Tech layoffs and union recognition
Deputy Barry raised job losses in the tech sector and called for mandatory trade union recognition, arguing that non-union workplaces and billionaire owners were part of the problem. The Tánaiste offered reassurance to affected workers on redundancy and consultation rights, but said he had no update on the recognition issue and that the relevant tax case was for the Minister for Finance.
The tech industry epitomised cool capitalism's 21st century messaging: “Hi, come on in. Have a job. Pick a desk. Unions? No need for unions here. No need for workers’ organisation. Yes, we are a company, but we are more like a family, so welcome to the family”. Behind hype, there is always a reality. Some of the realities behind this industry’s ruthless billionaire owners’ hype have, unfortunately for the workers concerned, become increasingly clear in recent weeks. In this country, it seems that 350 jobs are to be lost at Meta, 250 jobs are to be lost at Twitter, 80 jobs are to be lost at Stripe and maybe 30 more are to be lost at Zendesk. A total of 700 jobs have been axed or are to be axed and the number is rising. Of course, tens of thousands of jobs are to be massacred in the name of profit internationally. At Twitter, workers were locked out of their jobs and received notice of sacking by e-mail. Despite the fact that unionised Debenhams workers were also sacked by e-mail, one national newspaper commented, I think correctly, that, "The manner in which people are being told of their redundancy has turned a harsh light on the tech industry's union-free labour practices".
I want to offer my sympathy and my solidarity to tech workers who have received blows in recent weeks. Tech workers now need to challenge the industry’s union-free practices. Tech workers need to organise. Any tech worker who wants to discuss organising is free to contact my office and I will offer whatever help and advice that I can. The union-free practices of the tech industry and the billionaires who own it have been greatly facilitated by this Government and its predecessor, and perhaps by no other Minister to the same degree as the Tánaiste. He is the Minister for Enterprise, Trade and Employment, but despite the fact that in nearly all European countries there is legislation in place that came about as a result of pressure from below which provides for mandatory trade union recognition, there is no such legislation in place here. The Tánaiste says that legislative changes are on the way, but will they amount to full mandatory trade union recognition? Given the events of recent weeks, will the Tánaiste accept that Governments have facilitated these union-free practices and the poor treatment of workers seen in this country in recent weeks and that now is the time for far-reaching change and for mandatory trade union recognition?
Comment on this
I want to say at the outset that my main concern and that of the Government is for the staff and family members of the staff who are affected by the recent announcement of job losses in the tech sector. It is something that I have been working on with my colleagues very extensively in the last couple of days, as I am sure the Deputy can appreciate. I can give those staff the reassurance that their legal rights will be protected, there will be 30 days of information and consultation, they will receive statutory redundancy payments and, in almost all cases, they will receive enhanced redundancy packages and exit packages. I also want to reassure them that the Government will help them out as best we can, for example with jobsearch to find new opportunities.
It is good to hear today that Microsoft, for example, is still hiring. It was good to hear yesterday Virtuous Technologies is creating additional jobs in Dublin 8. This sector is still hiring, even if some companies in the sector are letting people go. We are there to help anybody who wants to set up their own business, wants to return to education or training or needs to know what their welfare rights are. I want to give that assurance particularly to all those staff who are getting bad news this week.
There will be further layoffs in other companies in the coming weeks. We are not aware of the details of that, but it is likely to happen down the line. It is important to acknowledge it is the case that, generally speaking, people who are members of trade unions have better pay, terms and conditions than those who are not. However, the tech sector, which is largely not unionised, has better pay, terms and conditions again. These are some of the highest-paid sectors, some of the best-paid jobs and some of the best benefits. In one company, four months of paid paternity leave are provided, which is a positive thing. It is important to put on the record that these are good companies and good employers. They pay well. They have terms and conditions that are much better than would be the case in the average employer. This is one of the good reasons we welcome their investment in this country and we want it to continue.
In relation to legislation for collective bargaining, as the Deputy knows I published a report on that matter in the last few weeks. It derives from an EU directive on minimum wages and the need to increase collective bargaining coverage in the State. That report has been published and we anticipate being in a position to respond to it and to publish legislation next year.
Comment on this
The Tánaiste pointed out that workers in trade unions enjoy better pay, terms and conditions. He argued that the tech sector is non-union and goes higher again. Of course, one of the reasons it goes higher again is precisely to keep out trade unions. The Tánaiste gave various reassurances to tech workers, but he did not give them the reassurance that I asked for. Although we will have legislation next year, as the Tánaiste said, I asked for legislation that provides for mandatory trade union recognition.
Of course, the actions of the tech bosses raise the question of whether this industry should be run by billionaires in the interest of profit in the first place, or by society in the hands of society. It also raises the question of the cosy relationship between right-wing government and those companies. To that end, I have a supplementary question. Press reports this summer told us that European Court of Justice hearings were expected by Department officials to take place this autumn, paving the way for a final ruling next year on the Apple tax case. Incredibly, the Government is still objecting to the State being awarded nearly €14 billion in taxes owed to it. Can the Tánaiste update the House on the position now with regard to the timing of those European Court of Justice hearings?
Comment on this
That is a valid question. I do not have an update on the timing in relation to those cases. That matter is handled by the Minister of Finance rather than me as Minister for Enterprise, Trade and Employment. Let us state the facts here. The European Court of Justice decided against the European Commission. The European Commission, or at least one directorate of the European Commission, alleged that 20 years ago, long before either of us were involved in the Dáil, the Irish Government at the time had a special tax arrangement for one particular company. The reason we contested that case was because it was not true. It was not true and truth does matter. The European Court of Justice heard the arguments and ruled in favour of Ireland. Yes, we have a low-tax regime and low taxes on company profits. We encourage research and development. That is absolutely the case. The allegation, which was a false one, was that we had a special arrangement with one company. The court decided in our favour and now it is on appeal.