Job Losses at Gleesons Borrisoleigh raised at Leaders Questions to Taoiseach in Dáil

At Leaders Questions to Taoiseach in Dáil yesterday Healy accuses Government of washing it’s hands of the job losses at Gleesons

Statement by Seamus Healy TD  

Dail Record

Deputy Seamus Healy:   Yesterday, we learned of the closure of the C&C plant, formerly Gleeson’s, at Borrisoleigh, County Tipperary, with the loss of 140 jobs. I can only describe as shameful the fact that the workers and their families learned of this closure in the pages of The Irish Times and on local radio. It is a disgraceful way to treat workers who have been loyal to the company for many years, and up to 30 years in many cases. The closure is a hammer blow to the workers, their families and the town of Borrisoleigh, which has depended on the business for generations.

When C&C acquired Bulmers in Clonmel and Gleeson’s in Borrisoleigh, we were told there was a bright future for the company and that there were expansion plans. Of course, the opposite happened. The company shredded jobs at both locations and slashed wages and the terms and conditions of employment. We now hear about the closure of Gleeson’s, with 140 job losses. That closure is completely unnecessary and is being effected solely for the purpose of making more profit. In other words, it is a case of greed. The company C&C is very profitable. Its last set of accounts, for the half year to 30 September 2015, show a profit of €62.5 million. It is now very obvious to everybody that the company acquired Gleeson’s with the clear intention of closing it by stealth. There were 40 job losses and redundancies previously. The company has, and continues to have, support from Enterprise Ireland. The Government was aware of circumstances in C&C in Borrisoleigh. In November 2015, which is less than three months ago, the Dáil was told the Minister had directed his officials to enter into discussions with C&C. What action did the Government take to prevent the closure? Does the Taoiseach condone the conduct of the company? Will he tell the company that its conduct is absolutely unacceptable? Does he agree that it is socially irresponsible for a company to take a decision that has the effect of devastating a town? As I stated, the company is supported significantly by Enterprise Ireland. Will the Taoiseach now intervene, even at this late stage, to save these jobs?

The Taoiseach:   The Deputies from Tipperary raised this matter with the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, earlier today as a topical issue with the authorisation of the Ceann Comhairle. The Minister answered questions on this for the Deputies concerned.

It is always tough when a company decides to make a decision that involves taking jobs from a location or job losses. In this case, C&C has made the decision that the operations in Shepton Mallet and Borrisoleigh will be transferred to Clonmel, with an added investment of €10 million. This will include Bulmers, Magners, Tipperary Water and various niche beers and ciders. There is to be an expansion of the facility in Clonmel, bringing it to 75% capacity. That is tough on the workers in Borrisoleigh, which I understand. Obviously, if some of the workers in Borrisoleigh decide to work in Clonmel, they will have to travel a distance.

The Minister spoke to senior management at the company in recent days and urged it to reconsider its decision. However, it has made its decision and, unfortunately, it was not possible to hold the jobs in Borrisoleigh.

Enterprise Ireland will obviously continue to engage with the company on a range of issues associated with the marketing of the facility in Borrisoleigh. It is obviously not possible, in such a short period, to have a replacement facility put in place. While it is difficult for the workers involved directly, the closure comes at a time when 1,000 jobs have been created per week throughout the country. While it is no consolation today, I hope the marketing of the facility in Borrisoleigh will attract some other company such that it will set up there and provide gainful employment for the people in the area.

I note the company’s statement that it will continue to provide support and training for the workers who are affected. Clearly, all the supports from the State will be available also. The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, will continue to remain interested in this matter to determine what can be done following the company’s announcement. I thank Deputy Healy for raising the matter again.

Deputy Seamus Healy:   This closure comes on the back of job losses in Intellicom, Grant’s, Supervalu in Tipperary town, the Fairgreen supermarket in Carrick-on-Suir and Supervalu in Clonmel. The Government has forgotten Tipperary. Like the Minister earlier this afternoon, the Taoiseach has washed his hands of the situation in Borrisoleigh.

The number of unemployed in Tipperary, 13,000, is significantly higher than the national average. The rate is probably 13%. We have lost a net 321 IDA Ireland jobs in the past three years. Disposable income in Tipperary is 5% lower than the national average. The Government has deliberately excluded every town in Tipperary from IDA Ireland’s programme of building advance factories and offices.

I ask the Taoiseach again whether he will intervene to save the jobs. This is a totally unnecessary closure. Will he reverse the decision, which is a deliberate snub to Tipperary and deliberate discrimination against towns in the county? Every town in Tipperary has been excluded from IDA Ireland’s proposal to build advance factories and advance offices. The Government took this decision. Will it reverse it now and ensure Borrisoleigh gets an advance factory?

The Taoiseach:   The Deputy is now asking me a different question.

Deputy Seamus Healy:   It is the same question.

The Taoiseach:   Obviously, the Government has set out a proposal to have the areas outside the main urban areas become more attractive for investment and support, through Enterprise Ireland’s local enterprise offices, to deal with small and medium enterprises exporting from the country.

With respect, circumstances would be different if the company were to close down completely, with the loss of all the investment and jobs. I recall many occasions in the west when some of the bigger firms closed, with the loss of 1,000 jobs, thus causing economic devastation, yet it is peculiar how many small new enterprises can grow from this.

I understand C&C has made its decision and will not reverse it. It will expand in Clonmel, with an additional investment of €10 million and the creation of 80 additional jobs. The first option will be given to workers from Borrisoleigh who might wish to travel there. Obviously, they will have the option of travelling together in pooled groups, if that is their choice.

While news such as this is very tough on workers, the investment is not lost to Tipperary. As I said, the opportunity exists in so many other places where, for whatever reason, companies either consolidate or move. Thus, an opportunity could present itself to another company to set up in Borrisoleigh, hopefully to provide gainful employment.

I will refer the request in respect of IDA Ireland plants to the Minister for Jobs, Enterprise and Innovation. IDA Ireland has its own programme, and it has set out for the coming years a series of planned investments in greenfield plants, which I am sure will be very attractive to companies from all over Europe and beyond. While it is a tough day for the workers in Borrisoleigh, those who wish to travel to Clonmel will have the first option on the 80 positions that will become available there. I hope the entity can be marketed as a suitable location for other employment.