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Dáil
‹ Ceisteanna ar Reachtaíocht a Gealladh - Questions on Promised Legislation

Cork mail centre closure

Summary

Deputies Barry and Buckley attacked the closure of the Cork mail centre and its job losses, asking about the decision and a McKinsey report. The Tánaiste said An Post made the decision, outlined support measures for affected workers, and confirmed investment in Cork parcels infrastructure.

More than 200 households in Cork are hurting hard this morning. There is anger, upset and devastation. Last night's news of the closure of the Cork mail centre came as a bombshell for An Post workers. They have been told that this has to happen because the demand for letter delivery services has decreased by 7% year-on-year. However, demand for parcel delivery services has increased by 60% in the last two years. There is a real opportunity here for An Post has to diversify, to grow its business and to save jobs. It is madness to sell a major valuable premises and to axe more than 200 jobs when this opportunity is facing An Post. I ask the Minister to join me in calling on An Post to put this plan to one side - on the shelf - and to allow real negotiations between representatives of the workers and the company to see what can be done to diversify, to grow the business and to save the jobs and pay packets on which many households depend.

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On the same issue, I reiterate what Deputy Barry has said. I raised this in 2018 and the Government told us that nothing had been decided. From my own sources, I am worried that this was decided in 2017 when the McKinsey report was compiled. Is it possible for that report to be given to us so that we can see it? My sources say in the decisions to be made, Cork was not the priority for closure under this report. Can we get a copy of the report?

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Simon Coveney The Tánaiste Fine Gael

This is a very difficult day for An Post workers, their families and for the wider Cork area with confirmation that the mail centre in Little Island will have closed by March of next year. The closure will take place on a phased basis from September onwards. I assure the House that An Post and the Government will do everything possible to ensure each of the 240 individuals affected by the closure will be given every possible support. This decision was made by An Post, not by the Government and it is important to say that. I spoke to the CEO of An Post, David McRedmond, last night or the night before to seek reassurance on the terms and conditions and to try to understand why An Post has made this choice. Understandably, many people are very unhappy about it. It is important to give some reassurance to staff. The impact on the staff will be mitigated by a strong voluntary exit package for people who want-----

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Simon Coveney The Tánaiste Fine Gael

I will come to that.

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Simon Coveney The Tánaiste Fine Gael

If the Deputy listens for a second, I will answer the question. It is an important issue. Many families want to have information.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

The Tánaiste should be heard without interruption.

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Simon Coveney The Tánaiste Fine Gael

There is a strong voluntary exit package of six weeks' pay per year of service, up to a maximum of two years' pay. Redeployment opportunities within An Post networks in the Cork area are a real option. An Post employs over 1,000 people in Cork. Further reskilling and education grants of up to €3,000 per person are available. If people want to choose the option, there will be support and help in terms of a jobs fair and other outplacement supports. I asked the CEO the question that Deputy Barry asked. An Post is committed to investing over €15 million in parcels infrastructure in Cork over the next two to three years. I asked why the current premises could not be used to facilitate parcel delivery etc. I was told it simply is not suitable as a piece of infrastructure to do that in terms of scale and make-up. A very difficult decision has been made which was required of An Post in return for modest pay increases over the last number of years.

There have been and continue to be ongoing discussions with the Communications Workers Union representing the workers. The Government will monitor closely the supports available for the workers and the redeployment opportunities within An Post, in particular, but it will insist also that An Post follows through on its commitments in terms of the investments being committed to the next number of years.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

No supplementary questions are allowed. I am moving on to the Independents 4 Change group.

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I did not even get an answer to my question.

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Simon Coveney The Tánaiste Fine Gael

I could follow up on that.

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