2026-06-16

137. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Tourism and Employment if he will provide an update on his engagement with a company (details supplied) regarding recent job losses and redundancies announced by the company; and if he will make a statement on the matter. [45929/26]

I am covering the questions for Deputy Conway-Walsh. I ask the Minister to provide an update on any engagement with Covalen regarding recent job losses and redundancies announced by the company and to make a statement about it.

The Minister, Deputy Peter Burke, is making his way back from Strasbourg and he should be joining us shortly. I will take some of the priority questions in his absence but he will be here later in Question Time. As the Deputy will be aware, on 27 April 2026 Covalen informed its employees of its intention to reduce its workforce. Covalen is a Dublin-based provider of customer experience, business process outsourcing and managed services, headquartered in Sandyford. The company provides services across customer support, operations and content moderation. Covalen forms part of the Cpl Group, an international talent solutions and outsourcing provider headquartered in Dublin, operating across multiple markets and sectors. The company operates within a global outsourcing model where activity levels are aligned to client demand. My understanding is that the company has been impacted by a shift in client demand, resulting in a reduction in the volume of services required and a requirement to adjust operations accordingly. My foremost concern, and that of the Government, is the potentially impacted employees and their families during this uncertain time. IDA Ireland has established internal processes for managing potential job loss situations with its client companies. This involves proactive engagement with site leadership of the company and its parent company to explore options to avoid or minimise any job losses. In respect of impacted employees, IDA is proactively engaging across its client base to identify potential redeployment opportunities where there is a skills match. IDA has also facilitated connections between interested companies and company representatives, and this work is ongoing. IDA has been engaging at a senior level with the company to ensure it is aware of the full range of IDA supports available at this time. IDA remains in contact with the company regarding recent developments.

I appreciate what the Minister of State has said about IDA but he will be aware that over 700 employees at the Meta contractor were told that they would lose their jobs which will be replaced by AI. They have written to the Minister requesting intervention. I want to know what engagement the Minister has had. What has the Department done to assist the impacted workers? As the Minister of State is probably aware, last week Covalen workers and the CWU gave a briefing in the audiovisual room outlining the situation facing the 700 employees. I thank Deputy Boyd Barrett for facilitating that. These workers explained how they were being asked to train AI systems to do their own jobs, effectively digging their own graves. These are mostly content reviewers, watching some of the most horrific content online so that we and our children do not get to see it. While at work, there are no psychological or mental health supports. Some have been hospitalised from the traumatising impact and what have they been given? They have been shown the door with the bare minimum redundancy package. That highlights the attitude of some of these tech companies. The employer is imposing a six-month cooling-off period which would prevent them taking up employment in similar roles. What are they supposed to do? Many of them are non-Irish nationals on critical skills visas with no family support network, which is all the more reason for the Government to step in.

As I said earlier, my first and overriding concern in this situation is for the workers affected and their families who are facing a very uncertain time. IDA has been very active and proactive in its engagements at senior level with this company. That is very much with the clear focus of exploring all options to minimise job losses and also support the business through this transition. At the same time, IDA Ireland is working intensively to support the impacted employees. As with any redundancies, the industrial relations mechanisms of the State step in. Inevitably, there is a process that both the Government and the company have to abide by. In these situations, we certainly do not stand back. We are eager to engage early. We are eager to engage and support workers directly. We want to work with them to secure alternative employment wherever possible.

These are vulnerable workers. Covalen had turnover of €722 million and a profit of €26.2 million and despite that is offering statutory redundancy, which is an absolute scandal. The parent company works on many other public sector accounts for the Government. An employer that treats employees like this really needs to be looked at when the public sector contracts are up for grabs. Some 20,000 jobs have been cut by the tech sector. This should be a wake-up call for Government. Government and the Department should be meeting them. These workers are not asking for any special treatment but they need the Government’s help to end this six-month cooling-off period, so that they can work again in the same sector, put money in their pockets with a fair redundancy scheme, reform the redundancy procedures to improve their terms and legislate for their right to join a union. It is absolutely scandalous in this day and age that unions are kept out of some of these tech companies. I ask the Minister to intervene on behalf of workers to ensure they are treated fairly and receive what is due to them.

I thank the Deputy for his question. It is essential that any redundancy process is co-ordinated fairly, transparently and in full compliance with the law. Ireland has a strong, robust legal framework in place to protect workers experiencing redundancy. That includes a 30-day consultation process in the case of collective redundancies. There are clear obligations required on Covalen in this regard to engage meaningfully with employee representatives. Indeed, any statutory redundancy entitlements and notice protections need to be enacted. That consultation is not just a tick-the-box exercise. It needs to be genuine, meaningful and focused on mitigating job losses wherever possible. That is where our focus is currently, along with raising concerns with regard to any issues that may arise. We will continue to work with the IDA and Covalen.