Bord na Móna job losses in Tipperary
Deputy Lowry raised Bord na Móna's decision affecting 122 workers in Tipperary and argued for a time extension and better redundancy terms. The Tánaiste acknowledged the impact, said engagement with unions had begun and no redundancies were planned this year, and said the Minister would consider the Deputy's suggestions and discuss redundancy issues further.
This House is convulsed by the proposed sacking of one individual, the Garda Commissioner, but I draw the Tánaiste's attention to the fact that a decision of Bord na Móna last week effectively sacked 122 workers in Tipperary. The decision of Bord na Móna's board of directors is having a major impact on the local community. We do not agree with the decision or the justification for it that has been put forward, but we have been told emphatically that the decision will not be changed and we must work with it.
It is in this spirit that, last Friday, we met the unions representing the workers at Littleton. As one would expect, it was a highly charged and, at times, emotional meeting. The five Tipperary Deputies attended the meeting and agreed to take a unified approach to the strategy to be employed. We requested a meeting with the Minister for Communications, Climate Action and Environment, Deputy Naughten, which was held yesterday. I thank him for being accessible and open and for showing a genuine concern for the plight of the workforce and community at Littleton.
During the meeting, we had a useful and constructive exchange of views on the actions required. We all came to the conclusion that there first needed to be a renegotiation of the redundancy package. Second, we requested an extension to the closure date of April 2018. Third, we asked that an alternative use for the remaining peat be examined. Fourth, we asked for a plan for the utilisation of the existing bog, plant and facilities.
A number of issues arise, one of which is the need to commence negotiations. I call on the management of Bord na Móna and the unions to enter into negotiations without preconditions on the understanding that the Minister and the board are not averse to the idea of holding discussions on redundancy packages and a time extension. I ask that the Government take responsibility in the matter, given that a cost would be involved in any time extension. That cost should be considered in the context of Bord na Móna's payment of a €10 million dividend to the State every year. It should be possible for the Minister for Public Expenditure and Reform to reduce that amount by the cost, or €3 million, which should be set aside to ease the burden on the workforce at Littleton.
Comment on this
I thank Deputy Lowry for raising this important issue. I recognise the difficulty, stress and challenge posed by the recent decision for everyone involved. Having received the review conclusions, the company has begun a process of engagement with the group of unions and employees. It has also confirmed that no redundancies are being contemplated in the current year. That is an important point.
I note the Deputy's comments about my colleague, the Minister, Deputy Naughten. The Deputy accepts that the Minister is monitoring the situation closely and is acutely conscious of the decision's impact on Bord na Móna's employees. The Minister has urged Bord na Móna to consider all opportunities for redeployment, a phased reduction in employment numbers and any other renewable technology opportunity that may arise in respect of Bord na Móna investments.
As part of Bord na Móna's general strategy to move towards sustainable businesses based on renewable sources, pilot trials for the production of a biomass briquette have been conducted in the past 12 months. This is a significant investment by Bord na Móna, which has confirmed its plan to begin large-scale production of the briquette. It will soon seek planning and other approvals in that regard. This will be a critical step in future-proofing the fuels business, as it offers the potential of sustainable and quality regional employment.
The Minister held a series of meetings with the Bord na Móna group of unions and staff representatives as well as Tipperary's Deputies. He will continue with those discussions. He has called for engagement and imagination by all sides on devising a range of solutions and different outcomes for employees. I do not doubt that he will take on board the particular points that Deputy Lowry has raised, but Bord na Móna is a major employer across the middle of the country and is exploring new opportunities for growth, particularly in renewable energy. I hope that this will help the company not just keep current levels of employment, but grow it in a part of the country where, although there have been some successes, attracting foreign direct investment has traditionally been challenging.
The Minister will bring a memo to the Government soon on establishing a new semi-State entity, BioEnergy Ireland, which will focus on the development of the biomass sector and exploit those skills currently available to Bord na Móna and Coillte.
Comment on this
Our first priority is to make the case for a time extension. A ready argument for this relates to the 260,000 tonnes of peat that are piled up at various points around the bog. The factory uses approximately 7,000 tonnes per week, which means that enough peat is available to keep the plant running for another 37 weeks. That should be possible, as should a third harvest.
The redundancy package for employees, especially those who are long serving and wish to exit the company, is not strong enough and needs to be renegotiated. One employee has 40 years of service and is 63 years of age. He would receive €31,200 in redundancy. This is a person who has given a lifetime of service, commitment and dedication to Bord na Móna. The package must be renegotiated. It includes a clause to the effect that, the longer one's service, the more one is penalised. The current agreement is not fair or just and needs to be re-examined. Will the Government play a part in ensuring that happens?
Comment on this
I recognise Deputy Lowry's concern for the individuals who are caught up in this situation. The Minister has stated that he is examining the recommendations of the unions, Deputy Lowry and other Deputies and is open to exploring a range of options. The suggestions that the Deputy is making today will be taken on board by the Minister.
Regarding redundancy, I expect the Minister will discuss the matter with the Minister for Public Expenditure and Reform with a view to examining the precise circumstances of the individuals involved. The Minister, Deputy Naughten, will be familiar with the matter, but it is one for the Minister for Public Expenditure and Reform.