DETAILS of a task force to help replace nearly 400 jobs in Portarlington, Co Laois will be announced later today by the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney.
She will be travelling to the town to meet workers and management at the Avon Arlington Ltd plant which is to close next month with the loss of 300 fulltime and nearly 100 part-time and seasonal jobs.
Ms Harney yesterday expressed her "very great disappointment" at the announcement by the company early yesterday that it would be closing because of a decline in market share of Avon jewellery and cosmetics.
Reacting to the loss of some 600 jobs in Cork and Portarlington yesterday, an IDA Ireland spokesman said jobs in lower-skilled sectors of the economy would remain under threat in line with experience in all developed economies.
He said international experience was that 5 per cent to 7 per cent of manufacturing jobs were lost each year and in the Republic some 6,000 to 7,000 jobs would go yearly. This trend was likely to continue.
However, he said that in recent years job gains in higher technology sectors had greatly outpaced losses, leading to a challenge to increase the skill level of the workforce to equip it for employment.
At a mass meeting of staff in the Portarlington company canteen, the workforce was told that Arlington's production volumes of jewellery had been steadily decreasing since 1991, when total production was 10 million units.
Last year, volumes were 2.6 million units and Avon's market share continued to decline due to competition from developing markets. There were no indications of a reversal in this trend.
The staff were told of a decline in the volumes of the raw material soap, which had gone from 16 million units in the early 1980s to less than 4 million last year.
The company statement said the decision to close was unavoidable and in no way reflected on the ability of the workers, who it described as "dedicated, committed and flexible". It also spoke of excellent relations with SIPTU. "Avon is acutely aware of the impact this decision will have on the local economy and particularly the people of Portarlington. For this reason, and for the sake of the workforce, Avon will work with the IDA and other Government bodies to minimise the impact on our employees and on the community."
In her statement the Tanaiste said over the past 25 years Avon Arlington had been a major employer, providing high-quality employment in the area, and the announcement had come as a great shock to both its employees and the people of the town.
She said she had ordered an "immediate response" to the company's announcement with the establishment of a task force, which would include IDA Ireland, Enterprise Ireland, FAS, the social partners and local interests.
The SIPTU regional secretary, Mr Jack O'Connor, who described the closure as an appalling development for the workers, their families and the midlands, said he would be asking the Tanaiste why she had not reacted sooner.
"I will be asking the Tanaiste when she first became aware of the difficulties at the plant and what she did about it. I will also be seeking full details of what is going to happen in relation to redundancy payments.
"I will be asking her to establish contact with management in the United States to negotiate a package of measures to enable the survival of the plant with an alternative product range.
"We will, of course, seek a review of the decision to close but, failing that, we are calling on corporate management to make the plant available to the authorities here to support an alternative employment on a `rent free' basis for five to 10 years.
"Finally, we will seek a significant training subsidy to support the work of FAS in retraining and a good severance package for our members who have forfeited their employment."
Sen Pat Gallagher (Labour) said he would also ask the Tanaiste to say when she knew of the decision to close the plant. She had adopted a low-key approach to the problem when difficulties became known last week. She owed the people of Portarlington an explanation for the loss of the plant.
Fine Gael's Mr Charles Flanagan TD called for an acceptable and attractive redundancy package for the workers. He said a firm of consultants must be brought in immediately to arrange placement for the workers in other jobs.