Fruit of the Loom boss to brief Harney on impending job losses

The Tanaiste, Ms Harney will meet Mr Bill Farley, chief executive officer and chairman of Fruit of the Loom, on Monday morning to brief her on the expected job losses at the company.

Sources expect that Ms Harney will be told that about 700 jobs are to be lost at the company's Tshirt sewing facilities in Co Donegal. However, the precise extent and timing of any lay-offs is still not clear.

Mr Farley will finalise his review of the group's Irish operations over the weekend before the meeting. He spent yesterday touring the company's plants in Co Donegal and holding meetings with local management.

According to a spokesman for the company, the final details of the package to be presented to Ms Harney may not be agreed until Sunday evening.

The meeting in the Department of Enterprise, Trade and Employment will also be attended by the chief executive of IDA Ireland, Mr Kieran McGowan.

The company's staff will also be informed on Monday about the job losses.

According to a spokesman for the Department, Ms Harney will be looking to minimise the scale of the job cuts and ensure a fair redundancy package is agreed between management and unions. Fruit of the Loom said yesterday that a redundancy package would not be announced on Monday and several weeks of discussions between the company and unions would be necessary before one is produced.

An issue expected to be raised by Mr McGowan are the grants paid to Fruit of the Loom by the IDA. If substantial job losses are announced, IDA Ireland may ask the company to pay back more than £10 million in grants because job commitments would not have been met.

However, the amount of money the IDA will seek to have paid back will depend on Fruit of the Loom's plans for the remainder of its operations in the north-west.

A task force will be set up next week to find replacement industries for the area. An IDA spokesman there was a strong possibility of a call centre or shared services operation setting up in Donegal.

Meanwhile, some of the 200 employees at the Atlantic Mills denim company in Co Longford have been put on short-time working due to a "change in market trends in the denim industry".

The company refused to say yesterday how many of the workforce had been put on shorttime working and would not comment on whether job losses were likely.

Atlantic Mills has been beset by industrial problems in recent years.

Last year it was taken over by the Dutch company, Royal Ten Cate, which made 100 workers redundant as part of a major restructuring programme at Longford. Royal Ten Cate also closed the Atlantic Mills plant in Tullamore, Co Offaly.

A statement yesterday said the company "acknowledges the difficulties and speculation these changes give rise to".