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Job Losses

Dáil Éireann Debate, Thursday - 27 April 2023

Thursday, 27 April 2023

Ceisteanna (233, 235, 241)

Steven Matthews

Ceist:

233. Deputy Steven Matthews asked the Minister for Enterprise, Trade and Employment the actions he will take regarding the layoff of Irish-based staff by a multinational company (details supplied) to ensure fairness in the redundancy process; and if he will make a statement on the matter. [20008/23]

Amharc ar fhreagra

Seán Haughey

Ceist:

235. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment if he will intervene with the management of a company (details supplied) to ensure that the employees scheduled to be laid off are treated appropriately; and if he will make a statement on the matter. [20072/23]

Amharc ar fhreagra

Bríd Smith

Ceist:

241. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if his Department has been notified about proposed layoffs at a company (details supplied) in Dublin; if he will meet with representatives of the company in relation to these layoffs; the supports available for the workers facing redundancy; and if he will make a statement on the matter. [20145/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 233, 235 and 241 together.

The Protection of Employment Act 1977 imposes certain legal obligations on employers proposing collective redundancies. These obligations include engaging in an information and consultation process of at least 30 days with employees’ representatives, and to notify the Minister for Enterprise, Trade & Employment of the proposals at least 30 days before the first dismissal takes place. A collective redundancy notification was received from Indeed Operations Ireland Limited on 29 March 2023.

The consultation with employees’ representatives should include the possibility of avoiding the proposed redundancies, reducing the number of employees effected or mitigating their consequences. Employers may not issue notices of redundancy during this 30-day consultation period. Employers who fail to comply with these obligations are guilty of an offence and the Workplace Relations Commission (WRC) is the statutory agency responsible for bringing such prosecutions.

If redundancies do occur, employers should use fair and reasonable selection criteria in choosing people to make redundant.

Following media reports on the redundancy process with Indeed, I sought an update on the ongoing collective consultation process at the company from the IDA. I am assured that the company is committed to complying with its legal obligations in respect of the collective redundancy process in Ireland. The company started a 30-day consultation on 31st of March, which will continue until 5th of May and has held multiple collective consultation meetings with employee representatives to date. During those meetings selection criteria, proposed redundancy packages and additional support mechanisms were discussed.

I am informed that the company first implemented a number of cost saving measures in an attempt to avoid redundancies including closing or reducing office space, implementing a hiring freeze and reducing travel.

The company has also discussed ways to reduce the number of impacted roles, including an opportunity for those at risk of redundancy to avail of a voluntary severance program to receive the involuntary package offered. In addition, 21 roles have been opened up to those in the individual consultation phase for potential redeployment across other business areas within the company.

The WRC is the organisation which is mandated to secure compliance with employment rights legislation. Employees have the right to refer complaints to the WRC on a wide range of employment law breaches for an adjudication and compensation where appropriate. This includes the right to refer a complaint under the Unfair Dismissals Act if an employee feels the employer has selected them unfairly for redundancy, and the right to refer a complaint under the Protection of Employment Act 1977 should an employer fail to consult or provide certain information to employees.

The relevant bodies to support parties in their efforts to resolve their differences in these situations are the WRC and the Labour Court, which are independent offices and I cannot intervene in this matter.

Government can assist the employees in relation to income, employment and training supports. The Redundancy Payments Act 1967 also provides for a minimum statutory payment to eligible employees in situations of redundancy. Negotiations on enhanced redundancy packages over and above the statutory entitlement are entirely a voluntary matter between employers and workers.

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