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Dáil
‹ An tOrd Gnó - Order of Business

Debenhams redundancy scheme

Summary

ICTU and Mandate's proposal for a State-run enhanced redundancy scheme is raised as a possible way to resolve the Debenhams dispute. The Taoiseach says the idea is under departmental examination but is not simple, especially on funding and retrospection.

The Irish Congress of Trade Unions, ICTU, and the Mandate trade union have sent proposals to the Government for a State-run scheme to fund enhanced redundancies in the event of liquidation and to be paid for by increased employer social insurance contributions. It has been suggested that were such a scheme to be agreed in principle an advance payment might be made to resolve the Debenhams dispute by meeting the demand of the workers for two plus two or four week's pay per year of service. The view from the picket line is that this is a positive proposal but that it is medium to long-term and does not in any way change the need to keep the strike going, if not to escalate the dispute right now. This is an entirely understandable response given that the workers have been out for 159 days to date. This could be more than a medium-term project if it were to be prioritised by the Government and moved through the House in September or early October. Can the Taoiseach offer the Debenhams workers any hope that his Government will seize the opportunity to fast-track this idea in the coming weeks?

Comment on this

Sometimes proposals are presented as if they are simple to do but the idea of increasing social insurance contributions from all employers in order to cover the failings of some raises its own questions. There is also the issue of retrospection in terms of how one could apply any funding that would be raised in the future on foot of legislation passed here. These issues are being examined by the Department with responsibility for business, enterprise and innovation, led by the Tánaiste but they are not simple.

The Deputy has suggested that this is a medium to long-term proposal and it would need a lot of teasing out. I had a very preliminary conversation with ICTU on it some time ago. The proposal needs to be fleshed out in some considerable detail regarding what is envisaged.

Comment on this