A SENIOR union representative at industrial diamond firm Element Six said last night he expects “a vast amount of job losses” at the company, even if management’s rescue plan is successful.
Siptu shop steward Murdoch Gleeson was speaking yesterday after emerging with colleagues from a meeting with the general manager at the plant, Ken Sullivan. Last week, the Element Six group announced the closure of the Shannon plant’s manufacturing and distribution facility with the loss of 370 jobs.
However, prior to yesterday’s scheduled meeting with union representatives, local management announced they are to put in place a rescue plan to save as many jobs as possible. The management team received approval on Tuesday from London-based chief executive of the Element Six group, Cyrus Jilla, to submit a detailed plan to prevent the shutdown of production at Shannon and the loss of the 370 jobs.
The plan is to be submitted to the Element Six executive committee next week.
In the latest figures available, they show that in 2007, 71 per cent or $358 million of Element Six’s global revenues of $500 million were generated at its Shannon-based company. Yesterday, Mr Sullivan said: “We aim to save as many jobs as we can. There will have to be losses unfortunately, but that is our intention – to save as many jobs as possible.”
Mr Sullivan added: “We are going to work very hard on preparing that plan over the coming week. He said: “When we have prepared it, we are going to go back and present the plan and if we gain acceptance for that plan, we are going to re-engage in the consultation process.”
Mr Gleeson said yesterday Mr Sullivan “appeared confident” over the prospects for the rescue plan. Mr Gleeson said, however, that Mr Sullivan “could not and would not” reveal to union representatives any details on what management intended to include in the rescue plan. He said: “It is frustrating that we are not getting any more information. As far as we are concerned, Armageddon for the workers here has been put on hold until next week. We still expect a large number of job losses and the main priority is to get an improved package for those workers.”
Workers yesterday met Mr Sullivan and other executives in a bid to improve the severance deal. The company is offering packages worth only a fraction of what was on offer six months ago in voluntary redundancy. With 21 years service at the company, Mr Gleeson said: “If I went six months ago, I would have received €100,000 and now I am due to receive only €35,000.”
He said: “The workers remain angry and confused as some who wanted to take the voluntary redundancy a few months ago were refused and told by management ‘we can’t do without you’ and now they are being offered a severance deal worth substantially less.”
Mr Gleeson was part of a worker delegation that met Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, earlier at Bunratty to air concerns over the Element Six decision and the redundancy package on offer. Speaking during a visit to Limerick, Ms Coughlan said that current labour and energy costs were having a “negative impact on our sustainability”.
The Tánaiste said the Government is “anxious to do all that it can” to help the midwest region where the rate of unemployment could rise to 20 per cent by next year, according to the findings of a report by the midwest taskforce established last February.