Dáil debates

Tuesday, 24 June 2014

Topical Issue Debate

Jobs Protection

6:35 pm

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent) | Oireachtas source

Ba maith liom buíchas a gabháil leis an Ceann Comhairle. I thank him for allowing me to raise this important issue. Bulmers which is owned by C&C Group has a proud heritage, history and association with Clonmel, south Tipperary and west Waterford.

It is a wonderful company, which employed 600 people at its peak. I have fond memories of travelling to the vats in Clonmel as a buachaill óg with loads of apples, hand picked by men and children, and the wonderful aroma that descended on Clonmel from those vats during September and October. Production moved out to the present site outside the town and the company was doing fine and gave wonderful employment and had a superbl workforce and legacy over the years. Every summer it provided hundreds of summer jobs.

The situation has, unfortunately, taken a major turn for the worse. Since the takeover by C&C Group, a cloud has descended on Bulmers. There was major expansion, which frightened people who drove by, but, unfortunately, it has all gone wrong. Major corrections have been made by a sterling workforce from 2007 until now, but the workers are continually being asked for more. There has been a complete lack of engagement with public representatives by the company's managing director and others. Despite the fact that we were previously brought down for tours, meetings and trips and kept abreast of issues to be dealt with, we cannot get access. What are they hiding?

I will quote some very worrying figures. Sales of Hornsby's, Magners and Woodchuck are down 40%, 17% and 1%, respectively. Although Bulmers in Clonmel contributed almost €40 million to the company's profits of €126.7 million, the workers are being asked for another €1 million in cuts. The company is trying to introduce a standardised hours system, whereby people would have to work all their hours during the summer months, when they have to be away from their families and neglect them, and then may be be idle during the winter. The union is fighting this, but is not getting much support.

Bulmers has made wonderful profits and when it took over Gleesons some years ago my colleague, Deputy Michael Lowry, raised the issue here and we received all kinds of assurances. However, 30 jobs from that plant have been moved to Belfast and the equivalent of the IDA in Northern Ireland gave handsome grants to C&C to move jobs from Dublin and Tipperary in the Republic of Ireland to Northern Ireland. It is a crying shame and it is time to wake up and smell the coffee and demand meetings with the company, which wants a further €1 million in cuts, despite the many sacrifices the workers have made.

The American market has collapsed. The market in Great Britain is collapsing. UK cider sales have fallen by 13% and profits have fallen by 29% for the last year. Magners are still sponsoring Celtic Football Club, which I have no problem with. Bulmers was always good about sponsoring local causes, but it has been dwindling and the goodwill is disappearing. I question the ability of the CEO and management to do the job. On 13 May, production moved from Clonmel to Shepton Mallet in the United Kingdom. Nothing has gone through that plant but water for a test and it lies idle with nothing being made. There are pictures on the company's website to prove this. Although I am not against the counties north of the Border, why should Northern Ireland offer grants to companies to take jobs from the Republic and go there?

There is uncertainty, but Borrisoleigh is playing its part with a good, indigenous company, Gleeson Group. Two indigenous companies that have served Tipperary well for generations are being taken over by this all-encompassing C&C Group and we are carrying the other plants and the failures in America. It will take 46 years for the company to turn a profit from the investments it has made there. Why should Clonmel be forced to support it? I ask the Minister of State and the Minister, Deputy Richard Bruton, to visit Clonmel - and the United Kingdom, if necessary, as the company will not meet on our turf - to meet the company management, get reassurances and demand answers because the workers are not getting fair play, and neither are the public representatives of south Tipperary.

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