PEOPLE FOCUS - CIPD

PEOPLE FOCUS
ANALYSIS
include the general loss to the economy
of consumer spending and the
immeasurable social cost of lengthening
dole queues.
But even taking the €20,000
measurable financial cost to the
exchequer, investing €10,000 in
up-skilling makes immediate financial
sense to the exchequer and comes
with an even greater social dividend.
The employer’s role will be crucial in this
in that he will have to take a more
imaginative and long term view of a
downturn in its business rather than
cutting a swathe through the workforce.
Employers Rule
Some employers have already begun the
process. Permanent TSB introduced an
incentivised career break scheme just
before Christmas. Under the voluntary
scheme, staff who take a 2 year career
break will receive of 50% of their salary
capped at €20,000 which gives them
€10,000 a year. Those opting to take a
three year break will get 75% of their
salary capped at €35,000 which is
almost €12,000 a year. While the
payments will be taxed, this is likely to
be minimal.
Initial indications are that the scheme
has proved successful.
"We see it as a better solution to
trimming our cost base than offering a
redundancy deal and a good example of
a partnership approach to an issue," said
Permanent TSB’s HR manager, Laura
Phelan before Christmas. "The reaction
we have got internally is that it is a novel
approach and the voluntary nature is
seen as a very positive aspect."
Restrictions in the scheme include not
working for competitor financial
institutions during the duration of the
career break while staff are promised a
similar role when they return.
The agreed ‘Framework for a Pact
for Stabilisation, Social Solidarity
and Economic Renewal’ which was
reached between the social partners
before they sat down to negotiate the
specifics of the €2 billion cut in public
spending, included a section on
maximising employment.
It stated;
“Recognising that unemployment will rise
significantly in the period ahead, the
Government and Social Partners will work
together to maximise employment and
help those who lose their jobs by:
• designing a flexicurity approach
appropriate to Irish conditions
which keeps people working where
feasible and equips people to return
to employment as quickly as possible
by maximising the availability and
impact of education, up-skilling and
training supports.
• redeploying resources to ensure
efficient and timely delivery of direct
State supports to those who lose
their jobs including social welfare
payments, redundancy payments
and payments to workers in cases
of insolvent companies.”
The fact that the public service pension
levy prevented an overall deal on the
recovery plan does not mean the
proposed pact is dead, as all sides have
repeatedly stressed since the breakdown.
But when Taoiseach Brian Cowen
outlined his expenditure adjustment
measures in the Dail in early February,
there were plenty of specifics on cutbacks
and little on stimulation measures.
But Cowen did say that he will
continue to utilise social partnership
to act upon the measures agreed in
the Framework document.
“The Government will continue to
deploy every means at our disposal to
help minimise the impact of the credit
crisis and the severe downturn in global
markets on employment prospects in
this country.
The Government is also working to
significantly improve access for
unemployed persons to job search,
training and education, and employment
programmes. Relevant ministers and
their Departments are working together
to maximise opportunities for up-skilling
and re-skilling so that people will be
better placed to avail of new job
opportunities where they become
available” said Cowen.
Urgent Action
But nobody can afford to hang around.
Over 36,000 people signed on the live
register in January 2009 or almost 1,500
every working day bringing the total
signing on to almost 328,000, according
the CSO’s live register figures for the first
month of the year.
While the live register includes seasonal
and casual workers and those working
part-time and therefore is not strictly a
measure of unemployment, it is an
indication of the economic trough we are
in. In the 12 months to January 2009 an
extra 146,000 signed on with the steepest
increase coming in the last few months.
Even Taoiseach Brain Cowen admitted
that the number on the live register will
probably exceed 400,000 this year while
others say it could reach 500,000.
With actual unemployed hovering around
the 9% mark it too is expected to exceed
10% this year which will prompt direct
comparison with the 1980s.
But bleak as the 1980s were, the safety
valve of emigration was always there.
Because this recession is global, it is not
a realistic option this time which could
deepen the financial and social impact of
rising unemployment.
Fas has kick started the ‘earn and learn’
scheme with the Employer Based
Redundant Apprentice Rotation Scheme
to try and address the number of
apprentices who have been made
redundant because of the downturn in
the construction sector.
Under the scheme apprentices made
redundant are placed by Fas with an
eligible employer to replace an apprentice
who has been released for the off-the-job
phase of his apprenticeship which is
usually 6 months. Employers must pay
the replacement apprentice the agreed
industry rates and Fas will contribute
€340 per week towards those
employment costs.
But more than apprentices that are
losing their jobs today and there is an
urgent need for action now before we
find ourselves back in the jobless 1980s
which everyone though would never
be repeated ■
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