The Tanaiste says the government will await a full high court hearing of the Waterford Crystal pensions case before deciding on its next course of action.

He made the remarks after the European Court of Justice today ruled in favour of workers at the glass factory who took a case against the State for the loss of their pensions when the company went bankrupt.

The 10 workers took the case against the State to the European Court of Justice in Luxembourg for its failure to establish a pension protection system and were seeking compensation.

In a ruling published this morning, The European Court has said that Ireland has not fulfilled its obligations under an EU Directive designed to protect the pensions of workers in the event of the insolvency of their employer.

The workers lost large parts of their pensions when the company went bankrupt 4 years ago.

But  Taoiseach Enda Kenny says the government will await a further High Court hearing before deciding on its response. 

'State’s failure is now clear'

The UNITE trade union has welcomed today’s ruling. Regional Secretary Jimmy Kelly said "Today’s ruling will come as welcome news for workers who have seen the value of their occupational pensions collapse in the wake of insolvency". 

"It is now clear that, as argued by UNITE, the State’s failure to institute a system of pension protection represents a breach of its obligations under the EU Insolvency Directive". 

"The onus is now on the Government to follow through on this ruling and ensure that workers’ pension entitlements are protected" he added.

Mr. Kelly said UNITE will now consider the full implications of the ruling with their legal advisers and will issue a more detailed response in the next number of days.

MEP Phil Prendergast says this case could now set a precedent for workers at other bankrupt firms: