Fruit of the Loom looks set to announce significant job losses in the north-west next week, following confirmation yesterday that many of its employees are to move on to short-time working.
The company, which employs 2,800 workers in six factories across Donegal and in Derry, said that 1,100 of its employees would be put on a three-day week.
It also confirmed for the first time that it is considering "plans to close some of our T-shirt sewing facilities".
While no final decision has been made, an announcement is expected shortly after chairman and chief executive, Mr Bill Farley, meets the Tanaiste, Ms Harney, next Monday in Dublin. Sources believe that 700 to 800 jobs could be lost, although the timing of the lay-offs is uncertain.
The Tanaiste said in a statement last night that she was seriously concerned about the future of a "substantial number" of the jobs, and was continuing her efforts to "maximise employment" at the plants.
Referring to the decision on short-time working, Mr Joe Mullan, the firm's director of manufacturing, said: "We are taking this step reluctantly, but we are suffering from excess inventories (stocks) at present due to difficult market conditions. At this stage, Fruit of the Loom expects to return to full-time working by this year end," he added. The company said 1,100 employees would be affected, but employees fear the total could be higher.
Meanwhile, trade union activists said the company's move was very worrying. "We expect an announcement next week, and I'm not going to pretend I expect good news," said Mr Sean Reilly, SIPTU's secretary for Donegal.
The company has already announced that it will close one of its smaller factories, at Dungloe, with the loss of 53 jobs, and Mr Farley is already in Donegal for a round of high-level meetings.
Fruit of the Loom is likely to keep the more profitable, less labour-intensive, parts of its business in Ireland, while relocating the rest elsewhere, probably to Morocco. Irish T-shirt workers earn about £200 a week, while their Moroccan counterparts earn the equivalent of just £40.
But while this fact puts pressure on up to 1,200 jobs at "satellite" factories at Raphoe, Malin Head and Milford, as well as at some operations in Buncrana and Derry, less labour-intensive parts of the operation look safe.