HEALTHCARE GIANT GlaxoSmithKline has said it remains committed to its Irish operations despite announcing that 130 people are to lose their jobs in the next four years.
The cuts at the multinational’s two plants in Dungarvan, Co Waterford, were confirmed to shocked staff who were called to a general meeting with management yesterday afternoon.
Eighty-two people are to be made redundant in the next two years while 48 more jobs will be cut when the company shifts manufacture of some of its Panadol products from Dungarvan to Spain between 2012 and 2014.
About 570 jobs will remain in Dungarvan following the redundancies. The company is to meet union representatives today to discuss implementing the cuts.
Company vice-president and site director Mike Willison described the job losses as “regrettable” but said they were part of a cost-containment package aimed at achieving “significant savings” in overheads.
“Our aim is to remain focused on the long-term future of the site and ensure that we remain competitive,” he said.
Rumours about impending job losses grew in recent days and on Wednesday there was confirmation that management was calling employees to a meeting yesterday afternoon.
The announcement came following a restructuring review of operations at the company’s Dungarvan plants, which manufacture oral care products in one centre and painkillers at another.
Some of the over-the-counter medication made in the company’s Dungarvan base include Panadol and Solpadeine, while denture care items include Poligrip and Polident.
GlaxoSmithKline currently has more than 1,500 people on its payroll in Ireland – almost half of them in Dungarvan, where it is the area’s largest employer. Other employees are based in centres in Dublin, Cork and Sligo.
Following yesterday’s general meeting of employees, a number of departmental meetings were also held, while the trade union Unite, which represents about 500 of the staff, held a meeting of shop stewards last night to discuss the development.
Unite regional organiser Tony Kelly said staff were in shock. “This is a very difficult day for workers who have contributed without fail to the continued profitability of the company.
“The union will be using its meetings with management to try to prevent compulsory redundancies and determine the detail of the cuts,” Mr Kelly said yesterday.
“We will work hard to soften what is a terrible blow to those affected and to Dungarvan.”
Yesterday’s news comes just over three years after GlaxoSmithKline announced a major €30 million investment in its Dungarvan activities, with the addition of 50 new jobs.
Fine Gael TD for Waterford Paudie Coffey described the development as disappointing and called on the multinational to implement the redundancies on a voluntary basis.
“Solace can be taken from the company’s stated commitment to the long-term future of the site and the fact that the restructuring proposals are to be subject to employee consultation.”
Labour TD Ciara Conway said she sympathised with those losing their jobs. “I will be working with my Labour Party colleague Seán Sherlock, Minister for Research and Innovation, to see what mechanisms can be put in place to attract new industry to Dungarvan,” she said.