IFI offers improved redundancy payout

More than 600 workers made redundant from an Irish fertiliser company are to receive an average of €57,000 each in redundancy pay, it was announced tonight.

Former staff at liquidated company Irish Fertiliser Industries will receive full statutory redundancy entitlements, Tanaiste Mary Harney told the Dail.

The news comes after weeks of protest by IFI workers at plants in Cork, Arklow and Belfast over the level of severance pay and pensions.

IFI, which is jointly owned by the Government and British chemical giant ICI, was placed into liquidation with the loss of 620 jobs in October.

Mary Harney told the Dail she believed the offer announced today was “fair and reasonable” under the circumstances.

“Former workers in IFI will get their full statutory redundancy entitlement and I am confident that my department is aiming to issue payments before Christmas in respect of ballot claims received to date,” Ms Harney said.

“In addition the shareholders have established a special ex gratia severance fund with almost €24.5m for the workers and combined with statutory entitlements there will be a total of more than €35m available.

“This is sufficient to provide average payments of about €57,000 per worker.”

She said it would be for the trustee of the ex gratia funds to decide after consultation with employee representatives how payments from the fund would be made.

“While I am aware of the workers’ views on the adequacy of the package, both the Irish government and ICI believe that in setting up the ex gratia fund they are providing severance payments which are fair and reasonable in the circumstances,” she said.

Ms Harney added: “We would all have wished that the circumstances had been different at IFI, unfortunately that was not to be and I think in all the circumstances the government and the other shareholder ICI have made a reasonable sum available.”

She said that €57,000 per worker was just an average, and could vary greatly from employee to employee.

After a meeting with Ms Harney two weeks ago union representatives said the shareholders’ proposed redundancy fund was inadequate and could not be accepted by workers.