was available to employees of the company who left employment in 2012; and if he will make a statement on the matter. [9495/13]
View answer86. Deputy Michael Creed asked the Minister for Finance if his attention has been drawn to an arrangement between the Irish Bank Resolution Corporation, his Department and the troika, setting out redundancy terms that would apply in circumstances whereby compulsory redundancies were required; and if he will comment on the document (details supplied). [9497/13]
View answerI propose to take Questions Nos. 72, 82, 84 and 86 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. Any claims over and above that described above will rank as an unsecured claim in the liquidation process.
There are standard rules which apply to the distribution of the assets of companies in liquidation and it would not be appropriate for me to interfere with these rules. However the State does intervene to ensure that statutory redundancy is available.
The special liquidators were promptly in contact with staff on Thursday 7th February and, unlike in other liquidations, the majority of employees have been re-hired by the special liquidators, 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.
