Dáil debates

Wednesday, 20 January 2016

10:10 am

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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6. To ask the Minister for Jobs, Enterprise and Innovation his views that Mondelez is seeking further outsourcing of jobs at the Cadbury plant in Coolock in Dublin 17. [2084/16]

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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This relates to the latest worrying news from Cadbury in Coolock to the effect that Mondelez is seeking to outsource a further 17 jobs on top of the 165 jobs that were lost last year. Does it not speak to the nature of the recovery as being for big business and the rich when workers continue to face job losses and major exploitation?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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There will always be companies that lose employment. It is a source of disappointment whenever that happens, but the rate of job losses in Enterprise Ireland and IDA companies is at an historical low. This is encouraging. There is strong employment growth, including in manufacturing.

It is a source of great disappointment that Cadbury has needed to indicate that it will reduce the numbers it employs and restructure its business. In February 2015, the company announced job losses and stated that its Dublin facility would focus on four of its key brands. However, it committed to an investment of €11.7 million to improve the technology at the plant and copper-fasten its quality and capacity to compete in the long term.

I met the company as recently as last November and Enterprise Ireland continues to work with it to ensure that the best outcome is secured. We have a cross-agency group that is designed to help the workers in every way that we can. My understanding is that the company has not made changes to the plans announced in February. However, it continues to engage with the unions on the restructuring and has been negotiating on future work practices. It has availed of the State's industrial relations machinery, namely, the Workplace Relations Commission, WRC, and the Labour Court. I understand that the recommendations of the Labour Court are to be considered by union members this month.

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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That the jobs are disappearing and the workers are disappointed are not just natural events. It is cold comfort to the 17 workers who may lose their jobs that the rate of job losses elsewhere has decreased. Does the Minister acknowledge that the reason these jobs will go is not that Mondelez or the Cadbury plant in Coolock is unprofitable, but because Mondelez wants to maximise its profits? Mondelez's income in 2014 was $34.2 billion and now it is chasing further profits on the back of a race to the bottom in working conditions, pay and the yellow-packing of jobs.

Does the Minister agree that the workers should be supported in taking action against the company and demanding that no further outsourcing should occur, given in particular the investment announced and promises made last year?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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In any company based in Ireland that has an international footprint, its Irish operation must be competitive with its other operations. This means that companies continually go through processes of restructuring. Enterprise Ireland seeks to support companies in doing that in order to anticipate threats that might be posed. Protecting companies and employment forms a large part of Enterprise Ireland's work. We have reduced the job loss rate to its lowest ever at just 4%. Sadly, however, there are still cases in which employment is lost.

We seek to ensure that companies remain competitive in the long term. That is the common aim in this instance. The company has committed to an investment programme, but it must negotiate with its unions those work practices that it believes will prove important in ensuring its long-term future. We seek to assist that process through the WRC and the Labour Court with a view to a fair and equitable outcome for everyone concerned. This is the approach that has been taken by every Government. We support the best possible outcome for workers in this situation.

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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At least that answer has the benefit of being honest: "That is capitalism". Companies will try to maximise profits, globalisation means that there will be an international race to the bottom in wages and conditions and we must go along with it. The workers would not be happy to hear the news that this is the Government's approach.

To become the most competitive, the company will want the most flexible workforce possible, to outsource as much as possible and to pay as little in wages as it can. Should the workers and the Government accept this? The public good in having these jobs in Coolock is immense. The Government has a responsibility to defend them on the basis of decent terms and conditions and to support workers in resisting attacks on wages, conditions and jobs, not to accept the logic of a race to the bottom.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Deputy is seeking to distort what I stated. Through Enterprise Ireland, the Government seeks to work with companies to secure quality jobs that will survive in the long term and provide increased living standards for people. Consider the evidence of recent years since the recovery took hold. The number in employment has increased, wages have increased, the Government has been in a position to cut the tax burden and other burdens on workers, the legislation on temporary agency workers has improved, registered employment agreements, REAs, and employment regulation orders, EROs, have been restored and the Low Pay Commission delivered an increase in the national minimum wage. This work is continuing, but we must see a strong and viable enterprise sector that can grow employment and living standards.

Unfortunately, there are times when companies must undertake restructuring. We aim to support this restructuring to get the best possible outcome in the long term, that is, a good plant that will offer good and secure employment. The company must negotiate with its unions, however, and that is happening.