A MAJOR management reorganisation is being discussed at Fruit of the Loom in Co Donegal, under which Mr Willie McCarter may step down as chief executive. Fruit of the Loom is the biggest employer in the north-east, with 3,000 employees in the Inishowen peninsula.
Mr McCarter (49), along with up to two other senior executives, may be involved in the reshuffle, believed to be under discussion at the company's Fruit of the Loom parent in Chicago.
Mr McCarter, who is chairman of the International Fund for Ireland (IFI), is understood to be keen to devote more time to the fund, and may take up a non-executive role, such as chairman, at the Irish clothing manufacturing business.
The multi-national, stated yesterday that no decisions whatsoever which affect senior management in Ireland have been taken at this time". It is understood, however, that if the changes are agreed, a formal announcement would be made shortly and would come into effect over the coming weeks.
Some of the senior executives involved in the re-organisation are understood to be in the US currently, where the changes are being discussed.
Sources say the US Government is believed to have recently asked Fruit of the Loom to release Mr McCarter on a part-time basis to increase his involvement in the IFI, the development fund set up by the British and Irish governments for the Border counties in 1986. The company is understood to have agreed to this request.
Fruit of the Loom's Irish plants at Donegal and Derry manufacture underwear, sportswear and other apparel for the European market.
The company has been forced to introduce short working hours for its staff over the past couple of years in response to a slump in its sales. Last year, its staff in Donegal and Derry were put on a three-day week for around six months, but were subsequently returned to full working hours in January. Similar short time working arrangements were also introduced in 1995.
The company is currently understood to be trading well, and trade union officials were recently assured by senior European and US management that there would be no return to short working hours, at least for the rest of this year.
Tensions are reported to have emerged between the Irish and European operations over the past couple of years, following the slump in demand for its products in its main European markets, with both sides in disagreement over the reasons behind the poor sales performance.
The Irish business, while dependent on the European arm to distribute its products, is known to be more closely aligned to the US operations, and works closely with Fruit of the Loom's US chief executive, Mr William Farley.
Fruit of the Loom currently owns 100 per cent of its Irish operations, having bought into Mr McCarter's family textile business in Donegal in 1987. The group initially bought a majority stake in the WP McCarter companies, and has gradually raised its stake by buying-out various members of the McCarter family.
The McCarters' business was set up in Buncrana more than 60 years ago. The Fruit of the Loom operations now include two factories in Donegal and Derry, and a number of sewing units throughout Co Donegal.
Fruit of the Loom employs 33,000 people worldwide, 22,000 of which are based in the US. Its financial results for the first quarter of 1997, report a 1 per cent fall in sales to $501 million (£330.7 million), while pre-tax profits rose to $21.1 million.
