TDs urge Government to save jobs in Cork town

TDs in Cork have called on the Government to do everything in its power to save jobs at the Leeside branch of an international cloud computing firm.

Staff at VMware in Ballincollig were recently made aware of a “consultation process” which could result in redundancies following the US-based firm’s takeover by US semiconductor company Broadcom.

It is understood VMware currently employs approximately 1,000 people at its Ballincollig site.

Adding to the concerns of staff is the apparent trend of reduncencies across the firm since the takeover was completed. Since Broadcom acquired VMware, the company’s overall staff has fallen from 42,000 to 39,000 with staff in the US and India having already been made redundant.

It has been reported that Broadcom has a history of acquiring companies and then promptly cutting costs through redundancies and other means.

Commenting ahead of a Dáil Éireann debate on Tuesday, Socialist Party TD for Cork North-Central, Mick Barry said: “It's terrible that these workers have all this hanging over their heads this Christmas.

“The pay packets at VMware go towards feeding a lot of families and paying a lot of mortgages.”

Speaking in the Dáil later that day, Deputy Barry asked if an Taoiseach Leo Varadkar would ensure that Minister for Enterprise, Trade and Employment, Simon Coveney would engage with the firm’s new owners.

Deputy Barry said it is important that Mr Coveney “impresses upon them that each and every one of those jobs is important to the workers and their families, the town of Ballincollig, and the wider community in Cork city”.

Responding to Deputy Barry’s request, Mr Varadkar said he would speak to Minister Coveney on the issue.

“I know he will want to take a particular interest in it, it being in Ballincollig, not too far from him,” said the Taoiseach.

Also calling on Minister Coveney to take action was Sinn Féin TD for Cork North Central, Thomas Gould who wrote to the minister asking that he do all he can to save jobs at the firm.

“The past number of years has seen significant volatility in the tech sector, and this latest development will be of huge concern to the company’s workforce in Ballincollig,” said Deputy Gould.

"VMware announced investment in their Irish operations only last year to increase the number of people they hire in Ireland.

“This investment was supported by the IDA,” he added.

Sinn Féin local area representative for Ballincollig, Joe Lynch, said: "VMware is a major employer in Ballincollig and these jobs are very important for the town.

"As an IDA supported company, it is incumbent on the Government - particularly given we have a Cork-based Minister for Enterprise in Simon Coveney - to engage with VMware to do everything that can be done to retain jobs locally,” added Mr Lynch.

The Cork Independent reached out to VMware/Broadcom for response but none was received by time of going to print.