A Galway employer has told her seven employees that if Minister for Social Protection Joan Burton’s proposal - that employers should pay the first four weeks of employees’ sick pay - goes ahead they will lose their jobs. The company will instead downsize to become a sole trader.
Two other Galway city employers have warned they would have no choice but to turn most of their employees into sub-contractors.
Condemning the proposal, Senator Fidelma Healy Eames said it was “anti jobs”. She claimed it would cause “untold damage” to businesses and lessen unemployed people’s chances of getting a job.
Speaking in Seanad Eireann the senator, Fine Gael’s spokesperson on social protection, said small and medium enterprises are already struggling to survive.
“I will be resisting Minister for Social Protection Joan Burton’s proposal that employers should pay for the first four weeks of employees’sick pay.
“This is an anti-jobs measure. It is biting off the hand that feeds us. Employers are the multipliers who create the jobs. SMEs are the lifeblood of our local economy. We should be encouraging them, not discouraging them.”
“This morning I have had three calls from employers in Galway - one saying that she already called in her seven employee’s and told them if this proposal goes ahead their jobs are gone. Instead, she will downsize to become a sole trader. Two other Galway city employers said they would have no choice but to turn most of their employees into sub-contractors instead. Having been an employer myself in the past I know what this feels like.”
She stated absenteeism is already costing businesses €1.5 billion per year or an average of €818 per employee. This proposal would mean businesses are facing an extra €150 million per annum in sickness payments.”
“Many SMEs are already struggling with increased costs in fuel, energy, local charges, high rents and reduced/decreasing revenues due to the economic climate at the moment. To add further costs to these businesses at a moment when we should be supporting them to stay afloat, maintain and create employment is madness. This policy needs to be urgently reconsidered or it will drive a lot of business underground, resulting in huge losses to exchequer revenue.”
Senator Healy Eames said she will urge Minister Burton in the Seanad today (Thursday ) to reconsider and come up with a different proposal that will not cut the source of jobs.
‘This is a retrograde step for unemployed people too. It will lessen their chances of ever getting a job.
“In addition, I will be raising this with our own Ministers at our Fine Gael Parliamentary meeting.”
