Richard Boyd Barrett: Covalen layoffs warn of AI job crisis

Covalent is a window into the future for hundreds of thousands of workers in this country and across the world about AI replacing their jobs and then being made redundant by companies that have made enormous profits off the back of those workers and then leave those workers high and dry. In the case of Covalent workers, nearly a thousand workers gone over the last year, 720 recently, almost halving the workforce. They trained the AI to replace them and then they get left high and dry. Meta saying they can't work for another six months for any other company, so what are they supposed to do to pay the rent? Covalent, a wholly owned subsidiary of CPL, an Irish company that has contracts with the government refusing to even talk to their trade union. Now these are people who protect us from the toxic, often disgusting content on the social media as content moderators. They do an important job in our society and they're being treated like dirt. Many of them will walk away with nothing or statutory redundancy when they have made enormous profits for CPL and for Meta. Now the government shouldn't allow this and they should use the leverage of CPL contracts with the government to say you won't be getting any more contracts with us if you treat workers like dirt like this and it's in the interest of every worker to support CPL workers because this is the future for the rest of workers if Covalent get away with this. Can I firstly thank all the deputies for bringing this important matter to the floor of the Dáil. As you are aware on the 27th of April 2026 Covalent informed its employees its intention to reduce its workforce. My understanding is that the company has been impacted by a shift in client demand resulting in a reduction in the volume of services required and requirements to adjust operations accordingly. My first and most immediate concerns and that of the government is the potential impact on employees and their families during this uncertain time and in response the IDA has been engaging at a senior level with the company to ensure that they are aware of the full range of IDA supports at this time and will continue to do so. Indeed IDA Ireland has established an internal process for managing potential job losses situations with its client companies and in respect to impacted employees IDA is proactively engaging its client base to identify potential redeployment opportunities where there is a skills match. IDA has also facilitated connections between interested companies and company representatives and this work is ongoing. I think the broader commentary and I will talk to Deputy Gibney's point in regards to the government's publication of the action plan on collective bargaining I think that was welcomed by both the social partners and that is currently being implemented in regards to ensuring that employees and employers voices are recognized. I suppose the broader situation also the situation also raises a broader issue that was mentioned and that's the impact of artificial intelligence and technology on the changing labour market and on jobs. I think we need to be clear and honest here in the chamber that it is a artificial intelligence is a transformative technology with significant potential for Ireland's economy and competitiveness but equally there is a challenge that we are all trying to predict in regards to how work will evolve and indeed we recognize the very real concerns about job displacement because the evidence does suggest that AI is more likely to argument jobs than replace them. We will see some displacements and I think that's that's that's natural but I think the nature of work itself will will change significantly and that's why government policy is very much focused on preparing for workers for that transition. We have published the national digital and AI strategy and that is very much focused on how we can invest in upskilling and reskilling, how we can support workers to adapt and ensure Ireland continues to remain competitive in a changing global economy. We are and we must deal with the immediate impact of job losses while also preparing for the long-term transition of work. AI potentially threatens to do to hundreds of thousand workers what is being done to covalent workers that's why we have to act now and of course AI aside mass collective redundancies where companies refuse to talk to trade unions as is happening in this case don't consult with workers and dump workers high and dry even though they've made big profits we've seen that before we've seen it with Debenhams we've seen it in many circumstances and the government continue to allow it to happen. Demand these companies engage with workers and their trade unions and I repeat use the government's leverage with CPL to tell CPL, an Irish company, they can't treat workers like this and if they do they're getting no more government contracts for their contribution and let me reiterate that government fully understands the impact of jobs losses have on workers on our families and indeed on communities at the immediate in the immediate term we are very much providing the supports and these are being mobilized we're also engaging with the IDA our state agency in terms of redeployment and that is actively being pursued and engagement with the company is ongoing but looking beyond the immediate situation here we have recognized that technological change particularly AI will certainly reshape our labor market and we've been very clear on that and my department continues to monitor monitor this very closely and the impact it will have on our labor market we have engaged with the research from the expert group on future skill needs and that very much highlights the rapid growth of AI adoption in Ireland the strong demand for AI related roles and indeed the robust pipeline we have in terms of skilled workers that are emerging and I think that's really important to reemphasize but not withstanding the adoption that will be required and the significant challenges that that will present in terms of how that transition is managed and that's why we have funding very much future focused research on skills needs we're also supporting lifelong learning in terms of reskilling and monitoring the labor market in real time and we aren't being passive in this in this space we are very much engaging with the Department of Further and Higher Education with many industrial sectors and very much our responsibility is twofold support workers affected today but also ensure that workers are equipped for the jobs of the future and I think Ireland's workforce is ready to grow and thrive in an AI environment. Go raibh maith agat.