Michael Lowry (Tipperary North, Independent) | Oireachtas source

I thank the Ceann Comhairle for allowing me the opportunity to raise a serious matter on C&C Group and its existing operations in Tipperary and Dublin. Since the takeover of M&J Gleeson, I have made efforts to seek clarification from C&C on its future intentions. Its responses were particularly guarded and rather coy, leading me to be suspicious of their forward planning and its implications. My publicly expressed concerns at the time are now unfortunately proving well founded. In recent weeks several employees of M&J Gleeson in Borrisoleigh and Bulmer's in Clonmel have contacted me directly expressing frustration at the lack of information and mixed messages coming from a so-called consultative process. Employees are understandably worried, anxious and fearful for their future. The company is hiding behind the review process and keeping most of its staff in the dark.

M&J Gleeson was taken over by C&C in late November 2012. This was approved by the Competition Authority and sanctioned on 6 March of this year. A new CEO of Bulmer's and M&J Gleeson was appointed.

In May it was announced that Bulmers was to be subsumed into M&J Gleeson. Critically, it was indicated that this would include proposals to introduce all-Ireland structures. In recent months there have been a large number of redundancies in Bulmers in Clonmel. It was announced internally that the C&C Group intends to move the administration, accountancy and marketing functions to Belfast. This represents a carving up of administrative functions and will mean the loss of 50 jobs, including ten administrative jobs in Borrisoleigh, 15 administrative jobs in Clonmel and 25 administrative jobs in Dublin. The C&C Group rationale for this move is that it would make a cost saving of 20% by moving these functions to Belfast. I find it staggering that administration costs could be run 20% cheaper from a small office in Belfast. I question the motivation for the move to Belfast given that the C&C Group has significant corporate bases at Park West and Cherry Orchard in Dublin as well as a headquarters at Borrisoleigh, County Tipperary. The company has also stated that it will announce the results of its manufacturing review in April next year and that it is reviewing the requirements for its depots in southern Ireland. The company is engaged in a crude cost-cutting exercise which has a major human impact.

The Minister of State and the Department should note that pay and general terms and conditions are far more favourable at Bulmers than at M&J Gleeson in Borrisoleigh. For example, the redundancy terms for M&J Gleeson employees stands at two weeks per year of service in contrast to six and a half weeks at Bulmers. Instead of actively trying to force lesser pay and redundancy terms on Bulmers workers, the C&C Group should agree to equalise redundancy terms for the Gleeson employees at the higher rate of six and a half weeks.

Due to a combination of these actions, there is widespread trepidation about the future potential impact on the existing operations and its employees. The Gleeson Group in Tipperary is a steadfast, major employer and a major contributor to the local economy. It is vital that its current operations are protected to the maximum extent. There are consequences for employment should the C&C Group employ a policy to centralise any element of its manufacturing. The C&C Group has a duty to its workforce to be open and transparent in respect of its decisions. It is fair and reasonable to demand that the C&C Group should explain the motivation behind its commercial strategy and decisions.

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