Treatment of Clerys workers is appalling

17 June 2015

by Cllr Joe Costello

Speaking on Topical Issues in the Dáil today

The circumstances surrounding the closure of the most famous store in Ireland and the treatment of the 130 direct employees and the 330 concession workers is appalling.

Gordon Brothers and Natrium, the former and new owners, combined in secret behind the backs of the workforce to exploit company law to deprive a loyal workforce of their jobs and their financial entitlements.  It was morally corrupt behaviour but apparently legal under company law.  There must be a robust response. 

Firstly, we must take care of the workers who are redundant since they were effectively locked out on Friday evening. I know that Minister Nash, the Minister for Business and Employment, has met the liquidator, the workers and Siptu.  Likewise, Joan Burton, the Tanaiste and Minister for Social Protection, is making a team available today to meet all the workers in Liberty Hall to clarify and expedite delivery of their entitlements. 

Secondly, we must take whatever steps are necessary to rebalance company law so that such ruthless vulture capital transactions do not take place in future.  The law is clearly heavily weighted in favour of the business/employer, leaving the workforce entirely vulnerable.

I note that the Taoiseach has asked the Minister for Business and Employment to prepare a report on the issues that gave rise to such an abominable transaction and to refer that report to the Company Law Review Group.  There should be a timeline for the Review Group’s response and a commitment to immediate action. 

In the broader context of the collapse in the Irish economy and the sale of so many impaired properties to foreign companies in recent years, there is a real danger that as the economy improve, some of these vulture companies will behave in a similar fashion, looking to realise a fast buck, discarding the workforce and imposing a redundancy and welfare burden on the State.

 

The Irish economy must be rebuilt on sound and fair foundations.  We must ensure that workers and their families are at the forefront of the recovery and that the relationship with their employer is transparent and respectful.