George Lawlor: Condemns Covalen 'toxic' redundancies

Go raibh maith agat Cathaoirleach, Cathaoirleach, the issue and Minister, the issue of mass redundancies in the tech sector is one that is very live at the minute. One of the companies that we're speaking about this morning is Covalin and the actions of this company have been far from savoury in terms of the treatment of their employees that they are making redundant. They've rejected calls for better severance packages and declined a request to start the process of voluntary rather than compulsory layoffs. The tech industry faces major, major structural issues as a result mainly of AI. We've seen it across the board. The actions of Covalin, however, are particularly sinister in the treatment of their employees. They're making bonus payments available as a gesture of goodwill, but these bonuses, for instance, had already been earned by the workers. Minister, I want to ask that given the pace of change in the tech industry, what new or expanded re-skilling programmes, particularly in the area of AI or cyber security and advanced digital skills, will be funded to help displaced workers transition quickly into high demand roles? This particularly given that the tech industry, and I know my colleagues will speak in particular about Covalin, but the tech industry is under attack from AI in reality. AI has many, many benefits, but in terms of redundancies in that industry, it is something that has to be seriously looked at by your department. Thank you for your look. Can I firstly thank all the deputies for bringing this important matter to the floor of the Dáil. As you are aware, on 27 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 a requirement 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. 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 recognised. I suppose 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 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 recognise 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 natural, but I think the nature of work itself will change significantly, and that's why government policy is very much focused on preparing 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. Minister, the treatment of the Covellum workers has been absolutely toxic. We have workers here who have been involved in the company who have made millions as a result of their work, and indeed moderating as Deputy Boyd Barrett alluded to, and yet we have this company treating its workers with such disregard to offer two-week statutory pay and say they're getting bonuses as a goodwill gesture, that they've already earned bonuses that were due to them anyway. The notion that we will allow a company to act in this manner, given the profits that they make, is absolutely disgraceful, and we have to, as a Parliament, be doing something about this. Further contribution, and let me reiterate that government fully understands the impact of jobs losses have on workers, on families, and indeed on communities. In the immediate term, we are very much providing the supports, and these are being mobilised. 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 recognised that technological change, particularly AI, will certainly reshape our labour market, and we've been very clear on that, and my department continues to monitor this very closely and the impact it will have on our labour 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 re-emphasise, but notwithstanding 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 re-skilling and monitoring the labour market in real time. And we aren't being passive 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 to 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.