Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I wish to raise the recent liquidation of Avara Shannon Pharmaceutical Services Limited and, in particular, the plight of the 114 workers. As the Minister of State well knows, and this should be well known to many, the company is operating at Shannon since 1976 under various guises and different ownerships. Prior to its takeover in 2016 by Avara, it was owned by the very well known Belgian based UCB, a highly reputable and well-respected company. However, as of 29 July, the site is in full liquidation. There are joint liquidators on site, which is somewhat unusual and adding somewhat to the concerns. It is in liquidation and efforts are being made to try to find a pathway towards the continuation of the company in some form.

The real concern is that the Shannon facility and its workers have contributed hugely to the local economy since 1976 and it is with disbelief that these workers have been informed, as a result of the liquidation, that the terms and conditions that were available under the transfer of undertaking will not apply and, as such, the terms and conditions, particularly the recognition of their service on having to leave the employment - they would have expected six and a half weeks, together with two weeks statutory redundancy – will not be paid. After that amount of commitment to the company, they will be left with just the statutory level of redundancy. That is a major blow to these workers and to the efforts they have made to sustain this company through thick and thin.

The concerns I have are rather varied but, in particular, I am concerned that in 2016, when it disposed of its site to Avara, UCB did not do the appropriate level of due diligence. I do not know what the transfer was at the time but I believe it was passed for a relatively small amount of money. While that might have allowed UCB to discharge its responsibility to the site and the environmental management of a very complex site, it takes no regard of the conditions and terms under which the workers are employed. In this liquidation process they are now left with statutory redundancy, which will have an enormous impact on their livelihoods and have wider implications, as the Minister of State will be well aware, for the wider community.

I am of the view that UCB still retains some responsibility, whether it be through its corporate social responsibility or whatever, and there is some basis for my making that claim. A similar situation happened in the UK, where AstraZeneca, another large pharmaceutical company, disposed of a manufacturing site there also to Avara and where the liquidation took place with Avara on that site. AstraZeneca through the efforts of workers was forced to recognise it had not done the appropriate level of due diligence before it passed or transferred the operations to Avara and, in that instance, I understand it kicked in about €12 million to support the workers and give them the full value of their expected terms and conditions, and that is what we want here. We want UCB to step up to the plate and to recognise it passed on a very considerable undertaking for very little and did not give due consideration to the impact that would have if it did not all work out. Clearly, for something to collapse in such a short period highlights to me that Avara was poorly structured, poorly capitalised and was not in a position to take on the burden of responsibility that UCB transferred to it. That is something for which UCB must answer.

I appeal to the Minister of State and the Government to use their best efforts and endeavours to get UCB to accept its corporate responsibility. It is difficult in that it is not located here but there are channels through our partners in Europe and through European legislation that should force UCB to make good on the commitments under which these people worked for such a long period and gave such valued service.

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