Management and unions at Tara Mines in Navan will meet next Tuesday morning to explore the possibility of an alternative to laying off 700 staff.
All employees at the Co Meath zinc mine were yesterday issued with protective notice of temporary lay-offs, which will begin from November 17th.
A statement was issued yesterday by the management of Tara Mines announcing the layoffs but it did not specify any period of time for a return to work.
"Temporary lay-offs will commence from end of day shift on Saturday, November 17th, 2001. In the coming week a detailed plan and schedule of these lay-offs will be advised to all employees", the statement said.
SIPTU branch secretary Mr Christy McQuillan said the meeting with management would take place with a view to exploring alternative and less drastic measures to the crisis in the interests of the workers and the wider community. He added that he was certain management would be willing to listen to any ideas.
"Without raising anybody's expectations, we in the union will be putting our thoughts together and exploring if anything can be done to prevent this disaster", he said.
The company stated that the board of Outokumpu Oyj in Finland had taken the decision following consultations with the board of Tara Mines and local management.
"In the coming months Tara Mines Ltd will review the situation on an ongoing basis. Operations will resume as soon as market conditions allow the mine to become viable", the statement said.
The company attributed the decision to the downturn in global economic conditions and the resulting low base metal prices. It stated that the price of zinc was approximately $750 per tonne, which was the lowest in real terms since commencement of operations in 1977. At current prices the operation was losing in excess of €3 million per month.
Tara Mines Ltd was wholly-owned by the Outokumpu Group and, according to its statement, the company contributed almost £50 million per annum to the local economy and was the largest single employer in the town.
In a statement, SIPTU said its members were devastated by the shock announcement. Management had indicated that the lay-offs would be for at least a number of months and could continue beyond that if the price of zinc did not significantly recover on a sustained basis.
"While these difficulties were widely known for some time, it was anticipated that a sustained recovery was possible. These hopes are now dashed as a result of the economic fallout unfolding from the events of September 11th last", it stated.
Mr McQuillan added that, apart from the effect on Tara workers and their families, the impact the loss of jobs and wages would have on the local economy in Meath and surrounding counties should be pointed out. The potential for job losses outside of Tara was real.
Yesterday, Mr John Bruton, Fine Gael TD for Meath, called on the Government to set up a Navan Mines task force to provide intensive services to all who lost their jobs, directly or indirectly, as a result of the decision.
The task force should concentrate on providing training and suitable employment opportunities appropriate to each individual case, Mr Bruton said.
He said it was the worst industrial news to hit Meath in the last 15 years. "Nearly 700 families will be directly affected, suffering a massive loss of income. Jobs in those supplying services to the mine will also be lost. Many of the people involved have been working in the mine for most of their working life."
Mr Pat Rabbitte, Labour TD, said the decision to shut down for even a few months was harsh. The company was well capable of carrying its loyal workforce for a few months. A less harsh accommodation could have been negotiated.
The decision also raised questions about the functioning of the early-warning unit in the Tβnaiste's Department, since this closure had come as a "bolt from the blue", Mr Rabbitte stated.
The closure of Tara, the largest zinc mine in Europe, which will cut supply by 200,000 tonnes a year, comes after other cuts totalling nearly 400,000 tonnes a year.