Dáil debates

Thursday, 24 October 2024

Ceisteanna Eile - Other Questions

Job Losses

10:35 am

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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57. To ask the Minister for Enterprise, Trade and Employment if he has met with persons (details supplied) who are soon to be made redundant by their company; and if he will make a statement on the matter. [43329/24]

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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I thank the Minister of State, Deputy Calleary, for taking this question. What actions have he and his Department taken with regard to the loss of jobs at Aer Lingus Cargo at Shannon Airport? I refer to the devastating announcement made to employees there on 7 August.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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We fully appreciate how difficult the announced closure of Aer Lingus Cargo is for the employees, their families and the wider community. Our thoughts are with them.

This is a commercial decision being made by Aer Lingus as a private company. We have no role in Aer Lingus’s commercial decisions and it would not be appropriate for any Minister to seek to intervene. However, Ireland has a robust and strong suite of employment rights legislation to protect and support employees in redundancy situations, including the obligation on the employer to pay a statutory lump sum payment to all eligible employees in situations of redundancy. To be eligible for a statutory redundancy payment, an employee must have at least two years’ continuous service with an employer and be in employment that is insurable under the social welfare Acts. An eligible employee is entitled to two weeks’ pay for every year of service, plus an additional week’s pay. Weekly pay for this purpose is subject to a ceiling of €600 per week.

The Government also provides a range of supports to anyone who is being made redundant. This includes assisting with income supports and appropriate training and development opportunities, and assistance through the Intreo service of the Department of Social Protection. Through our industrial relations mechanism, the Workplace Relations Commission and the Labour Court, we support parties where needed in efforts to resolve differences that arise in these circumstances.

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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The devastating news was announced to the Aer Lingus employees on 7 August last. Eighteen of them work in the cargo facility in Shannon. Despite what the Aer Lingus hierarchy will say, namely that cargo volumes in Shannon have been on a downward trajectory for some time, the reality is quite the opposite. There was growth of 23% between 2018 and 2023 and the facility handled 16,752 tonnes of cargo last year. It is a very important facility. It is strategically important as it is not just a matter of the 18 jobs. The announcement is devastating for the workers and their families but the matter goes beyond that in that there is a whole supply chain based around Shannon, the largest FDI region outside Dublin. Some 40% of all the factories and companies in the region are US based. The include Boston Scientific, which is just up the road in Galway. That company ships out many tonnes of high-value pallets from the cargo facility each day. I do not know whether enough has been done to help the workers. Aer Lingus has cast them aside. I fully understand it is no longer a State airline. Senator Martin Conway said on Clare FM on 12 August that the Minister, Deputy Peter Burke, would be meeting the workers. Has he met them? What interventions has the Department made?

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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As a Government, we have responded to many of the Deputy's campaigns and calls on Shannon Airport. The Minister of State at the Department of Transport, Deputy Lawless, announced just last week €4.2 million for Shannon and Cork airports, and €47 million is being invested in Shannon Airport alone. We are very much committed to it and it is a very important part of the enterprise network along the entire west coast. Cargo volume should be increasing but we cannot account for a private company. Aer Lingus has made a call on this, but I hope the skills of the workers and their commitment to excellence will be made available to other employers in the region. We can certainly bring to the attention of the regional task force that their skill set is available. We have a very successful enterprise task force in the mid-west region and it is working very hard to identify further opportunities to grow investment there, particularly using Shannon Airport as a key growth centre.

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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I am somewhat worried that many people may underestimate the scale of this. It is not just about the 18 jobs but also about the domino effect around Shannon. There is genuine fear that the closure will have a contagion effect. I would like to hear what supports the Government can put in place to stymie it. Eighteen jobs are directly affected but there is much more at stake. It is a question of the volume of cargo and the supply chain industry in the mid-west and western region, which we are very concerned about.

The two problems identified were a downward trajectory concerning the cargo being hauled in and out of the facility and the facility being outdated. The cargo trend is certainly not on a downward trajectory. I have already dealt with this. There has been growth of 23% over the past five years and all buildings can be remediated and improved. However, there have to be eyes on the situation. Did the Minister, Deputy Burke, meet employees following the intervention on 12 August? The Minister of State might confirm that.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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If there is a case to be made for investment in physical facilities, the Minister of State at the Department of Transport, Deputy Lawless, will be more than open to it. We want to see Shannon strengthened. We have identified a very exciting future in terms of Shannon Estuary being an Atlantic green digital corridor. This has enormous potential for Shannon Airport and the supply chain, which will need very good cargo operations.

The Minister, Deputy Burke, has had discussions with Senator Conway on the issue. With regard to the physical structure of the airport, to which the Deputy referred, we are more than willing to engage. We have shown this already through a €47 million commitment to Shannon since 2020. The Government has put its money where its mouth is in relation to Shannon. The Deputy has worked incredibly hard in this regard during his few years here. We will continue to invest and if there is a proposal for new cargo facilities, it will be examined very carefully.

Question No. 58 taken with Written Answers.

Question No. 60 taken with Written Answers.