Dáil Éireann Debate, Tuesday - 26 July 2022
22. Deputy Peadar Tóibín asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures that have been put in place to assist the workers facing redundancy in an organisation (details supplied) in Dundalk given his promise that Government agencies will help with job searches and information regarding welfare or other opportunities such as education, training and upskilling; and if he will make a statement on the matter. [39855/22]
View answerThe announcement earlier this year by National Pen that it is to seek redundancies at its Dundalk facility is deeply disappointing.
The Government, through IDA Ireland, did everything it could but the company has taken the decision to move certain operations to the Czech Republic. This is in part due to a significant decline in demand for its products. The company advised the IDA that this decision was necessary to secure the long-term future of the business and preserve the employment of the majority of workers at the Dundalk site.
Notwithstanding the business rationale behind the decision, news of staff redundancies is always disappointing and I understand the concern felt by those impacted by this announcement.
It is important to note that these redundancies will not take effect until January 2023, and all temporary contracts will be honoured until the end of December 2022. As the Deputy will be aware, the Government provides supports such as income supports and job-seeking through the Department of Employment and Social Protection’s local Intreo offices. These services will be available to the affected employees at the appropriate time. The company is prioritising engaging with their fulfilment staff on an ongoing basis and will continue to do so as redundancy dates approach. The company is also working to support teams through further education and training opportunities.
I am further advised that IDA’s North East regional management team liaised with the North East DEASP to inform them as to the timing, number and types of roles that were impacted so that Intreo, the DEASP’s employment services arm, could engage with National Pen to offer their support and assistance. I am informed that the DEASP separately met with National Pen’s HR team and the impacted employees to offer its support and information on their benefit rights. The DEASP continues to engage with the company.
The company previously advised that it would offer an attractive redundancy package and I am advised that following a 30-day consultation with designated employee representatives, a package of over $4 million in salary and benefits was agreed to. This includes:
- Annual pay increase as usual
- Opportunity to transfer to Pilsen
- Enhanced benefit package in addition to statutory entitlement
- Employer Pensions contributions for 6 months post redundancy date
- Death in Service coverage for 6 months post redundancy date
- Annual Award for Tenure: Agreed to pro-rata service award if applicable in year of leaving
- CV help and training
- Other ongoing outplacement support.
I am assured by the IDA that National Pen remains fully committed to Dundalk as its International Headquarters and a crucial site of operational importance. The company plans to further invest in their online operations in Ireland with the creation of 50 new technology and ecommerce positions in Ireland over the next five years in partnership with the IDA.
The Government’s commitment to regional growth in North East remains strong. The IDA recently announced land acquisitions in Killally, in Dundalk and Mell in Drogheda which form part of our ongoing plans to position Louth and the wider North-East region to compete for FDI investment. Kaseya, a global IT management and security software company, has today announced plans to create 250 new jobs over the next three years in Louth which I very much welcome.
