An engineering company in Co Clare has closed with the loss of almost 90 jobs after workers overwhelmingly rejected management proposals for cost-cutting measures which could see staff lose bonuses already earned.
Mohawk Europa Ltd, a tool-making company based in Shannon since 1963, served notice last month it would be seeking redundancies from the beginning of August. Mohawk had incurred financial losses over the previous number of months and had been in negotiations with union representatives over a survival plan.
Siptu said staff had no faith in the future of the company and would not forfeit bonuses already earned.
Branch organiser Mary O'Donnell said: "Having put company proposals to workers on Tuesday afternoon relating to redundancy payments, the removal of service-related bonuses and changes in work practices, we held a ballot and the package was overwhelmingly rejected.
"Many workers had between 20 and 30 years' service with the company and they were not willing to see their well-earned bonuses forfeited.
On top of that, workers had no faith in the future of the company and were not willing to work more for less money."
In a statement Mohawk spokesman said the company started to incur unsustainable financial losses over the last number of months.
"The company attempted, without success, to offset these losses with a programme of short-time work, where labour hours worked would match the incoming order level."
The spokesman said: "As a job-saving measure, the company proposed a survival plan to its employees, which was rejected."
Conciliation talks with the Labour Relations Commission set out to detail what was possible "and encouraged both sides to consider that position constructively as a means of securing future employment in the company. The workforce rejected this proposal and the company has no other option but to cease trading," the statement added.
Mayor of Shannon Seán McLoughlin said he was bitterly disappointed that management and staff could not sort out their differences and keep the company afloat. "This is a massive blow to Shannon town. Mohawk has been in Shannon for over 40 years and has been a good employer."
Shannon councillor and mayor of Clare Patricia McCarthy said she was "extremely concerned and disappointed" that a liquidator had been appointed.
She appealed to the liquidator to do everything possible to save the maximum number of jobs.
Management at the Quinn Packaging Plant at Newbridge, Co Kildare, will begin discussions with employee representatives after the Quinn Group announced the closure of the plant with the loss of 41 jobs. The plant has been in operation since 1987.
The company said the decision followed a review of the operation, which found it was not economically viable in a competitive global market. The plant will continue some operations until the end of the year, but most of the jobs will go by the end of October. The Quinn Group, in a statement, expressed "appreciation of the work carried out by management and staff over the years".
However, Siptu branch organiser Adrian Kane said workers were angry at the closure and would be seeking "a generous redundancy package" in negotiations with the company.