Dáil debates
Thursday, 20 February 2025
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Employment Rights
2:10 am
Rose Conway-Walsh (Mayo, Sinn Fein)
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3. To ask the Minister for Enterprise, Trade and Employment if he has been made aware of potential job losses in the software sector; if he has asked the IDA to intervene; and if he will make a statement on the matter. [6594/25]
Rose Conway-Walsh (Mayo, Sinn Fein)
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We now know that 142 staff are to be laid off by the Irish branch of the global HR and payroll processing company, Workday. When was the Department notified of these job losses? What contact has the Department had with the company and the workers? What is being done for those workers? Has IDA Ireland been involved and how can these workers be helped to find alternative employment and supported? This morning I want to send solidarity from this House to those workers and their families.
Peter Burke (Longford-Westmeath, Fine Gael)
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While the technology sector, which includes software, has undergone a period of sustained growth for the past 20 years, recently it has seen some significant contraction. Where IDA Ireland's multinational clients in this sector have announced global job reductions, the reductions have typically been less than 10% of their total global workforce. Furthermore, in most cases, the job reductions implemented in Ireland have been lower in percentage terms than the globally announced figure. Typically in an economy with such low levels of unemployment, employment opportunities will arise, especially for the talented people employed by the software sector.
Nevertheless, where such job losses are announced for Ireland, our first and primary concern is for staff members and their families impacted by such decisions. The supports we can provide in conjunction with our enterprise development agencies and other Departments is at the forefront of our response. Moreover, the Protection of Employment Act makes it mandatory for employers proposing a collective redundancy to engage in an information and consultation process with employees' representatives for at least 30 days and to notify me, as Minister for enterprise, tourism and employment, of the proposed collective redundancy. Such an employer is prohibited from issuing any notice of redundancy during the information and consultation process with employees' representatives, and the employer cannot make employees redundant until at least 30 days after the Minister has been notified of the proposed collective redundancy. In any such redundancy scenario, the enterprise development agencies under my Department assist, where possible, those impacted to find alternative employment. This includes sharing the skills portfolios of impacted employees with companies that may be hiring, such as multinationals in IDA Ireland's client portfolio. Equally, working with IDA Ireland, our objective is to help to sustain and create further employment in the technology and software sector overall.
In relation to the software sector it is important to note that the commitment of technology companies to Ireland remains exceptionally strong. Last year Ireland secured investments from leading companies in the sector including Microsoft, IBM and Intercom.
On the Deputy's specific question, the Department was notified this week but I do not have the exact date in front of me.
Rose Conway-Walsh (Mayo, Sinn Fein)
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Last month we learned that Meta is to cut 5% of its staff globally and last year Intel and TikTok notified staff of impending job losses. As the Minister rightly said, there is a significant contraction and it is very important we have a plan in place as this is likely to happen again in the future. Last night we talked with the Minister of State, Deputy Smyth, about AI and the implications for the Irish economy. While there are many positive applications of AI and it will continue to be growth area, significant layoffs can also result from AI. I want to see an action plan in that context. I also want to see, as we discussed last night, the building up of expertise within Government. We need to be looking at the existing skill sets and what is necessary for Government to be able to tap into these. I would also like to see, after such job losses, a measuring of how long it takes individual workers to find alternative work so that we can stay ahead of the game.
Peter Burke (Longford-Westmeath, Fine Gael)
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While we have seen a recalibration in the tech sector post Covid, it is still very strong.
We have a very rich vein of talent. We have and are host to eight of the ten global leading tech companies in this State at this time. We provide so much talent and skills, with 8% ICT graduates in our economy. That is double the EU average. We are double per capitain STEM graduates, which provides a huge rich vein. We have, as part of our digitalisation strategy, a very clear policy regarding the tech sector, which was established in February 2022. We have the White Paper on enterprise, which sets out our plans and goals to achieve 90% digital intensity in basic SMEs by 2030, which are a very important cog in the wheel as well. Obviously we have our AI strategy, which we have updated as recently as last November, working very closely with the AI advisory group, chaired by Dr. Patricia Scanlon. We are also working to implement the AI Act, designating our competent authorities and getting our regulatory sandbox up and running. There is a huge amount of opportunity in this space and Ireland has the foundation to grasp that opportunity and we will not be found wanting for the resources to do so.
2:20 am
Rose Conway-Walsh (Mayo, Sinn Fein)
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I thank the Minister and I agree with a lot of what he said. Within these strategies, it is always in the implementation and how quickly the implementation can be done. There are opportunities there for self-employment as well. When people find themselves in a situation where they lose their jobs, we should be coming in there to support them. What I am finding in some areas is that when the brightest and best young people are coming up with ideas, whether it be the development of apps or whatever, and I spoke to a person last Saturday in Mayo about this, they are falling between the agencies, for example, Údarás na Gaeltachta, the LEOs and Enterprise Ireland. Perhaps the Minister would look at that area in order that none of these projects are falling between the stools because the people they are presenting to may not fully realise the potential of the things they are coming forward with. We need to nurture this talent, but we also need the start-ups and to ensure these businesses can scale up and stay in this country.
Peter Burke (Longford-Westmeath, Fine Gael)
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We have a huge demand for workers in those categories. That can be seen from how much the landscape has changed across our capital city and other regions throughout the country. That is why the IDA has specifically called out digitalisation and AI as one of the key growth drivers for its new five-year strategy, hoping to bring in €7 billion of research and development investment, growth of 15,000 jobs per annum, of which 54% will be in regional Ireland, aimed at getting 550 investments right into our regions. That is going to be critical to continuing the agility of our economy.
There is huge demand. As can be seen from our critical skills permits, we are trying to bring in workers through legal pathways to feed a growing and strong industry. While there was recalibration in certain companies, the growth is very significant, as can be seen from the announcements in AI. Some incredible companies that are part of that landscape are setting up their headquarters in Ireland, which we welcome. We have the most prized resource of any country - our people and skills - and we are ready to absorb that opportunity.