Kenny claims treatment of Clerys workers is ‘appalling’

The treatment of Clerys workers was "grossly insensitive and appalling", Taoiseach Enda Kenny has told the Dáil, following the sudden closure of the Dublin department store with the loss of 460 jobs.

“The insensitivity of it is what has shocked most people,” the Taoiseach said.

Mr Kenny said the Department of Social Protection would deal "promptly" with workers' applications for redundancy and welfare.

He said that some Clerys staff from the payroll area might be kept on for the purposes of the liquidation.

The Taoiseach said that department officials would meet staff and concession holders at a Siptu meeting in Liberty Hall.

He said that Minister of State for Business and Employment Ged Nash would prepare a report on the store's closure and that "it might be appropriate for the company law review group" to look at what happened.

However, Mr Kenny stopped short of a commitment to changing legislation in this regard.

‘Vulture capitalism’

Fianna Fáil leader Micheál Martin, who described what happened as the "worst example of vulture capitalism", said his party would cooperate with the Government to change legislation to prevent this from happening again.

Mr Kenny said, in response: “I don’t want to give commitments that I can’t fulfil in regard to changes in legislation.”

He agreed with Mr Martin that the closing of the store with just 30 minutes notice was sudden, “grossly insensitive and appalling”.

Mr Martin said there must be a fundamental review of our industrial relations legislation and “a message must be sent out” that this kind of action could not continue.

The Taoiseach said that the Department of Social Protection would deal promptly with the store’s employees and that social welfare offices across Dublin had been informed of the situation.

Workers’ rights

Sinn Féin leader Gerry Adams asked the Taoiseach: "Will you go beyond the expressions of sympathy and bring in legislation to protect the rights of workers?"

Mr Adams claimed that the Government had a responsibility for the workers’ dilemma, because it failed three years ago to back Sinn Féin legislation to increase the period of notice legally required in collective redundancies and to impose penalties if this was not complied with.

Mr Adams said they had been through this kind of scenario a number of times, and he cited a list of liquidated companies including Waterford Crystal and Vita Cortex.

Mr Kenny said company law was a “very complex issue and legislation should not be changed lightly”, to which Mr Adams said: “This is not a very complex issue. It’s very straightforward.”

Mr Adams said Gordon Brothers, who sold the company, “have reputedly pocketed €19 million after putting less than €2 million into the store. What’s complex about that?

“They refused to acknowledge even the existence of the Clerys workers.”

The Taoiseach said the company was insolvent. He said that the application from the liquidator had been before the High Court and had been granted.

He said that, in so far as the State was concerned, the protection of workers from redundancy was their priority.