Coca-Cola Atlantic has laid off more than 20 per cent of its workforce because of a dispute involving 16 craftworkers at its plant in Drogheda. If the dispute is prolonged all 265 employees are expected to be laid off before Christmas. Craftworkers at the plant have been on strike since December 1st, after the company unilaterally changed shift patterns for them at the plant.
The company said it did so because efforts to introduce new work practices had been frustrated by the men concerned over the past 10 months. Their union, the Technical Engineering and Electrical Union, denies this.
The company is one of Drogheda's largest employers and the annual payroll is worth about £10 million to the town's economy. Average earnings are £39,000 and the gross pay of the craftworkers is £45,000.
Coca-Cola has already issued protective notice to all its employees and yesterday it told 63 of them, mainly production operatives, that they were being laid off.
The company's director of external affairs, Ms Miriam Doyle, said later: "Loss of maintenance and repair support at the facility has slowed production capabilities". Staff in the areas most affected were being laid off, along with some service workers.
Contingency plans had been made to ensure continuity of supply to customers. There should be no shortage of Coca-Cola products over Christmas, she said.
On the dispute itself, she said the company was willing to attend the Labour Court to seek a resolution to the dispute. She also said the new shift patterns introduced last week were provided for in existing agreements with the union.
Most of the other employees at the Drogheda plant are in SIPTU, which has already agreed to accept a new "Plan for Change".