Job Losses
Dail Éireann — 2026-06-24
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Alan Dillon (FG), Mayo

I thank the Deputies for bringing this important matter to the floor the Dáil. As they are aware, on 27 April 2026 Covalen informed its employees of 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 concern, 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 it is aware of the full range of IDA supports available at this time and will continue to do so. IDA Ireland has established an internal process for managing potential job-loss situations with its client companies. In respect of impacted employees, the IDA is proactively engaging across its client base to identify potential redeployment opportunities where there is a skills match. The IDA has also facilitated connections between interested companies and company representatives, and this work is ongoing.
On the broader comments, I will talk to Deputy Gibney’s point regarding the Government’s publication of the action plan on collective bargaining, which has been welcomed by the social partners. That is currently being implemented to ensure that employees’ and employers’ voices are recognised. The situation also raises a broader issue which was mentioned - the impact of artificial intelligence and technology on the changing labour market and on jobs. I think we need to be clear and honest that artificial intelligence is a transformative technology with significant potential for Ireland's economy and competitiveness.
Equally, there is a challenge in that we are all trying to predict how work will evolve. We recognise the very real concerns about job displacement but the evidence suggests that AI is more likely to augment jobs than replace them. We will see some displacements, which is natural, but the nature of work will also change significantly. That is why Government policy is very much focused on preparing workers for that transition. We have published the national digital and AI strategy which is very much focused on how we can invest in upskilling and reskilling, and how we can support workers to adapt and ensure Ireland continues to remain competitive in a changing global economy.
We must deal with the immediate impact of job losses while also preparing for the long-term transition of work.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-06-24/debate/main
Retrieved: 2026-08-14T04:55:06+00:00
Sitting date: 2026-06-24