Dáil debates

Wednesday, 25 November 2015

2:55 pm

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State at the Department of Arts, Heritage and the Gaeltacht, Deputy Joe McHugh, for taking this Topical Issue matter. It has been brought to my attention recently that almost 150 people have been made redundant or are in the process of being made redundant at C&C Gleeson because their positions are being moved to Northern Ireland. Was the Minister aware of this development? Was the Department given the proper statutory notice? Did it engage in negotiations or discussions with the company on how best to encourage it to keep these jobs in Dublin and Tipperary?

A more important issue for me, given that all politics are local, is the treatment of a constituent of mine who has given 34 years of service to C&C. He turned down an offer from the company of voluntary redundancy, stating that he had a couple of good years left and wanted to continue working. He was told it was tough luck and he was being made redundant. When he refused to accept redundancy and suggested he might get his trade union involved or picket the plant, he was immediately walked off the premises and placed on gardening leave until this day next week when the statutory notice period runs out. The key issue is the way in which my constituent is being treated in comparison with the approximately 140 other employees who are being made redundant by C&C Gleeson. The average redundancy payment for these employees is between three and four weeks pay per year of service, which would be a sizeable sum for a person who has given 20, 30 or 35 years of service. The gentlemen about whom I have spoken has been offered two weeks of severance pay for each year of service he has given the C&C Group. I believe this offer was made as a direct result of his resistance to being made redundant or, as occurred in his case, being effectively forced to retire.

What is the Minister of State's opinion, if he is able to give one, of an organisation with the stature and success of C&C Gleeson treating some of its staff in the manner I have outlined? Specifically, what is his opinion on the disparity in treatment being shown to some of those who, unfortunately, find their positions being made redundant and relocated to the North?

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Toisc nach féidir leis an Aire, an Teachta Richard Bruton, a bheith i láthair inniu, freagróidh mise an cheist ar a shon.

My first thoughts are with the workers who are being made redundant and with their families. All the State supports will be made available to any workers affected. As I understand it, the job losses announced by C&C affect a number of the company's plants nationwide. Voluntary redundancies were sought as the company restructured its Irish business and integrated the manufacturing and distribution business it acquired in 2012. In total, I understand 31 voluntary redundancies were sought in logistics, distribution depots and field sales operation, while five staff transferred to a contract haulier. I understand a further ten job losses pertain solely to one of the Tipperary plants.

The announcement by C&C is as a result of the loss of a significant private label contract with a retailer and the loss of sole supplier status with another retailer for a private label product. These events will see the reduction of the depot value from the plant concerned. The company is working to replace this business as soon as is possible. The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, has directed officials from Enterprise Ireland to continue to engage with C&C management and offer any assistance possible.

Employment retention and creation continues to be the primary objective of the Government. Since we launched the Action Plan for Jobs, more than 136,000 additional jobs have been created. In County Meath, the number of people employed in Enterprise Ireland and IDA Ireland supported companies increased by more than 1,600 or 16% in the period from 2011 to 2015, compared with more than 1,000 job losses in Enterprise Ireland and IDA Ireland supported companies in the period from 2008 until 2010, which amounted to a 15% decrease. In addition, the Meath local enterprise office supports 180 small businesses and micro-companies, which added more than 150 new jobs in 2014, an increase of 24%. At the same time, the number of people on the live register in County Meath has declined by more than 29%.

As part of the Government's €250 million regional Action Plan for Jobs, a specific mid-east region Action Plan for Jobs will be published. This will seek to build on the jobs progress which has already been made. The Minister, Deputy Richard Bruton, and Minister of State, Deputy Damien English, have already hosted a consultation with public and private bodies in the mid-east and the plan is in development. Enterprise Ireland, the IDA and the Meath local enterprise office will continue to work with local companies to increase the number of start-ups, grow exports and, ultimately, create the jobs we need.

I realise the Deputy's question is more specific and relates to a number of employees or former employees at the plant. Workplace Relations Commission customer service staff are available to meet the employees concerned to provide information and answer any questions on their current circumstances and statutory employment rights and entitlements.

3:05 pm

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I appreciate that the Minister of State is in a difficult position. If he does not have the answers today, perhaps he can get back to me in writing. Am I correct in thinking that the Department is aware that C&C is relocating jobs to the North of Ireland? It does not make sense given that it says the reason it is downsizing is the loss of a retailer by a private label product. I agree that I am here specifically on behalf of one gentleman who is representing the views of his colleagues who are losing their jobs. Their positions are being made redundant notwithstanding that the work is still there but being moved to the North of Ireland. That may be fine in a different context, but my real issue is that this gentleman is in his early 60s. He has worked probably all of his life for this company. He has worked for it for 34 years. In relocating his job to the North of Ireland for whatever reason, they are offering him two weeks statutory notice. It is disgraceful that he is being treated in this manner. Some of his colleagues are receiving three and a half and four weeks, which is more acceptable and palatable for those people who are unfortunate enough to be losing their jobs.

Can the Minister of State address the Workplace Relations Commission personnel he spoke to and put them in contact with me so that I can get them involved to represent this gentleman better than I can at the moment? The days of his redundancy notice period are running out. He is within seven days of being walked off the premises and having his car and phone taken off him. He will have no recourse at that stage. Can the Minister of State come back either today or tomorrow on the relevant personnel to engage with so that I can at least assist him in the final days of working for this company after 34 years?

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is important if there is an issue that it is not only highlighted but followed up. Certainly, I will ask the Minister and his officials to make direct contact with the Deputy on the issue. Whether it is creating a mechanism or communication line with the Workplace Relations Commission, we need to look at some action point. There are statutory protections for workers in the context of redundancy. Under the redundancy payments scheme, eligible employees with at least two years' continuous service in fully insurable employment are entitled to a minimum statutory lump sum payment on being made redundant. A redundancy situation arises where a business closes and ceases to trade. An employee is entitled to two weeks' pay for every year of service with a bonus week added on subject to the prevailing maximum ceiling on gross weekly pay, which is currently €600. The lump sum payment is tax free. In addition, employees are entitled to notice as per the Minimum Notice and Terms of Employment Act. I will certainly convey the Deputy's concern on specific and individual cases.