Element Six warns against strike

THE CHIEF executive of Element Six yesterday told workers that that if they engaged in industrial action, the company would consider…

THE CHIEF executive of Element Six yesterday told workers that that if they engaged in industrial action, the company would consider pressing ahead with shutting manufacturing down with the loss of 370 jobs at its Shannon plant.

In a letter to its Shannon employees, Cyrus Jilla also warned that in the event of a closure, the company might not make ex- gratia redundancy payments to workers because of the disruption by staff to the business.

Mr Jilla, who is based in London, said if there was a lack of co-operation with any wind-down operation, the company would consider if it could afford to meet its pension liabilities.

“The consequence may be reduced benefits, especially for current employees,” he said. Siptu branch organiser Mary O’Donnell last night described the threat to pension payments “as a new low”.

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The exchange occurred yesterday as the two sides agreed to enter third-party talks to resolve their dispute. Last Friday, Siptu and TEEU union members at the plant voted in favour of industrial action in response to the terms of the redundancy deal, which is lower than what Element Six offered workers six months ago.

The company is making 207 workers redundant, but is trying to preserve 163 jobs at the plant. In his letter, Mr Jilla accused some workers of showing no interest in consulting the company in its rescue plan and “only showing interest in the size of the package”.

“The message being sent to us by some of you is that these long-term jobs and plan are not wanted,” he said.

“The sustainability plan is a very positive development for long-term jobs for Shannon and the west of Ireland. It would be deeply regrettable if reckless actions derailed the plan for misguided short-term self-interest,” Mr Jilla said.

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times