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  • 10 months ago
There are loopholes in the legislation when it comes to the compensation for the employees of companies that are shutting down, and the ability of the Labour Minister to intervene.


This came up in the Senate, amid the closure of Stork Technical Services Limited, where close to 400 people were placed on the breadline.


Alicia Boucher has more in this report.
Transcript
00:00In the last quarter of 2024, it was reported that Stork Technical Services Limited, which
00:05has its headquarters in the Netherlands, was shutting down.
00:09It came after losses of over $84 million from 2020 up to that time.
00:15389 employees were expected to be sent home, and Labour Minister Stephen McClatchy, in
00:21an update provided to the Senate, says the company did engage in a consultative process.
00:28And the management and union's last meeting was in January 2025.
00:34I am also happy to report that 91% of the daily and hourly paid staff have been paid
00:43and have left the company.
00:44These payments were made ex gratia.
00:47The remaining staff, mainly monthly paid employees, are still at the company to close off outstanding
00:52administrative issues.
00:54A consultant has been hired to liquidate the company.
00:58The consultant further advised that the company serviced its last client in November 2024
01:05and is now officially closed.
01:07The minister outlines the difference between retrenchment exercises, which are to be done
01:12in accordance with the Retrenchment and Severance Benefit Act, and the shutting down of a company.
01:18In the case of retrenchment, employers are required to inform each employee in writing,
01:22as well as to provide written notice to the Ministry of Labour and the majority representing
01:27trade union.
01:29But as it pertains to the closure of a company.
01:32This is not expressly governed by the RSBA and presently there are no legislative procedures
01:40in the Industrial Relations Act or RSBA that require the intervention of the Ministry of
01:46Labour in relation to closure of businesses.
01:51McClatchy says that is a matter dealt with by the representing trade union under the
01:56Collective Bargaining Agreement, which is superior to the RSBA.
02:00Further to that, he states that non-unionized employees are entitled to compensation and
02:06can report their grievances to the ministry based on the RSBA.
02:11The minister can also intervene under the Industrial Relations Act if the national interest
02:17is under threat.
02:19McClatchy acknowledges that a lack of legislative procedures limiting action from the ministry
02:24is a matter to be reviewed.
02:27As he says, both pieces of legislation are under consideration.
02:31And although I cannot remember precisely if this has been taken into consideration, definitely
02:40the stock issue has now raised that and have identified a loophole.
02:48And since we do not want our citizens to be left back or disadvantaged, I will take
02:56a personal look at it to ensure that we look at how we could close that loophole.
03:02McClatchy says the time frame from now until the general election is too short to amend
03:06two pieces of legislation and that would have to be done subsequently.
03:11Alicia Boucher, TV6 News.
03:18Alicia Boucher, TV6 News.
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