The Leas Ceann Comhairle, Mr Seamus Pattison, has directly contradicted claims by the Tánaiste, Ms Harney, about commitments to make increased redundancy payments retrospective.
Mr Pattison, a Labour TD for Carlow-Kilkenny, said he was at the meeting at which Ms Harney "definitely made a commitment" to include the Comerama workers of Castlecomber, Co Kilkenny, in retrospective increased redundancy payments when she met them last December, and he was "shocked" at her denial.
Ms Harney has insisted that she only told workers she would make redundancy payments retrospective if it were possible. The renewed row over the commitments came as the Dáil passed the Redundancy Payments Bill, which increases payments from half a week's wages per year of service to two week's pay, with the removal of the age distinction between employees under and over 41.
In a full year, redundancy payments are expected to cost the Social Insurance Fund around €149 million, based on last year's level of 24,000 redundancies, an increase of €96 million on current costs, and the increased payments will have effect by the end of this month.
An amendment by Mr Arthur Morgan (SF, Louth) to make the legislation retrospective was defeated by 63 votes to 53. Mr Pattison said there were "no ifs or buts" about Ms Harney's commitment and "it was not a question of doing her best or doing it if she could. It was a straightforward commitment to apply the terms of the new Redundancy Payments Bill to the Comerama workers". He said he was "not merely surprised but shocked to hear the Tánaiste say she did not make such a commitment", in the Dáil last week. "I have never played politics in this House and I am not playing politics with this issue which is a straightforward one," he added.
Ms Harney who introduced the legislation said: "I never assured anybody that his or her statutory redundancy payment would be backdated. I was not in a position to do that." When she "met workers on December 12th last, we had not even agreed to increase the level of statutory redundancy. I said to those and perhaps to other workers that I would do my best to ensure that they were included, and I did my best.
"I cannot set aside constitutional law. I had to accept the view of the Attorney General. This matter was discussed at length in Cabinet, but unfortunately it is not possible, notwithstanding some very hard cases, to make the enhanced payment of statutory redundancy payable on a retrospective basis. That is the legal, factual position."
The Attorney General had advised that the payment of a statutory redundancy lump sum "is a legal requirement on employers, it could not be imposed on them with retrospective effect".
Mr Phil Hogan (FG), quoted a letter from SIPTU that Ms Harney "gave an unambiguous commitment that the Comerama workforce would be included in any change in the then current formula for redundancy calculation".
