Welfare cash will be used to save jobs -- Cowen
Taoiseach backs union €1bn crisis fund plan
Job support bid: Taoiseach Brian Cowen (Photo: AFP/Getty Images)
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THE TAOISEACH has pledged to pump social welfare funds into "ground-breaking" measures to support jobs, in a bid to broker a national rescue deal.
In a letter to unions yesterday, Brian Cowen also offered to negotiate new proposals to protect workers in insolvent firms with pension deficits and avert home repossessions.
But the Irish Congress of Trade Unions (ICTU) has sought a further commitment to address the issue of workers in firms, such as SR Technics, that had not gone bust but who had pension shortfalls.
ICTU last night warned that it could be a deal-breaker.
The congress also wants to know exactly how much Mr Cowen plans to spend on proposals to boost the pay of workers on reduced hours, or who have lost their jobs and want to retrain.
In a letter described by unions as "promising" yesterday, Mr Cowen noted the unions' €1bn proposal for spending to protect jobs, and committed to set up a fund "to be increased over time" to address the employment crisis.
Mr Cowen said: "In so far as we can transfer resources that would otherwise go to income support into job support we could do so to the limit of what is feasible
He said the job proposals should "break new ground" and be imaginative.
Insolvent
The Taoiseach also promised to explore "a range of options" to protect workers faced with the double whammy of having an insolvent pension scheme and an insolvent employer -- but not those in firms that went into voluntary liquidation.
Mr Cowen also pledged to tackle the issue of home repossession in an effort to keep the social partners at the table, but warned reforms of the public sector would be sought in return for all of the measures he put forward. His written response came after last-ditch sessions with the unions earlier this week to reach agreement on a national rescue plan. The letter was sent to ICTU early yesterday.
In relation to jobs, Mr Cowen said that the government intended to put in place "new approaches to intervening and to apply resources which would otherwise be required for social welfare payments to interventions" that were worthwhile, targeted and effective. He said that he noted the view of ICTU that an allocation of €1bn should be put aside for this.
Increased
He said a fund would be set up with a "specific resource envelope" that could be increased over time.
"I share the view that support for jobs and for those who are unfortunate to lose their jobs should be at the centre of our collective efforts," he said in the letter.
Regarding pensions, he said the Government was "willing to explore a range of options that could provide enhanced protection" for members of pension schemes and underpin the value of "doubly insolvent schemes".
He acknowledged that ICTU had also raised concerns about the position of workers in insolvent funds in companies that voluntarily went into liquidation, but did not offer any proposal on the issue.
Following a meeting of ICTU's national executive to decide whether to continue talks, general secretary David Begg said unions would continue discussions once a further commitment was given to address pension deficits at solvent firms.
He also said that the budget for the jobs proposals should not come solely from social welfare but include funds from the capital programme.
The union leader insisted talks should not last longer than a week.
- Anne-Marie Walsh Industry Correspondent
