Covalen Workers Vote to Strike Over 720 Job Cuts on Meta Projects
Covalen workers voted to strike on May 15 and 22 over 720 job redundancies on Meta projects. The dispute centers on inadequate redundancy terms, with many workers not qualifying for statutory payments despite CPL Resources' profits. The union demands fair consultation and enhanced packages, citing a "humanitarian and social crisis" for affected employees.
Workers at Covalen, an outsourcing tech firm, have voted to strike on May 15 and 22 after the company announced 720 jobs on Meta projects are at risk of redundancy. Dublin-based Covalen, owned by CPL Resources, provides AI annotation and moderation services to Meta, which is cutting its global workforce by 10% (8,000 jobs) to increase AI automation spending.
Over 100 of the 300+ Communications Workers’ Union (CWU) members at Covalen voted for strike action. This follows previous strikes in January over layoffs affecting 300 employees. The ongoing dispute concerns redundancy terms, pay, conditions, and union recognition. Staff also plan a protest outside the Dáil, urging government protection for tech workers amid rising layoffs.
Covalen’s proposed redundancy terms mean about 400 workers, including 58 nearing the two-year employment mark, will not qualify for statutory redundancy, which requires two years of service for two weeks' pay per year (capped at €600/week). This is despite enhanced redundancy packages being standard in the Irish tech sector, offered by firms like Accenture and Genpact. CPL Resources reported a €26.1 million profit in 2024, up from €23.6 million in 2023.
The CWU demands formal collective consultation and engagement with employee representatives. They dispute Covalen’s claim that the 30-day statutory consultation began on April 27, as representatives met management a week later. The union will escalate the matter to the Workplace Relations Committee and Labour Court if necessary. Workers also seek information on compensation Covalen receives from Meta for reduced or lost contracts. CWU organiser John Bohan highlighted that AI workers earn around €32,000, and without enhanced redundancy, many face severe financial hardship.