CWU warns over AI amid fears for Covalen jobs

The Communications Workers' Union (CWU) fears artificial intelligence (AI) is decimating jobs amid concerns that 720 jobs are at risk at outsourcing firm Covalen, which provides services to social media giant Meta. CWU members at Covalen are due to strike on Friday in a dispute over union recognition and redundancy payments for staff facing job losses. Union General Secretary Seán McDonagh said the case may be the tip of an iceberg in respect of disruption that AI may bring to the economy. Covalen workers 'being forced on to the picket line' Mr McDonagh believes that the current redundancy system leaves workers with too little protection and compensation. "The effects of AI on jobs are happening now. The tech sector in Ireland is undergoing profound changes and workers in this sector clearly see that the answer to this uncertainty is to organise and unionise. "They [Covalen workers] are being forced on to the picket line in pursuit of union recognition and fair redundancy payments for the 720 staff threatened with job losses," Mr McDonagh said. In a statement, a spokesperson for Covalen said the company continues to proactively consult with and support the affected teams through this transition. "We also continue to follow the required processes in line with our obligations. All employees have access to our employee wellbeing support through Covalen’s Employee Assistance Programme," the spokesperson added. The CWU is seeking urgent meetings with the Taoiseach and Minister for Enterprise Peter Burke to assess the effects of AI on jobs, and to establish the rights of workers to organise, including a right of access for union membership. Housing, pressure on health services and the cost of living are expected to be to the fore of the CRU’s biennial conference in Sligo over the next two days. The union represents workers in a diverse range of companies including An Post, DPD, UPS, Eir, Vodafone, Cornmarket, KN Circet, Microsoft, Accenture, Meta, Google and Covalen. Mr McDonagh said recent fuel protests reflected real frustration, but he believes that parts of the campaign were overtaken by racist and divisive voices. "While the frustrations of most fuel protestors were clear and justified, their campaign was highjacked by racist elements. "Their message is rooted in division and ignorance. Instead of confronting the real causes of economic hardship they attempted to redirect anger towards migrants and the most vulnerable," he said Mr McDonagh accused the Government of having "pandered to the demands of business and organised economic interests" and having "failed to implement fairer and broader measures to help all working families." The CWU will shortly begin negotiations with Eir on a new pay agreement to the current agreement which covers the period 2024 to 2027 The conference is expected to welcome a new two-year pay agreement at An Post that commenced on 1 January which provides for a 5% pay increase. The pension scheme at An Post is subject to a Pension Accord which limits annual increases to 2% or the rate of inflation as determined by the Consumer Price Index will also be discussed. Pension increases are subject to actuarial review and require ministerial approval. The CRU believes that ministerial approval requirement dates to when these companies were in public ownership and is "well past its sell-by date". 'The cause of unacceptable delays and hardships' Mr McDonagh said the matter should be eliminated as he described it as "the cause of unacceptable delays and hardships" for their members who are pensioners. He believes that An Post continues to operate in a highly challenging and dynamic market, adding that letter volumes have continued to decline while parcel volumes soar. "An Post is operating at, and over, its capacity. This is having very real impacts on our members who are being forced to work longer hours and under intense pressure. "This was highlighted once again by the collapse of Fastway and the impact of their undelivered mail and parcels on the An Post system." Mr McDonagh believes that the existing delivery system is no longer fit-for-purpose and has called for "a new approach" which the CWU is pursuing with the company. He said while postal services are under threat across Europe and globally, they remain at the heart of public service and functioning economies and added that the public service obligation postal services should be protected. Read moreFears for hundreds of jobs at outsourcing firm CovalenWorkers at outsourcing firm Covalen to take strike action
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