Employment

Deputy Jackie Cahill warns of threat to Tipperary CE companies

Pensions and redundancy pay putting firms under pressure

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Deputy Jackie Cahill warns of threat to Tipperary CE companies

Deputy Jackie Cahill: threat to Tipperary CE companies

The Minister for Employment Affairs and Social Protection, Regina Doherty, has been warned that CE companies could close as a result of an anomaly in their terms and conditions which makes them liable for participants pensions and redundancy payments.

The warning came from Tipperary Fianna Fáil TD Jackie Cahill following a parliamentary question seeking clarification on the issue after he was contacted by Tipperary CE operators.

“CE supervisors are vital to the communities across Tipperary and play an essential role in the provision of these community services. I have repeatedly raised their conditions and needs in the Dáil. However, the anomaly which has been brought to my attention poses further threats to the future of CE programmes and the Minister must urgently address these concerns,” said Deputy Cahill

He said that groups across Tipperary had contacted him in recent months concerned that they will not be able to continue to function if they are forced to remain liable for pensions and redundancies. The majority of CE companies are not for profit organisations but have to set up as a limited company, however while the company manages the scheme, the Department decides on employment terms and conditions.

“The company has no control over who is eligible to be employed, what the rate of pay should be and how long participants can remain on the scheme. The Department also demands that the company not have any remaining funds left in its account at the end of each 12 month period, while at the same time leaving it liable for pension entitlements and redundancy package,” said the Thurles-based TD. “This anomaly is deeply unfair, and is unsustainable”.