Dáil debates

Wednesday, 4 November 2015

10:05 am

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

7. To ask the Minister for Jobs, Enterprise and Innovation the current status of the Cadbury and Mondelez jobs that were announced to have been in jeopardy earlier in 2015; if these job losses have been reversed; and if he will make a statement on the matter. [37154/15]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

We had the bad news in late February of the possible loss of 160 jobs in Coolock, Rathmore and Tallaght. We have not had any update since mid-summer. I understand the Minister established an interagency group led by Enterprise Ireland.

What progress has been made on this? Have the agency and the Department had any talks with 3G Capital, the ultimate owner of Mondelez Kraft Heinz?

10:15 am

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have had discussions with Mondelez at senior executive level and the company has committed to me that it will invest in its operation here with the aim of achieving best-in-class production processes. Enterprise Ireland has also been in contact with the company on a continuous basis regarding the assistance it could provide for restructuring to minimise job losses. The workplace relations services of my Department have also been actively engaged in this process.

Labour Court hearings between the company and the unions concerned took place on 9 October 2015. The Labour Court recommendation for the production personnel represented by Unite and SIPTU is to continue the negotiation process with management on headcount reduction, shift pattern changes, outsourcing and a two year pay deal over a four week period beginning on 29 October 2015. The management expect the unions will ballot their members in the coming weeks to determine support for the proposed changes.

The Labour Court recommendation for the electricians represented by TEEU and the fitters represented by the TEEU and Unite is for the Workplace Relations Commission, WRC, to mediate between management and unions for a four week period beginning on 28 October 2015. Both parties have engaged with the mediation process in the WRC.

Immediately after the announcement by Mondelez, I established, as the Deputy has acknowledged, an inter-agency group to co-ordinate the response to the proposed job losses. The group, chaired by Enterprise Ireland, is seeking to secure alternative employment for Coolock, Tallaght and Rathmore and to ensure that departing workers have access to supports they need from State agencies for retraining, access to social welfare supports, access to advice on employment rights and access to advice and support for those workers who intend to start their own businesses.

I understand that the site in Tallaght will cease production in April 2016 with the severance and exit packages agreed. The company has engaged Penna O'Shea, the career transition provider, to assist the workforce in planning their future. Enterprise Ireland has visited the Tallaght site and will share the plant specification and worker profile with its clients. The plant specification and worker profile has also been shared with IDA Ireland. The inter-agency group has obtained agreement from SOLAS eCollege to offer any existing courses free of charge to all learners in Mondelez, Tallaght.

I have already directed Enterprise Ireland and IDA Ireland to step up their efforts to find alternative projects for the areas affected. I continue to monitor the situation very closely and I have arranged to meet the company representatives shortly.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for that response. I note detailed counterproposals were put forward six or seven months ago by the SIPTU, Unite and TEEU trade unions and by members of the workforce themselves who are obviously expert in this element of food production and it was feared some of the key brands, for example, the Twirl and the Snack, would be outsourced to Poland. The Minister stated we are in a critical period in these negotiations and referred to the role of the commission, etc. Is the position that the Minister will be able to save those jobs?

What response has he received? The ultimate mother group of this company, 3G Capital, which has a Brazilian principal in Rio de Janeiro and which has assembled this considerable food combine and has a bad track record in taking over companies, devastating their workforces, taking out value and leaving them. Has the Minister made contact with 3G Capital? There was word of a €11.7 million investment programme for Coolock and Rathmore. Has any of that been seen?

As the Minister will be aware, this is against a background where there are still more than 8,000 unemployed attending the two employment offices in Kilbarrack and Coolock in the constituency the Minister and I represent. As the Minister will be aware, there is still considerable anxiety and worry in the broader Coolock area that we could have further job losses here.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There is, indeed, an investment programme which the company has committed to but it requires a restructuring of its operations. Its intention is to achieve state-of-the-art production lines in Coolock. There were counterproposals and Enterprise Ireland supported the workers in furnishing those counterproposals. The position is they have entered into the detailed negotiations that I outlined in terms of the restructuring proposals the company is seeking and those are ongoing with both the Labour Court and the Workplace Relations Commission playing a role to seek to find solutions. As I indicated, Enterprise Ireland will also support the company. It has programmes, such as lean manufacturing programmes, which can allow a company successfully achieve the competitiveness it needs.

Unfortunately, this is a situation where the company has indicated that restructuring is needed to be competitive in its markets and we are seeking to work with that and minimise the job losses. I share the Deputy's concern that we need to minimise the job losses but I would point out that Dublin has been enjoying a recovery. While there are some companies experiencing difficulties with which we deal, and it is a fight every day, there are also companies which are growing strongly. We work to achieve such growth as well.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

On the Government's Twitter account, #allaboutjobs, it is notable that the Minister trumpets when new jobs arrive but he tells us nothing when there are serious job losses. On overall job figures, the Government mentions 126,000 jobs created, which is way below the total level of employment in late 2007 or early 2008. The Government is still a long way off that mark.

Is the Minister hopeful, from the initiatives taken by the inter-agency group, that these jobs can be protected, which is the key desire of our constituents and their families? What other assistance can the Minister give to ensure that the promised investment in the plants will happen as soon as possible and that we could look forward to a positive future?

Has the Department done anything in relation to the protection of iconic Irish brands, given the kind of attack on branded products in recent times and the difficulty of maintaining clear brands in the food area? All Irish food products are under this kind of threat from the German multiples and other companies.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister to conclude. We must make good progress.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I can assure the Deputy much of the work of my Department focuses on companies which need to restructure to protect jobs and both IDA Ireland and Enterprise Ireland have transformation programmes to help companies do that. They have been successful. Job losses in the IDA Ireland and Enterprise Ireland companies are at the lowest level in a decade and we are succeeding in managing companies.

In this case, as the Deputy will be aware, the company has indicated that there will be job losses but we are working to ensure there will be as few as possible and that the remaining jobs will be placed on a secure footing with the necessary investment and the efficiencies of modern production lines that can give them a secure future. That is what we are working to achieve. As I indicated, there are continuing negotiations with that aim in mind.