Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 21 May 2003

Vol. 567 No. 2

Adjournment Debate. - Job Losses.

A Cheann Comhairle, I am grateful to you for selecting this item on the Adjournment tonight. It concerns the closure of the manufacturing facility at one of the oldest main employers in my constituency in Tallaght. Unfortunately, the announcement by Gallaher (Dublin) Limited that it proposes to shed 121 jobs in Tallaght and 130 jobs in Northern Ireland is very bad news for the affected workers and their families. The news comes as a bolt from the blue, and I say that as someone who was aware for some years of the spare capacity at the Ballymena plant.

The Tallaght manufacturing facility has survived previous reviews partly because of the excellent track record and productivity at the plant and partly because the management in Tallaght were always able to persuade the corporate company to retain the facility in Dublin. It is a severe blow to the local economy but in particular to the families of the workers directly affected that the battle to retain production at Tallaght has now been lost.

Gallaher, Ireland, has provided good employment in Tallaght. The jobs now under threat were good jobs. The workers affected were loyal and with an excellent track record both in the industrial relations sense and in terms of productivity. I understand that the average service at the company is approximately 23 years with many employees having served for longer periods. It is part of a disturbing trend that sound, relatively decently paid manufacturing jobs such as this are being lost, not only in Tallaght but around the country, which up to recently has been cloaked by the economic growth which we enjoyed over the past decade.

I presume the Minister for Enterprise, Trade and Employment, Deputy Harney, will intervene to assess whether the company can be caused to change its mind in terms of retaining this facility in Tallaght. If the outcome of that is that no such review is feasible, there is an imperative as far as the Government is concerned to ensure that every professional assistance is given to the workers in terms of their rights and entitlements and, more importantly, in terms of assisting them to source new employment.

Not many Members in the House will know that this plant is directly across the road from the former Packard Electric plant where in 1995-96 workers lost their jobs in a very acrimonious closure – I still have the scars on my back to prove it. The management at Gallaher's was very helpful with the effective rescue plan which was put in place at that time. I hope the Minister will be able to tell the House tonight that a similar rescue plan will be put in place here and that a task force will be established with a view to sourcing jobs for those who, unfortunately, after a lifetime of service, are to lose good jobs.

I have no doubt that the company will ensure that decency and best practice will be observed with regard to redundancy and severance pay.

It is important to cross party lines to raise this matter. It was a major shock when the news was heard yesterday, as Deputy Rabbitte has said. Though one hears much about progress in Tallaght – the area is the third largest population centre in the country and has a very young population – it still has an unemployment problem despite progress over the past 14 years. A total of 3,386 people are unemployed and anybody living in Tallaght will say that we have a persistent level of unemployment, certainly in some areas. As has already been said by my colleague, Deputy Rabbitte, we have suffered a number of job losses over the years, principally Packard, Jacobs and other companies. We need to correct the image that might have been created because as I often say in the House, Tallaght is a positive place in which to live and work. The contribution made by many organisations and institutions, including the institute of technology and the various educational bodies, is something that should be applauded because following Tallaght's black day yesterday, it is important that we look to them for respite.

I want to record that over the past 40 years, the Gallaher group has been a loyal supporter of the community in Tallaght. It implemented a huge number of initiatives. I was a founder member of Get Tallaght Working, and Tom Clarke, one of the executives of the company, was deeply involved in that organisation. The group provided a lot of sponsorship and the workers will say it was a great employer. It is important to say that, particularly when I have to say also that there is some disappointment – SIPTU has made this point – that more formal notice was not given to the workers.

Our response has to be positive. We have to look for replacement jobs. The Tánaiste must respond in a very positive way by appointing an appropriate task force, which would be important. She also needs to consider a change of policy in the way the Government attracts jobs into the country. I have nothing against the west or any other part of the country but we must understand that communities like Tallaght and the general Dublin area are now being challenged, and job creation initiatives have to be implemented in that regard.

To be parochial, as a matter of urgency the Tánaiste must meet the workers and the unions to discuss their problems and concerns. I ask the Tánaiste, through the Minister of State, to arrange as a matter of urgency for the international management of the Gallaher group to meet the workers and their representatives. That is very important.

A number of debates took place this week about CE, social inclusion and other initiatives. In that context, there are some suggestions the Tánaiste should consider as far as this crisis in Tallaght is concerned. For example, a special jobs club for Tallaght to provide training for the 121 people losing their jobs should be created. I am aware that the Tallaght centre for the unemployed, PARTAS and the Tallaght local employment service could develop a model in that regard. A temporary freeze on all the cuts in respect of CE and JI schemes in Tallaght should now be implemented as a direct and positive response to what I have described as a crisis.

If the closure of the company goes ahead, the State should acquire the Gallaher premises for conversion to an enterprise incubation centre and to devise a joint venture method of developing and operating it with significant private sector participation, perhaps introducing a package of relevant initiatives by way of tax, grants, loans or guarantees which would make private investment realistic. The South Dublin Chamber of Commerce would want to be active in that regard, as I am sure it will be. It would be a pilot scheme for future policy development and I am aware that the South Dublin County Development Board has already called for such initiatives. Such a centre would also accommodate community projects in addition to its primary enterprise focus.

In the short-term, the existing mobile unit, Tops, which is run by the Tallaght ICTU centre for the unemployed and funded by FÁS, should provide an on-site information and advice centre for Gallaher's staff, in conjunction with other services such as PARTAS and the local employment services already mentioned. Even this will be impossible if FÁS withdraws its funding for the mobile unit which, unfortunately, has not yet had a contract for 2003 but only a temporary extension until Monday, 30 June. This is a challenging time for the people of Tallaght and we should show solidarity with the community.

I sincerely thank Deputy Rabbitte and Deputy O'Connor for raising this very important matter on the Adjournment. The first I heard about this issue was when Deputy O'Connor raised it yesterday at our weekly parliamentary party meeting.

The company in question, the Gallaher group, advised the Tánaiste yesterday, 20 May 2003, that following an extensive review it was announcing plans for the restructuring of its European operations.

As a result of this review, it plans to cease all manufacturing in its Dublin factory. The company is also planning to reduce jobs in other European countries. Overall, approximately 430 jobs could be affected.

Here in Ireland, employee numbers are being reduced from 226 to 105. The company will retain 105 non-manufacturing jobs in sales, distribution and warehousing. The company expects that the restructuring of its European operations will help to ensure its success into the future.

The Tánaiste has been advised by the company that there will be full consultation with its employees in relation to the implementation of the restructuring plans. Arrangements were made by Enterprise Ireland and FÁS to contact the company immediately following the announcement. South Dublin County Enterprise Board has also indicated that it would be prepared to assist in whatever way possible.

The Tánaiste will ensure that the full services of all the industrial development agencies are made available to assist in whatever way they can. Enterprise Ireland has offered to assist the workforce to identify high potential start-up projects and other enterprise opportunities.

Should the company request the assistance of FÁS, it can assist through the provision of intensiveinterviews, individually or in groups, with the affected workers. These interviews would outline the range of supports and services available; the preparation of a skills analysis report by FÁS based on identified workers' needs and local opportunities; referral by FÁS of redundant workers to jobs and training courses where necessary; the establishment by FÁS of special or customised training courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market.

As regards employment opportunities generally in the area, IDA Ireland, which has statutory responsibility for attracting foreign direct investment, continues to work with companies in Tallaght to secure further projects to benefit the area. The development of the Digital Park at City West and the four data centres located at the park – I pay tribute to the local politicians for the way they worked together to ensure this park was developed – are serving the Internet needs of business over a wide area. Tallaght is well placed to attract additional companies in the technology/e-business sector. A number of prominent companies in the electronics, internationally traded services and software sectors such as AOL, GE Interlogix, UPS and SAP have already established operations in both Tallaght and the City West areas.

In recent months, one of the world's most prominent Internet companies, Google, has decided to locate in the area. In addition, Takeda Chemical Industries, the Japanese pharmaceuticals company, has begun construction of a new plant at Grangecastle, Clondalkin, to employ more than 60 people when fully operational. Also in Grangecastle, Wyeth Biopharma currently employs 500 highly skilled people in its new biotechnology facility and this is set to increase to 1,300 when the plant reaches full capacity.

Enterprise Ireland, the agency with responsibility for indigenous industry development, continues to foster an enterprise culture in the Tallaght-south County Dublin area through its close involvement with local partners. It is working closely with 316 grant assisted projects in the south County Dublin area in helping them to increase their competitiveness and exports. During 2002 alone, Enterprise Ireland provided financial support to 61 projects in south County Dublin at a cost of €2.67 million. The agency also works closely with the institute of technology in Tallaght and has approved funding of €2.54 million towards a new campus innovation centre there. It is expected that work will begin on this project within the next few months. Together with South Dublin County Council, Enterprise Ireland is assisting in the tackling of local unemployment and, in this context, has provided grant assistance to the four community enterprise centres in Tallaght.

At the micro-enterprise level, the South Dublin County Enterprise Board has, since its inception, supported projects in the Tallaght area with grants amounting to €2.5 million. It has assisted in the creation of 560 jobs in the area and provided a comprehensive range of supports and training. The county enterprise board will continue to assist other groups, including the Tallaght community group PARTAS, in its enterprise training programmes for the unemployed.

Overall the prospects for Tallaght are very good and with the completion of the Luas project in 2004, it is set to become a key area in the development of greater Dublin despite the job losses announced yesterday by the Gallaher group.

I pay tribute again to the two Deputies who put forward a number of proposals, which I will transmit to the Minister. I acknowledge the contribution made by the Gallaher management and workers over the years. I had reason to deal with some of the management in the past and I knew them to be outstanding people. I am confident that through negotiation, discussions and, I hope, political consensus, it will be possible, in co-operation with the company, to ensure that facilities and opportunities can be provided and utilised to the maximum benefit of the unfortunate workers who will lose their jobs. We are confident that with the support of the State agencies and political leaders on the ground and under the leadership of the Minister, Deputy Harney, we will be able to address the situation as soon as possible.

Top
Share