A shortfall of up to €15 million in the pension fund of the Northern employees at IFI has been uncovered, which could see the firm's workers receive only 40 per cent of the pension entitlements they had expected.
The shortfall emerged following the decision last week to liquidate IFI. The shutdown will see the loss of 620 jobs - 206 at Richardsons Fertilisers in Belfast and the rest at two IFI plants in Cork and Arklow.
IFI, which is jointly owned by the Government and British multinational ICI, was last night they were accused of being ready to sacrifice the financial future of the Belfast staff for the sake of less than €30 million.
The method of liquidation chosen means they can avoid paying creditors including departing workers - many of whom have worked for Richardsons in Belfast for 20-30 years or more, it was claimed.
It is understood the matter was raised when IFI unions met the Tánaiste, Ms Harney.
Last night a spokesman for the Department of Enterprise, Trade and Employment said he couldn't comment on the pension fund shortfall. He said that, as an IFI shareholder, the Government would not be involved, that pension funds are a matter for the company itself. A liquidator is expected to be appointed by the company next week following a creditors meeting.
A spokesman for the company said that while there was a deficit in the pension fund, the amount was not yet clear.
Asked about the situation for workers south of the Border, the spokesman said: "The issue has yet to be assess but the company does not expect it to be a significant problem."
Shop stewards at the Belfast plant said they were being given no information and left in the dark about their financial futures by IFI and its two shareholders.
Sir Reg Empey, Economy Minister at Stormont until direct rule was reimposed last week, said Ms Harney had indicated to him "they will do something as yet unspecified".
But he added: "Here we have a major British PLC and the Irish State effectively hiding behind this limited liability to avoid obligations to 200 workers, some of whom can see a lifetime's contributions and expectations deprived from them at the very last moment of their careers. I think that would put an indelible stain on both ICI and the Irish Government."
- (Additional reporting PA)
