Data centre lobbyist 'surprised' about report of Irish firm flouting European labour laws

Tom Parlon, a former head of the Construction Industry Federation, said he would be 'a bit cynical if a local trade union is on the act'. File photo: Sasko Lazarov/Rollingnews.ie

The chair of the Irish Data Centre Suppliers Alliance (IDCSA) has said he was “surprised” to hear of a new report highlighting Irish data centre supply companies flouting European labour laws.

A recent report from the Guardian and Investigate Europe highlighted the case of 83 Romanian migrant workers contracted to Irish company BenBau at a Microsoft data centre development site in Gävle, Sweden.

In October, the workers reached a €1.3m settlement with BenBau after living in overcrowded living quarters with vermin infestations and substandard heating.

Tom Parlon, chair of the IDCSA, which lobbies for data centre supply companies, said he was unaware of the recent report or of the company BenBau when approached by the Irish Examiner.

Mr Parlon previously told an Oireachtas committee on Artificial Intelligence he was “absolutely” confident that Irish data centre companies were adhering to labour laws while operating abroad.

People Before Profit TD Paul Murphy called for Mr Parlon to return to the AI committee in light of the report.

The workers in the report were working under BenBau at a 130-hectare data centre construction project in Gävle. Due to the conditions of their living quarters, one worker caught a case of active tuberculosis that spread among the camp.

BenBau is based in Berlin and founded by Irish man Barney Mathews. BenBau was subcontracted at the Gävle development by Irish construction heavyweights Collen Construction.

Mr Parlon, a former head of the Construction Industry Federation, said Collen would have a “really superb reputation as being a very reputable company".

The case against BenBau was handled by Swedish union Solidariska Byggare. While Mr Parlon caveated his lack of knowledge on the particulars of the given case, he said he would be “a bit cynical if a local trade union is on the act". 

“It would not be unusual for unions in foreign countries to take a pretty negative view of Irish subcontractors coming in and doing a lot of that work. Generally, they take a fairly negative view…but if it is found to be proven in courts," Mr Parlon said to the Irish Examiner.

“But there is quite a substantial bias against foreign companies moving into another jurisdiction and taking over a lot of the work. I'm sure it's unacceptable to Collen. I'm sure they will deal with it.” 

At a previous Oireachtas Committee on AI, Mr Parlon told Mr Murphy he was confident all Irish data centre supply chain companies were following European labour law.

“They are obliged to be in compliance and are under intense scrutiny, so I expect that they are,” he said. Later, Mr Parlon said he was aware of allegations raised against one Irish company by a number of unions, allegations he said were substantially contested.

In response to queries from the Irish Examiner, BenBau said it “stringent” health and safety management procedures based on international best practice.

The company disputed that there was a TB outbreak in the working quarters, and said it was confined to one case. BenBau said the €1.3m settlement related to historical payroll matters.

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The Guardian/Investigate Europe report also referenced Dornan Engineering, an engineering firm with offices in Little Island, Co. Cork. 

One interviewed worker, who was employed with a contractor overseen by Dornan Engineering, sustained heavy injuries and nearly lost his life following an electrocution in a workplace accident.

BenBau, Collen Construction and Dornan Engineering were all approached for comment.