STAFF AT Galway engineering firm APW are to be briefed by management on Monday over its likely closure and the loss of 138 jobs.
APW Galway Limited, which makes parts for ATMs and other devices, has operated in Oranmore for 30 years. It was taken over by the US-based APW seven years ago.
However, the company has been struggling for some time, with 18 job losses in September.
Liam Dowdall of BDO Simpson Xavier has been appointed as receiver of the firm. He said "challenging market conditions" had forced it into receivership. "We will continue to trade the business while we review all our options for its future."
It is understood that between 10 and 30 jobs may be retained in the short term to finish off orders but finding a buyer for the firm is unlikely in current market conditions.
Siptu shop steward Gary Mitchell said yesterday: "Technically, these jobs are not gone yet but I am expecting 138 people to lose their jobs on Monday.
"The normal procedure will be to look for a buyer in these situations but realistically I wouldn't be confident that one will be found."
The plant ceased operations yesterday morning but workers have been asked to return on Monday for an update on their positions. Details on the individual positions to be lost will be revealed at this meeting and there will be further clarification on the extent of job losses.
The company has met Siptu's Brendan Cunningham, who said statutory redundancy only would be paid to workers. There was no prospect for additional payments, he said, and workers may have to wait up to three months as the money will have to come from the Department of Enterprise, Trade and Employment fund.
"The company has agreed to expedite P45s and we will be in touch with the Department of Social and Family Affairs to see how they can assist members during the interim," Mr Cunningham said.
Statutory redundancy payments amount to two weeks pay per year of service to affected workers.
APW Galway is part of a US- owned multinational which has been selling off its plants around the world over the past number of years. Management of the Irish factory tried unsuccessfully to buy out the operation two years ago.
Labour TD for Galway West Michael D Higgins said the news that the company had been put into receivership was a shock to workers. He said State agencies must ensure the best possible outcome.
The IDA, Enterprise Ireland and the Department of Enterprise, Trade and Employment should put together a working group to identify companies that may be facing difficulties, he continued.
"Unfortunately these job losses are just the latest in a growing list of redundancies," said Mr Higgins.
"With almost 252,000 on the live register in real terms . . . it is clear now that unless some action is urgently taken, we are again going to see 300,000 again on the live register, a figure not seen since the 1980s."
