Closure of Eist & Cuidiú Teo ‘disastrous’ for employees – Ó Domhnaill

Donegal Senator Brian Ó Domhnaill has described the impending closure of Eist & Cuidiú Teo as a major blow for Gaoth Dobhair, and disastrous for the 26 employees who will soon be out of work and out of pocket.
 
The financial services call centre was established in Gaoth Dobhair last August with the support of Údarás na Gaeltachta. Less than a year later, the company is ceasing operations. Management is meeting with staff this afternoon.
 
Local Senator Brian Ó Domhnaill says the circumstances of the closure are deeply worrying.
 
“Not only are the 26 full and part time workers set to lose their jobs, but they are also owed 4 weeks pay which they have not yet received.  Together with holiday pay and other entitlements owed, some staff are out of pocket by up to 7 or 8 weeks pay,” Senator Ó Domhnaill explained.
 
“The company, which was selling to the UK market, is owed a substantial sum of money from clients and has been forced to cease operations due to cash flow problems.  Two clients alone owe the firm €200,000. In a further attempt to retrieve the outstanding payments owed, management travelled to England last week but were unsuccessful in their efforts.
 
“I have spoken to senior Údarás management and a number of the employees today.  The most important thing now is the protection of the workers and ensuring that they get what is owed to them. The company has a number of legal options available to it in this regard.  For instance, the insolvency fund from Department of Social Protection is only available after company entering a legal wind down. This fund provides for employees to obtain any outstanding salary, holiday pay and other entitlements.
 
“Ultimately, what is happening at Eist & Cuidiú Teo demonstrates the ongoing unwillingness of financial institutions to lend to viable companies in times of cash flow difficulties. Jobs are being lost as a result.  This is something that this Government has failed to address since taking up office, and must start taking seriously,” said Senator Ó Domhnaill.

Posted: Jul 10, 2012     |     Categories: Uncategorized