Dáil debates
Thursday, 18 October 2018
Ceisteanna Eile - Other Questions
Job Losses
11:25 am
Maureen O'Sullivan (Dublin Central, Independent)
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10. To ask the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the potential loss of employment and redundancies in a company, details supplied; if her Department will engage with those involved; and if she will make a statement on the matter. [42674/18]
Maureen O'Sullivan (Dublin Central, Independent)
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My question is on a situation involving Eir and HCL Technologies, the potential loss of employment, the number of redundancies because of what has been happening with them recently, and if the Minister's Department has been involved.
Pat Breen (Clare, Fine Gael)
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I thank Deputy O'Sullivan for raising this important issue. The Minister, Deputy Humphreys, and I are aware of the situation in HCL Technologies that has arisen following the decision by Eir last month to bring a contract that had been outsourced by the company back in-house again. I understand that 950 people are employed at HCL Technologies in the operation of this contract. Of this number, I have been informed that 300 staff based in Limerick and Cork can transfer to Eir under their existing terms and conditions. It is also our understanding that the remaining Dublin-based staff will be given an option to transfer to a regional location. Staff who do not wish to transfer will be offered a redundancy package. Negotiations concerning these redundancies and transfer arrangements are continuing between the company and the trade union representing the workers of HCL Technologies.
There is no doubt that the uncertainty created by these developments is clearly disappointing for the affected employees and their families, and our thoughts are with them. The Minister for Employment Affairs and Social Protection is aware of the situation, and I understand arrangements have been made by Intreo staff to be on site to assist these workers who find themselves in this situation. For any employees who will effectively become redundant on account of this contract transfer, the Government will be doing its utmost to help them in transition and find new employment opportunities. The IDA will also continue to engage with HCL Technologies to explore the potential for alternative investment and job growth.
While the situation in respect of HCL Technologies and Eir is regrettable, the overall pattern of job creation in Ireland continues to move in a very positive direction. The year 2017, for example, was another record year for the State in terms of foreign direct investment and employment, with continued strong employment growth expected for 2018. The labour market as a whole in the country is also performing very well, with more people in employment in the State than ever before. While I appreciate fully that these trends may offer little consolation to the affected workers in HCL Technologies, they do at least reflect our buoyant economy and suggest that new employment opportunities will continue to be generated throughout the country, including Dublin.
Maureen O'Sullivan (Dublin Central, Independent)
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As the Minister of State said, the buoyant economy is not going to be of much sólás to the people in Dublin who are losing their jobs. I understand that HCL Technologies and Eir had commented initially that they would endeavour to minimise disruption through detailed planning and co-operation. It is all very well and great that the jobs in Cork and Limerick will be retained, but the issue is that the jobs are located in Dublin 1, a significant of number of the employees come from the local area, I do not need to tell the Minister of State about the issues in this area. It has been very difficult for the employees and I am very struck by the fact that very little attention seems to have been given to this matter.
A smooth takeover does not really include offering people whose jobs are based in, who live in and who have their families in Dublin the option of moving to Cork and Limerick to keep their jobs. I understand that there are some whom it may suit to transfer, but there is still that significant number whom it does not. Regardless of a buoyant economy, they are now going to be out of work. I hope that the Department can be more proactively involved on this matter. I understand from Eir that its costs in Dublin are such that it wants to move out of Dublin. Can the Department do anything in this respect?
Pat Breen (Clare, Fine Gael)
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Both the Minister, Deputy Humphreys, and I are very conscious of the situation with HCL Technologies and those affected employees. I can understand exactly the Deputy's position given that many of these jobs are in her constituency in Dublin 1. Our thoughts are certainly with those affected.
It is not easy when one loses one's job, particularly when the economy is buoyant and there may not be any other opportunities. It will suit some employees to transfer to Cork or Limerick but it will not suit others, for family or other reasons. The Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, has sent in a team from Intreo to deal with the matter. The Minister for Business, Enterprise and Innovation, Deputy Heather Humphreys, and I have spoken to IDA Ireland to look at other job opportunities and any need to upskill. We hope IDA Ireland will continue to engage with HCL to look at potential alternatives for investment and growth for these people who, unfortunately, find themselves in this position.
11:35 am
Maureen O'Sullivan (Dublin Central, Independent)
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These workers are at the mercy of two multinational companies. One is HCL and the other is Eir, in which a consortium led by a French billionaire has attempted to buy a majority stake. The low-paid workers are caught by all the negotiating that is taking place. It is all very well getting redundancy but that does not compensate for a regular weekly income. We are not talking about well-paid jobs but the jobs in question are a lifeline for the people who have them. The Minister mentioned alternatives. What activity is the Department engaged in to find alternative jobs? The results of a ballot will be announced today but I understand it included the workers in Cork and Limerick, who are happy with what is happening. Their votes may outnumber the votes of the workers in Dublin who are most affected.
Pat Breen (Clare, Fine Gael)
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As the Deputy will understand, companies make decisions for strategic reasons and it is not for us to tell them what to do, or even to advise them. We are aware of the difficulties in which people find themselves but negotiations are continuing between the trade union and HCL on redundancy and transfer arrangements. IDA Ireland has performed very strongly over the past 12 months and I hope there will be opportunities in other companies or areas for the workers affected, or that HCL can deal with the matter in other ways. The Minister, Deputy Humphreys, and I will work very closely with IDA Ireland on this.
Deputy Maureen O'Sullivan represents her constituency and is very aware of what happens locally. Nobody wants a community to be affected by unemployment. We will work with IDA Ireland and the Minister for Employment Affairs and Social Protection to find a satisfactory solution. HCL has made a strategic decision and it is important that it continues to have a presence in the country.