EMPLOYEES IN SOME businesses could be put on a short-time working week as early as this weekend, Danny McCoy, Chief Executive Officer of Ibec has said. 

Speaking to reporters after attending meetings in Government Buildings, he said: 

“There is immediacy for firms this weekend who know that their demand is likely to drop quite substantially and their workers will need to go on short time working. And our experiences from both Covid and Brexit was it’s much better to have people to remain connected to their employer till this moment passes.”

When asked why workers might have their hours cut so quickly, McCoy said the tariffs are hitting on Saturday for the 10% and Wednesday for the 20% tariff. 

He said the fall off in demand for the products people are selling “will be immediate when they’re fast moving consumer goods, like our drinks industry, for instance”. 

Despite McCoy’s comments, there has been no announcement by government has been made in relation to emergency employee and business supports.

When the Ibec boss’ comments were put to Simon Harris, the Tánaiste and Trade Minister said it is a “moment of great volatility” and he didn’t want to predict what is to come.

“Danny [McCoy] is much braver than I am, but I think we have to watch this on a very regular basis and continue to engage. And we’re continuing to engage with employer bodies and the trade unions,” he added. 

Harris added that a short-term employment scheme is already in place, that ensures  people can access supports if they are put on reduced hours.

However Harris said he didn’t want to jump ahead to discuss supports workers might need, stating that the focus now needs to be on trying to mitigate the situation. 

“Government stands ready to assist business and, of course, support workers, we always have,” said Harris. 

Time-bound supports

McCoy said he told the meeting with government today that the supports needed to be “time bound”, stating that the Taoiseach’s response was that “this may be different to Brexit and Covid, and that we need a structural change in the economy”.

“I agree with that,” said McCoy, stating that Ibec is not looking for supports to be permanently in place.

“Because in this new world order, we will have to change,” he added. 

During the pandemic, employees who were put onto short-time working by their employer due to Covid-19 could apply for the Short Time Work Support payment.

For example, if an employee’s working week was reduced from a 5-day work pattern to a 3-day work pattern, the employee was entitled to receive support under the Short Time Work Support under the Jobseeker’s Benefit scheme for the other 2 days. 

McCoy told reporters that there will be “vulnerable” employees and that now should be about informing and announcing to those workers what measures will be in place for them, if needed. 

When asked why he believes the government has not made such an announcement about supports being rolled out on a temporary-basis, McCoy said “these things are a moving feast”.

He said after the meeting today he is “sure that move will have changed”. 

He said Ibec clarified their point that they are calling for time-limited supports, “not something in perpetuity, but to have [for] workers on short time”.  

Speaking further about tariffs, the Ibec boss said tariffs on pharmaceuticals are most likely on the way, something the Tánaiste also stated today.

“I think the genie is out of the bottle. As I said earlier in the week, President Trump has started something that he might not be able to control,” said McCoy.