WELLMAN International is expected to lay off its entire workforce of nearly 500 tomorrow because of a strike by production workers. The plant, at Mullagh, near Kells, is one of the largest employers in the region.
The dispute is expected to be a long and bitter one, which could have a major impact on the economy of north Meath and Cavan. In two weeks the plant is due to close for its annual three-week overhaul. If no breakthrough occurs before then, the strike could last through the summer.
Production workers at the plant earn around £20,000 a year and can receive up to £5,000 extra under a profit-sharing scheme. It is regarded as one of the most progressive employers in the region.
The dispute is over major changes in production at the plant, which would require the redeployment of about 35 of the 260 production workers. Many day workers are being asked to switch to 12-hour shill working.
The company says that no employees will lose earnings as a result of the changes and that they are essential to the plant's long-term viability. Last year Wellman invested over £5 million in the plant to increase its efficiency.
A subsidiary of Wellman Incorporated, New Jersey, the Mullagh plant is the largest single producer of its type of polyester and nylon staple fibres in Europe.
SIPTU, the union representing production workers, welcomed the investment package and said it would co-operate with changes.
But it has proved impossible for the two sides to reach agreement.
The company says that an independent Irish Productivity Centre study had confirmed that its own proposals were "fair and reasonable." The Labour Court has also endorsed the changes, which Wellman has now introduced unilaterally.
In a statement the company says that it greatly regrets the decision of SIPTU members to take strike action.
The investment programme and associated changes are needed to "enable Wellman to produce more sophisticated products in larger quantities and more efficiently than previously, thus limiting the impact of lower cost competition from suppliers of commodity fibres", it says.
The regional secretary of SIPTU, Mr Bob Brady, says that his members had begun operating the new system under protest and are undertaking industrial action only after exhausting all alternatives. He says the union is still available for talks.