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Industry and Employment Correspondent
The £55m purchase by fashion retailer Boohoo of Debenhams online business will have no implications for the liquidation of Debenhams Irish operations or for redundancy payments of former employees, the Mandate trade union has been told by Irish liquidators KPMG.
Mandate represents almost 1,000 Debenhams workers, who lost their jobs when the Irish operation went into liquidation last April.
General Secretary Gerry Light said he had contacted the Irish liquidators KPMG this morning seeking information on the implications of the Boohoo purchase.
Mr Light said he had been told that the UK sale had no implications at all for the Irish liquidation, dampening hope of any additional funds being made available to boost redundancy payments for the Irish workforce.
Former Debenham s workers in Tralee have described the Government s proposed €3 million training fund, aimed at ending their eight month protest, as an insult.
Last April Debenhams announced it was shutting its 11 Irish stores - including its branch in Tralee - with the loss of 2,000 jobs nationwide and 150 in Tralee.
Ever since former staff have maintained 24 hour protests outside all 11 premises demanding fair redundancy payments.
The former workers are set to receive statutory redundancy payouts of two weeks of salary per year of service, the bare minimum that liquidators KPMG are legally obliged to pay.
The laid off staff have condemned the mandatory offer as an affront to their years of service to the company and are seeking at least four weeks pay per service year.
Former Debenhams staff in Tralee are being urged to vote “no” to the latest set of proposals in their ongoing redundancy dispute.
The proposals, from mediator and Labour Court Chairman Kevin Foley, would lead to a €3 million training and education fund for the former employees.
Debenhams shop stewards say this fund is poorly defined and impractical, and for many workers in alternative employment or close to retirement, there is no gain to be made from re-training.
The stewards also say the €3 million could be used to enhance their statutory minimum redundancy.
Around 1,000 staff lost their jobs last year, including 90 at the Manor West outlet in Tralee, after the company went into liquidation.
Striking Debenhams workers shocked at recommendation for €3m training fund
Former staff with the company have been protesting since April. By Stephen McDermott Wednesday 16 Dec 2020, 7:47 AM Dec 16th 2020, 7:47 AM 66,592 Views 73 Comments
The former Debenhams store on Henry Street in Dublin
Image: PA Images
Image: PA Images
SHOP STEWARDS REPRESENTING former Debenhams workers have said they are “shocked” and “deeply disappointed” at proposals from Labour Court Chairman Kevin Foley to resolve a months-long dispute over redundancy payments.
A recommendation by Foley would see €3 million provided to workers who lost their jobs this year as part of a fund for training, education, career guidance and business startups.