Paul Murphy raises Fastway receivership crisis for 1,000 workers
Paul Murphy addressed the House about Fastway's receivership and its impact on over a thousand workers. He said workers are owed back pay and redundancy, are prevented from accessing social welfare for 30 days, and urged ministers to intervene.
Paul Murphy outlined that more than a thousand direct and franchise workers have been left owed wages and at least a back month of pay. He said many are likely owed redundancy and are struggling to pay bills and mortgages in the run-up to Christmas.
He warned that employees have been told they remain legally employed by Fastway for 30 days after the receivership announcement but will not be paid until the new year. During that 30-day period they cannot access social welfare - and if they claim welfare or start new employment they risk losing redundancy entitlement.
The minister responded that the receiver is appointed by a lender, is independent, and the Government cannot direct how the receiver operates. The minister said the Department of Social Protection is engaging directly with the receivers and affected employees to provide information and support.
The minister confirmed the receivers submitted a collective redundancy notification to the Department of Enterprise on 31 October and are undertaking a 30-day consultation with employees' representatives. The minister said there are statutory protections for employees and that the formal legal mechanism governs the process.
Paul Murphy asked whether the relevant ministers will meet workers and work with the Department of Social Protection to ensure they receive necessary support. The minister said she will reflect on the concerns raised and acknowledged significant concern across the House for the employees involved.
Workers affected
Paul Murphy outlined that more than a thousand direct and franchise workers have been left owed wages and at least a back month of pay. He said many are likely owed redundancy and are struggling to pay bills and mortgages in the run-up to Christmas.
Social welfare and redundancy barrier
He warned that employees have been told they remain legally employed by Fastway for 30 days after the receivership announcement but will not be paid until the new year. During that 30-day period they cannot access social welfare - and if they claim welfare or start new employment they risk losing redundancy entitlement.
Government and receivers' response
The minister responded that the receiver is appointed by a lender, is independent, and the Government cannot direct how the receiver operates. The minister said the Department of Social Protection is engaging directly with the receivers and affected employees to provide information and support.
Legal process and timelines
The minister confirmed the receivers submitted a collective redundancy notification to the Department of Enterprise on 31 October and are undertaking a 30-day consultation with employees' representatives. The minister said there are statutory protections for employees and that the formal legal mechanism governs the process.
Requests and next steps
Paul Murphy asked whether the relevant ministers will meet workers and work with the Department of Social Protection to ensure they receive necessary support. The minister said she will reflect on the concerns raised and acknowledged significant concern across the House for the employees involved.
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Transcript
Minister, over a thousand workers have been left in a desperate situation by Fastway going into receivership. These are direct workers and workers for franchisees. They have been left all owed back pay or a back month of pay. They are owed wages, they should be owed redundancy, they are now struggling to pay bills and mortgages. But they have been told they are effectively locked out for a month from accessing social welfare. They have been told that they are still legally working for Fastway for 30 days from the point in which the receivership was announced, but they won't get paid until the new year. The kicker is that they cannot claim social welfare benefits in those 30 days, and if they do seek to claim social welfare benefits or even if they start new employment, they would lose any redundancy entitlement. They are left in a terrible limbo situation in the run-up to Christmas. They want the Government to intervene. The first ask is whether the relevant Ministers will meet with those workers and then work with the Department of Social Protection to ensure they get what they need. Thank you for raising this issue, Deputy Murphy. My thoughts are whether all those workers are affected by this receivership and I know how concerning it is for each of them. As you know, a receiver is individually appointed by a lender to take control of a company and their role is to secure the assets in that respect and that the receiver is independent in their role and the Government can't intervene in how the receiver approaches the position. The Department of Social Protection is, I understand, engaging directly with the receivers and the affected employees in this case to provide the necessary information and support during this time. There are robust protections in place for employees of an insolvent employer and the receivers submitted a collective redundancy notification to the Department of Enterprise on the 31st of October. They are currently undertaking the 30-day consultation with the employees' representatives. I will reflect on the concerns you have raised and across the House we have significant concerns for all the employees involved, but there is a formal legal mechanism in how this operates in terms of a legislative position. Dr. Goverty? Thank you for Minina.