Dáil debates

Thursday, 22 June 2023

Saincheisteanna Tráthúla - Topical Issue Debate

Job Losses

3:35 pm

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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As the Minister of State, Deputy Richmond, who is present, is aware, Iceland workers arrived at work yesterday morning to find the stores shuttered without any explanation from the employer. A woman with seven years of service turned up for work but was locked out. This happened after months of chaotic working conditions and uncertainty. The air conditioning had been turned off, leading to unbearable conditions, with workers operating in sweltering conditions of more than 35°C. Workers in Coolock, in my constituency, had to engage in a sit-in just to get basic assurances about having their rights met. What action is the Government taking to support the Iceland workers and to ensure they get everything to which they are entitled? What action is being taken to ensure these kinds of wild west practices do not spread and are not pursued by other employers? From his engagement with Iceland, is the Minister of State aware of any further planned store closures in the coming days and weeks? Did he know about the food safety issues when he met Iceland representatives on Tuesday, 13 June?

Photo of Joan CollinsJoan Collins (Dublin South Central, Independents 4 Change)
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Since the retailer Iceland in February sold its 27 stores to Project Point Technologies, a company directed by Naeem Maniar and with an address at 5 Old Dublin Road, Stillorgan, County Dublin, the workers in Iceland have experienced wage theft and deplorable conditions. As Deputy Cian O'Callaghan stated, the temperature in some stores was very high. The matter was raised in the Chamber a number of times, including by Deputies O'Reilly and Bríd Smith and possibly by Deputy O'Callaghan. I raised it two weeks ago during questions on policy or legislation. The Government was aware of the issue. The Minister of State was supposed to have a meeting with the company. Did that meeting happen? How long has he been aware that the situation in the store could come to this point? On 19 May, workers in Coolock downed tools and took strike action to raise the issue. That store is now among those that have been closed. There is a question mark over why that is happening. Metron, the company that was also represented by Iceland before Iceland England took over, is now the one that is insolvent and in debt for €37 million. I want to know more about that background.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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Since the company Iceland was taken over by new management in February, there have been significant and sustained allegations of poor management, lack of communication and, in some instances, intimidation of workers. Some stores are now closed. Workers in other stores want to know if the Minister of State knows whether they will be in work tomorrow, next week or the week after that. We need to support these workers. The Minister of State needs to do all he can to protect these jobs. In February, it was reported that the new company operating Iceland was Project Point Technologies.

The name of the person behind that company is Naeem Maniar. That person perviously owned Iceland's Irish franchise until an examiner was appointed by the High Court in 2015. Within five months of the person taking back control of Iceland, the store is in examinership again. Confusion arises because a company called Metron Stores Limited has being responding to queries on behalf of the Iceland Irish franchise and is now purported to be the operator. Who is really behind the company? If the Minister of State knows, I ask him to share that information with us. Furthermore, the person appointed to deal with the current interim examinership proceedings is the same individual who dealt with Iceland's 2015 examinership. Just last month, a judge stated that he was sceptical of a petition being brought by this individual seeking an examinership bid for two Russian-owned firms. Indeed, the UK company, Iceland Foods, says it was surprised to learn that Iceland Ireland had gone into examinership. Iceland Foods would have some knowledge of these matters.

On my behalf and that of the workers, who want to know what the position is, I would be grateful if the Minister of State could share what information he has, give any comfort he can and, more importantly, tell us what is being done to save the jobs and ensure the future of this company is secure.

3:45 pm

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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I thank all three Deputies for submitting this timely matter. I underline from the get-go to those Deputies who have spoken outside this Chamber and repeatedly in it on this issue that I very much hope we can work as collectively as possible. First and foremost, I am concerned about the Iceland workers who are facing into this serious period of instability. I share their concerns and fears. I hope we can work together as best as possible to allay those concerns and fears and, indeed, to save jobs, where possible. The Deputies will appreciate that this is a live legal issue. As a result, I am slightly limited in what I can say. I will answer the questions in as fulsome a way as possible over the next three and a half minutes and give a little more background, if that is agreeable. We can then deal with anything else it is possible to comment on by means of replies to supplementary questions.

I am aware from media reports that an interim examiner has been appointed by the High Court to Metron Stores, which operates the Iceland stores in Ireland. Examinership is the main corporate recovery process for companies in Ireland. The court-supervised process is available to insolvent companies that have a reasonable prospect of survival. An examiner’s primary duty is to rescue a company. Their role in the process is to assess a company’s viability, attempt to secure investment, and formulate proposals for restructuring while a company continues to trade during a protection period. This period of up to 100 days provides some breathing space. An examinership is a court-supervised process. It is important, therefore, not to prejudge the outcome. It would be inappropriate for me to comment on this specific examinership case. I hope that is appreciated by the Deputies.

I am also aware of reports that employees of Iceland Ireland have experienced problems in getting their correct and full pay in recent weeks and that issues have been raised regarding the working conditions in certain stores. These issues have been raised by Deputies O'Reilly, Bríd Smith, Joan Collins and Cian O'Callaghan in the House in the past month. However, I want to emphasise that Ireland has a robust suite of employment rights legislation in place to protect and support workers, including in relation to the payment of wages, minimum notice and consultation where collective redundancies are contemplated by an employer. I expect, as does the Government, all employers to comply with their obligations in this regard. Where employees believe their employment rights have been breached, they have the right to refer complaints to the Workplace Relations Commission, WRC, for an adjudication and possible redress. The WRC is independent in the performance of its functions and l cannot comment on matters which may have been referred to it as this point.

One the specific questions posed by Deputy Cian O'Callaghan related to closures, when I met with Iceland executives, that matter was not raised. In addition, issues relating to food safety had not arisen at that stage. They were raised subsequent to the meeting.

Deputy Joan Collins asked if we raised concerns. As I stated, during that meeting I repeated the issues that had been raised in the Dáil by her, Deputies Cian O'Callaghan, O'Reilly and Bríd Smith and others. I underlined the Government's expectation that all employers should meet their legal and statutory requirements as per the law of the land.

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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I thank the Minister of State for the response. I have three specific questions. What is the Minister of State doing to save the jobs of the Iceland workers? What is he doing to ensure that these workers get the pay they are owed? It is simply not acceptable for workers to be treated in this fashion. Has he received any assurances regarding the stores that have not been closed? Has he sought any assurances in that regard, and that the jobs involved will be retained and those stores kept open? Does the Minister of State have any information on these matters?

Photo of Joan CollinsJoan Collins (Dublin South Central, Independents 4 Change)
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It was pointed out to me that when the Food and Safety Authority withdrew all imported frozen food from the shelves of Iceland, there were health and safety inspectors literally crawling all over the place the following day. When we raised the issue of wage theft, we did not get inspectors from the Labour Courts in those stores to see what was going on. This just shows what kind of response there has been in respect of the workers. Project Point Technologies shares its address with many of Maniar's other companies. That businessman directs at least 18 of these companies. Ten are named as derivatives of Centz Retail Holdings Limited, which trades as Homesavers. Maniar is also the general director of this retail group. After Maniar's takeover of Iceland's Irish stores, a man called Mr. Priestley sent an email to all the workers saying he was the manager. Iceland Ireland changed its name to Metron Stores Limited. The company's previous directors had resigned and a Ms McCartney was appointed in their place. Ms McCartney, Metron's company secretary, is now Ice Cosec Service Limited, a vehicle that serves as secretary for the Maniar companies. There is something going on in the background here that we have not put our finger on yet.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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I have written to the Corporate Enforcement Authority to ask that it investigate if there are any potential breaches of company law in this case. Serious questions are arising as to what fitness and probity checks were carried out in respect of the directors. Who is really behind some of these companies? There are names, there are new companies, there is another company, there is Metron, and there is this guy Maniar. Then there are the pseudonyms and the other names people are using. It all comes back to the same company. It all comes back to Iceland, the parent company of which is shocked that it is now in examinership. This is not where it thought it would end up. Given the current situation at the food retailer, the treatment of the workers and the opaque nature of the new ownership, I encourage the Minister of State to also contact the Corporate Enforcement Authority. I will ask the following very specific questions. Is a follow-up meeting with Iceland planned? If so, when will it take place? Rather than waiting for a meeting, will the Minister of State, by means of the good old tradition of a phone call, seek assurances from the company regarding the future of the workers and the stores?

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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I thank the Deputies for both their supplementary questions and their initial questions. Again, I will answer them to the best of my ability. I do so cognisant of the relatively tight framework in which I need to operate.

On the issue of saving jobs, if a company enters examinership, there is the 100-day period to which I referred to look at restructuring and to make sure jobs can be saved. The Government is quite clear that while it is not involved in that process, it stands ready to assist in any way as per the functions of the State and the power of the agencies available.

On Deputy Cian O'Callaghan's question on pay that is owed, any recourse in that regard would be through the WRC. The Government will ensure that the resources are there for the WRC. It also stands ready to act on any recommendation.

In terms of Labour Court inspections, I acknowledge the point made by Deputy Joan Collins. We need to increase the resources available to allow for an increased level of inspections. This is something that has come up a lot in other areas, but I will bring that back, where it is appropriate for me to do so, in order to underline it as per the comments the Deputy made previously.

Both Deputies Cian O'Callaghan and O'Reilly referred to assurances and potential follow-up meetings. At this stage, I do not think it would be appropriate for me to seek a follow-up meeting with the owners because other processes, such as examinership and possible WRC referrals, have been initiated. If and when it is appropriate, I will absolutely follow up on this, be it by means of an old-fashioned phone call, a set-piece meeting or a letter.

One thing I want to highlight to the Deputies and, indeed, others such as Deputy Bríd Smith who have raised this matter, is that I very much want to keep an open line of communication between the Government and the Opposition. We all have the collective shared intentions in this regard. Obviously, in doing that we have to be cognisant of the restrictions that apply.

I acknowledge Deputy O'Reilly's comments in respect of the Corporate Enforcement Authority. Hopefully, we can keep this an ongoing conversation here in the Chamber or outside, and keep the well-being and the future of Iceland workers front and centre over the coming weeks and months.