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Job Losses

Dáil Éireann Debate, Wednesday - 3 June 2020

Wednesday, 3 June 2020

Questions (1058)

Cian O'Callaghan

Question:

1058. Deputy Cian O'Callaghan asked the Minister for Employment Affairs and Social Protection the steps she is taking to support employees of a company (details supplied) in view of the announcement by the CEO to employees that the company will move forward with the restructuring of the company, including lay-offs; if she will intervene to ensure there is consultation with employees and unions regarding decisions on redundancies and changes to the terms and conditions of employment; and if she will make a statement on the matter. [8979/20]

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Written answers

My sincere thoughts are with all employers and employees faced with the prospect of forced restructuring and redundancies at this difficult time.  Many sectors and industries have been badly affected by the measures the Irish Government, like many other governments across the globe, has had to take in response to the Covid-19 pandemic.  It is probably fair to say that sectors associated with travel, tourism and aviation have been affected more than most.

Having come through previous challenges, I understand how difficult it must be for Aer Lingus employees to now face more renegotiations, restructuring and possibly lay-offs.  I greatly respect the efforts of workers and workers’ representatives to ensure that they get the best possible outcome from the situation. 

It is of course normal for businesses, whether big or small, national or international, to run their own affairs and to respond to financial circumstances in their own way.  As I am sure the Deputy will appreciate, Government Ministers do not dictate how any business is to be run, apart from ensuring that there is a framework of legislative protections for workers.  Ireland has a very advanced industrial relations framework, which includes the services of the Workplace Relations Commission (WRC) and the Labour Court.  There is also a suite of employment rights legislation, which helps to get the balance right between the survival of a business and the rights of workers.

For example, the Protection of Employment Act 1977 imposes a number of obligations on employers who are proposing collective redundancies, including an obligation under sections 9 and 10 to engage in an information and consultation process with employees’ representatives and to provide certain information relating to the proposed redundancies. Section 11A of the Act provides that, where an employee believes the employer to be in breach of sections 9 or 10, they may pursue a complaint to the Workplace Relations Commission.  The Workplace Relations Commission’s Customer Service Section provides information in relation to the rights and obligations of employees and employers respectively under employment rights legislation.  It is also an offence under section 11 of the Act where an employer fails to comply with sections 9 or 10.

There is also an obligation under section 12 that makes it mandatory on employers proposing a collective redundancy to notify the Minister for Employment Affairs and Social Protection of the proposed collective redundancy and to provide certain pieces of information to me.

An employer is prohibited from issuing any notice of redundancy during the mandatory employee information and consultation period and until 30 days have elapsed from the date on which the Minister has been notified.  For the avoidance of doubt, the 30 day mandatory information and consultation process and the aforementioned 30 day period from the date of notification to the Minister may run concurrently.

While I, as Minister, and the Government have no power or authority to step in and alter the course of a company’s business plan or to dictate the progress or outcome of the mandatory consultations between the employer and employee representatives, there are industrial relations and employment rights supports available through the WRC and Labour Court mechanisms, where necessary.

Financial supports are available through the Revenue Commissioner’s Temporary Wage Subsidy Scheme as well as the Department of Employment Affairs and Social Protection’s wide range of social welfare schemes.  

My Department has been at the centre of the response to the consequences of Covid-19 and will no doubt continue to be called upon in the weeks and months ahead.  While I hope for a very positive outcome to the Aer Lingus renegotiations, you can rest assured that the Department is available through its Intreo service to assist Aer Lingus workers in whatever way we can in terms of income supports and job-seeking if that proves to be necessary.

I trust this clarifies the matter for the Deputy. 

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