Dáil debates

Wednesday, 10 October 2012

Topical Issue Debate

Job Creation Issues

3:00 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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This is a topic of serious speculation in Clonmel and in south Tipperary in general, the future of more than 150 manufacturing jobs at Abbott in Clonmel. All these workers are on temporary contracts which are due to expire at the end of November. Understandably, given the nature of these jobs, the company will make a decision next month whether to extend these contracts of employment. Abbott has a total of 1,500 in Clonmel so 150 jobs represent a significant proportion of the workforce. I know the Minister will agree that these workers do an excellent job which is the reason this facility is the largest and most productive of all Abbott locations.

Deputy Seamus Healy and I ask the Minister to do all in his power to fight for those jobs. There is the possibility of further job losses next year but the company is refusing to speculate in this regard. I ask for clarification as to the future of those jobs. South Tipperary is very dependent on jobs in Abbott. It is a very good company which is well regarded in south Tipperary.

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Abbott is a flagship company for the town of Clonmel and for County Tipperary and the general region. It has a workforce of approximately 1,500 employees who are highly skilled and committed. The company is a key driver for the local and regional economy and a significant number of downstream jobs running into the thousands are dependent on the company's location at Clonmel. Together with Deputy Tom Hayes and Deputy Mattie McGrath, I visited the company earlier this year and I know the local management and staff are very committed to the long-term future of the company at Clonmel. I refer to the valuable work which is carried out so efficiently. The company has confirmed the loss of 150 jobs in November. This is a severe blow to the workers and their families and to the south Tipperary area. Some unconfirmed reports suggest there might be further job losses in March 2013 which, if true, would be a very worrying development. I ask the Minister if he has information with regard to the situation at Abbott and I ask him to engage with the company to ensure every effort is made by him and by the State agencies to offer whatever support and resources are required to maintain existing levels of employment at the plant.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I apologise on behalf of the Minister, Deputy Bruton, who has had to leave for the airport. I thank the Deputies for raising this matter. There are currently close to 1,400 people employed at Abbott's vascular manufacturing facility at Clonmel. Approximately 150 of these workers are temporary employees whose contracts are due to expire at the end of November 2012. These are the employees whom Abbott acknowledges will leave the company as planned and will be made redundant at the end of the year. These temporary staff were employed by the company to support a product launch and it was never envisaged that they would be made permanent.

Abbott's headquarters is in California. The company began operations in Ireland in 1946. It currently has eight manufacturing and five corporate services operations in this country. It produces a range of products for a variety of markets such as diagnostics, medical devices, pharmaceutical, diabetes, ophthalmic and nutrition. Six of its manufacturing operations are located in the BMW region. Abbott is one of the largest medical technologies firms in Ireland, employing approximately 3,700 people, with 1,400 permanent staff in Clonmel. Continuous investment by the company in Ireland has maintained manufacturing operations for over 35 years. The Clonmel plant manufactures a broad range of vascular devices but mainly stent delivery systems. IDA Ireland is actively engaged with the company in an effort to keep updating the portfolio of products produced in Clonmel. IDA Ireland is in discussions with Abbott Vascular in California and in Clonmel on future additional mandates for the facility. As with all new products, timelines for their introduction are dependent on market demand. The local management at Clonmel are determined to maintain employment at current levels.

In addition to IDA Ireland's ongoing contact with the company, the Minister has arranged to meet with a senior executive from Abbott in the next few days to hear about the company's future plans for its Irish locations including Clonmel. The south economic region currently has 207 client companies employing more than 38,000 in total; the mid-west economic region has 57 IDA client companies employing over 18,100 in total; the south Tipperary region has nine IDA supported companies employing approximately 3,400 people. IDA Ireland will continue to compete vigorously for investments in order to further economic development of the south and mid-west economic regions of which County Tipperary is part.

On the wider issue of job creation, I am aware of the local media reports that Abbott plans 300 redundancies in its Clonmel plant but we are reassured that these are exaggerated reports and that the numbers affected will be 150 temporary positions. I am confident that IDA Ireland will continue to work closely with the company management. A major element of the Government's response to unemployment is the pathways to work initiative with the aim of helping to ensure that as many jobs as possible are filled by people who are on the live register.

The role of my Department is to ensure that we have the correct policies in place to support and grow our enterprise base in order to facilitate both job creation and job retention. Abbott is a significant foreign direct investment in Ireland. The company will continue to research and develop new products. The Minister will meet the management team and he is fully aware of the concerns expressed by the Deputies. The company is critical to the local economy and I have no doubt this will be foremost in the mind of the Minister. Abbott is also a major employer in Sligo and I am confident this will continue to be the case in Clonmel.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I thank the Minister of State for that reply.

I am very heartened by what he said, particularly his indication that the Minister, Deputy Richard Bruton, intends to meet with the chief executive officer of Abbott. I hope he will emphasise how important the company's operation is to the people of Tipperary. The facility at Clonmel has one of the most highly skilled workforces of any manufacturing plant in the country. Will the Minister report back to us as soon as possible with an update? There is huge concern in south Tipperary, as expressed in the local media, about the future of these jobs. My colleague, Deputy Seamus Healy, and I wish to co-operate in every way possible to ensure this employment is safeguarded. We are not seeking headlines in raising the matter. Our intention is to facilitate a constructive engagement with the company which will ensure its continued investment in south Tipperary.

3:10 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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I thank the Minister of State for his response. I welcome the indication that IDA Ireland is in discussion with Abbott management in both California and Clonmel regarding future additional mandates for the facility. I wish IDA Ireland well in its endeavours. I also welcome the confirmation that the Minister will be in contact with company management in the coming days in regard to its future plans for Clonmel. As Deputy Tom Hayes observed, the company is hugely important to the economic and business life not only of Clonmel and south Tipperary but of the entire region. The plant at Clonmel is the largest manufacturing operation in the south-east region. I hope the intervention by IDA Ireland and by the Minister will ensure that existing levels of employment are maintained and will facilitate future mandates for the facility which necessitate an increased workforce.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I assure the Deputies that the Minister will deal directly with management at the Clonmel plant, in addition to the ongoing engagement by IDA Ireland. As I said, there will be discussion regarding the potential expansion of the product range. The Minister will be in contact with the Deputies following his meeting with the management.