HP Inc. Leixlip job losses
Deputy Martin raised the closure threat to 500 HP Inc. jobs in Leixlip and its impact on workers, families and the local economy. The Taoiseach said IDA Ireland had been engaging intensively with the company and clarified the Leixlip site’s position.
All of us in this House will be very saddened at the devastating news that has been visited upon 500 workers at HP Inc. in Leixlip, County Kildare. The loss of such a large number of jobs will obviously, in the first instance, have an extraordinary and devastating impact on the workers and their families. It will have a wider impact on the community and economy of the hinterland around north Kildare. It is clear that the closure of the plant was in the company's plans since last October when it announced that it would cut between 3,000 and 4,000 jobs globally. The production of personal computers, cartridges and printers is under pressure as a business.
There is a need for the Government to come to the assistance of the workers and to ensure that there is a comprehensive plan, involving the Department of Social Protection and Enterprise Ireland, in terms of trying to help some workers to set up new businesses, which happened in the past in similar situations. Solas must also be involved in the context of providing return to work and training programmes to equip people for other job opportunities. I ask the Taoiseach to outline what the Minister has in mind regarding a comprehensive response so that the needs of the workers will be attended to immediately and in an effective way.
It was very unfair and distressing that the workers heard this news through the national media yesterday. I would like assurances from the Taoiseach that no member of the Government or a governmental representative briefed the media in advance of the workers getting a detailed presentation from the company. What happened was unusual because in situations of this nature, companies do not tend to leak such news. They generally meet their workforce in advance to tell them the actual details. I ask the Taoiseach to provide some reassurances on that front. More fundamentally, since the global announcement last October, what steps did the Minister for Jobs, Enterprise and Innovation take in terms of meeting Hewlett Packard executives? Did the Minister meet them since last October? How many meetings took place?
Is the Minister or the Government in a position to indicate to the House that future plans at Hewlett Packard are ones that are in the growth areas such as 3D printing etc., and are there opportunities for Ireland from this company into the future? Are the existing jobs in Kildare secure with regard to Hewlett Packard Enterprise and has the Government received guarantees on that? Would the Minister be willing to come to the House to answer questions today on the closure and on such a large loss of jobs?
Comment on this
I thank Deputy Martin for raising this important matter. Like him, all our concerns and priorities at the moment are with the workers and their families in HP Inc. Thank God this is not a common occurrence these days where the line of investment into the country continues to remain very strong. I thank the workers for the efforts they have put in over the years since Hewlett Packard came to Leixlip in 1995.
I can confirm to the Deputy that IDA Ireland has been involved intensely with Hewlett Packard over the last period and the chief executive travelled out specifically to southern California to talk to the HR personnel at Hewlett Packard some time ago. The Minister for Jobs, Enterprise and Innovation spoke to the principals in Hewlett Packard last week but, unfortunately, the company was not turning from the decision it had made. The efforts made over the period by IDA Ireland and the Minister were, in the end, in vain because the company decided that the particular product in HP Inc. was to be discontinued. The Minister will be answering questions here later today.
I can confirm to Deputy Martin that Department of Social Protection staff will involve themselves directly with the workforce in the plant but they need to be invited in there. It would mean that workers in the HP Inc. plant would not have to go through the Intreo offices and could deal directly with Department of Social Protection staff who will go to the plant to engage with the workers and advise them of their benefits and rights. I understand that the company intends that there would be an enhanced severance package to employees as well as information about outplacement and support thereafter.
I have no knowledge of a briefing from any source in Government on this matter. These days, however, it is very hard to know where any information comes from. Privacy does not seem to be considered by everybody anymore. In any event, it is unfortunate that workers heard about this on the national airwaves before they had the opportunity to be informed by the management of the workforce.
This is a brilliant location, it is a fabulous building and it has multiple uses. It could be sold as a going concern. IDA Ireland and the Minister's efforts will now be to provide an alternative in what is a superb location. I can confirm to the Deputy that the line of investment enquiries into the country is very strong. That does not just help the workforce today. One hopes that with the efforts of IDA Ireland and the Ministers for Jobs, Enterprise and Innovation and Social Protection, we will see to it that in so far as the State can offer it, support will be given and that a replacement will be found in order that people can be retrained in the shortest possible time for this particular location.
Comment on this
I thank the Taoiseach for his reply but he might clarify further. This is quite a good company. Hewlett Packard employed quite a significant number of people over a long period. That has to be put on the record. The Taoiseach did seem to indicate, however, that the Minister spoke to the company last week. Will the Taoiseach outline when the Minister met the company and how many times she has met the company since last October? There was an announcement last October that the company was going to shed 3,000 to 4,000 jobs globally in a rationalisation programme when it divided the two companies into Hewlett Packard Enterprise and HP Inc.
Clearly, there were fears for Leixlip as a result of that announcement.
Did the Minister for Jobs, Enterprise and Innovation travel to Palo Alto to meet Hewlett Packard executives between October and last week? If so, will the Taoiseach outline the content of those discussions? Invariably, when one sector of business is under pressure, other opportunities open up for the future. Were any commitments given by HP in this regard? Is the Government, through IDA Ireland, pursuing any particular new areas of investment that could replenish the jobs that have been lost at the HP Inc. plant in Leixlip? It is important we have clarification regarding the efforts the Minister has made in terms of meeting with executives since October to source new activity for the Leixlip plant.
Comment on this
It is important to say that this has nothing to do with Hewlett Packard Enterprise, which is a separate arm of the HP operation. It has been a totally separate company since November 2015 and it employs more than 2,100 people at its facilities in Cork, Galway and Leixlip. I have visited those plants on a number of occasions. HP Inc. will retain a small sales entity and support presence in Leixlip. It is only some five weeks since it became apparent that HP Inc. was going to shed workers at the Leixlip plant. The chief executive of IDA Ireland travelled to Palo Alto specifically to discuss the decision with senior management. The Minister did not travel to California but did speak to senior management by telephone in recent days. She will answer questions in that regard in the House later. IDA Ireland was intensely involved in identifying the many options that may be considered for Leixlip. It is a fabulous location and a brilliant plant. Unfortunately, the technology and product have fallen out of date with changes that have occurred globally. The Minister will answer questions later and will give the Deputy full information on all of this. IDA Ireland is actively considering alternative options.