84 jobs lost at Unilever as company opts for local distributors

Some 84 staff at Unilever Ireland are to lose their jobs, the company said yesterday.

Some 84 staff at Unilever Ireland are to lose their jobs, the company said yesterday.

Unilever, an Anglo-Dutch consumer goods company, said most of those to be made redundant would be van drivers who deliver ice cream and frozen foods from centres around the country. A small number of administrative staff in Dublin and Roscommon would also be affected.

The largest number of job losses will be in Roscommon (19), Cork (15), Limerick (13) and Kilkenny (9), while 24 drivers will be let go between Wexford, Dundalk and Tullamore.

Four administrative staff in the head office in Dublin will also lose their jobs.

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Affected workers were told the news in five briefings in Dublin, Cork, Mullingar, Clonmel and Dundalk yesterday.

The company told the staff the losses were the result of its decision to transfer distribution from its in-house van fleet to independent local distributors in all areas except Dublin.

Chairman of Unilever Ireland Paul Murphy, said it was no longer economically viable for the company to maintain a van fleet anywhere except in Dublin.

"We have taken this decision following an extensive review of our current distribution arrangements.

"Unfortunately, given the increasing trend towards centralised distribution, and the corresponding shrinkage of our direct-delivery customer base, it is no longer viable to maintain a national distribution fleet," Mr Murphy said.

However, he said customer density in Dublin would mean that the company's fleet in the capital would be retained.

"It is important for the business that we make this change now in order to secure our continued investment in the Irish market."

A spokeswoman for Unilever said last night that the changes would be phased in over the next 12 months, and that the company would make every effort to secure new jobs with local distributors for the affected workers.

"As part of the discussions with independent distributors, that will be the first item on the agenda.

"The company will be seeking assurances on that during any negotiations," the spokeswoman said.

Unilever Ireland, which counts HB ice cream, Lyons tea and Dove among its brands, last November reported a 22 per cent drop in operating profits to €27.5 million.