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David Cullinane TD publishes legislation to protect workers from tactical insolvencies

24 August, 2016 - by David Cullinane TD


Protection of Employees (Collective Redundancies) Bill

David Cullinane, Sinn Féin spokesperson for workers’ rights, published today a draft bill that would close the legal loopholes that allow tactical insolvencies. 

He is calling on all parties to work together to tackle the scandal of tactical insolvencies and protect the rights of people who have worked all their lives and who expect, with good reason, to have their hard-earned pensions protected.

Deputy Cullinane said:

“I have drafted a Bill that would give legislative support to key recommendations in the Duffy-Cahill report that was commissioned in the wake of the Clerys closure.

“The bill would provide protection for employees in collective redundancy situations in which the employer is insolvent.

“It would give power to the High Court to return assets which have been improperly transferred and give preferential creditor status to employees. It would also require that a 30-day consultation period is entered into in cases where it is known that a company’s liabilities are such as to trigger redundancies.

“Although the bill has been drafted and is ready to go I have not yet moved it.

“Instead I have sent a copy to all the major parties and groupings seeking support.

“I also sent a copy to Patricia King of ICTU asking that congress facilitate cross-party discussion with a view to making this an all-party bill.

“We are open to discussion and to working with others to perfect the legislation. I am publishing it today in order to move that discussion onwards.

“We have seen in this Dáil that parties and groupings are willing to support motions and bills that speak to the rights of employees. We saw it with the Labour motion on workers’ rights, and with my own bill on banded hours which was passed by the Dáil albeit delayed for 12 months.

“Together we can produce legislation that will tackle the scandal of tactical insolvencies and protect the rights of people who have worked all their lives and who expect, with good reason, to have their hard-earned pensions protected.

“If we are really to have new politics, this is a way of showing it.”

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