National News

Irish Taxpayers pay most of multinational's pay off deal

Irish taxpayers are paying more than half of the cost of a profitable multinational's redundancy bill in the Republic, it was revealed today.

The Swedish based Primera Group - private owners of Budget Travel - will only pay 172,000 euros out of the total redundancy bill of 430,000 euros when it sacks 75 staff and closes 14 of its 31 Irish shops next month, said the TSSA travel union.

The Irish taxpayer will pay the remaining 258,000 euros under the scheme which allows the multinational to claim back 60% of the redundancy bill if it only makes the state minimum payment.

Gerry Doherty, union general secretary, said the company should get the "brass neck of the year award" for paying its Irish staff the legal minimum when the group turned over more than 850 million euros last year.

"It is a farce that a profitable multinational is asking the Irish taxayer to foot the majority of its redundancy bill when it is making millions across the rest of Europe.

"Loyal staff are being laid off in Ireland with average pay offs of 5,000 euros which is a drop in the ocean to what the group is making elsewhere.

"It made 4 million euros profit in Ireland last year and this year, even during the recession, it is expecting profits of 800,000 euros.

"It is alright to send Irish profits back to Sweden in the good times but there is no help coming the other way when the bad times hit."

The union has reported the company to the Labour Relations Commission for failing to engage in effective and proper consultation since announcing the shop closure programme last month.

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