Dáil debates

Thursday, 29 January 2015

Topical Issue Debate

Company Closures

3:45 pm

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I appreciate the opportunity to raise this important topic. I am glad the Minister of State, Deputy Nash, is here to respond.

This time last week, the 140 workers at the Bose plant in Carrickmacross, County Monaghan, got the devastating news that the manufacturing plant would cease operations in April of this year. Sadly, the method of communication with the workers was desperate. Some of the workers, whom I spoke to over the weekend and on Monday night, had worked in that plant since 1978-79, while others had 20 to 30 years' service, and all of them spoke in glowing terms of the great employer Bose has been. The method of communicating the devastating news to them was through a video link of four minutes and 40 seconds outlining the plans for the new year for Bose Corporation. The final part of the message was that two plants, including the manufacturing plant in Carrickmacross, would close.

On several occasions on Thursday evening and Thursday night, as well as subsequently, Councillor P. J. O'Hanlon, who is one of the Fianna Fáil councillors in south Monaghan, spoke to me passionately about the devastation that had just been inflicted on the workforce and the community in Carrickmacross and much further afield. On Friday I listened on local radio, Northern Sound, to some of the long-serving workers outline that Bose was their life. They entered good employment there after leaving school. They improved their skills. They ensured that they are a very skilled workforce. That message of four minutes and 40 seconds was, unfortunately, seen by many of those people as the end of their working careers. On Monday night, at a public meeting organised by SIPTU, many of the workers outlined with great clarity their commitment to Bose over the years, stating that Bose was a very good employer and that over the years they had adopted new practices.

Deputy Nash will be aware from his departmental officials and from Enterprise Ireland and IDA Ireland that the Bose manufacturing facility in Carrickmacross has been a model in implementing the lean manufacturing process. It increased productivity and reduced costs. The workers have done everything right to remain as competitive as possible over the years.

The announcement of the transfer of the operations to Malaysia and Mexico was news that came as a shock, out of the blue, to a wide area of south Monaghan and parts of east Cavan as well. Along with my Oireachtas colleagues from Cavan-Monaghan, I had the opportunity, which I appreciated, to meet the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, on Tuesday last. We outlined to him what we had heard from the public representatives in the immediate Carrickmacross area and what we had learned from the workers and their union representatives at the public meeting on Tuesday last. The message that we gave to Deputy Bruton was to engage as vigorously, positively and strongly as possible with the senior management of Bose to see if they would consider reversing this decision.

We must take into account in our deliberations on this topic that Carrickmacross is the only manufacturing facility of Bose Corporation in the European Union. It has been there for almost four decades. It was established in 1978 and has a proud record of good governance and good practice over the years.

I repeat to the Minister of State, Deputy Nash - and I hope he will convey this both in his own work and to Deputy Bruton - that we want the strongest possible interaction from a Government point of view directly with the senior management of Bose. I understand that a senior executive of Bose Corporation is in Ireland today and tomorrow, or some of these days. On behalf of the workforce and the community in Carrickmacross, I ask that the Minister, Deputy Bruton, and the Minister of State, Deputy Nash, or whoever else, meet directly with that senior management official and give the strong message that we are anxious for the company to consider reversing its decision. They have a highly skilled and committed workforce in Carrickmacross who produce product of the highest quality, and it is that international corporation's only manufacturing facility in the European Union.

Photo of Gerald NashGerald Nash (Louth, Labour)
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I thank Deputy Smith for raising this issue. I am concerned about this closure announcement for Carrickmacross. Not only is it confirming a large number of job losses, but it was totally unexpected, and the manner in which the news was broken to long-serving staff was a poor reflection on the company. The way in which this devastating news was given to Bose staff was uncaring, cold and unacceptable. As a Minister from the Border region, I am taking a close personal interest in the matter and I am acutely aware of the impact this announcement is having on workers, their families and the wider community in Monaghan, Cavan and Louth.

We must be mindful of the plight of the workers at Bose and their families as they face into an extremely difficult time following the announcement. As Deputy Smith outlined, many of the workers have very long service with the company and have shown considerable flexibility and adaptability on work practices over the years. The staff have been very responsive to the needs of their employer and the business. It is upsetting to learn at very short notice that production is being transferred to Malaysia and Mexico. I understand that another Bose facility in North Carolina is also due to close.

An inter-agency group, led by Enterprise Ireland, has now been established to address the job losses at Bose. Its membership includes representatives of all the relevant State players - that is, IDA Ireland, Enterprise Ireland, the Department of Social Protection, SOLAS, the Cavan and Monaghan Education and Training Board, the local enterprise office, LEO, and Monaghan County Council. The group is providing a co-ordinated approach to the needs of the affected staff. In addition, my colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, has spoken directly with company management in the United States. He expressed the Government's regret at the way in which this announcement was handled, and particularly the lack of notice given to workers and to the enterprise agencies, the IDA and Enterprise Ireland. I understand he also asked the company if it would reconsider its decision or extend the period of notice that has been given to workers. Unfortunately, the company is insistent that the closure will happen. As Deputy Smith also outlined, the Minister is also arranging a meeting with a senior Bose executive who is travelling to Ireland from the USA to discuss the situation.

I myself have been in contact with the IDA and Enterprise Ireland at the highest levels and have asked them to redouble their efforts to secure new projects for County Monaghan and the broader region, to explore all opportunities to replace the jobs being lost in Carrickmacross and, thereby, to find a replacement industry for the site. We must focus on the skill sets of the employees to pursue new job opportunities for those workers. The IDA has already contacted its network of offices worldwide in an effort to find replacement investment. It is worth remembering that the IDA has been particularly successful in attracting major employers to the north east region in recent years and will seek to build on that success in highlighting the clear advantages of Monaghan, with which I am only too familiar.

Enterprise Ireland, whose companies in the region have been very successful in increasing job numbers in recent years, will pursue all possibilities among its client companies to seek to identify a potential replacement for the town. The agency will continue to develop expansion projects by Irish companies in the area, as it has done in recent years.

I reassure Deputy Smith that I and my Department are working closely with the IDA and Enterprise Ireland to get certain projects across the line in the Cavan and Monaghan area which will deliver investment and jobs. Everything that can be done will be done in this case. Deputy Smith has my personal assurance of that.

3:55 pm

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank the Minister of State, Deputy Nash, for his reply. I note that he issued a statement very quickly on the matter last Thursday night, and I appreciate that. I am pleased to hear the Minister of State confirm that the Minister, Deputy Bruton, is arranging to meet a senior Bose executive who is travelling to Ireland from the USA to discuss the situation. That proposal was put to the public meeting in Carrickmacross last Monday night by Councillor P. J. O’Hanlon. It was endorsed by all of the public representatives present, including Oireachtas Members and other councillors, and by all present. In the meantime, individual members of the workforce have been in contact and no effort is spared to ensure the meeting with the senior manager takes place this week if at all possible. I hope the Minister of State will convey to the Minister, Deputy Bruton, the anxiety I convey to him on behalf of the local community and the workers in Bose that the meeting take place.

From what the Minister of State has outlined, I am aware that the company has indicated it is not open to reversing the decision. That is regrettable. We hope the Minister will make some progress in that respect without ever trying to raise expectations. It would be irresponsible for any of us to do that.

The Minister of State mentioned the closure of the plant in North Carolina. The timeframe for the closure there is next September, whereas the proposed closure date for the Carrickmacross manufacturing facility is April. The closure of the plant is devastating news but the very short timeframe in which it is proposed to cease operations there is further crippling news.

I thank the Minister, Deputy Bruton, the IDA and Enterprise Ireland for meeting Oireachtas Members, including me, last Tuesday. Local authority members for south Monaghan, along with senior council officials, also met with Oireachtas Members in the meantime. They conveyed to us the understandable concerns of the local community. Monaghan County Council is a proactive, progressive council that will do anything within its remit to try to help out in the situation. I am sure the Minister of State is aware of that himself from his geographical location as a neighbouring public representative. We hope every effort will be made by the Minister of State, Deputy Nash, the Minister, Deputy Bruton, and all the relevant officials in the Department and the agencies to try to impart the strong message to Bose that it has had a very successful manufacturing operation in Carrickmacross since 1978 and that it has a very skilled and committed workforce. Currently there are 140 employees, but traditionally, an additional 60 to 80 seasonal employees were also taken on. We are talking about a workforce of 200 in a relatively small town, which is of huge importance.

Over the years the workforce in question adopted and adapted to new work practices. The IDA confirmed to us the other day that this was one of the manufacturing facilities that had been in the lead in rolling out a lean manufacturing process, which has reduced costs for companies and increased productivity. Given all that, everything must be done to try to assist the workers who unfortunately received the devastating news this time last week.

Photo of Gerald NashGerald Nash (Louth, Labour)
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It was devastating news indeed. I am in the happy position of knowing quite a number of Bose workers from my constituency of Louth, especially people in the Ardee and Dundalk areas. They enjoyed their experiences and were very committed to the company. Like me, they were very disappointed at the sudden turn of events. The IDA and Enterprise Ireland are extremely annoyed at the turn of events and the completely unacceptable manner in which the devastating news was imparted to the employees.

As I stated, the Minister, Deputy Bruton, will meet with Bose executives at the earliest opportunity. He will raise all of the issues Deputy Smith has expressed in the Chamber today on behalf of the people of Carrickmacross and all who are currently employed at Bose. I am very conscious of the difficulties in attracting new industry to regional centres. For that reason, we have initiated the development of new regional strategies to be rolled out this year as part of the Action Plan for Jobs 2015, which was launched today. I am hopeful that the initiative and its momentum will help to reinvigorate the industrial base of areas of the country that are away from the main urban centres, areas such as Carrickmacross, and other areas across the Border region. As Deputy Smith is aware, the IDA has had considerable success in attracting new industry to County Louth, for example, in recent years. The Carrickmacross area is not too far away from Louth. It is just across the border, and the two areas have much in common in terms of the skilled and dedicated workforce and the good infrastructure in the area, with the N2, which is very close to main urban centres in both Northern Ireland and the South.

In addition, Enterprise Ireland has made significant strides in job creation among client companies in the indigenous sector, with 8,476 net new jobs being created in 2014. Monaghan has enjoyed some success in that regard also. The numbers employed in Enterprise Ireland’s agency companies in Monaghan have risen from 3,638 in 2009 to 4,170 last year. That is a significant achievement and a major jump in a short period.

Eighteen thousand more people are at work in the Border region in the past couple of years since the action plan for jobs was initiated in 2012. That is not to say that there are no challenges. The problems experienced in Carrickmacross as a result of this devastating announcement illustrate one of the major challenges we have as a country to ensure balanced regional development right across the country, not just in the major towns and cities but in the Border region and everywhere else. An area like County Monaghan needs investment and can attract investment because of its location and workforce.

I thank Deputy Smith for raising this matter and I will communicate his concerns to the Minister, Deputy Bruton, as I know he takes this matter extremely seriously.

The Dáil adjourned at 4.10 p.m. until 2 p.m. on Tuesday, 3 February 2015.