Government not protecting workers from ‘rogue employers’

Increasing numbers of “rogue employers” are behaving like the owners of Clerys department store by setting up shelf companies and leaving workers with only statutory redundancy, the Dáil has heard.

Independent TD Joan Collins clashed with Minister for Jobs Richard Bruton in a row over contracts of employment for 530 Xtra-vision employees, 1,000 Tesco workers and employees contracted as ESB meter readers for the past 50 years.

Calling for directors who create such shelf companies to be barred for life from ever being a company director again, Ms Collins said the State will have to pick up the bill for Xtra-vision workers who have been left “high and dry”, because the company had done the same as Clerys, Connolly’s Shoes, Paris Bakery and La Senza.

She said “this is happening all the time and this Government has done nothing to protect those workers from that activity”.

Employment regulation

Rejecting her claims outright, Mr Bruton staunchly defended the Government’s record on worker protection, including two minimum wage increases, protection for temporary agency workers, the restoration of employment regulation orders and agreements, and the introduction of collective bargaining legislation.

Ms Collins said Xtra-vision employees were told in November they would get redundancy payments in January by last week but now they have been left with nothing. She said “they have mortgages to pay, and families to feed and they have been given nothing”.

Ms Collins said that only for union representation Tesco workers, who were told that their contracts would be ripped up, would face dire consequences but they still had to go through a process.

She said the ESB meter reading contract went out to tender and workers were told they could work for the winning company “for half their pay”.

Mr Bruton acknowledged “there are sectors that still face challenges” including the video sector which had had “real problems”.

But he stressed that protections were in place both in employment law and the insolvency and redundancy funds to meet those needs.