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Monday, July 27, 2009
WORKERS in recession-hit firms facing redundancies could be saved from dole queues thanks to a €250 million jobs fund which would temporarily pay them reduced wages in line with welfare payments.
Final touches are being made to the employment support plan which could see workers paid €200 a week while their firms struggle to get back on their feet.
The emergency measure for companies about to go the wall could avert tens of thousands of redundancies, allowing the firms to recover rather than close their doors.
Enterprise Ireland yesterday confirmed details of the €250m package being finalised.
Spokesman Pascal McGuire said the top amount in jobs funds being considered for individual firms was in the region of €500,000, in line with European Union regulations.
"The scheme is still being developed. The overall amount is still being considered," he added.
It is envisaged at this stage that the state jobs fund could run up until the end of 2010.
It is unclear if, according to reports, the scheme will allow for the state payments to reduce over a period, dropping to 75%, 50% and then ultimately to 25% of the dole rate.
"Definitely there will have to be some kind of formula worked out ... it will be in consultation with the department because it is a government scheme," added the Enterprise Ireland spokesman.
Enterprise Ireland has been asked by Enterprise Minister Mary Coughlan to put together the employment support plan for the autumn. However, the exact rollout of the scheme and when companies can apply for it has not yet been agreed.
It is expected that strict criteria will be put in place for struggling firms to avail of the temporary dole payments.
This could include firms having to look at cost-cutting mechanisms for wages such as rostering changes, career break systems as well as temporary lay-offs before being allowed to apply for funds.
The employers’ group, IBEC as well as trade unions had sought an economic stimulus fund of up to €1 billion during recent discussions with the Government.
The estimated €250m being earmarked for the jobs fund will be well short of this but could be added to a separate €100m fund, which would go towards easing marketing and research costs for Irish exporters.
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