Clonmel plant to close with loss of 135 jobs

The German clothing company, Schiesser, is to close its plant in Clonmel, Co Tipperary, with the loss of 135 jobs.

The company, which makes ladies underwear, intends to outsource its production to eastern Europe where wage rates are lower. The plant will officially close on April 2nd. The announcement is the latest closure among foreign-owned clothing companies operating here. The majority of them have outsourced their production to eastern Europe or north Africa.

Clonmel has already suffered a series of job losses, notably the closure of the Seagate plant last year when 1,400 workers were made redundant. The Tanaiste, Ms Harney, said yesterday the Schiesser closure was another "significant blow on the industrial front" for the town.

Ms Harney has asked FAS to immediately meet management and employees to undertake a detailed skills profile of the workforce. She pointed out that two companies - Guidant and Clonmel Healthcare - had plans to create 700 jobs in the town in the next few years.

The Government and IDA Ireland were informed of the closure by the company earlier this week and talks on a redundancy package are taking place next week with the union, the ATGWU.

Schiesser has been manufacturing in the Republic since 1966. It closed another plant in Carrick-on-Suir three years ago when up to 150 people were let go. At the time employees at the Clonmel plant agreed to changes in work practices to ensure its future viability.

The general manager of Schiesser Ireland, Mr Kieran Wade, said the "drastic internationalisation of world trade and a quickly changing competitive situation" were behind the closure. He said that in the last two years 700 production jobs have been lost at the headquarters of the company in Radolfzell, Germany.

The closure of the Clonmel plant is part of an overall European restructuring programme. Another 140 jobs are going in Germany later this year, said a company statement.

The decision to outsource production was because of a "stagnation in growth in west European markets and a dramatic shortfall in margin in traditional product areas", said Mr Wade.

Mr Pat O Neill, of ATGWU, said workers at the plant felt betrayed by the announcement. "They agreed changes in work practices and other concessions and they were told this would keep the plant open, but now they hear this news," he said.

He called on Ms Harney to reconvene the Clonmel taskforce to look for replacement industries as the "prospects for workers obtaining alternative employment look bleak". He said in recent years the town's industrial base had "collapsed" and its rate of unemployment had increased considerably.

The Labour Party TD, Mr Michael Ferris, said, "Tipperary has been a major loser in jobs terms in this age of the Celtic Tiger, so it is incumbent on the Tanaiste, the IDA and the other state agencies to pull out all the stops for the county."

Just over two years ago Schiesser decided to centralise its Irish operations in Clonmel by closing the Carrick-on-Suir plant, 13 miles away with the loss of 150 jobs. Mr Wade said it was a sad day for the workforce and for the town. He said that no blame could be attributed to an excellent workforce who met all production targets.

"Basically the garments can be manufactured in eastern European countries like Bulgaria and Romania for Schiesser for a third of the cost. We are a victim of the worldwide textile picture."