More than 160 jobs which were under threat in Co Clare may be saved after senior management at Element Six in Shannon secured agreement from its parent company for the implementation of a new survival plan.
Element Six, formerly known as De Beers Industrial Diamonds,announced last month that it was to close its manufacturing and distribution unit in Shannon, a move that would lead to the elimination of 370 jobs.
However, following two days of intensive talks, Element Six has given local management its full backing for the new plan which is aimed at safeguarding jobs at the Shannon facility.
The 163 jobs to be saved are in addition to the 80 that were unaffected by last month’s announcement.
The company said it has today advised all Shannon-based staff of the sustainability plan and of improved redundancy terms for those who will lose their jobs. The fund for affected workers has been increased from €6.5 million to €8 million, trebling the ex-gratia package per employee and providing a total redundancy payment of in excess of 4.5 weeks per year of service.
“We have won support from the company to build a renewed, sustainable operation in Shannon focused on the highest value elements of manufacturing and customer service. My management team has worked extremely hard over the last week to deliver a detailed plan to convince Element Six executive, so we are delighted with the outcome. It will require a comprehensive overhaul of our work practices and a strong productivity drive," said Ken Sullivan, general manager at Element Six in Shannon.
"Importantly, Government have committed additional support in the form of training grants and temporary wage subsidies to support the Plan for which we’re extremely grateful. Hopefully all parties can now work closely together to agree and implement the Plan quickly over the next few weeks to avoid the wind-down scenario," he added.
Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan and Shannon Development both welcomed the news this afternoon while Fine Gael paid tribute to senior local management who worked to secure the deal.
“There is no doubt that this stay of execution will be met with a sigh of relief by those who are set to keep their jobs. However, a grim reality still awaits a significant number of workers who are destined for the dole queue," said Fine Gael Clare deputy Pat Breen.
“While cost saving measures will no doubt be the order of the day at the Shannon facility, management and unions must continue to work to ensure that any increase in redundancy packages reflects fully the loyal commitment and dedication of the staff that has been given over almost 50 years. Furthermore fair and equitable treatment of the remaining 243 workers at the plant must be ensured when future employment contracts are being worked out," he added.
However, Siptu said today the company has refused to renegotiate the redundancy package being offered to workers. Siptu and the TEEU were seeking an improved deal.
Siptu spokeswoman Mary O'Donnell said the company is offering 2.5 weeks per year of service on top of statutory redundancy, with a cap of one year's pay. She said unions were also told workers they would have to apply for the jobs being maintained at the plant and the company will also be availing of the Government support scheme in relation to those jobs.
Ms O'Donnell accused the company of treating staff with "utter contempt". She said workers had no faith that the jobs to be saved were permanent "or anything more than a stopgap to take advantage of the Government subsidy scheme funded by the taxpayer".
"The sense of anger and betrayal in the workforce, many of whom have served through thick and thin, is palpable," she said. "The union committee has advised management that in the light of management failing to deliver on our agreed position, they cannot give any assurance of the cooperation of the workforce."
Workers are to hold a general meeting on Monday.
